Indian Railway Finance Corporation (IRFC) has announced its plans to float bonds worth Rs 3,000 crore, including a Rs 2,500-crore greenshoe option, on November 22nd, according to market sources. These bonds will have a maturity period of three years, expiring on November 11, 2026.
The bidding process for these bonds took place on November 22nd between 10am and 11am on the National Stock Exchange of India’s electronic bidding platform. The pay-in date, which denotes the exchange of bonds and money between the issuer and the investors, has been scheduled for November 24th.
CRISIL, ICRA, and CARE, the leading credit rating agencies, have assigned these bonds a top-notch ‘AAA’ rating. This rating reaffirms the financial stability and creditworthiness of IRFC, inspiring confidence among potential investors.
This development comes on the heels of National Bank for Agriculture and Rural Development (NABARD) and Small Industries Development Bank of India (SIDBI) also planning to issue bonds. NABARD aims to raise up to Rs 5,000 crore, with Rs 3,000 crore coming from bonds maturing in three years and one month, while SIDBI plans to raise the same amount, with Rs 3,000 crore through bonds maturing in five years, expiring on November 24, 2028.
The bidding for SIDBI and NABARD bonds, which have received ‘AAA’ ratings from CRISIL, CARE, ICRA, and India Ratings, will take place on November 22nd on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
It is evident that the bond market in India is witnessing significant activity, with various reputed financial institutions choosing this route to secure funds. These issuances provide investors with an opportunity to contribute to the growth and development of key sectors of the Indian economy while also earning competitive returns on their investments.
1. What is the maturity period of IRFC bonds?
The bonds issued by Indian Railway Finance Corporation (IRFC) will mature in three years or on November 11, 2026.
2. When is the pay-in date scheduled for the IRFC bonds?
The pay-in date for the IRFC bonds is set for November 24, which is when the exchange of bonds and money occurs between the issuer and the investor.
3. Which credit rating agencies have assigned ‘AAA’ ratings to IRFC bonds?
The IRFC bonds have been assigned ‘AAA’ ratings by CRISIL, ICRA, and CARE ratings.
4. Who else is planning to issue bonds apart from IRFC?
National Bank for Agriculture and Rural Development (NABARD) and Small Industries Development Bank of India (SIDBI) are also planning to issue bonds.
5. What is the bidding date for the NABARD and SIDBI bonds?
The bidding for NABARD and SIDBI bonds is scheduled for November 22 on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).