IRFC raises Rs 2,980 crore at 7.67% coupon through 10-year bonds

Non-banking financer Indian Railway Finance Corporation (IRFC) has raised Rs 2,980 crore from 10-year bonds at a coupon rate of 7.67 percent, according to people familiar with the development.

The NBFC had planned to raise up to Rs 3,000 crore, which included Rs 2,500 crore in greenshoe option. A greenshoe is the over-allotment option that allows companies to issue more bonds or raise more funds than the base issue size. These bonds will mature in 10 years or on December 15, 2033, the sources said.

On December 12, Moneycontrol had reported that the company will auction these bonds on December 13. Pay-in and allotment date is set for December 15, as per the issuer manual. On the pay-in date, exchange of bonds and money takes place between issuers and investors. The bonds have been rated 'AAA' with a 'stable' outlook by CRISIL, ICRA and CARE.

That apart, there have been a host of companies which have raised funds from the market of late. On December 11, Five Star Business Finance raised Rs 105 crore through issue of three years bonds at 9.50 coupon. Also, Axis Finance raised Rs 250 crore through a  subordinate debt issue.