NLC plans to raise Rs 525 crore via bonds

Neyveli Lignite Corporation Limited (NLC) India on Friday announced that it is planning to raise Rs 525 crore by issuing bonds on a private placement basis.

According to the reports, the abovementioned amount would be utilised to replace the equity deployed in the projects over a normative level by debt and for corporate requirements.

In a BSE filing, the company informed that as per the bidding process held on January 23, 2020 (Thursday), they have decided to raise Rs 525 crore through private placement of secured, non-cumulative, non-convertible, redeemable and taxable bonds (Series 1 of 2020) in the nature of debentures at 7.36 per cent per annum with a door-to-door maturity of ten years.

The company further added that the security for these bonds will be duly created as per the requirement, rule and time-frame prescribed under the Companies Act.

NLC is a government-owned lignite mining and power generating company in India. At the time of market closing, the stock of NLC was trading at Rs 57.80, up by 4.05 per cent against its previous close of Rs 55.55 on BSE.