Powergrid approves raising Rs 9 billion via bonds

The Power Grid Corporation of India (Powergrid) has announced that its committee of di­rectors for bonds has approved the issuance of bonds with a base size of up to Rs 3 billion and a greenshoe option of up to Rs 6 billion. Po­wergrid will issue unsecured, non-convertible, non-cumulative, redeem­able, taxable PowerGrid bonds-LXXI, aggregating up to Rs 9 billion, on a private placement basis. The funds raised will be utilised to securitise the cash flows of its operational special purpose vehicle (SPV), Power Grid Mithilanchal Transmission, for 10 years, until 2032-33. The bonds will be redeemed at par in 40 equal instalments and interest payment on a quarterly basis.