IRFC's Landmark Zero-Coupon Bond Success Boosts Rail Infrastructure

Indian Railway Finance Corporation Ltd (IRFC) has successfully raised Rs 2,981 crore through its first Zero-Coupon Bond issuance. The funds will be allocated to key railway and infrastructure projects. The strong market reception reflects IRFC's robust standing and its critical role in India's infrastructure development.

Indian Railway Finance Corporation Ltd (IRFC), a state-owned enterprise, announced on Friday that it has successfully raised Rs 2,981 crore through its inaugural Zero-Coupon Bond issuance. This move is aimed at bolstering the financial resources for various railways projects.

The issuance saw overwhelming market interest, accumulating bids of over Rs 7,500 crore, significantly surpassing the base size of Rs 1,000 crore. With a green-shoe option of Rs 4,000 crore, IRFC accepted bids amounting to Rs 2,981 crore at a competitive yield of 6.79 percent, well below the AAA-rated PSU benchmark of 7.15 percent, emphasizing the corporation's strong market standing.

IRFC Chairman, Manoj Kumar Dubey, highlighted the corporation's continued contribution to India's infrastructure development. He emphasized investor confidence in IRFC's financial strength and strategic role in the nation's economic progress.

(With inputs from agencies.)