Power Grid Corporation, Indian Bank raise Rs 5,000 crore each in single day

Both the bond issues have been rated "AAA" by domestic rating agencies.

State-owned Power Grid Corporation of India Ltd (PGCIL) on Thursday raised Rs 5,000 crore by selling 10-year bullet bonds at a coupon rate of 7.08 per cent.

 

Bullet bonds are those where the principal is repaid as lump sum on maturity.

 

Separately, Indian Bank, also a public-sector entity, raised Rs 5,000 crore through 10-year infrastructure bonds at a 7.12 per cent coupon rate, sources said.

 

While PGCIL’s issue size was Rs 1,000 crore, with a greenshoe option of Rs 4,000 crore, Indian Bank’s issue size was Rs 2,000 crore with a greenshoe option of Rs 3,000 crore. (In a greenshoe