Power utility CESC Ltd on Wednesday announced that its board has approved raising Rs 300 crore via non-convertible debentures (NCDs) on a private placement basis.

The company will issue 30,000 redeemable, senior, secured, rated and unlisted NCDs of Rs 1 lakh each with a three-year tenure. The instruments will carry a floating coupon rate linked to the three-month Treasury Bill rate plus 2.30% per annum.

CESC said in its regulatory filing that in case of any default in servicing, an additional interest of 2% per annum over the coupon rate will be applicable.