Power Grid gets shareholders nod to raise Rs 14,000 cr in FY17

Firm will raise funds in up to eight tranches of up to Rs 2,000 cr of bonds each, with or without green shoe

State-run utility Power Grid today said its shareholders have approved a proposal to raise up to Rs 14,000 crore through issuance of bonds from domestic and external sources in 2016-17.

Shareholders approved the proposal to raise the amount through issue of secured/unsecured, non-convertible, non- cumulative, redeemable, taxable/tax-free, rupee linked bonds under private placement in 2016-17 in its annual general meeting held on September 15, Power Grid Corporation of India Ltd said in a BSE filing today.

According to the proposal, the company will raise the funds in up to eight tranches/offers, with or without green shoe option and each tranche shall be of up to Rs 2,000 crore of bonds, exclusive of green shoe option.

The funds will be used for capital expenditure of Power Grid and providing loans to wholly-owned projects and special purpose vehicles acquired by the company.

As per the company statement, shareholders also approved the proposal to enhance borrowing limits from Rs 1.3 lakh crore to Rs 1.5 lakh crore.

The company had earmarked a capital expenditure of up to Rs 1 lakh crore for five years, ending 2016-17.

The company has planned to raise up to Rs 12,000 crore through domestic bonds during the current fiscal year. It has has planned a capital expenditure of Rs 22,500 crore on its expansion during the current fiscal.