Indian Railway Finance Corporation has mobilised ₹2,500 crore through the issue of bonds for 10 years through private placement at a competitive rate of 7.69 per cent per annum. The issuance had base issue of ₹500 crore with green shoe option of ₹2,000 crore.
The issue of unsecured redeemable non-convertible bonds, which opened on October 10, was over-subscribed with overall subscription aggregating to around ₹7,000 crore, IRFC said in a statement on Thursday.
The issue received an overwhelming response across all investor segments spread across banks, pension funds, insurance companies, mutual funds and other financial institutions, it said, adding that the proceeds of bond issue will be used for meeting funding requirements of Indian Railways.
The current issue also had two other options for three and five year tenures but the company did not accept any of them.