Power Grid Corp to raise up to Rs 2,200 crore via 10-year bonds on January 10

Bonds

Power Grid Corporation of India will float bonds to raise up to Rs 2,200 crore on January 10, market sources have said.

The bond issue will have a base size of Rs 500 crore and a greenshoe option of Rs 1,700 crore. The bonds will mature on January 11, 2034.

A greenshoe option allows companies to issue more bonds or shares than planned if the demand is higher than expected.

Bidding will take place between 11 am and 12 pm on the electronic bidding platform of BSE.

The pay-in and allotment date is January 10, as per issuer manual. Pay-in is a date when exchange of bonds and money takes place between issuers and investors.

The bonds have been rated ‘AAA’ by CRISIL, CARE and ICRA.

On January 8, Embassy Office Parks Reit, Kotak Infrastructure Debt Fund, Adani Ports And Special Economic Zone, Hdb Financial Services, and Indian Renewable Energy Development Agency (IREDA) raised funds through bonds.

Bonds allow companies to borrow large sums at low interest rates to invest in growth and other projects. Bonds also give companies greater freedom to operate as they see fit against bank loans which come with conditions.

IERDA raised Rs 809.74 crore through three-year bonds at 7.77 percent coupon, and Adani Ports raised Rs 250 crore each through two bonds.

HDB Financial Services raised Rs 300 crore through nine-year bonds and Embassy Office Parks REIT Rs 1,000 crore.

L&T Finance Holdings, National Bank for Agriculture and Rural Development (NABARD) and Hero Fincorp raised funds through bonds.