Torrent Power Raises ₹6 Billion Via Non-Convertible Debentures
The NCDs carry a fixed coupon rate of 8.50%
Gujarat-based power company Torrent Power has raised ₹6 billion (~$72.7 million) through the issuance of non-convertible debentures (NCD) on a private placement basis.
The company has issued and allotted 60,000 Series 11 (series 11A- 11F) Secured, Rated, Listed, Taxable, Non-Cumulative, Redeemable, and Non-Convertible Debentures of ₹100,000 each (~$1,212).
The NCDs carry a fixed coupon rate of 8.50% per annum, with each series amounting to ₹1 billion (~$12.1 million), and are proposed to be listed in the Wholesale Debt Market Segment of the National Stock Exchange of India.
The NCDs were allotted on June 7, 2023, with varying maturity dates as follows:
- Series 11A: Maturity on June 7, 2031 (10,000 NCDs)
- Series 11B: Maturity on June 7, 2032 (10,000 NCDs)
- Series 11C: Maturity on June 7, 2033 (10,000 NCDs)
- Series 11D: Maturity on June 7, 2031 (10,000 NCDs)
- Series 11E: Maturity on June 7, 2032 (10,000 NCDs)
- Series 11F: Maturity on June 7, 2033 (10,000 NCDs)
The first coupon payment is scheduled for June 7, 2024, followed by annual payments until the redemption of the respective series.
The NCDs are secured by a first pari passu charge on all present and future movable assets, excluding assets of renewable projects, funds in debt service reserve accounts, and certain investments.
Pari passu, which is Latin for “equal footing,”—is a financing arrangement that gives multiple lenders equal claim to the assets used to secure a loan.
As of March 2023, Torrent Power’s installed power generation capacity stood at 4,160 MW, comprising 2,730 MW of gas-based capacity, 1,068 MW of renewables, and 362 MW of coal-based capacity.
The installed renewable generation capacity includes 263 MW of solar projects spread across five locations and 804.5 MW of wind projects operating across ten sites.
The company also has 300 MW of utility-scale solar and 21 MW of C&I solar projects under development, along with 415 MW of wind projects.
Torrent Power’s profit increased by 371% YoY to ₹21.71 billion (~$262.36 million) in FY23, mainly due to reduced transmission and distribution losses and higher generation throughout the quarters.
The company recorded improved operational performance in the Union Territory of Dadra & Nagar Haveli and Daman and Diu (DNH&DD) acquired last year, which contributed to the company’s existing licensed distribution businesses.