According to market sources, Indian Railway Finance Corporation (IRFC) is gearing up to release bonds valued at up to Rs 3,000 crore on February 26.
These bonds consist of a base issue worth Rs 500 crore along with a greenshoe option of Rs 2,500 crore, all set to mature in 10 years by February 28, 2034.
The greenshoe option, a feature of the underwriting agreement, empowers the underwriter to offer investors more bonds than initially planned by the issuer in response to higher-than-anticipated demand for a security issue.
The bidding process for these bonds is scheduled to take place from 10am to 11am via the electronic bidding platform of the National Stock Exchange of India (NSE).
On February 28, the pay-in date for the bonds will facilitate the exchange of bonds and funds between issuers and investors.
The bonds issued by Indian Railway Finance Corporation (IRFC) have received a ‘AAA’ rating with a ‘stable’ outlook from CRISIL, ICRA, and CARE ratings, indicating the highest level of creditworthiness and a positive assessment of the bonds’ prospects.
Sources further reveal that the minimum application for these bonds is set at Rs 1 crore, with investments required to be made in multiples of Rs 1 lakh thereafter, ensuring accessibility to a wide range of investors.
Notably, on February 22, several other companies including Canfin Homes, Manba Finance, Satya Microcapital, Aditya Birla Finance, Krazybee Services Pvt Ltd, Aye Finance, and Lendingkart Finance also successfully raised funds through bond issuances, highlighting the continued interest in the bond market as a financing avenue.