NTPC raises Rs 3,100 crore via bonds in global markets

National Thermal Power Corporation (NTPC), the country's largest power generating company, has announced raising $500 million (about Rs 3,100 crore) through medium-term bonds offering in the international markets.

"NTPC launched a benchmark size, senior, unsecured, fixed rate 10 year bond transaction with an initial price guidance of US Treasuries, yesterday," the company said in a statement on Thursday.

Medium Term Note, which usually matures in five to 10 years, will give an annulised return of 4.375 per cent.

"We are happy with the overwhelming investor response. It is an affirmation of our leadership position in the Indian power sector by the international investors and renewed interest in India," Arup Roy Choudhury, CMD, NTPC said.

The company intends to use the proceeds to finance its ongoing and new power projects. Barclays, Citigroup, Deutsche Bank, HSBC and SBI Capital Markets acted as joint book-runners and lead managers.

"We are glad to receive a warm welcome from investors on our return to the bond markets after a gap and at very fine levels inside of comparable secondary levels," Kulamani Biswal, Director (Finance), NTPC said.