IRFC raises $500 million via overseas bond issue

The Indian Railway Finance Corporation (IRFC) has raised $500 million via overseas bonds as part of its fundraising activity. The bonds were oversubscribed by three times and carry an interest rate of 2.23 per cent for a period of five years. The funds so raised are likely to help IRFC meet its extra budgetary resources target which forms an important component of Indian Railways’ overall capital expenditure. As per plans, IRFC will add a spread of 150 basis points to the interest rate on offer, thereby funding railway projects at a higher interest rate of 3.73 per cent.

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