CESC Ltd's Strategic Rs 300 Crore Fundraising Through NCDs

CESC Ltd, a power utility, announced its board's decision to raise Rs 300 crore via non-convertible debentures (NCDs) issued privately. The company will issue 30,000 redeemable, senior, secured, rated, and unlisted NCDs, each valued at Rs 1 lakh. These NCDs feature a floating interest rate tied to the three-month Treasury Bill rate, plus an additional 2.30% annually, as revealed in a regulatory filing.

The filing stated that, in the event of a service default, an extra 2% annual interest over the coupon rate would apply. In April, CESC raised Rs 250 crore through NCDs from Axis Bank.

Additionally, CESC recently announced a substantial investment of Rs 5,000 crore through its subsidiary, CESC Green Power, focusing on various clean energy initiatives. These projects include setting up a 3-GW solar cell and module plant, establishing a battery manufacturing facility, developing a 60-MW renewable energy power plant, and creating value-chain units.

(With inputs from agencies.)