POWERGRID Announces Major Bond Issue for Future Growth

Power Grid Corporation of India Ltd plans to raise up to Rs 6,000 crore through its 81st bond issue, named POWERGRID Bonds-LXXXI (81st) Issue 2025-26, on a private placement basis. The funds will support ongoing and upcoming projects, attracting long-term investors seeking reliable returns.

The Power Grid Corporation of India Ltd (POWERGRID) unveiled plans on Friday to secure substantial funding through a new bond issue. This marks the launch of the company's 81st bond, christened POWERGRID Bonds-LXXXI (81st) Issue 2025-26, which will be issued on a private placement basis, characterized as unsecured, non-convertible, non-cumulative, redeemable, and taxable.

In a meeting held on April 4, 2025, the 'Committee of Directors for Bonds' sanctioned the initiative to raise funds through these bonds, set up to Rs 6,000 crore. This amount encompasses a base issue figure of Rs 1,500 crore, with an additional Rs 4,500 crore available via a green shoe option, permitting the raising of extra capital upon heightened investor interest.

The bonds are designed with a 10-year tenure and promise annual interest payments. This issuance is an extension of POWERGRID's strategic fundraising efforts to propel both current and forthcoming ventures. As a dominant figure in India's power transmission sector, the company facilitates the transit of over half of the nation's electricity supply, thereby drawing considerable attention from long-term investors who favor steady yields from a government-affiliated entity.

(With inputs from agencies.)