Why is Power Grid raising Rs.10,000 crore via bonds?

Power Grid Corporation has secured shareholder approval to raise an amount up to Rs.10,000 crore via the issue of bonds on a private placement basis. This is part of their much larger bond borrowing target for the fiscal year 2021-22.

The entire Rs.10,000 crore will be raised from the domestic market. These funds will be raised through the issue of non-convertible, redeemable debentures on a private placement basis. They are most likely to be raised in a couple of tranches to avoid crowding.