Financial Daily from THE HINDU group of publications
Friday, Dec 30, 2005
Financial Daily from THE HINDU group of publications Friday, Dec 30, 2005 |
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Corporate
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Corporate Bonds IRFC raises Rs 450 cr thru bonds issue at 7.74% Our Bureau
New Delhi , Dec. 29 RAISING finances to buy rolling stock is becoming costlier for Indian Railways. In what reflects hardening of rates, Indian Railway Finance Corporation (IRFC) has recently raised Rs 450 crore through a bonds issue from the domestic market at a cost of 7.74 per cent over a 15-year period, according to Ministry officials. IRFC raises funds to provide for rolling stock requirements of Indian Railways and it leases the rolling stock to Railways. Before this round of fund raising, the resource mobilisation arm of Indian Railways had raised Rs 2,150 crore this fiscal at an average cost of 6.87 per cent over an average tenure of eight years. From the total of Rs 2,150 crore, Rs 1,300 crore was raised by term loans at a cost of 7.12 per cent and Rs 850 crore through issue of taxable bonds. During 2004-05, IRFC had borrowed Rs 2,888 crore, at a lower (weighted average) cost of 6.12 per cent for a weighted average tenure of seven years. The public sector unit is required to raise Rs 3,400 crore in the current fiscal as per the budgeted estimates. "We raised Rs 450 crore last week at an average cost of 7.74 per cent," said an official.
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