Rating agency Fitch has affirmed NTPC Ltd a long-term local-currency IDR (Issuer Default Rating) of ‘BBB’ and assigned ‘BBB(emr) to its masala bonds. “Fitch Ratings has assigned NTPC long-term local-currency IDR of ‘BBB’ with a stable outlook. At the same time, Fitch has assigned NTPC’s proposed senior unsecured rupee-denominated notes, payable in US dollar, an expected rating of ‘BBB-(emr)(EXP)’,” the rating agency said in a statement. The notes, which are labelled green, will be issued out of NTPC’s USD 4 billion medium—term note programme, according to the statement.
Fitch Ratings said that investors should note that while the notes are denominated in rupees, both coupon payments and principal on maturity are settled in US dollars at the prevailing rupee-dollar exchange rate. The notes are rated at the same level as NTPC’s senior unsecured debt rating as they will constitute direct, unconditional, un-subordinated and unsecured obligations of NTPC. The final rating is contingent upon the receipt of final documents conforming to information already received.
The proceeds of the proposed green notes, which are to be used for projects with environmental benefits, will be used for NTPC’s renewable power generation projects, the statement added. Meanwhile, the S&P Global Ratings too assigned its ‘BBB’ long-term issue rating with stable outlook to a proposed drawdown of rupee-denominated offshore bonds for funding renewable projects, commonly known as “green masala” bonds by NTPC Ltd.