NHPC's Rs 1,000 cr tax-free bonds issue to open on Oct 18

State-owned power producer NHPC's first ever tax-free bonds issue worth Rs 1,000 crore will be open for subscription on October 18.

The issue will close on November 11.

The public issue of "tax free, secured, redeemable, non-convertible bonds in the nature of debentures of face value of Rs 1,000 each" would amount to Rs 500 crore. There would be an "option to retain over-subscription" up to Rs 500 crore for issuance of additional bonds, taking the aggregate to a total of Rs 1,000 crore, the company said on Monday.

The country's largest hydro power is awaiting approvals for about ten projects having total capacity of 8,801 MW. Further, NHPC is planning to join hands with private sector players for developing hydel power projects.

The state-owned hydro power producer is also diversifying into thermal, solar and wind energy projects. The company plans to develop grid connected 50 MW wind and 100 MW solar power projects.

Currently, NHPC has an installed power generation capacity of 5,702 MW.

AK Capital Services and Axis Capital are the lead managers while Karvy Computershare is the registrar to the issue.