State-owned NTPC plans to raise term loans worth up to Rs 5,000 crore
State-owned NTPC on Wednesday invited proposals to increase term loans worth up to 5,000 crore rupees.
The power producer has issued a Request for Proposal (RFP) to increase the amount and financial institutions can submit bids until 11 a.m. on August 26, 2021. The bids would be opened the same day at 11:30 a.m., according to a letter from NTPC to financial institutions.
The loans would be used for capital expenditure for ongoing or new capacity add-on programs. These include the takeover of projects, the buyout of the Indian government’s stake in the PSUs as part of the divestment program, renewable energy projects, coal mines and laundries, renovation and modernization programs. various projects, loan refinancing and general business objectives.
The minimum loan amount offered by banks / financial institutions must be Rs 500 crore and in multiples of Rs 500 crore thereafter, according to the company.
In the event of two bidders quoting the same rates, preference will be given to the bidder quoting rates linked to references other than Treasury bills. However, if more than one bid is available at the lowest interest rate, the allocation would be pro-rated to the lowest bidders.
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