National Thermal Power Corporation (NTPC) tied up a term loan facility of 250 million US dollars with the State Bank of India, New York Branch as well as Singapore Branch of Mizuho Corporate Bank Limited.
The agreement for the loan was signed in New York. The loan will empower NTPC for making use of the proceeds of loan towards capital expenditure for procurement of goods and services for new as well as ongoing projects. It will also help NTPC in modernization as well as renovation of stations of this corporation.
The loan signed by NTPC will carry a floating rate of interest associated to LIBOR. It also has door to door maturity of 7 years.
With execution of this term loan facility, NTPC raised a total of 750 million US Dollars in 2012-2013 fiscal year, which is the maximum amount allowed under the Automatic Route of the ECB guidelines issued by the Central Bank of India- RBI.