NTPC, country’s largest power generation utility, has tied up loans to the tune of USD 250 million with Mizuho Bank Limited for funding its expansion plans.
The company has tied up Syndicated Term Loan Facility of USD 250 million with Mizuho Bank Limited’s Singapore Branch, NTPC said in a statement.
The loan carries a floating rate of interest linked to LIBOR (Short for London interbank offered rate, the rate of interest that top-quality banks charge each other for loans) and has a door to door maturity of 7 years.
The loan agreement has been executed at Hong Kong by Mr. K. Biswal, Director (Finance) on behalf of the company.
“The proceeds of the facility will be utilized to finance capital expenditure on the company’s ongoing and new projects and renovation and modernisation of stations,” the statement said.
NTPC has an installed capacity of 43,128 MW and the company has projects with a total capacity of 23,854 MW under construction.
The company which is facing shortage in domestic fuel supplies and has plans to import 17 million tonnes (MT) of coal this fiscal which is higher than the quantity purchased last financial year.
NTPC plans to add 1,798 MW generation in the current financial year ending March 2015. Its total coal requirement is estimated to be 177 MT for this fiscal.
During 2013-14 period, NTPC consumed 158.57 MMT of coal, with imports accounting for 10.39 MT.
