NTPC Ltd. invited bids for its 62nd series of Taxable Secured Non Convertible Debentures recently with bullet repayment after 10 years. Bids amounting to Rs. 1250 crore were received against issue size of Rs. 500 crore. After creating pricing tension, coupon of 7.58% p.a. was achieved which was inside of Corporate 10-year “AAA” yield curve by 12 bps and an amount of Rs. 800 crore was allocated to successful bidders.
The bidding was conducted on the Electronic Bidding Platform of National Stock Exchange of India Ltd. under the guidelines issued by SEBI for adopting electronic book mechanism for issuance of debt securities on private placement basis.The proceeds of the issue will be utilized for capital expenditure. NTPC is rated “AAA” by CRISIL, CARE and ICRA and the bond issue was also rated “AAA”.