IRFC, PFC line up bonds to raise Rs 3,500 crore

Bonds

Indian Railway Finance Corporation (IRFC) and Power Finance Corporation (PFC) plan to raise up to Rs 3,500 through bonds, money market sources said. Both the bonds have a maturity of 10 years.

IRFC will raise up to Rs 3,000 crore, which includes Rs 2,500 crore in greenshoe and PFC will raise up Rs 500 crore, including Rs 400 crore in greenshoe.

The greenshoe option is a provision in an underwriting agreement that grants the underwriter the right to sell investors more bonds than initially planned by the issuer if the demand for a security issue proves higher than expected.

The bidding for PFC's bonds will take place on February 13 between 10:30am and 11:30am on the electronic bidding platform of the BSE. While, IRFC bond bidding will take place on February 14 between 10am and 11am on the BSE’s bidding platform.

Pay-in date for the PFC and IRFC bonds are February 15 and 16. Both have been rated ‘AAA’ by CARE, CRISIL, and ICRA.

On February 12, Canara Bank, Tata Capital Ltd, Piramal Capital & Housing Finance Ltd, and Spandana Sphoorty Financial Ltd raised funds through bonds. Canara Bank raised Rs 2,000 crore through Basel-III compliant Additional Tier-1 bonds at 8.40 percent coupon rate.

On February 9, Moneycontrol reported that Canara Bank will raise funds worth Rs 2,000 crore, which includes oversubscription of Rs 1,500 crore.