IRFC raises $750 million in maiden bond sale after initial public offering

The Indian Railway Finance Corporation (IRFC) has raised $750 million in bonds based on the Regulation S offering format under IRFC’s recently updated $4 billion global medium-term note programme. The bonds will be issued for a tenor of 10 years at a fixed rate of 2.8 per cent. The bonds carry semi-annual interest payment and bullet principal repayment. The bonds received an overwhelming response from a diverse set of investors spread across the globe and was oversubscribed nearly four times. The bonds were very tightly priced at 167.5 basis points over a 10-year benchmark rate. The net proceeds from the proposed notes will be used for funding the acquisition of rail assets, which IRFC will lease to Indian Railways, and to meet the debt financing requirements of various entities in the railway sector.