Power Grid Corporation of India Ltd (PGCIL) is planning to raise up to Rs.2,250 crore through non-convertible bonds, by securitization of cash flows of four operational special purpose vehicles.
In a stock exchange filing, PGCIL said that the company’s Committee of Directors, in a meeting held on September 25, 2023, has approved the raising of up to Rs.2,250 crore in the ongoing fiscal year, FY24.
The proposed non-convertible debentures will be issued on private placement basis, and will be secured by cash flows up to March 2034 of four operational wholly-owned subsidiaries of PGCIL.
The bond issue officially named as “POWERGRID Bonds – LXXIV (74th) Issue 2023-24” will have a base size of Rs.500 crore and a greenshoe option of Rs.1,750 crore, making a total of Rs.2,250 crore.
Each of the four wholly-owned subsidiaries (tabulated below) was formed for development of interstate transmission system (ISTS) schemes, under the BOOT mode. All the four project SPVs have commissioned their respective projects, and are commercially operational:
Also read: PGCIL To Commission 18 ISTS-RTM Projects In FY24
The proceeds of the issue will be used for part-financing PGCIL’s capital expenditure, providing inter-corporate loans to wholly-owned subsidiaries and joint ventures, and for general corporate purposes.