State-run Power Grid Corporation Ltd. at its board meeting on Monday has approved raising up to Rs 2,250 crore in its second tranche as part of its fund raising plans.

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The proceeds will be used to part finance the company's capex requirements, to provide inter corporate loans to its wholly-owned subsidiaries and joint ventures, and for general corporate purposes.

This will be done by securitization of cash flows of four operational Special Purpose Vehicles - Power Grid Bhuj Transmission Ltd., Power Grid Khetri Transmission System Ltd., Power Grid Medinipur Jeerat Transmission System Ltd. and Power Grid Varanasi Transmission System Ltd., up to March 2034.

Power Grid's bond issue will consist of a base issue size of Rs 500 crore along with a green shoe option of Rs 1,750 crore.

The bonds are redeemable at par in 10 equal installments and interest payments will be made on a yearly basis.

Power Grid's fund raise is part of the Rs 5,700 crore it had approved raising via bonds in July this year. The company has a capex plan of Rs 8,800 crore for financial year 2024, which the company's management is confident of surpassing.

Shares of Power Grid are off the day's low, currently trading 0.35 percent lower at Rs 198.50.