NHPC Raises ₹2,000 Crore Through 15-Year Bonds at 7.67% Coupon; Issue Draws ₹8,700 Crore Bids

NHPC Limited has raised ₹2,000 crore through a 15-year bond issue at a coupon rate of 7.67%, according to news reports.  

The issue received bids of around ₹8,700 crore, showing demand from institutional investors for long-term debt securities issued by highly rated public sector companies. 

The bond sale was launched with a base issue size of ₹500 crore and a greenshoe option of another ₹500 crore. Based on the response, the company accepted subscriptions higher than the initial planned amount. 

Oversubscription in Issue 

Market participants said the strong response came mainly from insurance firms, pension funds and other long-term investors seeking fixed-income instruments with longer maturities.  

Demand for long-duration ‘AAA’-rated bonds has remained steady even as borrowing activity in the corporate bond market has fluctuated. 

Participants added that limited supply in the segment has supported tighter pricing for issuers with strong credit profiles.  

NHPC’s relatively moderate borrowing programme also helped the company secure a lower coupon compared with issuers raising larger amounts from the market. 

Repayment Scheduled in Instalments 

The bonds were structured using 10 Separate Transferable Redeemable Principal Parts (STRPPs).  

Under this arrangement, the principal amount will be repaid through annual instalments instead of a lump-sum payment at maturity. 

Repayment of principal is scheduled to begin from May 29, 2032, and continue annually until May 29, 2041. The staggered structure provides investors with cash flows across multiple years and maturity periods. 

According to market participants, such structures are commonly used for investors managing long-term liabilities, particularly insurers and pension funds that require predictable repayment schedules. 

About the Company 

NHPC is engaged mainly in the development and operation of hydroelectric power projects in India. The company also has a presence in solar and other renewable energy segments. 

Read More: Hindalco and Nalco Share Price Gains Upto 5% Amid Rising Global Aluminium Prices! 

NHPC Limited Share Price Performance  

As of May 27, 2026, at 12:16 pm, NHPC share price was trading at ₹80.50, up 2.63% from the previous closing price. 

Conclusion 

The response to the bond issue indicates continued demand for long-tenure debt issued by government-backed companies in the domestic bond market. 

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