IRFC raises Rs 2,120 cr through bond issue

Indian Railway Finance Corporation (IRFC) Wednesday said it has raised Rs 2,120 crore via issuance of 15 years bonds through the book building process. The issue consists of 21,200 secured redeemable non- cumulative taxable bonds of Rs 10,00,000 each at a coupon of 7.85 per cent per annum.

The allotment of the bond was done on July 1, 2019. "This issue saw demand from many investors who trust the creditworthiness of IRFC. So far, we have raised Rs 10,000 crore in the first quarter through various sources including taxable bond issuance, structured bilateral deal and syndicated foreign currency loans," IRFC's managing director and financial commissioner, Railways, Vijay Kumar said in a statement.

The issue received a total of 85 bids for an aggregate sum of Rs 4,940 crore. The base issue size was Rs 500 crore and was oversubscribed by 9.88 times.

The major investors included banks, life insurance companies and national pension schemes. IRFC is a dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas capital markets.