Raising of upto Rs 6 billion bonds issued by Power Grid Corp

The board of the state-owned Power Grid Corporation has approved raising up to Rs 6 billion through the issuance of bonds for private placement. According to a BSE filing, “Committee of directors for bonds, in their meeting held on 24 th March, 2023, have approved the raising of unsecured, non-convertible, non-cumulative, redeemable, taxable POWERGRID Bonds-LXXII (72nd) issue 2022-23 on private placement up to Rs 6 billion by securitisation of cash flows of 10 years i.e. till FY 2032-33 of its operational SPV (special purpose vehicle) viz. 'POWERGRID NM Transmission Ltd' (PNMTL)”. The overall issue size, which includes the base issue size of Rs 1 billion and the green shoe option of Rs 5 billion, was shown to be Rs 6 billion. Both the BSE and/or the NSE will list the bonds. According to the statement, interest is paid on a quarterly basis and bonds are redeemable at par in 40 equal payments.