NTPC to raise Rs 2,000 cr through loans, bonds

New Delhi, Dec 27 (UNI) National Thermal Power Corporation Ltd (NTPC) today said it will raise Rs 2,000 crores towards capex through loans and bonds from the Life Insurance Corporation of India (LIC).

The company will raise Rs 1,000 crores in loans and and equal amount through a bond subscription agreement.

The amount will be utilised for NTPC's capital expenditure of its power generation projects, coal mining business, enovation and modernisation activity and LNG business.

In a communique to the Bombay Stock Exchange NTPC said the maturity of both the agreements is 11 years and the repayments to take place in 14 half yearly installments commencing after 4 years.

The interest rate and coupon is linked to 10 year G-sec Rate plus margin. The proceeds under these Agreements are to be utilised before end of March 2008.

UNI