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Power Grid Plans to Raise Fund With A Rs 1,000-Crore Plus Greenshoe Bond Issue

  • The country's central transmission utility Power Grid Corporation plans to enter the bond market on Wednesday to raise Rs 1,000 crore with a right to retain oversubscription.The corporation has requested investors to quote the interest rate while keeping the maximum coupon at 9.25% a year. "It will be a reverse auction. Investors who will quote lower rate will get the opportunity to subscribe to the issue," a fund manager with a private insurance firm in Mumbai said.

  • The corporation said the bond will privately placed with separately transferable redeemable principal parts (STRPP). The bonds will be redeemable at the end of 15th years from the date of allotment as a bullet payment. The issue will remain open till March 5. Rating agencies Crisil and Icra assigned highest safety ratings with stable outlook for the bonds. The bonds will also be secured by way of fixed/floating/pari-passu charge on the assets of the company.The bond will be listed on the National Stock Exchange's wholesale debt segment.

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