NTPC Green Energy Ltd (NGEL), a subsidiary of National Thermal Power Corporation (NTPC), has announced that it is inviting bids for a term loan denominated in Indian rupees. The loan amount being sought is up to Rs 9,000 crore, as per the bid document released by NGEL.
The purpose of the loan is to raise fresh debt to finance the operations of the company, as well as to repay outstanding liabilities of Rs 8,200 crore that NGEL owes to NTPC, with the applicable interest cost. The repayment of this outstanding amount is expected to be completed by March 31, 2023.
NTPC Green Energy Ltd was established as a wholly-owned subsidiary of NTPC with the aim of augmenting the company’s renewable energy portfolio. It focuses on developing, constructing, and operating renewable energy projects, including wind, solar, and hydro power plants. The company has a target of achieving 30 GW of renewable energy capacity by 2030.
According to the bid document released by NTPC Green Energy Ltd (NGEL), the company requires an additional Rs 800 crore in funds. These funds will be used to cover additional debt liabilities and balance capital expenditure (capex) payments for projects that have not yet achieved full commercial operations.
The company intends to use the funds raised through the term loan to meet these financial obligations. It is important to note that NGEL has set ambitious goals for the expansion of its renewable energy portfolio, and the additional funds will help the company achieve its targets.
NGEL has plans to increase its renewable energy capacity to 30 GW by 2030. This goal will require significant investment in the development and construction of renewable energy projects. The company has already made significant progress toward this target, and it is expected that the additional funds raised through the term loan will help it continue on this path.
NGEL, which is a subsidiary of NTPC, has recently announced that it is inviting offers for a rupee term loan. According to their statement, the loan can be for up to Rs 9,000 crore, which is equivalent to approximately $1.2 billion USD. The loan will be offered by banks and financial institutions, with a minimum amount of Rs 1,000 crore (approximately $134 million USD) and in multiples of Rs 500 crore (approximately $67 million USD) thereafter.
Interested banks and financial institutions can submit their bids by March 6, 2023, which is the deadline set by NGEL. After the deadline, the company will evaluate the bids and select the lender(s) for the loan.
It is worth noting that NTPC incorporated NGEL in April 2022 with the goal of consolidating its renewable energy businesses and pursuing sustainable energy ventures. This loan offer may be an indication that NGEL is planning to expand its operations and invest in new renewable energy projects.
Overall, this announcement is significant for both NGEL and NTPC as it indicates that they are actively seeking funding to finance their renewable energy projects and continue their growth trajectory in the industry.