IRFC to issue masala bonds

IR’s finance arm, the Indian Railway Finance Corporation (IRFC) is planning to raise Rs 10 billion-Rs 20 billion through an issue of masala bonds. The rupee-dominated bonds will have a tenor of three to five years and are expected to have a coupon rate of 7 per cent or less. Since IRFC is a government entity, the bonds that it issues are treated as quasi-sovereign and carry a coupon rate close to that of government bonds with the same tenor.