 "power grid corporation")
State-owned Power Grid on Friday said it has sought shareholders' approval for raising Rs 200 billion through bonds or debentures on private placement basis in 2019-20 in its annual general meeting on September 18.
The proposal to raise funds up to Rs 200 billion, from domestic market through issue of secured/unsecured, non-convertible, noncumulative/cumulative, redeemable, taxable/tax-free debentures/bonds under private placement during 2019-20 in up to twenty tranches/offers, is listed on the agenda of annual general meeting on September 18, according to a BSE filing.
The board in the 355th meeting held on 10th July, 2018, approved raising of Rs 200 billion in up to twenty tranches, depending upon the requirement of funds in 2019-20 for capital expenditure, providing inter-corporate loans to wholly-owned subsidiaries and for general corporate purposes.
An amount of Rs 250 billion to Rs 300 billion is being considered as expected capital expenditure during 2019-20. In order to have a debt equity mix of 70:30, an amount of Rs 175 billion to Rs 210 billion is estimated to be mobilised as debt and balance Rs 75 billion to Rs 90 billion from internal resources during next financial year.
The company said that the proposed borrowing for 2019-20 will be within overall borrowing limits of Rs 1.8 trillion and the board recommended passing of the resolution.
