IRFC Set to Issue ₹3,000 Crore Bonds on February 26 with Greenshoe Option

23 Feb 2024 , 03:11 PM

Indian Railway Finance Corporation (IRFC) intends to issue bonds worth up to ₹3,000 Crore on February 26, as per market sources.

The bonds comprise a base issue of ₹500 Crore, with a greenshoe option of ₹2,500 Crore and a maturity period of 10 years, concluding on February 28, 2034.

The greenshoe option allows the underwriter to sell more bonds than initially planned if demand surpasses expectations. Bidding for the bonds will occur from 10 am to 11 am on the National Stock Exchange of India (NSE)’s electronic bidding platform.

The pay-in date for the bonds is February 28, facilitating the exchange of bonds and funds between issuers and investors. These bonds have been rated ‘AAA’ with a ‘stable’ outlook by CRISIL, ICRA, and CARE ratings.

Sources suggest that the minimum application for the bonds is ₹1 Crore, with subsequent multiples of ₹1 Lakh.

On February 22, several other entities, including Canfin Homes, Manba Finance, Satya Microcapital, Aditya Birla Finance, Krazybee Services Pvt Ltd, Aye Finance, and Ledingkart Finance, also raised funds through bonds.

IRFC, a public sector undertaking, focuses on raising financial resources for expansion and operations primarily through capital markets and other borrowings. The Government of India holds a majority stake in the company, with administrative control vested in the Ministry of Railways.

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