Torrent Power Limited has successfully issued and allotted 2,00,000 Secured, Rated, Listed, Taxable, Non-Convertible Debentures (NCDs) amounting to ₹2,000 Crore on a private placement basis on March 09, 2026. The NCDs carry a fixed coupon rate of 7.97% p.a. and are divided into three series (14A, 14B, and 14C) with maturities spanning 8, 9, and 10 years, respectively. The issuance is secured by a first pari passu charge on specified company assets.
Successful Allotment of Non-Convertible Debentures
Torrent Power Limited announced the completion of the issuance and allotment of Non-Convertible Debentures (NCDs) through a private placement on March 09, 2026. This fundraising exercise followed up on a previous communication dated May 14, 2025.
The company allotted a total of 2,00,000 NCDs, each having a face value of ₹1 Lakh per Debenture, aggregating to a total issue size of ₹2,000 Crore. These securities are designated as Series 14 Secured, Rated, Listed, Taxable, Non-Cumulative, Redeemable, and Non-Convertible Debentures.
Key Financial Terms
The NCDs carry a coupon interest rate of 7.97% p.a. across all three sub-series (14A, 14B, and 14C). The interest payments are scheduled to commence on March 09, 2027, and continue on an annual basis thereafter until redemption.
Maturity and Principal Repayment Schedule
The total issuance is structured across three distinct redemption periods:
- Series 14A: 68,000 NCDs maturing on 09-03-2034 (8 Years tenure).
- Series 14B: 67,500 NCDs maturing on 09-03-2035 (9 Years tenure).
- Series 14C: 64,500 NCDs maturing on 09-03-2036 (10 Years tenure).
The principal amount for all series is redeemable at the Face Value of Debentures on the Maturity Date.
Security Structure and Charge Creation
The Debentures are secured by way of a charge created over the assets of the Company. The primary security mechanism includes:
- A First pari passu charge on all present and future movable assets, excluding those related to Renewable Projects, debt service reserve accounts, and NCD/NCDR reserves.
- A First pari passu charge on all present and future immovable assets, excluding those related to Renewable Projects, company leasehold assets, the specified Kamatghar (Bhiwandi) property, and the New Delhi property (Dharam Marg, Chanakya Puri).
This first charge ranks pari passu with all existing term lenders, working capital lenders, and secured debenture holders. A Second charge over the Security is available to entities providing hedging contracts to the Company.
Covenant Regarding Credit Rating Downgrade
The terms include specific provisions related to credit rating changes:
- In the event of a rating downgrade by any domestic rating agency post-issuance, the coupon rate will increase by 0.25% per annum for each notch of downgrade, effective from the date of the downgrade.
- Conversely, if the rating is subsequently upgraded by both agencies, the Coupon Rate would be reduced by 0.25% per annum for each notch of upgrade, subject to the cap of the original coupon rate.
- In the event of a Rating Downgrade to “BBB+” or below, Debenture Holders holding not less than 51% of the nominal amount have the right to call for an accelerated redemption, which the Issuer must effect within 60 days of receiving notice.
Default Provisions
Should the Company default in the payment of interest or principal for a period exceeding three months from the due date, the Company shall pay additional interest at the rate of 2% per annum over the Coupon Rate for the entire defaulting period.
The Issuer undertakes that the charged assets are free from encumbrances or that necessary consent for creating a pari-passu charge has been obtained from existing creditors prior to the charge creation. The required charges are to be created, perfected, and registered with the Registrar of Companies/CERSAI within 30 days of security creation.
Source: BSE
