Powergrid Infrastructure Investment Trust (PGInvIT) will be raising Rs.700 crore from HDFC Bank Ltd, the InvIT said in a stock exchange filing.
The recent filing from PGInvIT said that it has entered into a facility agreement for Rs.700 crore with HDFC Bank Ltd on March 29, 2022.
This facility will be used for part-financing funding requirements towards acquisitions being made by PGInvIT, the filing said.
The facility agreement was formalized after the board of directors of Powergrid Unchahar Transmission Ltd (PUTL) — the investment manager to PGInvIT — approved the proposal in its meeting held on March 28, 2022.
It may be recalled that in February this year, PGInvIT had approved the transfer of the residual equity of 26 per cent in Powergrid Vizag Transmission Ltd, from Power Grid Corporation of India Ltd (PGCIL).
In May 2021, PGCIL had monetized Rs.2,736.02 crore by way of sale of five of its special purpose vehicles to PGInvIT.
The following five SPVs were sold to PGInvIT. These five assets are collectively referred to as “Initial SPVs”:
- Powergrid Warora Transmission Ltd
- Powergrid Parli Transmission Ltd
- Powergrid Jabalpur Transmission Ltd
- Powergrid Kala Amb Transmission Ltd
- Powergrid Vizag Transmission Ltd
PGCIL had transferred 74 per cent of its holding in each of these five Initial SPVs to PGInvIT. Powergrid Vizag Transmission Ltd is now set to be wholly-owned by PGInvIT.
