By IANS
New Delhi : State-owned power utility NTPC Ltd will borrow Rs.20 billion ($508 million) from public sector Life Insurance Corp of India (LIC) to meet its capital investment requirements.
“The company has signed a loan agreement of Rs.10 billion along with a bond subscription agreement of Rs.10 billion with Life Insurance Corp of India on December 26 to finance capital expenditure of its power generation projects, coal mining business, renovation and modernisation activity and liquefied natural gas (LNG) business,” NTPC informed the Bombay Stock Exchange.
“The proceeds under these agreements are to be utilised by March 2008,” the company said.
“The door-to-door maturity of both the agreements is 11 years and repayments will take place in 14 half-yearly instalments commencing after 4 years,” it said.