INDIA BUSINESS WORLD - DECEMBER 16th - DECEMBER 31st
- 2007
NTPC, LIC INK RS 2KCR DEALS
The country's biggest power generating firm NTPC has said it has signed agreements for loan and bond subscription for a combined sum of Rs 2,000 crore with Life Insurance Corp.
The amount would be utilised to fund the company's core business of power generation, besides financing coal mining and LNG business. "The company has signed a loan agreement of Rs 1,000 crore along with a bond subscription agreement of Rs 1,000 crore with Life Insurance Corporation of India on December 26 to finance capital expenditure of its power generation projects, coal mining business, renovation and modernisation activity and LNG business," NTPC said in a filing to the Bombay Stock Exchange.
The proceeds under these agreements are to be utilised before March 2008, the company said. "The door-to-door maturity of both the agreements is 11 years and repayments are to take place in 14 half-yearly installments commencing after 4 years. The interest rate/coupon is linked to 10 year G-Sec Rate plus margin," it added.
NTPC is eyeing coal properties in Indonesia and Australia. The company plans to almost double its power generating capacity to 50,000 MW by 2012 from the present 28,644 MW, about 28% of power produced in the country. The firm had last week concluded a $380 million loan facility (about Rs 1,495 crore) with the Japan Bank for International Co-operation guarantee to part finance its 1,980-MW Barh Super Thermal Power Project in Bihar.
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