State-owned PGCIL to seek shareholders' approval to raise up to Rs 6,000 crore via bonds in 2023-24

New Delhi: State-owned Power Grid Corporation of India (PGCIL) will seek shareholders’ approval on August 29, to raise up to Rs 6,000 crore through the issuance of bonds during the financial year 2023-24. The proposal to raise funds up to Rs 6,000 crore, from the domestic market through issuance of bonds, under private placement basis, during the financial year 2023-24, in up to twenty tranches/offers, is listed on the agenda of the annual general meeting (AGM) on 29 August, 2022. On 6 July, the PGCIL board had approved the proposal to raise Rs 6,000 crore in 2023-24, for financing of capital expenditure requirement, providing inter-corporate loans to wholly-owned subsidiaries and other purposes. An amount of Rs 8,500 crore is being considered as expected capital expenditure (CAPEX) during the fiscal year 2023-24, as per the notice of the AGM. In order to have a debt-equity mix of 70:30, an amount of Rs 6,000 crore is estimated to be mobilized as debt and balance from internal resources during the financial year 2023-24, it added. Presently, the PGCIL domestic Bonds have been rated at the highest credit rating (AAA) by various domestic Rating Agencies – CRISIL, ICRA and CARE. The rates of interest are determined on the market conditions prevailing at the time of entering the market for a particular offer of bonds on private placement (including offer to Qualified Institutional Buyer/s). At present, borrowing through domestic bonds was being done by the company at a cost which is comparable to prevailing interest rates applicable to AAA rated corporate bonds. In line with the past practice, the interest yield on the proposed borrowings is also envisaged to be comparable to the interest rates of prevailing interest rates of AAA rated corporate bonds, it stated. The proposed borrowing for FY 2023-24, will be within overall borrowing limits of Rs 1,80,000 crore, it said. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.