New Delhi: The Maharatna power company Power Grid Corporation board has approved the raising of Rs 2,250 crore through bonds. The company on Monday said its board has approved a proposal to raise up to Rs 2,250 crore through issuance of bonds to fund its capital expenditure.

In a regulatory filing, the company said the Committee of Directors for Bonds, in their meeting held on September 25, 2023, have approved raising of up to Rs 2,250 crore in 2023-24 in second tranche.

This fund raising will part-finance the company's capex requirement, for providing inter-corporate loan(s) to wholly-owned subsidiaries/JVs and for general corporate purposes by securitization of cash flows of four operational SPV (special purpose vehicles) up to March, 2034, the regulatory filing said.

The four operational SPVs are POWERGRID Bhuj Transmission Ltd (PBTL), POWERGRID Khetri Transmission System Ltd (PKTSL), POWERGRID Medinipur Jeerat Transmission System Ltd (PMJTL) & POWERGRID Varanasi Transmission System Ltd (PVTSL).

The POWERGRID Bonds - LXXIV (74th) Issue 2023-24 come with base issue size of Rs 500 crore and green shoe option (additional) Rs 1,750 crore totalling Rs 2,250 crore.

The bonds are redeemable at par in 10 equal instalments and interest payment on yearly basis.

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