NTPC REL is likely to borrow through both domestic and international markets to minimise the borrowings costs
Abhijit Lele |
Last Updated at April 3, 2021 01:53 IST
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.
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.
First Published: Sat, April 03 2021. 01:53 IST