Key Points of Power Grid Corporation Board Approves Bond Issuance:
- Power Grid Corporation board approves issuance of up to Rs 600 crore bonds via private placement.
- The bonds will be listed on either the BSE and/or NSE.
- Bonds will be redeemable at par in 40 equal instalments, with interest paid quarterly.
- The bonds are backed by the cash flows of operational SPV, POWERGRID NM Transmission Ltd (PNMTL).
- The total issue size of bonds is Rs 600 crore, including a base issue size of Rs 100 crore and a green shoe option of Rs 500 crore.
- The move will provide additional funds to support the company’s expansion and investment plans.
- The issuance offers investors a secure and attractive investment opportunity, as the bonds are listed on the BSE and/or NSE.
- Power Grid Corporation’s bond issuance helps support the development of critical infrastructure projects in India, driving the country’s economic growth.
Details of Power Grid Corporation Board Approves Bond Issuance:
Power Grid Corporation Board Approves Rs 600 Crore Bond Issuance via Private Placement
The board of state-owned Power Grid Corporation has given the green light for the issuance of up to Rs 600 crore in bonds on a private placement basis. According to a filing with the Bombay Stock Exchange (BSE), the Committee of Directors for Bonds approved the raising of unsecured, non-convertible, non-cumulative, redeemable, taxable Power Grid Bonds-LXXII (72nd) issue 2022-23 on private placement, backed by the cash flows of its operational SPV, POWERGRID NM Transmission Ltd (PNMTL). The bonds, with a total issue size of Rs 600 crore, including a base issue size of Rs 100 crore and a green shoe option of Rs 500 crore, will be listed on either BSE and/or NSE. The bonds will be redeemable at par in 40 equal instalments, with interest paid on a quarterly basis.
The move comes as Power Grid Corporation continues to seek new ways to finance its ongoing expansion and investment plans. This latest bond issuance will provide the company with additional funds to support its ambitious growth agenda, while also offering investors a secure and attractive investment opportunity. As the bonds are listed on the BSE and/or NSE, they will be easily tradable, providing investors with liquidity and flexibility.
With the Indian economy continuing to recover from the COVID-19 pandemic, companies like Power Grid Corporation are looking to take advantage of the growing investor interest in the country’s infrastructure sector. By tapping into the bond market, Power Grid Corporation is not only raising much-needed capital but also helping to support the development of critical infrastructure projects that will help drive the country’s economic growth for years to come.
About Power Grid Corporation:
Headquartered in Gurugram, the Power Grid Corporation is a central public sector undertaking owned by the Government of India’s Ministry of Power. Its primary focus is on transmitting bulk power across various Indian states.
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