Indian Railway Fin Corp to raise nearly Rs 9,000 cr via bonds
Mumbai: Indian Railway Finance Corporation (IRFC) plans to raise nearly Rs 9,000 crore through tax-free bonds by March next year.
"The company shall issue bonds up to an aggregate amount of Rs 8,981.40 crore through this issue during the fiscal 2013 out of the total permissible amount of Rs 10,000 crore as approved by its Board through its resolution dated July 31, 2012," IRFC said.
IRFC, a government agency which lends to railway projects, has already raised Rs 1,018.60 crore through the private placements of bonds.
The company said that bonds would be issued in one or more tranches through non-convertible debentures (NCD) route, according to the draft prospectus filed with Sebi.
An NCD is a type of loan-linked security issued by a company that cannot be converted into stock and usually carries a higher interest rate than a convertible debenture.
According to IRFC, funds raised through the issue would be utilised towards financing the acquisition of rolling stock which would be leased to the Ministry of Railways in line with present business activities.
SBI Capital Markets Ltd, A K Capital Services Ltd, Enam Securities, ICICI Securities, Kotak Mahindra Capital Company Ltd are book running lead managers to the issue.