New Delhi: NTPC Ltd, India's largest electricity producer, plans to raise USD 150 million in foreign currency term loan to finance its capital expenditure, according to a company document.
NTPC Thursday invited offers for arranging of a term loan in Japanese yen for an aggregate amount of USD 150 million equivalent with a green shoe option to retain over-subscription up to USD 250 million equivalent. The loan will be for a minimum term of 10 years, the company said in the offer document.
"The loan shall be unsecured, without any guarantee or Letter of Comfort from the Government of India. Negative Lien will be provided with carve out for certain permitted borrowings from which security can be created by the company," it said.
The loan will be repayable in three equal instalments starting from the ninth year. The interest rate would be ICE LIBOR for a six-month deposit plus a specified margin, it said adding the interest would be payable semi-annually on December 15 and June 15 every year. NTPC invited offers for the term loan by November 12. "Offers shall be evaluated on the basis of all-in-cost for the base amount of USD 150 million," the offer document said.