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PGCIL to Raise Rs6,000 Cr via Bond Issue to Support Renewable Energy Transmission Expansion

State-owned transmission major Power Grid Corporation of India (POWERGRID) has announced plans to raise up to Rs6,000 crore through the 81st issue of its bonds (2025-26) via private placement. The offering includes a Rs1,500 crore base issue and a greenshoe option of Rs4,500 crore, with a 10-year tenure and annual interest payouts.

These unsecured, non-convertible, non-cumulative, redeemable, and taxable bonds will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The coupon rate will be determined via electronic book bidding, ensuring transparency and competitive pricing.

POWERGRID has emphasized its solid credit record, noting no delays or defaults in interest or principal payments and no negative feedback from debenture trustees. The bond issue complies with SEBI’s listing and disclosure requirements and related regulations on non-convertible securities.

The capital raised will likely support POWERGRID’s ongoing and upcoming transmission projects, including a recent Letter of Intent from PFC Consulting to establish an interstate transmission system at Kurnool-III PS, Andhra Pradesh, for integrating 4.5 GW of renewable energy.

In 2024, POWERGRID successfully raised Rs9,250 crore in two tranches, underlining investor confidence in the company’s financial stability and strategic importance in India’s renewable energy expansion.

This latest bond issuance is another step in POWERGRID’s broader strategy to strengthen grid infrastructure for renewable integration, supporting India’s transition to a 500 GW non-fossil energy target by 2030.