Rs 250cr Irfc Bond Issue Oversubscribed To Rs 900cr
The Rs 250 crore bond issue floated by the Indian Railway Finance Corporation (IRFC) has been oversubscribed by more than three-and-a-half times at Rs 900.
The 14.25 per cent taxable bond issue closed yesterday. IRFC has the governments permission to retain the entire amount.
This is for the second time in the current fiscal that an IRFC bond has received an overwhelming response. A 10.5 per cent tax-free issue for Rs 100 crore floated earlier had netted Rs 350 crore.
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The success of the two issues is an indication of the bond market coming back into life. However, the AAA rating given to IRFC both by Crisil and Icra were instrumental in the success of the issues.
The mopup has helped the IRFC to accomplish a major part of its plan to mobilise Rs 2,150 crore in 1997-98, well before August as it is also planning a roadshow abroad to raise $150 million, officials said.
The officials said that after IRFC mobilises about Rs 1,750 crore or so by August, it would go in for another round of a tax-free bond issue of Rs 400 crore, government permission for which has already been granted.
In 1996-97, IRFC was able to mobilise only Rs 1,900 crore against Rs 1,850 crore it was mandated to raise to part-fund the years annual plan.
For the current fiscal, it is required to raise Rs 2,150 crore.