NHPC Limited has successfully completed a significant debt fundraising exercise, raising ₹2,000 crore through the issuance of bonds on private placement basis. The Government of India Navratna enterprise issued these bonds in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, under Regulation 30.

Bond Issue Details

The company issued 7.29% AH Series Bonds 2041 on 27.02.2026, structured as unsecured, redeemable, non-convertible, non-cumulative, and taxable instruments. The bonds carry a 15-year tenor from the date of allotment, with maturity scheduled for 27.02.2041.

Bond Structure and Tranches

The bond issue is uniquely structured into 10 separate tranches, designated as STRPP A through STRPP J, each with different maturity periods ranging from 6 to 15 years. This structure enables systematic principal repayment through annual installments starting from the 6th year.

Listing and Payment Schedule

The bonds are proposed for listing on the Wholesale Debt Market segments of both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The interest payment follows an annual schedule with a uniform coupon rate of 7.29% across all tranches.

The principal repayment structure involves 10 annual installments of ₹200 crore each, commencing from the expiry of 6 years from the deemed date of allotment. Each tranche will be redeemed at its respective maturity date, providing investors with staggered redemption options.

Key Features

The bonds carry several important characteristics that define their investment profile:

• Unsecured Nature: No charge or security created over company assets
• Tax Treatment: Taxable bonds with interest subject to applicable taxes
• Day Count Convention: Actual/Actual basis for interest calculations
• Effective Yield: Uniform across all investor categories
• Private Placement: Issued through private placement route rather than public offering

This bond issuance represents NHPC's strategic approach to long-term debt financing, providing the company with substantial capital while offering investors a structured investment opportunity with predictable cash flows over varying tenures.

NHPC Limited has informed stock exchanges about a significant arbitration award pronounced against the company in a dispute with HCC related to the Kishanganga HE Project. The disclosure was made in compliance with SEBI regulations regarding material litigation updates.

Arbitration Award Details

The arbitration tribunal pronounced the award in favor of HCC on February 21, 2026, following disputes over civil works construction at the Kishanganga HE Project. The award encompasses multiple financial components and represents a substantial financial obligation for NHPC.

Nature of Disputes

The arbitration case involved HCC's claims relating to the release and refund of encashment of Performance Bank Guarantee and Retention money Bank Guarantee. Additionally, HCC raised nine miscellaneous claims covering various aspects of the project execution.

The disputed areas included:

• Changes in legislation affecting Work Contract Tax, Toll Tax, VAT, GST, CST, and Custom Duty
• Price adjustment claims
• Costs related to depositing tax demand amounts raised by J&K Tax Authorities
• Interest on Custom Duty payments
• Costs of additional work executed beyond the original contract scope

NHPC's Counter-Claims

While the tribunal ruled in favor of HCC, NHPC has filed substantial counter-claims worth ₹738.67 crore against the contractor. These counter-claims represent NHPC's position on various project-related disputes and financial obligations.

Current Status and Next Steps

The arbitration tribunal's award is currently under examination by NHPC's legal and technical teams. The company has indicated that arguments on the counter-claims filed by NHPC are scheduled to commence, suggesting that the arbitration proceedings are not yet fully concluded.

The disclosure was made through a formal communication to both BSE Limited and National Stock Exchange of India Limited, signed by Company Secretary Rupa Deb on February 23, 2026. This development represents a significant material event for the Navratna company, which specializes in hydroelectric power generation projects across India.