Private Placement Offer letter PRIVATE &CONFIDENTIAL For Private Circulation Only NORTH EASTERN ELECTRIC POWER CORPORATION LIMITED (A Schedule "A" Miniratna Government of India Enterprise) (NEEPCO, a Government of India Enterprise under the Ministry of Power was set up on 2nd April, 1976 to plan, investigate, design, construct, generate, operate and maintain power stations in the North Eastern Region of the country. NEEPCO has an installed capacity of 1287 MW which is around 50% of the total installed capacity of the N.E. Region. NEEPCO's authorised share capital is ` 5000 crore) Registered Office: Brookland Compound, Lower New Colony, Shillong - 793003, Meghalaya, India Tel: (91) - (0364) - 2228652/2223051 Fax: (91)-(0364)- 2228652/2505776 Website: www.neepco.co.in E-mail: [email protected] (This disclosure document is neither a prospectus nor a statement in lieu of prospectus). This disclosure document is prepared and issued in conformity with Securities & Exchange Board of India (Issue & Listing of Debt Securities) Regulations, 2008 issued vide circular no. LAD-NRO/GN/2008/13/127878 dated June 06, 2008, as amended by Securities & Exchange Board of India (Issue & Listing of Debt Securities) (Amendment) Regulations, 2012 issued vide circular no. LAD-NRO/GN/2012-13/19/5392 dated October 12, 2012 and CIR/IMD/DF/18/2013 dated October 29, 2013) and the Securities and Exchange Board of India (Issue & Listing of Debt Securities) (Amendment) Regulations, 2014 issued vide circular no. LAD-NRO/GN/2013-14/43/207 dated January 31, 2014 and Securities & Exchange Board of India (Issue & Listing of Debt Securities) (Amendment) Regulations, 2015 issued vide circular no. LAD-NRO/GN/2014- 15/25/539 dated March 24, 2015 and Securities & Exchange Board of India (Issue & Listing of Debt Securities) (Amendment) Regulations, 2016 issued vide circular no SEBI/ LAD-NRO/GN/2016-17/004 dated 25 May 2016 and SEBI CIRCULAR NO. CIR/IMD/DF-1/122/2016 dated November 11, 2016 and Securities & Exchange Board of India (Issue & Listing of Debt Securities) (Amendment) Regulations, 2015, issued vide circular no. SEBI/LAD- NRO/GN/2015-16/013 dated September 02 2015 and section 42 of the Companies Act, 2013 and the Companies (Prospectus & Allotment of Securities) Rules, 2014) PRIVATE PLACEMENT OFFER LETTER DATED 23rd MARCH, 2017 FOR ISSUE OF 7.80% SECURED, REDEEMABLE NON-CONVERTIBLE TAXABLE BONDS IN NATURE OF DEBENTURES (XVIIth Series) FOR CASH AT PAR WITH A FACE VALUE OF `10,00,000 EACH AGGREGATING `300,00,00,000 TRUSTEE FOR THE BONDHOLDERS R&TA TO THE ISSUE SBICAP Trustee Company Ltd. Karvy Computershare Pvt. Ltd Registered Office Registered Office 202, Maker Tower 'E', Karvy House, 46, Avenue-4 Cuffe Parade Street No.1, Banjara Hills Mumbai 400 005 Hyderabad 500038, Andhra Pradesh Tel No: 022-4302 5555 Tel No: 040-23312454 Fax No: 022-4302 5500 Fax No: 040-23311968 E-Mail: [email protected] E-Mail: [email protected] ARRANGERS TO THE ISSUE AXIS BANK LTD ICICI BANK Axis House, 8th Floor, Debt Capital ICICI Bank Towers, TRUST INVESTMENT ADVISORS Market, Bombay Dyeing Mills Bandra-Kurla Complex, PVT. LTD. Compound, Pandurang Mumbai 400 051 Regd. Office: 109/110, 1st Floor, Budhkar Marg, Worli Tel: +91 22 26531414 Balarama Village Parigkhari; Mumbai - 400 025 Bandra Kurla Complex Tel :022-66043293 Bandra (East), Mumbai - 400 Fax : 022-24253800 051.Tel : 022- 40845000 Fax : 022- 408450 07 www.trustgroup.in Issue schedule* Issue opening date 23rd March, 2017 Issue closing date 23rd March, 2017 Pay-in date 27th March, 2017 Deemed date of allotment 27th March, 2017 *The Issuer reserves its sole & absolute right to modify (pre-pone/ postpone) the above issue schedule without giving any reasons or prior notice. LISTING The bond issue is proposed to be listed on the BSE Limited ("BSE"). The Issuer has obtained an “in-principle” approval from the BSE for listing of the Bonds offered under this Private Placement Offer Letter. 1 Private Placement Offer letter PRIVATE &CONFIDENTIAL For Private Circulation Only INDEX TITLE I. Definitions/ Abbreviations II. Disclaimers III. Issuer Information: A. Name and address of the Registered & Corporate Office B. Compliance Officer of the Issue C. Chief Finance Officer D. Statutory Auditors of the Issuer IV. Brief summary of business/ activities of issuer and its line of business A. Overview B. Brief profiles of the generating stations C. Brief note on the on-going projects of the Corporation D. Corporate Structure of the Issuer E. Key Operational and Financial Parameters for the last 3 audited years F. Gross Debt: Equity Ratio of the Company prior to and after the issue of this security V. A brief history of the issuer since its incorporation giving details of its activities A. Details of Share Capital as on last quarter end (31.12.2016) B. Changes in capital structure as on last quarter end, for the last