Damodar Valley Corporation to mop up Rs 2600 crore through non convertible redeemable bonds

KOLKATA: Damodar Valley Corporation ( DVC) plans to mobilise Rs 2600 crore through private placement of 15-year non convertible redeemable AAA rated bonds guaranteed by the government of India. The money raised will be used to finance the company's thermal projects expected to get com-missioned shortly.

The bond has attracted one of the lowest interest rates with a spread of only 57 bps over the 15 year g-sec. The bonds will be redeemable in three phases of 30 % each during 13th and 14th year. Balance 40 % will be redeemable during the 15th year. The issue, which opened for subscription today (March 21, 2013), will close on March 25, 2013, and has been rated by India Ratings & Research and CARE.

Incidentally, DVC has till now added 5050 MW of thermal power generation capacity including its JV Maithon Power. The company's total in-stalled thermal capacity is 6210 MW, hydel 144 MW and gas turbine, 82 MW.