IRFC may raise Rs 6,300 crore via rupee-denominate bonds abroad

News

• Indian Railways Finance Corp may become the first domestic entity to sell offshore rupee-denominated bonds after RBI allowed this in its April 7 monetary policy.
• The finance wing of the Indian Railways could raise as much as Rs 6,300 crore through such an offer as it seeks to generate the record amount that minister Suresh Prabhu needs to fund his ambitious plans to revamp the ailing network.
• Other pledges that need to be met include bullet trains and air-conditioned local trains in Mumbai. The institution is discussing such bonds with investment banks.
• Once RBI guidelines are finalised, they may sell such securities for up to $1 billion allocated for external commercial borrowings (ECBs) this year (FY16).
• The government has mandated a total IRFC borrowing target of Rs 17,655 crore for the fiscal year, an all-time high that’s about 50% higher than the previous year.
• The railway ministry also intends to fast-track sanctioned works on 7,000 km of double/third/fourth lines and commission 1,200 km in 2015-16 at an investment of Rs 8,686 crore.