NTPC bags $750 million in Asia’s biggest Japanese Yen loan to meet fund requirements for upcoming projects

ntpc, power sector

It is also the highest ever single foreign currency loan raised by NTPC

State-run power giant NTPC on Monday said that it has become the top company in Asia to raise the largest syndicated Japanese yen loan worth USD 750 million (around Rs 5,367 crore). According to a company statement, the loan has been raised under automatic route of RBI’s external commercial borrowings regulations, and is also the highest ever single foreign currency loan raised by NTPC.

The facility has a door-to-door maturity of 11 years under two tranches. The company said, the facility is fully underwritten by State Bank of India, Tokyo, Sumitomo Mitsui Banking Corporation, Singapore and Bank of India, Tokyo, on January 20 and will be shortly launched by banks for general syndication.

“NTPC has signed a syndicated term loan in Japanese Yen (JPY), equivalent to USD 750 million,” it said, adding that this is the largest ever syndicated JPY loan raised by any Asian Corporate from offshore Samurai loan market.

The loan proceeds shall be utilised by the company for funding its capex for installation of flue gas desulphurisation (FGD) system, hydro projects and other projects using ultra supercritical technology with low carbon emission.  Shares of NTPC were trading at Rs 111.15 apiece in morning session, up 1.88 per cent from the previous close on BSE.

[“source=financialexpress”]

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