NTPC re-finance deal

NTPC had taken a five billion yen loan from the Japanese Export and Import Bank (J-Exim) at an interest rate of about 2.5 per cent over London Inter Bank Offered Rate (LIBOR) for funding its various power projects including the Ramagundam Thermal Power Station, the officials said.

The loan from Sumitomo Bank would be at an interest rate of about 1.4 per cent to 1.5 per cent over LIBOR. The corporation had earlier repaid its costly loans through re-financing to save higher interest rates. The deal was arranged by SBI Caps, the officials said.

NTPC, with an existing generation capacity of over 19,000 MW, has set an ambitious target to become a 40,000 MW plus company by the end of 2012 for which it is also negotiating with various financial institutions and commercial banks to arrange credit for the future projects.

NTPC is negotiating with various Financial institutionsD Commercial banks for a credit line of over Rs. 2,000 crore to fund various power projects during the next three years.

The corporation is talking to 14 commerical banks and twoFinancial institutions for the propose, the sources said.

NTPC board has already approved the proposal for raisinga credit of over Rs. 1700 crore from 11 banks and Financial institutions while proposal for tying up an additional credit line of over Rs. 300 crore has already been submitted to the board for clearance, the sources said.

The company is also planning to raise about Rs. 200 crorefrom Housing Development Finance Corporation (HDFC) for which a proposal to the board is being prepared, they said.

Of the entire split up of over Rs. 2000 crore, NTPC hadrecently signed a loan agreement with Bank of Maharashtra for a credit of Rs. 100 crore at fixed interest rate of 12.10 per cent to be repaid over a period of seven years, they said.

The corporation has also entered into an agreement withFinancial institution ICICI for a second tranche of Rs. 500 crore loan, the sources said.

The company is negotiating with United Bank of India fora credit line of Rs. 350 crore and Rs. 300 crore from UCO Bank at a fixed interest rate of 12.50 per cent annually, the sources said.