Indian Railway Finance Corporation which funds rolling stock acquisition for the Railways aims to mobilize INR 3,080 crore through a tax-free bond issue between November 15 and December 3.

The coupon rates will be 6.05% (five year bonds), 6.32% (seven year bonds) and 6.72% (10 year bonds), with semi annual payments. The funds will be raised by the private placement route, allowing a minimum of INR 100,000 investment to corporates and retail investors.

The Finance Ministry has given its nod to IRFC to fix coupon rates between 6% and 7.25% a year depending on the size and tenor of the tranche.

In February, IRFC had issued tax free bonds for five years (6%), seven years (6.3%) and ten years (6.7%), where the interest rates were payable semi-annually.

It has appointed 15 lead arrangers for the issue AK Capital Services, Almondz Global Securities, Axis Bank, Barclays, Citibank, Darashaw, Deutsche Bank, HSBC, ICICI Bank, ICICI Securities, Kotak Mahindra, SBI Caps, Standard Chartered and YES Bank.

(Sourced from hindu.co)