National Thermal Power Corporation Limited has called for a request for proposal (RFP) for raising to USD 750 million (around Rs 5,570 crore) through ECB to finance its power projects, including renewable energy.
The shares of NTPC were up by 0.78 per cent at Rs 136.40 apiece (+1.05) today at 3:30 pm IST in Monday closing session.
“NTPC Ltd is looking to raise external commercial borrowing (ECB) in the form of term loan amounting to USD 500 million-plus greenshoe option of USD 250 million… accordingly it is requested to quote unconditional and firm rate for raising ECB,” the RFP document published by NTPC on Monday said.
As per the accords, the loan proceeds shall be used towards capital expenditure for ongoing or new capacity addition programmes including renewable energy projects, coal mining & washeries, refinancing of existing ECBs or rupee loans benefited domestically for CAPEX etc.
Capital expenditures (CapEx) are funds utilised by a corporation to acquire, upgrade and strengthen physical assets such as property, plants, buildings, technology, or equipment. This type of financial outlay is made by companies to increase the scope of their operations or add some economic benefit to the operation.
The last date for proffering bids is January 31, 2022 (by 15.00 hrs). The bids will open on January 31, 2022 (15.15 hrs).
NTPC Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 117475.11 Crore) operating in the Power sector.