Raising the Stakes: NHPC Unleashes ₹20 Billion Bond Plan to Supercharge Clean Energy Dreams

NHPC Limited, India's largest hydropower firm, will raise as much as ₹20 billion through bond issuance, as its board weighs new fund-raising alternatives to finance expansion and clean energy initiatives. The development comes as part of a larger borrowing plan sanctioned for FY2025-26, reflecting NHPC's determination to bolster its capital base and speed up investments in renewable energy infrastructure.

Key Highlights:

NHPC's board is considering proposals to raise up to ₹20 billion through secured or unsecured, redeemable, taxable, non-convertible bonds, probably via private placement in several tranches.

The bond issue is a part of a broader borrowing plan, with the board recently clearing a total debt-raising plan of up to ₹63 billion in FY2025-26 to finance existing and future projects in hydro, solar, and wind energy segments.

The fundraising of the company is well-timed, with NHPC registering a sharp year-on-year decline in profits due to increased costs despite a strong rise in operating revenues.

NHPC's strong market position is underscored by its AAA credit rating and an impeccable record of project delivery, with 25 power plants spread across 13 states and a sizeable expansion into solar and wind.

The bond proceeds will be used to fund greenfield projects, upgrade brownfield plants, and fuel the company's aggressive renewable energy ambitions, supporting India's national agenda for clean power and energy security.

Through this strategic capital raising, NHPC is well-positioned to strengthen its leadership in India's energy transition while maintaining financial strength and long-term growth.

Source: Construction World, Economic Times, Business Standard