NHPC Limited (NHPC), a Mini Ratna Category-I Company, engaged in hydroelectric power generation in the country, plans to launch its public issue of tax free, secured, redeemable, non convertible bonds in the nature of debentures having tax benefits u/s 10(15)(iv)(h) of the Income TaxAct, 1961, as amended (Bonds) for an amount of aggregating up to Rs 500 crore with an option to retain oversubscription up to Rs 500 crore for issuances of additional Bonds aggregating to a total of up to Rs 1,000 crore.
The issue opens for subscription on October 18, 2013 and is scheduled to close on November 11, 2013, with an option for early closure or extension, as may be decided by the Board of Directors or the Functional Authority.
In the event of such early closure or extension of the subscription list of the Issue, the Company shall ensure that public notice of such early closure/extension is published on or before such early date of closure or the Issue Closing Date, as applicable, through advertisement(s) in atleast one leading national daily newspaper. A. K. Capital Services Ltd. and Axis Capital Ltd. are the Lead Managers to the issue.
The Bonds are rated "ICRA AAA" by ICRA; "IND AAA" by IRRPL and "CARE AAA" by CARE. Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk. The Bonds offered are proposed to be listed on the NSE and BSE.
The bonds offer coupon rates of 8.43% p.a. for 10 Years, 8.79% for 15 Years and 8.92% for 20 Years to Category- IV Investors i.e. Retail Individual Investors and coupon rates of 8.18% p.a. for 10 Years, 8.54% for 15 Years and 8.67% for 20 Years to Category- I, II and III Investors i.e. Qualified Institutions Buyers, Corporate and High Net Worth Individuals, respectively.