London Stock Exchange welcomes Indian Railway Finance Corporation Celebrating its USD bond issuance

 

Indian Railway Finance Corporation (IRFC) is delighted to close London’s markets today, to celebrate the listing of its dual tranche 10 year and 30 year USD 1 billion bond - the first US dollar 30-year tranche bond from an Indian state-owned issuer. This issuance is IRFC’s third on London Stock Exchange, following its 2017 green bond and 2019 USD 500 million bond. Indian Railway Finance Corporation has been issuing bonds in the international capital markets for 27 years, funding the development of India’s Rail Transport Sector and Infrastructure, working side by side India’s Ministry of Railways.

Indian Railway Finance Corporation (IRFC) was set up on 12th December, 1986 as the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets. In more than 30 years of existence, IRFC has played a significant role in supporting the expansion of the Indian Railways and related entities by financing a significant proportion of its annual plan outlay.

The primary objective of IRFC is to meet the predominant portion of ‘Extra Budgetary Resources’ (EBR) requirement of the Indian Railways through market borrowings at the most competitive rates and terms. The Company’s principal business therefore is to borrow funds from the financial markets to finance the acquisition / creation of assets which are then leased out to the Indian Railways. IRFC has also been lending to various entities in Railway sector like Rail Vikas Nigam Limited (RVNL), Railtel, Konkan Railway Corporation Limited (KRCL), Pipavav Railway Corporation Limited (PRCL) etc.

IRFC’s constant endeavor has been to diversify its borrowing portfolio in terms of instruments, markets and investors which has led to the Company meeting the targeted borrowings year after year, through issue of both taxable and tax-free bonds, term loan from banks/financial institutions besides off shore borrowings, at competitive market rate.