NEW DELHI, Aug 29: State-owned Power Grid on Thursday said it has got shareholders’ approval to raise up to Rs 10,000 crore through issuance of bonds on private placement basis.
A special resolution was approved to raise the fund from domestic market through issuance of secured/unsecured, non-convertible, noncumulative/cumulative, redeemable, taxable/tax-free debentures/bonds during 2020-21, as per a BSE filing.
The money will be raised in up to 20 tranches.
The resolution was moved in the annual general meeting on August 27.
On July 3, the company’s board approved raising up to Rs 10,000 crore in up to 20 tranches depending upon the requirement of funds during 2020-21.
As per the proposal approved by the board, the funds would be used to finance the firm’s capital expenditure requirement, providing inter-corporate loans to wholly-owned subsidiaries, and for general corporate purposes.
About Rs 10,000-15,000 crore is the expected capital expenditure during 2020-21. In order to have a debt-equity mix of 70:30, Rs 7,000-10,500 crore is estimated to be mobilised as debt and the remaining Rs 3,000-4,500 crore from internal resources.
The proposed borrowing for 2020-21 will be within overall borrowing limits of Rs 1,80,000 crore. (PTI)
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