NTPC to fund stake acquisition in THDC India and NEEPCO via green bonds

NTPC is planning to raise around Rs 100 billion through green bonds for the acquisition of the central government’s stake in THDC India Limited (THDCIL) and North Eastern Electric Power Corporation Limited (NEEPCO). Proceeds from green bonds are used to finance environment-friendly infrastructure. Since THDCIL and NEEPCO are engaged in hydropower generation, an investment in the two firms can be funded through green bonds. The acquisition is likely to be completed by March 2020 as the government intends to achieve its disinvestment target of Rs 1,050 billion.