Power Grid Corporation of India looks to raise Rs 5,000 crore via bond auction

MUMBAI: Government-owned Power Grid Corporation of India (PGC) is planning its first bond sale in the current financial year, with the company looking to raise up to Rs 5,000 crore by offering bonds with 5-, 10- and 15-year maturities, three people familiar with the matter told ET.

The triple-A rated company will conduct the bidding process on Tuesday. It has already set an upper limit for the coupon at 9.40% annually, above which no investor will be allowed to bid.

The cut-off yield across maturities may be fixed in the range of 9.30-9.35%, dealers said. There would be around 10-12 arrangers for the issue. An e-mail sent to the company seeking comments on the matter, however, did not elicit any response.

"The minimum amount of subscription is Rs 15 crore and in its multiple. The company may raise anything between Rs 3,000 crore and Rs 5,000 crore depending on investor response. The core issue size stands at Rs 990 crore," said one of the persons cited above.

Last week, PFC mopped up about Rs 3,500 crore offering a coupon at 9.39% with 5-, 10- and 15-year maturities. The rate was at 9.30% in the 3-year maturity segment.