NTPC Limited (NTPC), the largest power generating company in India, priced its second INR denominated 5 year Masala Bonds offering for Rs. 2000 crores, in the international markets on 25th April 2017, becoming the only State Owned Enterprise to tap Masala Bonds market twice. This is the eighth offering under the company’s US$ 4 billion Medium Term Note (MTN) programme since it was set up in 2006, taking the cumulative amount raised under the programme to US $ 3.46 billion (approx.). Given the strong credentials of NTPC in the International Bond Market, the issue was oversubscribed with participation of more than 40 accounts and based on the strong order book the Notes have been successfully priced at a coupon of 7.25% payable annually.
The 5 year Senior Unsecured RegS Masala Bonds of NTPC have been issued at the lowest yield for any Masala bond by an Indian issuer till date and have been priced within AAA Corporate Bonds of equivalent tenor in domestic market. In terms of geographical distribution, Asia took the bulk of the transaction at 83% EU area at 14% and US Offshore 3%. In terms of investor types – Central Bank / Sovereign Wealth Funds comprised 50%, Asset Managers/ Fund Managers 30%, Banks 14% and Private Banks 6%. The Company intends to use the proceeds of the issue to finance its ongoing and new power projects within India. Axis Bank, Barclays Bank, ICICI, MUFG, and Standard Chartered Bank were the bookrunners for the offering. These bonds shall be listed at Singapore Stock Exchange and London Stock Exchange.
