Indian Railway Finance Corporation Limited (IRFC) the dedicated market borrowing arm of the Indian Railways on 3rd February, 2021 priced its USD 750,000,000 bonds based on a Rule 144A / Regulation S offering format under IRFC’s recently updated USD 4 billion global medium term note programme.
The bonds will be issued on 10th February, 2021 for a tenor of 10 years at a fixed rate of 2.80%. The bonds carry semi-annual interest payment and bullet principal repayment.
Amitabh Banerjee, Chairman and Managing Director, IRFC, conveyed via a press release, “IRFC is a well-known name in the foreign bond issuance. The amount is a part of our USD 4 billion global term note programme. We will be looking to raise the rest of the amount by the end of this fiscal. Our credit ratings are similar to the sovereign rating of the country which help us in getting competitive rates with suitable tenors.”
“The diverse set of investors included Sovereign Wealth Funds, Pension Funds, Life Insurance Companies, Banks and Asset Management Companies spread across Asia, Middle East, Europe and USA…The bonds achieved one of the tightest pricing by an Indian entity in the recent times”
The bonds will be listed on the Singapore Exchange Securities Trading Limited, India International Exchange (IFSC) Limited and International Securities Market of the London Stock Exchange.