The Indian Railway Finance Corporation (IRFC) has raised
Rs1,200 crore from the market. While Rs700 crore have
been raised in the form of bank loans, Rs500 crore have
been raised through bonds. IRFC is the fund raising arm
of the Indian Railways.
Rs700 crore has been raised from five nationalised banks
for a five-year tenor at the rate of 7 per cent, Rs500
crore has been raised through the issuance of bonds with
a weighted average cost of 6.18 per cent.
bonds have been issued to UTI, Citibank, Stanchart, Bank
of America, ICICI-Securities and DSP Merrill Lynch.
for the Rs700-crore loan, IRFC has raised the amount from
the United Bank of India, the Syndicate Bank, the Allahabad
Bank, the Dena Bank and the State Bank of Hyderabad.
entire amount will be used to fund the rolling stock acquisition
of the Indian Railways. IRFC is expected to raise Rs3,400
crore for buying assets for the Indian Railways this fiscal.
fiscal 2004-05, IRFC borrowed a total of Rs2,888 crore
out of which offshore borrowings were Rs1,096 crore and
domestic borrowings were Rs1,792 crore.
total borrowings were at a weighted average cost of 6.12
per cent after providing for the foreign exchange risk
and a weighted average tenure of over seven years.