Indian Railways Finance Corporation raises Rs 1,200 cr via 2-yr bonds in 2nd attempt

By Saikat Das, ET Bureau

MUMBAI: Indian Railways Finance Corporation (IRFC), financing arm of Indian Railways, raised Rs 1,200 crore through an issue of short tenure bonds at yield of 7.95% on Wednesday, but the issue’s maturity profile kept many foreign investors from buying it. 

The Rs 1200-crore triple-A rated bonds have a maturity of two years, while FIIs could only buy paper that mature at least three years later. The IRFC bond rate offered was lower than similar maturity papers like Rural Electrification CorporationBSE 1.72 % or Power Finance Corporations, which were yielding about 8.05-8.10% in the secondary market on the same day.

“Nearly a month ago, we had to postpone our issuance as we could not get the desired rate with higher maturities. More info

 

 

 

 

 

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