This Article is From Nov 13, 2013

IRFC to raise Rs 10,000 crore through tax-free bonds

IRFC to raise Rs 10,000 crore through tax-free bonds
New Delhi:

Indian Railway Finance Corporation (IRFC), the financing arm of the Railway Ministry, is planning to raise Rs 10,000 crore through tax-free bonds.

"Public issue by Indian Railway Finance Corporation Ltd of tax free, secured, redeemable, non-convertible bonds of face value of Rs 1,000 each in the nature of debentures having tax benefits...aggregating up to Rs 10,00,000 lakhs (shelf limit) in the fiscal 2014," IRFC said in its draft shelf prospectus.

"The bonds would be issued in one or more tranches subject to the shelf limit for the fiscal 2014," it added.     

According to IRFC, funds raised through the issue would be used for financing the acquisition of rolling stock which will be leased to the Ministry of Railways in line with present business activities.

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.

SBI Capital Markets, A K Capital Services, Axis Capital, ICICI Securities and Kotak Mahindra Capital Company are the lead managers to the issue, while Karvy Computershare Private Ltd is the registrar.

The bonds are proposed to be listed on the two leading bourses - National Stock Exchange and Bombay Stock Exchange BSE, the draft prospectus added.