INTERNATIONAL

FINANCING
-by PREM SHANKAR
(12IEC038)

OBJECTIVE

Study of international financing. International financing help in rising funds at cheaper rates .
For carrying out different import and export operations of the company.
To minimise the risk related to fluctuations in global economy.

Key Competitive Strengths

Leadership Position in the Indian Power Sector
Long-term Fuel Security
High Operational Efficiency
Ability to Turn Around Underperforming Power Stations
Low Cost Power Producer
Prudent Off-take Policy
Strong Balance Sheet
Competent and Committed Workforce
Integrated Business Model de-risks main business

P
an
In
di
a
Pr
es
en
ce

Geographical Spread of NTPC Standalone Capacity

(As on 31.03.2015)

Hydro region
1%

Koldam
(800MW)

Dadri (817MW)
Faridabad (430MW +5MW Solar)

NCTPP (1,820MW)

Jhajjar (1,500MW)

Unchahar (1,550MW) &(10 MW Solar)

Auraiya (652MW)
Kanti
Tanda (1760 MW)
(610MW)

Anta
(413MW)

Nabinagar(1,000MW + 1980 MW)

Meja (1,320MW)
Singrauli (2,023MW)

Rammam (120MW)
Bongaigaon (750MW)

Kahalgaon (2,340MW)
Barh 3,300MW

Farakka 2,100MW
Rihand 3,000MW
Rourkela NKP 1980MW
Rajgarh Solar PV
Durgapur
(120MW)
50 MW Korba(2,600MW)
Daralipali (120MW)
(1600MW)
Gadarwara (1600 MW)
Bhilai
Talcher Kaniha
Mouda (2,320MW)
574MW
(3,000MW) + 10MW Solar
Kawas
Sipat 2,980MW
(645MW)
Lara 1,600MW
Talcher Thermal
(460MW)
Solapur
Ramagundam
(1,320MW)
(2,600MW) + (10MW solar)

Gandhar
(648MW)

Khargone
1320 MW

Western Region
32%

Dadri SolarPV (5MW)

Lata Tapovan (171MW)
Tapovan Vishnugad (520MW)

Badarpur (705MW)

Eastern Region
24%

Vindhyachal (4,760MW)

Ratnagiri
(1,940MW)
Kudgi
(2,400MW)

Simhadri
(2,000MW)
Anantpur Solar
(250MW)

NR
30%

Southern Region
13%

No. of
Plants

Capacity
(MW)1

% Share

17

33,675

75.85%

Gas/Liquid Fuel

4,017

9.04%

Hydro

400

0.90%

Solar

110

0.25%

33

38,202

86.04%

Coal

4,229

9.53%

Gas

1,967

4.43%

Sub-total

6,196

13.96%

40

44,398

100.00%

Fuel Mix
NTPC Owned
A&N Solar PV (5MW)

Coal

Vallur
(1,500MW)
Kayamkulam
(350MW)

Map not to scale. Includes capacity of under construction plants

Coal Power Station

Ongoing Hydro Power Projects

Ongoing Thermal Projects

Solar PV

Gas Power Stations

NTPC Group currently has projects across 20 Indian States including coal mining
projects
4

Sub-total
Owned by JVs and Subs

Group Total

Gl
ob
al
Fo
ot
pri
nt

Trincomalee

Sri Lanka

Map not to scale.

Bangladesh
Sri Lanka

2x250MW coal based power project

in Trincomalee through a JV Co.
Trincomalee Power Co. Ltd. with
Ceylon Electricity Board (CEB)
Sampur site in Trincomalee region
is identified for the project. All
agreements have been signed and
project is on fast track mode.
Environmental
clearance
under
process.
5

1320MW imported coal based power plant at Khulna

Being Developed through a 50:50 JV Co. with BPDB on

Bhutan

Agreement with Royal

Govt. of Bhutan for
BOO basis. A JV Co. Bangladesh-India Friendship
preparing
Power Company (Pvt.) Limited incorporated. PPA
DPR
for
620MW
signed for the same. Main plant under tendering.
Amochhu
Reservoir
Consultancy Agreement with EGCB for providing
based HEP
O&M services for 2x120MW Gas based power plant.
This is the largest single international order received
by NTPC

NTPC Group - Subsidiaries and Joint Ventures

NTPC has set up 4 Subsidiaries and 21 Joint Ventures to pursue its growth objectives
Power Generation

Services

Equipment Manufacturing

Coal Acquisition

Kanti Bijlee Utpadan

Nigam Ltd. (65%)

NTPC Electric Supply

Company Ltd. (100%)

NTPC BHEL Power Projects Pvt.

Ltd. (50%)

International Coal Ventures Pvt. Ltd. NTPC Vidyut Vyapar

(0.27%)1
Nigam Ltd. (100%)

Bhartiya Rail Bijlee Company Ltd.

(74%)

Utility Powertech Ltd. (50%)

BF NTPC Energy Systems Ltd.

(49%)1

NTPC SCCL Global Ventures Pvt.

Ltd. (50%)

Aravali Power Company Pvt. Ltd.

