Indian Railway Finance Corporation (IRFC)
plans to raise nearly Rs 9,000 crore through
tax-free bonds by March next year.
IRFC, a government agency which lends to railway projects, has already raised Rs 1,018.60 crore through the private placements of bonds.
"The company
shall issue bonds up to an aggregate amount of Rs 8,981.40 crore through this issue during the 2012-13 out of the total permissible amount of Rs 10,000 crore as approved by its Board through its resolution dated July 31, 2012," IRFC said.
According to IRFC, funds raised through the issue would be utilised towards financing the acquisition of rolling stock which would be leased to the Ministry of Railways in line with present business activities.
The company said that bonds would be issued in one or more tranches through non-convertible debentures (NCD) route, according to the draft prospectus filed with the Securities and Exchange Board of India (Sebi).
An NCD is a type of loan-linked security issued by a company that cannot be converted into stock and usually carries a higher interest rate than a convertible debenture.
SBI Capital Markets Ltd, A K Capital Services Ltd, Enam Securities, ICICI Securities, Kotak Mahindra Capital Company Ltd are book running lead managers to the issue.
With inputs from PTI
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