NTPC Raises €500 mn from Bonds Sale

India’s biggest power producer, NTPC Ltd, has raised €500 million through overseas bonds sale.

NTPC got bids for $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.

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.

The issue saw participation from more than 125 investors from across the globe.

This 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 100-year Euro bond by an Indian issuer.