Powergrid to raise up to Rs 22.50 billion via bonds to fund capex

Power Grid Corporation of India Limited (Powergrid) has announced that its board has approved a proposal to raise Rs 22.50 billion through bond issuance to support its capital expenditure (capex).

The board approved raising the fund in 2023-24, in the second tranche. The POWERGRID Bonds – LXXIV (74th) Issue 2023-24 will come with a base issue size of Rs 5 billion and a green shoe option (additional) of Rs 17.50 billion, taking the total fundraise to Rs 22.50 billion. The bonds are redeemable at par in 10 equal instalments, with interest payments on a yearly basis. The fundraising will part-finance the company’s capital expenditure requirement, provide inter-corporate loans to wholly-owned subsidiaries/joint ventures, and serve general corporate purposes by securitising cash flows of four operational special purpose vehicles (SPVs) up to March 2034. The four operational SPVs are Powergrid Bhuj Transmission Limited, Powergrid Khetri Transmission System Limited, Powergrid Medinipur Jeerat Transmission System Limited, and Powergrid Varanasi Transmission System Limited.