Power Grid board approves fund raise up to ₹5,700 crore through issuance of unsecured bonds

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Power Grid fund raies: The board of directors of Power Grid Corporation of India Ltd has approved fund raise up to ₹5,700 crore throuugh issuance of bonds on a private placement basis to part finance its capex requirement. The Indian central public sector undertaking informed Indian stock market exchanges about the decision on Saturday.

The PSU company went on to add that the fund would raised in various tranches during the financial year 2023-24 and the net proceeds will be used for providing inter corporate loans to fully owned four subsidiaries — Power Grid Bhuj Transmission Limited, Power Grid Khetri Transmission System Limited, Power Grid Medinipur Jeerat Transmision System Limited and Power Grid Varanasi Transmission System Limited. Power Grid Corporation informed Indian exchanges about the development citing, "In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is to inform that the Committee of Directors for Bonds, in their Meeting held today i.e.

on 29th July, 2023, have approved the raising of up to ₹5,700 crore in FY 23-24 in multiple tranches to part finance its capex requirement, for providing Inter Corporate Loan(s) to wholly owned subsidiaries/JVs and for general corporate purposes by securitization of cashflows of 4 operational SPV viz. “POWERGRID Bhuj Transmission Limited (“PBTL"), POWERGRID Khetri Transmission System Limited (“PKTSL"), POWERGRID Medinipur Jeerat Transmission System Limited (“PMJTL") & POWERGRID Varanasi Transmission System Limited (“PVTSL")" upto March, 2034." Here we list out full details about ₹5,700 crore fund raise plan of the state-owned company, which the PSU has shared on BSE: 1] Size of the isse: POWERGRID Bonds - LXXIII