NTPC makes bond market debut

State-owned power company tries to re-engage investor interest in Indian debt.

National Thermal Power Corporation NTPC priced its debut international capital markets deal yesterday Wednesday raising $200 million from a seven-year deal.

With ABN AMRO and Merrill Lynch as lead managers, the Ba2BBBB Fitch rated group priced its offering at 99.37% on a coupon of 5.5% to yield 5.61%. This equates to a Treasury spread of 203bp and Libor spread of 159bp. Fees total 20bp.

At this level, pricing was deemed fair, although slightly out of kilter with where it would trade relative to comparables such as IDBI and ICICI in the domestic bond market. However, neither of the latter two deals have performed well over the past week and...

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