Power Grid To Raise Funds To Secure Rs 5,000cr Through Bonds

Power Grid To Raise Funds To Secure Rs 5,000 crore Through Bonds

Indian government enterprise Power Grid has now decided to raise fresh funding by issuing bonds to secure Rs 5000 crore on a private placement basis. The public-listed company in its latest disclosure before the stock exchange said that the Board of Director of the firm has approved the plan.

“…this is to inform that the ‘Committee of Directors for Bonds’ in their meeting held today i.e. on 22nd October, 2024 has approved the raising of Bonds as Unsecured, Non-convertible, Non-cumulative, Redeemable, Taxable, POWERGRID Bonds – LXXIX (79th) Issue upto Rs. 5,000 Crore on Private Placement basis,” the statement from the firm said.

Power grid said that the base issue size for this will be Rs 1000 crore while it will also have a green shoe option of Rs 4000 crore. The two combinations will take the total issue size to Rs 5000 crore.

Power grid said that the bonds are redeemable at par at the end of 10th year and interest payment will be on yearly basis. These will be unsecured, non convertible, non-cumulative, redeemable and taxable.

The company in the recent few months have secured several transmission projects. Some of these include the transmission system of evacuation of power from the renewable energy zone of Jaisalmer and Barmer in Rajasthan, Khavda and others.