The Hindu Business Line : Neepco plans to mop up Rs 60 cr from bond issue

NORTH-EASTERN Electricity Power Corporation (Neepco) has entered the capital market with a private placement of secured, tax-free, redeemable non-convertible bonds to mop up Rs 60 crore.

The tax-free 10-year bond, with a coupon of 9.85 per cent payable annually, carries a call and put option exercisable at the end of seven years.

Each bond with a face value of Rs 5,00,000 is eligible for investment by corporates, banks, FIs, regional rural banks, port trusts, mutual funds, provident funds, gratuity funds and superannuation funds.

According to a source in UTI Bank Ltd, Kolkata, the sole arranger of the issue, Neepco will utilise the proceeds to part-finance the various ongoing projects and discharge the capital liabilities of the corporation.

Neepco, which was incorporated in April 1976, has since been redesignated as a "mini ratna'' Central PSU and is wholly owned by the Union Government.

The corporation has commissioned five projects such as Kopili and Doyang hydel projects in Manipur and gas-based power projects in Assam and Tripura. Three projects are also under construction and five other new projects are being taken up, all totalling to an installed capacity of 4,330 MW.

Send this article to Friends by E-Mail

Stories in this Section
Jessop EGM okays issue of demat shares

BHEL-Hyderabad develops gas turbine for China

Dabhol lenders cross swords over jurisdiction

`Company court has powers to initiate prosecution'

MCD to switch over to double-entry system -- Signs MoU with ICAI-ARF; project to cost Rs 4.5 cr

A service charter

Mining sans pollution

Richmond Park

New tax norms may put pressure on cos

M&M to offer VRS to officers

Neepco plans to mop up Rs 60 cr from bond issue