Power Grid to Raise Rs 2,200 Crore via Bonds with Greenshoe Option on January 10

9 Jan 2024 , 12:57 PM

Power Grid Corporation of India is set to raise up to Rs 2,200 crore through the issuance of bonds on January 10.

The bond issue will have a base size of Rs 500 crore, with a greenshoe option of Rs 1,700 crore. The maturity date for the bonds is January 11, 2034.

A greenshoe option allows the company to issue more bonds than initially planned if the demand exceeds expectations.

Bidding for the bonds will occur between 11 am and 12 pm on the BSE’s electronic bidding platform.

The pay-in and allotment date is scheduled for January 10, as per the issuer manual. Pay-in is the date when the exchange of bonds and money occurs between issuers and investors.

The bonds have received a ‘AAA’ rating from CRISIL, CARE, and ICRA.

Earlier on January 8, several entities, including Embassy Office Parks Reit, Kotak Infrastructure Debt Fund, Adani Ports And Special Economic Zone, HDB Financial Services, and Indian Renewable Energy Development Agency (IREDA), successfully raised funds through bonds.

Bonds provide companies with the opportunity to borrow substantial amounts at favorable interest rates, enabling investments in growth and other projects. They also offer greater operational flexibility compared to bank loans, which often come with conditions.

IERDA raised Rs 809.74 crore through three-year bonds at a 7.77 percent coupon, while Adani Ports raised Rs 250 crore each through two bonds.

HDB Financial Services raised Rs 300 crore through nine-year bonds, and Embassy Office Parks REIT raised Rs 1,000 crore.

L&T Finance Holdings, National Bank for Agriculture and Rural Development (NABARD), and Hero Fincorp also successfully raised funds through bonds.

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