Railways to lose investment guarantee from World Bank due to IRFC IPO

The decision by the department of investment and public asset management (Dipam) to go for an initial public offering of Indian Railway Finance Corporation (IRFC) has put paid to the Indian Railways’ (IR’s) chances of getting an investment guarantee from the World Bank.

With the IPO decision, the Railways has lost the World Bank’s Multi-Lateral Investment Guarantee (MIGA) for raising at least $500 million from international private sector investors and lenders.

The MIGA gives political risk insurance and credit enhancement for cross-border lenders.

The World Bank last week informed the national transporter it would not be able to guarantee the