The Indian Railway Finance Corporation (IRFC), the financing arm of the Indian Railways, on Friday, raised Rs 1,375 crore through issuance of domestic bonds.
The fund has been raised at 6.80 percent coupon rate with 20- year maturity which is about 18 basis points lower than the benchmark par yield Government security as per yesterday’s close in CCIL.
This is one of the rare occasions when a top- rated government issuer has pierced the sovereign curve in the domestic market with such a huge margin reflecting the confidence reposed by the large debt investors.
The issue was oversubscribed by six times as compared to the base issue size of Rs 500 crore,” said a company statement.
The company has decided to retain a sum of Rs.1375 crore, based on the borrowing target mandated by the ministry of Railways for the current fiscal, it further said.