NGEL floats bids for green term loan of Rs 90 billion

NTPC Green Energy Limited (NGEL) has requested bank proposals for a green term loan up to Rs 90 billion to repay debt obligations owed to NTPC in connection with the acquisition of 15 renewable assets. NGEL intends to repay the outstanding liability of Rs 82 billion to raise approximately Rs 8 billion in additional funds to clear the balance capital expenditure payments of projects that have yet to reach commercial operation date.

The loan term is 15 years or more, with a 6-month moratorium from the date of the first drawl. The loan will be repaid in equal half-yearly instalments by NGEL. The proposals will be evaluated based on the lowest quoted interest rate, regardless of any benchmark. NGEL intends to support NTPC’s goals by assisting the latter’s renewable operational capacity to reach approximately 12 GW by 2025 on a consolidated basis, with the capacity increasing to 60 GW by 2032. To support the company’s green goals, NTPC formed NGEL in April 2022 and signed a business transfer agreement with it to transfer 15 solar and wind projects. The deadline for banks to submit proposals is March 6, 2023.

Recently in February 2023, NTPC Renewable Energy Limited floated bids for a 500 MW inter-state transmission system (ISTS) connected solar project to be set up anywhere in India. The scope of work also includes the operations and maintenance of the solar projects for three years from the date of commissioning, including the switchyard and power evacuation system until the interconnecting grid substation.