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 Urban

26 Aug 2025

Jupiter Opens First EV Showroom in Hyderabad

Jupiter Electric Mobility Pvt Ltd (JEM), the electric commercial vehicle arm of Jupiter Wagons Ltd, has inaugurated its first showroom in New Bowenpally, Secunderabad, Hyderabad. The launch also marks the introduction of its 1.05-tonne four-wheeler electric light commercial vehicle (eLCV), JEM TEZ, to Telangana’s growing logistics and intra-city freight market. This expansion underscores JEM’s commitment to delivering purpose-built sustainable mobility solutions and accelerating the electrification of India’s logistics sector.The new showroom, operated by Arven Motors Pvt Ltd, offers cus..

Infrastructure Energy

26 Aug 2025

Premier Energies Launches 620W DCR Solar Modules in India

Premier Energies Limited, one of India’s largest integrated solar manufacturers, has launched its next-generation 620W DCR solar modules using G12R TOPCon technology, now among the most powerful large-format panels available in the country.The new modules, built with Tunnel Oxide Passivated Contact (TOPCon) architecture, deliver superior power density, improved temperature coefficients, and enhanced low-light performance. The rectangular G12R N-type cell design enables higher string power and balance-of-system optimisation, making the panels suitable for utility-scale projects as well as com..

Infrastructure Energy

26 Aug 2025

ONGC Starts Gas Sales from Rajasthan Chinnewala Tibba Block

Oil and Natural Gas Corporation Limited (ONGC) has commenced natural gas sales from the Discovered Small Field (DSF-II) Block RJ/ONDSF/Chinnewala/2018, marking the successful monetisation of the Chinnewala Tibba field in the Rajasthan Kutch Onland Exploratory Asset (RKOEA). Gas sales officially began on 25 August 2025.This development highlights ONGC’s commitment to boosting domestic energy production and strengthening India’s energy security under the guidance of the Ministry of Petroleum and Natural Gas. Located in western Rajasthan, close to the Indo-Pakistan border, the Chinnewala Tibb..