Power Grid Corporation mops up Rs 4,500 crore via bonds issue

MUMBAI: Government-owned Power Grid Corporation of India has mopped up close to Rs 4,500 crore in its first bond issue in the current financial year beginning April 1.

In the bidding process held on Tuesday, the company has sold bonds with 5-, 10- and 15-year maturities at 9.30%. The final sales volume was yet to be obtained at the time of going to press.

The company has apparently received a better pricing. The yield spread currently stands at 58 basis points compared with 65 bps a week earlier.

"PGC, engaged in power trading, always sells bonds at a finer price than other similar rated borrowers as investors are convinced about its better credit quality," an investment banker told ET.

Last week, Power Finance Corporation collected about Rs 3,500 crore, offering a coupon at 9.39% with five, 10 and 15-year maturities.