State-run power giant NTPC has made an offer to buy back its masala bonds worth Rs 4,000 crore from bondholders or lenders.
Masala bonds are issued outside India but denominated in Indian rupees, rather than the local currency. NTPC has launched a cash tender offer to buy the bonds worth Rs 4,000 crore.
According to the company statement, the offer includes the rupee-denominated Rs 2,000-crore 7.375 per cent notes issued on August 10, 2016, payable in dollar and due on August 10, 2021 (“2021 notes”). The offer also includes rupee-denominated Rs 2,000-crore 7.25 per cent notes issued on May 3, 2017, payable in dollar and due on May 3, 2022.
The company had issued the 2021 notes, which are at present listed on Singapore Exchange Securities Trading Limited (SGX-ST), the London Stock Exchange’s Professional Securities Market, the NSE IFSC Limited and the India International Exchange (IFSC) Limited. The 2022 notes are at present listed on SGX-ST, the London Stock Exchange’s International Securities Market, NSE IFSC and India INX.
Drop in spot power price
The average spot power price dropped 4 per cent to Rs 2.73 per unit in November compared with the year-ago period at the Indian Energy Exchange.
The day-ahead market (DAM) volume at 4,860 MU (million units) recorded a 43 per cent YoY (year-on-year) growth in November. The DAM market continued to see high sell-side liquidity with total sell bids at 9,778 MU being twice that of the cleared volume (sales). This enabled the market to maintain an attractive average market clearing price at Rs 2.73 per unit during November.
