NTPC to issue bonus debentures worth Rs 10,000 crore to shareholders

National Thermal Power Corporation (NTPC), the public sector power major, announced on Thursday that it would issue its shareholders bonus debentures worth Rs 10,307 crore, the largest such issue by a domestic firm, to finance its expansion plans.

NTPC Director (Finance) K. Biswal said that the company has set a borrowing target of Rs 15,000 crore for 2015-16 and these debentures will form part of this exercise.

The debentures would provide a fixed coupon bearing and can be monetised on stock exchanges as the company proposes to list them on the Bombay Stock Exchange and the National Stock Exchange. The debentures will be redeemed at the end of 8th, 9th and 10th year in the ratio of 20 per cent, 40 per cent and 40 per cent of the face value respectively.

The fund-raising plan also includes raising US $750 million through external commercial borrowings during the financial year starting on April 1, 2015.