Power Grid Corporation To Raise Rs 5,700 Crore Through Bond Issuance For Expansion
New Delhi, 30th July 2023: The board of Power Grid Corporation has given the green light to a proposal aimed at raising funds amounting to Rs 5,700 crore during the fiscal year 2023-24. The funds will be raised through the issuance of bonds on a private placement basis, which will be carried out in multiple tranches.
The primary objective of raising these funds is to fulfil the company’s capital expenditure requirements. Additionally, a portion of the funds will be utilized for providing inter-corporate loans to its wholly-owned subsidiaries and joint ventures. The remaining amount will be allocated for general corporate purposes.
To accomplish this, the company plans to securitize the cashflows of four operational special purpose vehicles (SPVs) – POWERGRID Bhuj Transmission, POWERGRID Khetri Transmission System, POWERGRID Medinipur Jeerat Transmission System, and POWERGRID Varanasi Transmission System – until March 2034.
In the first tranche, Power Grid is set to raise Rs 500 crore. Moreover, they have the option to exercise a green shoe option for an additional Rs 1,400 crore, if required
