NTPC Green Energy Limited, a key subsidiary of NTPC Limited, is set to significantly bolster its financial capacity by raising ₹2,500 crore through a private placement of unsecured non-convertible debentures (NCDs). This strategic move, approved by the company’s board, marks its first debenture issuance under a recently established framework.
The 10-year NCDs, maturing on July 9, 2036, will carry a fixed coupon rate of 7.27% per annum. The primary objective of this fundraising is to finance critical capital expenditures. These include refinancing existing projects, recouping investments made in various ventures, and providing inter-corporate loans to subsidiaries and joint ventures to support their own capital expenditure needs. Any remaining funds will be directed towards general corporate purposes.
This initiative is poised to strengthen NTPC Green Energy’s financial position, underpinning its aggressive expansion plans for its renewable energy portfolio and its broader clean energy strategy throughout India. The company will formalize the issuance by executing a Debenture Trust Deed, ensuring a clear legal structure and safeguarding investor interests.
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