NTPC to raise $500-700 million in new Masala bonds

Singapore: India’s largest energy conglomerate NTPC will raise $500-$700 million in Masala bonds from the financial markets in London, Hong Kong and Singapore from November this year, a top company official said today.

“The funds raised through the bonds will be for several projects under construction,” NTPC’s director of finance and chief financial officer, Kulamani Biswal said after attending the launch of Singapore Exchange (SGX) Masala Bond Hub.

He said NTPC will commence a roadshow for the new bonds in London, Hong Kong and Singapore. The bonds will be listed on SGX.

NTPC’s annual capital expenditure is more than $4.5 billion for FY2016-17, most of which is raised through financial markets. It was $3.74 billion a year ago.

It raised more than $300 million in August this year through Green Masala bonds for solar projects. These bonds are also expected to list on SGX.

Giving an industry presentation at the SGX launch today, Biswal said NPTC expects to raise $835 million from overseas markets and $2.12 billion from India to support its $4.48 billion capital outlay in 2016-17.

It has internal resources of $1.53 billion and debt of $2.96 billion.

PTI