Government-owned transmission utility Power Grid Corporation of India (POWERGRID) has approved the issuance of bonds worth up to ₹50 billion (~$594.7 million) on a private placement basis.

The base issue size of the bond issue for the fiscal year 2024-25 is ₹10 billion (~$118.9 million), with an option to raise an additional ₹40 billion (~$475.7 million) through a greenshoe option, bringing the total potential issue size to ₹50 billion (~$594.7 million).

These bonds are unsecured, non-convertible, non-cumulative, redeemable, and taxable, with a tenure of ten years. The bonds will be listed on the BSE and NSE.

The bonds will be redeemable at par at the end of the 10-year tenure. Interest payments will be made annually.

POWERGRID has confirmed that these unsecured bonds will not have any special rights or privileges. It said there had been no delays or defaults in interest or principal payments on the company’s previous debt instruments.

This bond issue is part of POWERGRID’s ongoing efforts to raise capital for its operations and expansion plans.

Recently, POWERGRID announced an investment of ₹3.67 billion (~$44.05 million) for infrastructure expansion involving two transmission projects scheduled to be commissioned in 2025.

Earlier, the company’s special-purpose vehicle, POWERGRID Bhadla Transmission, was authorized by the Ministry of Power to set up overhead transmission lines on a modified route to evacuate 8.1 GW of power from the solar energy zone in Rajasthan under Phase-II Part B.

PFC Consulting also invited bids to select a transmission service provider to establish an inter-state transmission system (ISTS) to evacuate 3 GW of renewable energy from the Raghanesda area in Gujarat under Phase I.

In September, POWERGRID won a project to provide reactive compensation for an ISTS project in Gujarat from PFC Consulting. The project involves the provision of dynamic reactive compensation at Khavda Pooling Station 1 and Khavda Pooling Station 3 in Gujarat.