Green Energy Arm Of NTPC To Raise Rs 2,100 Crore Through Term Loan
NTPC REL is likely to borrow through both domestic and international markets to minimise the borrowings costs
Topics
Green energy | NTPC | Indian companies
Abhijit Lele |
The debt tie-up for the existing projects is underway, while equity would be infused by NTPC.
NTPC Renewable Energy (NTPC REL) is raising a term loan of Rs 2,100 crore and will tie-up working capital facility of Rs 700 crore to finance projects. Its parent NTPC has set a target of achieving 32 Gw renewable energy capacity by 2030.
The debt tie-up for the existing projects is underway, while equity would be infused by NTPC. The company has already received equity of Rs 300 crore from the total committed equity of Rs 4,000 crore from the parent. NTPC REL would fund the projects in a debt to equity ratio of 4:1.
NTPC REL is likely to borrow through both domestic and international markets to minimise the borrowings costs, India Ratings said.
The rating agency has assigned “AAA” rating to proposed term loan, factoring in its strong operational and strategic linkages with its parent. Incrementally, given that NTPC is unlikely to undertake any thermal greenfield projects, any new capacity addition would take place in the renewables segment, with a majority of additions in the solar and wind arenas.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
First Published: Sat, April 03 2021. 01:53 IST
JPMorgan Deploys AI Chatbot To Revolutionize Research And Productivity
JPMorgan has deployed an AI-based research analyst chatbot to enhance productivity among its workforce, with approximate... Read more
Private Equity And Banks: The Complex Web Of Leverage
Private equity has emerged as a significant force in the global financial landscape, driving substantial growth and inve... Read more
Financial Watchdog Highlights Unresolved Vulnerabilities In Shadow Banking Sector
The world’s leading financial stability watchdog has issued a warning about the unresolved vulnerabilities within the ... Read more
JPMorgan And Small Caps Lead Market Rally: A Sign Of Economic Optimism
In a week marked by strong financial performance, JPMorgan Chase & Co. reported a 25% rise in profits, and US small-... Read more
Big Banks Vs. Regional Banks: The Battle For Market Share
The financial industry is a competitive landscape where big banks and regional banks vie for market share. Each type of ... Read more
The Evolution Of Philanthropic Advisory Services In Private Banks
The landscape of philanthropic advisory services provided by private banks has undergone a significant transformation. T... Read more