The “Committee of Directors for Bonds” of Power Grid Corporation of India Ltd (PGCIL) has approved the raising of funds through issuance of non-convertible bonds.
In a stock exchange communication, PGCIL said that the aforementioned committee that met on December 29, 2023, approved the raising of up to Rs.2,200 crore by way of “unsecured, non-cumulative, redeemable, taxable POWERGRID Bonds – LXXV (75th) issue.”
These bonds will be issued on private placement basis and will be listed on stock exchanges. The base size of the bond issue will be Rs.500 crore with a greenshoe option (retention of over-subscription) of Rs.1,700 crore, making a total issue size of Rs.2,200 crore.
This will be the third tranche of fund-raising programme approved by PGCIL in July 2023. The programme entailed raising of up to Rs.5,700 crore through non-convertible bonds during FY24, in multiple tranches.
The funds so raised would be used to part-finance capital expenditure requirements, providing inter-corporate loans to wholly-owned subsidiaries and joint ventures and for general corporate purposes.
The monies raised will be securitized by cash flows up to March 2034 of four operational wholly-owned subsidiaries:
- Powergrid Bhuj Transmission Ltd
- Powergrid Khetri Transmission System Ltd
- Powergrid Medinipur Jeerat Transmission System Ltd
- Powergrid Varanasi Transmission System Ltd
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