IRFC raises Rs 1,994 cr through 20-year bonds
RAILWAYS & METRO RAIL

IRFC raises Rs 1,994 cr through 20-year bonds

The Indian Railway Finance Corp (IRFC) has raised Rs 1,994 crore through 20-year bonds at a coupon of 6.99%, in line with its plan to raise funds above Rs 1 lakh crore in April-March 2021-22 for infrastructure development and implementation of various projects. The issue was closed on June 2.

IRFC's bonds are rated AAA by CRISIL and BBB-minus by Fitch Rating. The financing arm of the Indian Railways increased the amount of money through an issue with a base size of Rs 1,000 crore and a greenshoe option of Rs 5,000 crore.

Following the central government's decision to increase spending on infrastructure projects to lead the country's post-pandemic economic recovery, the company's bonds are in high demand.

In March, IRFC raised Rs 1,375 crore through a 20-year bond issue at 6.8%, a rate of return lower than a government paper maturing in 2041, which offers an annualised yield of about 6.90%.

IRFC might also provide funding for the Indian Railways' ambitious projects like the dedicated freight corridor and station redevelopment projects in New Delhi and Mumbai CST.

IRFC is also looking to fund private players who have operational linkage with the Indian Railways. It is in talks with the National High-Speed Rail Corporation Ltd to fund the extended portion of the Ahmedabad-Mumbai High-Speed Rail Project.

The company is also in talks to provide finance for the privatisation of certain sections of railways, including the operation of high-speed trains on certain routes.

The company's board approved fundraising of around Rs 65,300 crore in April-March 2021-22 through tax-free bonds, taxable bonds, government-guaranteed or serviced bonds, and securitisation of future lease receivables from railways.

The company has been playing a crucial role in the growth, expansion and modernisation of Indian Railways. The centre is expected to remain its most significant client for at least the next 8-10 years because of the implementation of the National Rail Plan, under which the government aims to spend Rs 10 lakh crore to augment capacities and improve infrastructure.

Image Source


Also read: Indian Railways explore alternatives to diversify its freight mix

Also read: Indian Railways experience a 59.38% increase in freight loading

The Indian Railway Finance Corp (IRFC) has raised Rs 1,994 crore through 20-year bonds at a coupon of 6.99%, in line with its plan to raise funds above Rs 1 lakh crore in April-March 2021-22 for infrastructure development and implementation of various projects. The issue was closed on June 2. IRFC's bonds are rated AAA by CRISIL and BBB-minus by Fitch Rating. The financing arm of the Indian Railways increased the amount of money through an issue with a base size of Rs 1,000 crore and a greenshoe option of Rs 5,000 crore. Following the central government's decision to increase spending on infrastructure projects to lead the country's post-pandemic economic recovery, the company's bonds are in high demand. In March, IRFC raised Rs 1,375 crore through a 20-year bond issue at 6.8%, a rate of return lower than a government paper maturing in 2041, which offers an annualised yield of about 6.90%. IRFC might also provide funding for the Indian Railways' ambitious projects like the dedicated freight corridor and station redevelopment projects in New Delhi and Mumbai CST. IRFC is also looking to fund private players who have operational linkage with the Indian Railways. It is in talks with the National High-Speed Rail Corporation Ltd to fund the extended portion of the Ahmedabad-Mumbai High-Speed Rail Project. The company is also in talks to provide finance for the privatisation of certain sections of railways, including the operation of high-speed trains on certain routes. The company's board approved fundraising of around Rs 65,300 crore in April-March 2021-22 through tax-free bonds, taxable bonds, government-guaranteed or serviced bonds, and securitisation of future lease receivables from railways. The company has been playing a crucial role in the growth, expansion and modernisation of Indian Railways. The centre is expected to remain its most significant client for at least the next 8-10 years because of the implementation of the National Rail Plan, under which the government aims to spend Rs 10 lakh crore to augment capacities and improve infrastructure. Image Source Also read: Indian Railways explore alternatives to diversify its freight mix Also read: Indian Railways experience a 59.38% increase in freight loading

Next Story
Infrastructure Energy

Saudi Aramco Eyes India’s Refining Sector for Strategic Partnerships

Saudi Aramco has renewed its interest in India’s expanding refining sector, viewing it as a strategic growth opportunity. With Bharat Petroleum Corporation Ltd (BPCL) and Oil and Natural Gas Corporation (ONGC) planning new refineries, fresh investment avenues are opening up for the Middle East’s largest oil exporter. Although the company has not confirmed specific investment plans, it reiterated that India remains a priority market. Saudi Arabia was the third-largest supplier of crude oil to India in 2024, exporting 625,000 barrels per day. According to S&P Global Commodity Insights, In..

Next Story
Infrastructure Transport

Kandla Deendayal Port Handles 150 MT in FY25

The Kandla Deendayal Port Authority (KDPA) has achieved its goal of handling 150 MnT of cargo in the financial year 2024–25, marking a key operational milestone. The update was confirmed by Chairperson Sushil Kumar Singh. The final figure stood at 150.16 MnT , and Singh credited the achievement to the collaborative involvement of stakeholders, including exporters, importers, shipping and customs agents. KDPA collected suggestions from port users and swiftly implemented changes to boost productivity and efficiency, addressing operational bottlenecks within existing constraints. Singh empha..

Next Story
Infrastructure Transport

Square Port Shipyard, Damen Partner to Boost Shipbuilding in India

Square Port Shipyard, a subsidiary of Hazoor Multi Projects Limited (HMPL), has signed an agreement with Damen Technical Cooperation BV to develop its shipyard in Dabhol (Ratnagiri), Maharashtra. The partnership aims to enhance the shipyard’s capabilities to design, build, repair, and maintain ships for both domestic and international clients. Damen Technical Cooperation BV is a part of the Netherlands-based Damen Shipyards Group NV, known globally for its shipbuilding expertise and advanced maritime solutions. Company officials described the tie-up as a significant milestone towards trans..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?