IRFC to raise Rs.329 Crore through Tax-free Bonds at a Coupon Rate of 7.15%

irfc taxfree bndsMumbai: Indian Railway Finance Corporation (IRFC) is set to raise Rs.329 crore through tax-free bonds at a coupon rate of 7.15%, market sources said.

“IRFC has got a price range of Rs 100.01 to Rs 100.05 for its tax-free bonds that will have a coupon rate of 7.15% and a tenure of 10 years,” a bond arranger close to the development said.

IRFC has been allotted a tax-free bond limit of Rs 6,000 crore for the fiscal year 2016 out of which Rs.1800 crore could be raised through the private placement route.

Few weeks back, the company had raised Rs 1,139 crore at a coupon rate of 7.19% via 10-year tax-free bonds. It was looking to mobilise the remaining Rs 661 crore through the private placement route on Monday, bond arrangers said.“We got a good response considering the fact that other issues are also lined up in the market.

Our endeavour is to raise the entire amount of Rs.1,800 crore which could be raised through the private placement route. As far as public issue of debt is concerned, we are likely to come to the market in October,” a source in IRFC told.

For the fiscal year 2016, seven companies have been allotted a total limit of Rs 40,000 crore to be raised through tax-free bonds. NHAI has been given the largest allotment at Rs 24,000 crore while HUDCO has been permitted to raise Rs 5,000 crore through tax-free bonds.