Indian Railway Finance Corporation Ltd NCD (IRFC NCD Feb 2014) Detail

IRFC is a dedicated financing arm of the Ministry of Railways. Its sole objective is to raise money from the market to part finance the plan outlay of Indian Railways. The money so made available is used for acquisition of rolling stock assets and for meeting other developmental needs of the Indian Railways.

IRFC also makes use of innovative financial instruments to diversify the debt portfolio and to minimize the cost. IRFC’s funding has support technology infusion in the Railways and has enabled Ministry of Railways to purchase new generation Locomotives from General Motors (USA) along with transfer of technology and new generation Coaches from Germany for use in high speed/Shatabdi trains.

Offerings

These bonds are having coupon rate ranging from 8.19% to 8.88% depending on the category as well as on tenure of the bonds. Category I,II and II (all non-retail) are offered 8.19% for 10 yrs and 8.63% for 15 yrs while retail investors under Category IV are offered 8.44% for 10 yrs and 8.88% for 15 yrs.