NTPC’s green power arm to raise Rs 2,100 crore with term loan


NTPC Renewable Energy (NTPC REL) is raising a term loan of Rs 2,100 crore and will mobilize working capital of Rs 700 crore to finance projects. Its parent company NTPC has set itself the goal of achieving a renewable energy capacity of 32 Gw by 2030.

Debt financing for existing projects is ongoing, while equity would be injected by NTPC. The company has already received equity of Rs 300 crore out of the parent company’s total committed equity of Rs 4000 crore. NTPC REL would finance the projects at a debt-to-equity ratio of 4: 1.

NTPC REL is likely to borrow in domestic and international markets to minimize borrowing costs, India Ratings said.

The rating agency assigned an “AAA” rating to the proposed term loan, taking into account its strong operational and strategic links with its parent company. Gradually, given that it is unlikely that NTPC will undertake plans to create new thermal installations, any new capacity additions would take place in the renewable energy segment, with a majority of additions in the solar and wind fields. .

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor


About Jason Jones

Check Also

3 off the beaten track stocks to buy now

[ad_1] It may seem rather odd to invest in a company investigating a psychedelic drug …

Leave a Reply

Your email address will not be published.