Indian Railway Finance Corporation (IRFC) on Thursday issued bonds worth $750 million to investors abroad priced at a coupon of just 2.80 per cent per annum.
The bonds will be issued on February 10 for a tenor of 10 years. They carry semi-annual interest payment and bullet principal repayment.
The bonds received an overwhelming response from a diverse set of investors spread across the globe and was oversubscribed nearly 4 times, Mint newspaper reported.
“IRFC is a well-known name in the foreign bond issuance. The amount is a part of our $4 billion global term note programme. We will be looking to raise the rest of the amount by the end of this fiscal. Our credit ratings are similar to the sovereign rating of the country, which helps us in getting competitive rates with suitable tenors,” IRFC Chairman and Managing Director Amitabh Banerjee was quoted as saying by Mint.
The financing arm of the Indian Railways made a debut on the bourses on January 29, raising Rs 4,663 crore. This is the maiden debt market activity that the company has done.