five years C. Equity Share Capital history of the Company as on last quarter end, for the last five years D. Details of any Acquisition or Amalgamation in the last 1 year E. Details of any Reorganization or Reconstruction in the last 1 year Any financial or other material interest of the directors, promoters or key managerial personnel in the offer and the F. effect of such interest in so far as it is different from the interests of other persons Details of any litigation or legal action pending or taken by any Ministry or Department of the Government or a statutory authority against any promoter of the offeree company during the last three years immediately preceding G. the year of the circulation of the offer letter and any direction issued by such Ministry or Department or statutory authority upon conclusion of such litigation or legal action shall be disclosed Related party transactions entered during the last three financial years immediately preceding the year of circulation H. of offer letter including with regard to loans made or, guarantees given or securities provided Summary of reservations or qualifications or adverse remarks of auditors in the last five financial years immediately preceding the year of circulation of offer letter and of their impact on the financial statements and financial position I. of the company and the corrective steps taken and proposed to be taken by the company for each of the said reservations or qualifications or adverse remark Details of any inquiry, inspections or investigations initiated or conducted under the Companies Act or any previous J. company law in the last three years immediately preceding the year of circulation of offer letter in the case of company and all of its subsidiaries Details of acts of material frauds committed against the company in the last three years, if any, and if so, the action K. taken by the company VI. Details of the shareholding of the Company as on the latest quarter end (31.12.2016) A. Shareholding pattern of the Company as on the latest quarter end (31.12.2016) B. List of top 10 holders of equity shares of the company as on the latest quarter end (31.12.2016) VII. Details regarding the Directors of the Company A. Details of the current Directors of the Company B. Details of change in Directors since last three years C. Remuneration of directors (during the current year and last three financial years) VIII. Details regarding the Statutory Auditors of the Company A. Details of the Auditor of the Company B. Details of change in Auditor since last three years IX. Details of borrowings of the Company as on the latest quarter end (31.12.2016) A. Details of Secured Loan Facilities B. Details of Unsecured Loan Facilities C. Details of NCDs D. List of Top 10 Debenture Holders as on the latest quarter end (31.12.2016) The amount of corporate guarantee issued by the Issuer along with name of the counterparty (like name of the E subsidiary, JV entity, group company, etc) on behalf of whom it has been issued. F. Details of Commercial Paper Details of rest of the borrowing (if any including hybrid debt like FCCB, Optionally Convertible Debentures / G. Preference Shares). Details of all default/s and/or delay in payments of interest and principal of any kind of term loans, debt securities H. and other financial indebtedness including corporate guarantee issued by the Company, in the past 5 years. 2 Private Placement Offer letter PRIVATE &CONFIDENTIAL For Private Circulation Only Details of any outstanding borrowings taken/ debt securities issued where taken / issued (i) for consideration other I. than cash, whether in whole or part, (ii) at a premium or discount, or (iii) in pursuance of an option. J. Management’s perception of risk factors X. Details of promoters of the company Abridged version of audited consolidated (wherever available) and standalone financial information (like profit & XI. loss statement, balance sheet and cash flow statement) for at least last three years and auditor qualifications , if any Abridged version of latest audited / limited review half yearly consolidated (wherever available) and standalone XII. financial information (like profit & loss statement and balance sheet) and auditors qualifications, if any Any material event/ development or change at the time of issue or subsequent to the issue which may affect the XIII. issue or the investor’s decision to invest/ continue to invest in the debt securities The names of the debenture trustee(s) shall be mentioned with statement to the effect that debenture trustee(s) has XIV. given his consent to the issuer for his appointment under regulation 4 (4) and in all the subsequent periodical communications sent to the holders of debt securities. The detailed rating rationale (s) adopted (not older than one year on the date of opening of the issue)/ credit rating XV.