New Delhi: Power Grid Corporation of India Limited (PGCIL) has received approval to raise funds up to Rs 900 crores from domestic market by issuing unsecured, non-convertible, non-cumulative, redeemable, taxable POWERGRID Bonds-LXXI (71st) Issue 2022-23, informed the Maharatna PSU in a regulatory filing on Thursday.
"The Committee of Directors for bonds, in their Meeting held on Thursday, have approved the raising of unsecured, non-convertible, non-cumulative, redeemable, taxable POWERGRID bonds-LXXI (71st) issue 2022-23 on private placement up to Rs 900 crore by securitisation of cashflows of 10 years till FY 2032-33 of its operational SPV viz, POWERGRID Mithilanchal Transmission Limited (PMTL)," the filing said.
Highlighting on the size of the issue, it added, "the base issue size is Rs 300 crores, green shoe option is worth Rs 600 crores. Therefore, the total issue size is worth Rs 900 crores." Further, it said that "the bonds are redeemable at par in 40 equal installments and interest payment will be done on quarterly basis. The coupon rate will be decided by Electronic Book Provider (EBP)." As per the SEBI, the EBP provides a way of issuing debt securities on a private placement basis.
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