Tata Power Company (TPCL) plans to announce the raising of funds up to Rs 2,000 crore via bonds for financing its business operations.

Meanwhile, the company has tied up Rs 450 crore of sustainable trade finance from Japanese banking institution Mitsubishi UFJ Financial Group (MUFG) for renewable energy projects.

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At the end of September 2022, TPCL’s gross debt marginally rose to Rs 49,535 crore from Rs 47,590 crore on March 2022. This is because of increased borrowing in Odisha power distribution companies, coal special purpose vehicles, and renewable businesses.

For FY23, the cash accrual project is at Rs 4,000 and for FY24 is at Rs 5,000, which will primarily meet the annual capital expenditure requirement of about Rs 5,000-6,000 crore.

In FY24, the debt maturity of Rs 6,500 crore and in FY Rs 5,500 crore in FY23 is expected to be primarily refinanced, given the strengths of the company’s cash flows.

TPCL is the holding company of Tata Power Renewable Energy Ltd (TPREL).

The company has to operate profitability which remains vital for the renewable energy business, driven by the commissioning of new renewable capacities. The operation of healthy performance has a normative level that continues across distribution businesses and regulated generation, observed by CRISIL.