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Mamuni Das

New Delhi , June 23

Indian Railway Finance Corporation (IRFC), the finance raising arm of Indian Railways, has raised Rs 810 crore through bonds issue in the domestic market recently. IRFC is budgeted to raise a total amount of Rs 4,170 crore for Indian Railways in the current fiscal.

The amount has been raised at a weighted average cost of 8.31 per cent with a 15-year tenor. "The bonds have a bullet repayment scheme which means that the principal amount has to be repaid at the end of the tenor," said an official.

Additional funds

The Reserve Bank of India has set 8.46 per cent cut-off yield on 15-year Government bonds. IRFC plans to raise additional funds through loans and external commercial borrowings during the year.

In the previous fiscal, IRFC had raised Rs 3,450 crore for Indian Railways at a weighted average cost of 7.1 per cent and a weighted average tenor of 7-8 years, said sources.

IRFC raised Rs 3,890 crore in 2005-06 fiscal, which included Rs 440 crore for Rail Vikas Nigam Ltd (RVNL). RVNL is a special purpose vehicle of Railways and helps finance bankable port connectivity projects of Indian Railways through public-private partnership route, amongst others.

IRFC has helped fund rolling stock valued at Rs 33,000 crore to Railways till date.

The cumulative rolling stock financed by IRFC includes approximately 3,000 locomotives, 21,000 passenger coaches and 1.1 lakh wagons.

More Stories on : Railways | Corporate Bonds

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