NHPC Limited (a govt of India enterprise under Ministry of Power) has raised Rs 750 crore through private placement of bonds at very competitive interest rate of 6.80% p.a. for a loan tenure of 10 years. The company has said that the issue structure consists of base size of Rs 500 crore with Green Shoe option of Rs 250 crore.
It has also said that the issue was taken very overwhelmingly by the market and oversubscribed 3.87 times i.e. for Rs 2899 crore amid Covid-19 outbreak. The coupon rate of 6.80% is the lowest in the current fiscal and lower by 30 bps or 0.30% than the prevailing AAA rated 10 years bonds at 7.10%. NHPC carries highest credit credentials and rated AAA by leading rating agencies.