Power Grid Approves INR 5,000 Crore Bond Issue Via Private Placement

Power Grid Corporation of India's  board has approved the issuance of Unsecured, Non-convertible, Non-cumulative, Redeemable, Taxable Bonds for the financial year 2024-25.

With the approval of this 79th bond issue, the company can raise up to INR 5,000 crore through private placement, providing substantial capital for its ongoing and future projects.

"The bond issue will have a base size of INR 1,000 crore, with the option to raise an additional INR 4,000 crore through a Green Shoe option, bringing the total to INR 5,000 crore," said the firm in its filing.

These bonds will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), ensuring accessibility for investors. With a 10-year maturity, the bonds are set to be redeemable at par at the end of this period, and the interest payments will be made annually.

The exact coupon or interest rate will be decided after the bidding process on the Electronic Book Provider (EBP) platform. As these bonds are unsecured, no specific Power Grid assets will be used as collateral.

The bond issuance comes without any special rights or privileges, and there are no delays or defaults reported in payments of interest or principal. Additionally, no concerns regarding interest or principal payments have been raised.

The move is seen as a significant financial step for Power Grid, helping the corporation meet its funding needs for infrastructure development and future expansion in India's energy sector.