New Delhi: NTPC Ltd, India's biggest power producer, has raised 500 million euros through overseas bonds sale that perhaps may be the first longest tenor euro- denominated issuance by an Indian company.
NTPC got bids for USD 2.4 billion, or nearly five times the targeted size, through euro-denominated bonds sale with 10-year maturity, the longest in the currency. Securities have been priced at 200 basis points over Euro Treasury.
"The 10-year bond has been issued at a coupon of 2.75 per cent with a yield of 2.814 per cent," the company said in a statement.
The proceeds of the bonds issue would be used for capex. This is the first ever 10-year Euro denominated bond issuance by an Asian utility issuer and also the first ever 10-year EUR transaction by an Indian Issuer. NTPC said the issue saw participation from more than 125 investors from across the globe.
This, it said, is the first "10-year EURO bond for BBB- Issuer from Asia-ex Japan" and the "longest tenor achieved by a BBB- Issuer from Emerging Markets since 2005."
Also, it is the first 10-year EURO bond by an Indian issuer, the statement said. Vedanta Resources had yesterday raised USD 1 billion through an offshore bond issuance. The company's five-year bonds were priced at a coupon of 6.375 per cent.
The proceeds from the bond sale will "pro-actively address the refinancing liabilities of the company over next two years," the billionaire Anil Agarwal-led firm had said in a statement.
Vedanta plans to use the proceeds from this offering primarily to fund its offer to purchase its outstanding USD 750 million, 9.50 per cent, bonds due 2018 and USD 1.2 billion 6.00 per cent bonds due 2019, and to repay its other existing indebtedness.
