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Power Grid eyeing to raise Rs 1,000 crore via bonds

17 Aug 2011 Evaluate

Power Grid Corporation of India, an Indian state-run transmission utility, is planning to borrow atleast Rs 1,000 crore ($220 million) via bonds. The company will issue bonds with maturity in 2030, with staggered redemptions from 2016. The bonds are rated ‘AAA/Stable’ by CRISIL and ‘LAAA’ by ICRA.  This week the company is going to meet the bankers after which it will finalize the coupon rate. The issue is likely to open on August 23 and close on August 25.

The company’s net profit after tax for the quarter ended June 30, 2011 has increased marginally by 0.30% at Rs 705.29 crore as compared to Rs 703.18 crore for the corresponding quarter last year. Its total income has grown by 9.12% at Rs 2345.73 crore for the quarter under review from Rs 2149.69 crore for the same quarter last year.

Power Grid Corporation of India has been carrying out its responsibilities efficiently in the construction, operation and maintenance of inter-state transmission systems and operation of regional power grids. It has been notified as the Central Transmission Utility (CTU) of the country.

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