NTPC Green Energy to Raise Rs 1,500 Crore via Debentures for Capital Expenditure

Renewables

Updated on 07 Nov 2025, 10:59 am

Reviewed By

Simar Singh | Whalesbook News Team

Short Description:

NTPC Green Energy Limited announced it will raise Rs 1,500 crore by issuing unsecured non-convertible debentures on November 11, 2025, through private placement. The funds will be used for financing capital expenditure, refinancing existing debt, and providing inter-corporate loans to subsidiaries and joint ventures, along with general corporate purposes. The debentures will have a coupon rate of 7.01% per annum and a tenor of 10 years and 1 day, maturing in November 2035. This issuance is part of the company's strategic financing for its growth in the green energy sector.

NTPC Green Energy to Raise Rs 1,500 Crore via Debentures for Capital Expenditure

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Stocks Mentioned:

NTPC Limited

Detailed Coverage:

NTPC Green Energy Limited is set to secure significant funding by raising Rs 1,500 crore through the issuance of unsecured non-convertible debentures. This financial move is scheduled for November 11, 2025, and will be conducted via private placement. The primary objective behind this fundraising is to support the company's capital expenditure plans. This includes refinancing existing debt, recouping expenditure already incurred, and providing crucial financial support to its subsidiaries and joint ventures through inter-corporate loans. A portion of the funds will also be allocated for general corporate purposes.

The debentures will carry a coupon rate of 7.01% per annum and have a long tenor of 10 years and 1 day, maturing on November 12, 2035. This issuance marks the first under the board resolution passed on April 29, 2025. The company plans to list these debentures on the National Stock Exchange (NSE) to enhance liquidity and investor access.

Impact This substantial fundraising demonstrates NTPC Green Energy's commitment to expanding its renewable energy portfolio. It provides the necessary capital for future projects and strengthens its financial footing, which can lead to accelerated growth in solar, wind, and other green energy initiatives. For investors, this signifies continued investment and development in the renewable sector, potentially enhancing the valuation of NTPC Green Energy and its parent company, NTPC Limited. Rating: 8/10

Heading: Definitions of Difficult Terms Unsecured Non-Convertible Debentures: These are debt instruments issued by companies that are not backed by any specific collateral (unsecured) and cannot be converted into equity shares (non-convertible). They offer a fixed rate of return to investors. Private Placement: A method of issuing securities to a select group of investors rather than through a public offering. It is typically faster and less costly than a public issue. Coupon Rate: The interest rate paid by the issuer of a bond or debenture to the bondholder, usually expressed as an annual percentage of the face value. Tenor: The maturity period of a financial instrument, indicating the length of time until the principal amount is due to be repaid.