Power Grid Corporation Announces ₹2,250 Crore Bond Issue For Financial Year 2023-24

Under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Power Grid Corporation of India Limited (POWERGRID) has announced its plan to raise to ₹2,250 crore in the fiscal year 2023-24. This decision was made during a meeting of the Committee of Directors for Bonds held on September 25, 2023.

The funds raised through this bond issue will serve multiple purposes crucial to POWERGRID’s strategic objectives. These include financing capital expenditures, providing inter-corporate loans to wholly-owned subsidiaries and joint ventures, and fulfilling general corporate requirements. The financing for these purposes will be facilitated through the securitization of cash flows from four operational Special Purpose Vehicles (SPVs) – POWERGRID Bhuj Transmission Limited (PBTL), POWERGRID Khetri Transmission System Limited (PKTSL), POWERGRID Medinipur Jeerat Transmission System Limited (PMJTL), and POWERGRID Varanasi Transmission System Limited (PVTSL). The securitization will extend until March 2034.

The bond issue, known as POWERGRID Bonds – LXXIV (74^th) Issue 2023-24, will consist of an initial base issue size of ₹500 crore, with a green shoe option of ₹1,750 crore, resulting in a total issue size of ₹2,250 crore. These unsecured, non-convertible, non-cumulative, redeemable, and taxable bonds will be offered through private placement.

Investors can anticipate these bonds to be redeemed at par in ten equal installments, with annual interest payments. The issuance aligns with POWERGRID’s ongoing commitment to raising capital efficiently and supporting its expansion initiatives in the power transmission sector.

POWERGRID’s decision to tap the bond market for funding reflects its strategic financial planning and continued efforts to strengthen the nation’s power infrastructure, ensuring a reliable and robust electricity supply across the country. This move also reinforces investor confidence in the company’s financial stability and long-term growth prospects. Investors and financial markets will closely monitor the bond issuance for further developments and its impact on POWERGRID’s financial health and operational expansion.