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NTPC Ltd has raised $500 million via benchmark-dollar denominated bond sales in the international debt markets, the company said in a statement on Thursday. With this, the company becomes the first Indian entity to tap the foreign currency bond market after the new Companies Act, 2013 clarified prospectus and allotment of securities do not apply to issue of foreign currency bonds by Indian corporates.
The 10 year bonds were priced 230 basis points above the above 10 year US Treasury Bills. According to NTPC’s statement, the issue was oversubscribed within an hour and the price was subsequently revised to 205 to 215 basis points above 10 year US Treasury Bills.
“We are happy with the overwhelming investor response,” said Arup Roy Choudhury, Chairman and Managing Director, NTPC in a statement.
The bond issue was primarily subscribed in Asia with 68 per cent transactions in the region, Europe and offshore US accounts had 18 per cent and 14 per cent of the transactions respectively.
Barclays, Citigroup, Deutsche Bank, HSBC and SBI Capital Markets acted as joint book-runners and lead managers.
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