On February 3, 2021 Indian Railway Finance Corporation Limited 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 were issued on February 10, 2021 for a tenor of 10 years at a fixed rate of 2.80 per cent. The bonds carry semi-annual interest payment and bullet principal repayment.
Commenting on the issuance, Amitabh Banerjee, Chairman and Managing Director, IRFC, said, “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.”
“IRFC launched its USD 750 mn 144A/Reg S USD Bonds under the 4 billion GMTN programme on 3rd February, 2021. The bonds received overwhelming response from diverse set of investors. The fact that IRFC has been able to achieve a pricing even below the price at which its own secondary paper was trading in the international market, is a remarkable achievement,” he added.
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.