State-owned Power Grid today said it has sought shareholders’ approval for raising ₹ 20,000 crore 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 ₹ 20,000 crore, 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, as per a BSE filing.
The board in 355th meeting held on July 10, 2018, approved raising of ₹ 20,000 crore 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 ₹ 25,000 crore to ₹ 30,000 crore is being considered as expected capital expenditure during 2019-20. In order to have a debt equity mix of 70:30, an amount of ₹ 17,500 crore to ₹ 21,000 crore is estimated to be mobilised as debt and balance ₹ 7,500 crore to ₹ 9,000 crore from internal resources during next fiscal.
The company said that the proposed borrowing for 2019-20 will be within overall borrowing limits of ₹ 1,80,000 crore and the board recommended passing of the resolution.