Power Grid Clears Second Tranche, Raising Rs 2,250 Crore For Expansion

September 25 -- Power Grid Corporation Ltd. approved raising up to Rs 2,250 crore in the second tranche for funding needs. The funds will go towards the company's capital expenditure, inter corporate loans, and general corporate purposes. The capital will be raised through securitization of cash flows from four operational Special Purpose Vehicles up to March 2034.

The bond issue includes a base size of Rs 500 crore with a green shoe option of Rs 1,750 crore and will be redeemed in 10 equal installments with yearly interest payments. Power Grid aims to raise a total of Rs 5,700 crore via bonds, with a capex plan of Rs 8,800 crore for the financial year 2024.