IRFC raises Rs 1,994 cr through 20-year bonds

16 Jun 2021 CW Team

IRFC's bonds are rated AAA by CRISIL and BBB-minus by Fitch Rating. The financing arm of the Indian Railways increased the amount of money through an issue with a base size of Rs 1,000 crore and a greenshoe option of Rs 5,000 crore.

Following the central government's decision to increase spending on infrastructure projects to lead the country's post-pandemic economic recovery, the company's bonds are in high demand.

In March, IRFC raised Rs 1,375 crore through a 20-year bond issue at 6.8%, a rate of return lower than a government paper maturing in 2041, which offers an annualised yield of about 6.90%.

IRFC might also provide funding for the Indian Railways' ambitious projects like the dedicated freight corridor and station redevelopment projects in New Delhi and Mumbai CST.

IRFC is also looking to fund private players who have operational linkage with the Indian Railways. It is in talks with the National High-Speed Rail Corporation Ltd to fund the extended portion of the Ahmedabad-Mumbai High-Speed Rail Project.

The company is also in talks to provide finance for the privatisation of certain sections of railways, including the operation of high-speed trains on certain routes.

The company's board approved fundraising of around Rs 65,300 crore in April-March 2021-22 through tax-free bonds, taxable bonds, government-guaranteed or serviced bonds, and securitisation of future lease receivables from railways.

The company has been playing a crucial role in the growth, expansion and modernisation of Indian Railways. The centre is expected to remain its most significant client for at least the next 8-10 years because of the implementation of the National Rail Plan, under which the government aims to spend Rs 10 lakh crore to augment capacities and improve infrastructure.

Image Source

Also read: Indian Railways explore alternatives to diversify its freight mix

Also read: Indian Railways experience a 59.38% increase in freight loading

The Indian Railway Finance Corp (IRFC) has raised Rs 1,994 crore through 20-year bonds at a coupon of 6.99%, in line with its plan to raise funds above Rs 1 lakh crore in April-March 2021-22 for infrastructure development and implementation of various projects. The issue was closed on June 2. IRFC's bonds are rated AAA by CRISIL and BBB-minus by Fitch Rating. The financing arm of the Indian Railways increased the amount of money through an issue with a base size of Rs 1,000 crore and a greenshoe option of Rs 5,000 crore. Following the central government's decision to increase spending on infrastructure projects to lead the country's post-pandemic economic recovery, the company's bonds are in high demand. In March, IRFC raised Rs 1,375 crore through a 20-year bond issue at 6.8%, a rate of return lower than a government paper maturing in 2041, which offers an annualised yield of about 6.90%. IRFC might also provide funding for the Indian Railways' ambitious projects like the dedicated freight corridor and station redevelopment projects in New Delhi and Mumbai CST. IRFC is also looking to fund private players who have operational linkage with the Indian Railways. It is in talks with the National High-Speed Rail Corporation Ltd to fund the extended portion of the Ahmedabad-Mumbai High-Speed Rail Project. The company is also in talks to provide finance for the privatisation of certain sections of railways, including the operation of high-speed trains on certain routes. The company's board approved fundraising of around Rs 65,300 crore in April-March 2021-22 through tax-free bonds, taxable bonds, government-guaranteed or serviced bonds, and securitisation of future lease receivables from railways. The company has been playing a crucial role in the growth, expansion and modernisation of Indian Railways. The centre is expected to remain its most significant client for at least the next 8-10 years because of the implementation of the National Rail Plan, under which the government aims to spend Rs 10 lakh crore to augment capacities and improve infrastructure. Image Source Also read: Indian Railways explore alternatives to diversify its freight mix Also read: Indian Railways experience a 59.38% increase in freight loading

Infrastructure Transport

12 Mar 2026

Kavach 4.0 Commissioned on Delhi–Mumbai and Delhi–Howrah

"Kavach version four has been commissioned on 1,452 route km, covering the high density Delhi–Mumbai and Delhi–Howrah corridors. The rollout included laying 8,570 km of optical fibre, installation of 1,100 telecom towers, deployment of trackside equipment over 6,776 RKm and establishment of 767 station data centres. Trackside implementation has been taken up on 24,427 RKm covering Golden Quadrilateral, Golden Diagonal and High Density Network sections. The programme aims to strengthen signalling and train protection on key routes.Kavach is an indigenously developed automatic train protecti..

Infrastructure Transport

12 Mar 2026

Railways Advance Kalyan–Murbad Line And Mumbai Capacity Expansion

"Indian Railways is advancing multiple rail infrastructure projects in Maharashtra, including the sanctioned Kalyan–Murbad new line and sizable investments under the Mumbai Urban Transport Project and the Mumbai–Ahmedabad High Speed Rail project. The Kalyan–Murbad 28 km new line has been sanctioned at Rs 8.36 billion (bn) on a 50:50 cost-sharing basis with the Government of Maharashtra and has been declared a Special Railway Project for land acquisition; proposals covering 214 hectares are at various stages of acquisition. Budgetary outlay for projects falling fully or partly in Maharash..

Infrastructure Urban

12 Mar 2026

Parliamentary Panel Flags Funding Gaps in Heavy Industries

"The Department-Related Parliamentary Standing Committee on Industry (Rajya Sabha) presented its 332nd report on the Demands for Grants 2026-27 of the Ministry of Heavy Industries (MHI). Figures converted from crore and lakh are expressed in million (mn). The Budget Estimates 2026-27 for the Ministry stand at Rs 79,399 mn against a projected requirement of Rs 94,843.2 mn, a shortfall of about 16 per cent, with revenue at Rs 79,370.8 mn and capital compressed to Rs 28.2 mn from Rs 5,020 mn.The committee flagged recurring BE-to-RE compression and declining revised estimate utilisation, and calle..