The tax-free bonds of the Indian Railway Finance Corporation (IRFC), the financing arm of Indian Railways, made their debut on Friday on the National Stock Exchange and BSE at a premium today.
The bonds (series N1) having a face value of Rs 1,000 was quoted at Rs 1,015 and bonds (series N2) at Rs 1005.70 on the NSE today.
The company intends to utilise the issue proceeds for financing the acquisition of rolling stock and financing the capacity enhancement works in the Indian Railways, IRFC Chairperson Ms Vijaya Kamath said after ringing the Gong at NSE here.
RFC in January 2012 issued tax free, secured, redeemable, non-convertible bonds of face value of Rs 1,000 each in the nature of debentures, aggregating to Rs 3,000 crore with an option to retain over—subscription of upto the shelf limit of Rs 6,300 crore.
These bonds carry a coupon rate of 8 percent per annum for 10 years (ISEC Comment: Series I) and 8.10 percent per annum for 15 years (ISEC Comment: Series II).