Indian Railway Finance Corporation (IRFC) has received board approval to raise up to $1 billion through offshore bonds, the company told FE.
This limit will be part of the total borrowing target for IRFC in fiscal year 2016, which is at R17,655 crore. The company has asked the government to permit it to raise the entire borrowing target for FY16 through tax-free bonds.
The company also indicated that it is eagerly looking forward to the option of issuing rupee-denominated bonds in offshore markets. In FY15, the company had raised close to R11,000 crore, out of which 30-40% was through the bond market route. IRFC recently raised R1,200 crore through short-tenure bonds at an attractive pricing of 7.95%