Power Grid Corporation’s board has approved a proposal to raise up to Rs 5,700 crore through the issuance of bonds on a private placement basis in multiple tranches in 2023-24.

The fund raised will be used to part finance its capital expansion requirement, to provide inter-corporate loans to wholly-owned subsidiaries/JVs and for general corporate purposes.

This will be done by securitisation of cashflows of four operational SPVs (special purpose vehicles) — PowerGrid Bhuj Transmission, PowerGrid Khetri Transmission System, PowerGrid Medinipur Jeerat Transmission System and PowerGrid Varanasi Transmission System up to March 2034.

The company is raising Rs 500 crore in the first tranche with a green shoe option of (additional) Rs 1,400 crore.

Meanwhile, PowerGrid Infrastructure Investment Trust on Thursday reported a 10 per cent decline in consolidated net profit at Rs 190.90 crore in the June quarter.

The consolidated net profit was at Rs 213.88 crore in the quarter ended June 30, 2022, according to a BSE filing.

PTI