Mumbai: The Indian Railways Financial Corporation (IRFC), the financial arm of the Indian Railways, plans to float infrastructure bonds of Rs 100 crore to Rs 200 crore, says IRFC managing director S B Balachandran, who said IFRC will be entering the market for binds in a months time. Since IRFC is a triple-A rated company, we will not have any difficulty in mopping up the required amount.
About the tenour and the coupon rate, Balachandran said discussions are currently on. Because of the credibility of the company, IRFC is presently able to get bank loans at sub-prime lending rates of 150-basis points, less than the existing 12.5 per cent.

IRFCs total borrowing target has been pegged at Rs 3,000 crore, but this will be brought down to Rs 2,000 crore to Rs 2,500 crore in view of the present economic slowdown. The bulk of the borrowing will come from the government.

IRFC had recorded a net profit of Rs 238.22 crore for the year 2000-2001 and declared a dividend of Rs 64.96 crore (26 per cent) for this period.