IRFC raises Rs 2,981cr in CBDT-notified maiden zero-coupon bond issuance

Indian Railway Finance Corporation Ltd (IRFC), a leading NBFC supporting projects with backward and forward linkages to Indian Railways, has successfully completed its maiden Zero-Coupon Bond issuance for the current financial year. The issue received an overwhelming response, with bids of over Rs7,500 crore against a base size of Rs1,000 crore and a green-shoe option of Rs4,000 crore, according to an IRFC release.IRFC accepted bids of approximately Rs2,981 crore at a competitive yield of 6.799 per cent for its 10-year Zero-Coupon bonds, well below the prevailing AAA PSU benchmark of 7.15 per cent.This pricing reflects IRFC’s strong market standing and its ability to mobilise funds at an efficient cost, reinforcing its position as a preferred issuer in India’s debt capital markets.The proceeds will be used for financing and refinancing key infrastructure projects, including ongoing and upcoming railway and allied infrastructure initiatives.“This issuance reaffirms IRFC’s role in supporting India’s infrastructure development and reflects the continued confidence of investors in our financial strength and long-term outlook,” said Manoj Kumar Dubey, Chairman & Managing Director, IRFC.