PGCIL gets shareholders nod to raise Rs 6,000 cr via bonds

State-owned Power Grid Corporation of India Ltd (PGCIL) has received shareholders’ approval to raise up to Rs 6,000 crore through bonds or debentures on a private placement basis.

''All resolutions as set out in the Notice of 32nd Annual General Meeting have been duly approved by the Shareholders with requisite majority,'' a BSE filing said. A special resolution in this regard was listed on the agenda of the annual general meeting to be held on September 24, 2021.

It proposed to raise up to Rs 6,000 crore, from the domestic market through the issue of secured / unsecured, non-convertible, non-cumulative/ cumulative, redeemable, taxable/tax-free debentures/bonds under private placement during 2022-23 in up to 20 tranches.

The board of directors, at its 393rd meeting held on June 17, 2021, had approved raising up to Rs 6,000 crore through bonds, depending upon the requirement during 2022-23 for financing capital expenditure and providing inter-corporate loans to wholly-owned subsidiaries, among others.

The company explained that an amount of Rs 8,000 crore to Rs 10,000 crore is being considered as expected capital expenditure (Capex) during 2022-23.

To have a debt-equity mix of 70:30, an amount of Rs 5,600 crore - Rs 7,000 crore is estimated to be mobilised as debt and balance from internal resources.

PGCIL’s domestic bonds are rated at the highest credit rating (AAA) by various rating agencies like Crisil, Icra and Care.

The proposed borrowing for 2022-23 will be within the overall borrowing limit of Rs 1,80,000 crore, it stated.