(50%)

NTPC Alstom Power Services

Pvt. Ltd. (50%)

Transformers and Electricals Kerala

Ltd. (44.60%)

CIL NTPC Urja Pvt. Ltd. (50%)

NTPC Tamil Nadu Energy

Company Ltd. (50%)

National High Power Test

Laboratory Pvt. Ltd. (21.63%)

Nabinagar Power Generating

Company Pvt. Ltd. (50%)

Energy Efficiency
Service Limited (25%)

Meja Urja Nigam Pvt. Ltd. (50%)

NTPC SAIL Power Company Pvt.
Ltd. (50%)
Anushakti Vidyut Nigam Ltd. (49%)
Ratnagiri Gas and
Power Pvt. Ltd. (28.91%)
Trincomalee Power
Company Ltd. (50%)
Pan-Asian Renewables
Pvt. Ltd. (50%)
Bangladesh India Friendship
Power Company Pvt Ltd. (50%)

Subsidiaries

Joint Ventures

Power Trading

National Power Exchange Ltd.

(16.67%)1

Maharatna Government of India Company

Continued Sponsorship from the Government of India (GoI)
Shareholding Pattern

Gol
75%
MF / FI / IC
12%
Others Individuals FII
0%
2%
10%

Among the largest shareholder base in India with over 740 institutional investors and over
6,75,000 retail investors
7

Resource
USD 750 million raised through external commercial borrowings
USD 500 million 10 Year USD denominated Notes
USD 250 million syndicated loan facility

USD 3070 million equivalent raised through domestic banks and FIs
USD 158 million equivalent raised from domestic bond market

Debt Structure and Robust Liquidity Position

Short-term/Long-term Debt Break-up

Secured/Unsecured Debt Break-up

Short-term
118100.00%
9%

Long-term
1242800.00%
91%

Secured
373800.0%
27%

Local Currency & Foreign Currency Debt

Break-up

Foreign Currency Debt; 402400.0%; 30%

Unsecured
987100.0%
73%

NTPC has a prudent debt mix with 91% of the total debt being Long Term
30% of total debt is through external commercial borrowings
Total Foreign Currency debt is unsecured
9

Rupee Debt; 958500.0%; 70%

Planned expenditure and its funding

Amount in USD Million

Planned Funding

Planned Expenditure
Particulars
Generation Projects

Amount
2,754

Investments in
JVs & Subsidiaries

205

Coal mining

265

R&M

134

Particulars
Total Capital Outlay

3,639

Internal Resources

1,494

Debt

2,145

Local
Other Ventures and
Capital Schemes
Total Capital Outlay

Amount

1,245

281
3,639

Foreign

900

Financial Highlights
(USD Million)

Particulars
Fixed Assets
Net Block

Y-o-Y (%)
15.67

12478

11412

9.34

Investments- Non current

1132

1285

(11.91)

Long term loans and advances & other non

current assets

2726

2305

18.26

5913

6309

(6.28)

31189

28415

9.76

1305

1305

11618

12276

(5.36)

12923

13581

(4.85)

220

255

(13.73)

155

166

(6.63)

12428

9876

25.84

633

536

18.10

4830
31189

4001
28415

20.73
9.76

Current Asset
TOTAL
Equity share capital
Reserve & Surplus
Net Worth
Deferred Revenue
Deferred tax liabilities
Loan Funds (excluding current
maturities)
Other long term liabilities and
provisions
11

Audited
Audited
FY 2015-16 FY 2014-15
21418
18516

Other current liabilities & provisions

Total

Financial Highlights
(USD Million)

Particulars
Income
(a) Revenue from Operations (net)
(b) Other income
Total Income
Expenses
(a) Fuel cost
(b) Employee Benefits Expenses
(c) Generation Exp Incl. Prior Period Items
(d) Depreciation and Amortization Expenses
(e) Finance Costs
Total Expenditure
Profit Before Tax and Exceptional Items
Tax
Profit After Tax

12

2015-16

2014-15

Y-o-Y
variations

11591
335
11926

11397
419
11816

1.70
(20.05)
0.93

7730
581

7253
605

6.58
(3.97)

735
777
434
10257
1669
41
1628

721
656
381
9616
2200
464
1736

1.94
18.45
13.91
6.67
(24.14)
(91.16)
(6.22)

L
NA

O
I
T
A
N
R
G
E
N
T
I
C
IN
N
A
N
I
F
13

International Financing

Why?
Global economy.
Import equipment's.
Rising funds.
Foreign payments.
Hedging.
14

Import equipment's

Stages : Initial advance .(15%)

On dispatches.(60%)
Through LC.
On receipt.(15%)
Completion of facilities.(5%)
PG test.(5%)

15

Rising funds

Public offering
Medium term node programme .($ 4 billion)
Listed in Singapore stock exchange .(SGX-ST).
BONDS @ 4.75, 4.275, 4.25.
Green masala bond.

16

Rising funds

Private placement
Borrowing from international financial institutions.
All-in-cost should be less than domestic market .

Parking of funds
CLTD (corporate liquidity term deposit).
FD.
Debt mutual funds.

17

hedging

To minimise the loss.

Types: Forward hedging.
Optional hedging.
Call(Right to buy)
Pull (right to sell)
Swap hedging.
.

18

THANK YOU