IRFC gets nod to raise $1.17-bn through deep-discount bonds

THE INDIAN RAILWAY Finance Corporation (IRFC) has received the government's approval to raise $1.17 billion through deep-discount bonds, a senior IRFC official told FE.

- MANU KAUSHIK

These papers, which are issued at low interest rates and mature at face value, carry benefits similar to zero-coupon bonds to the borrower.

The approval has coincided with the IRFC's board giving nod to raise ₹60,000 crore in FY26 to support the capital needs of the company which has turned its focus from purely funding the railways' capex to sectors which have forward and backward linkages with the railways.

The funds will be mobilised through a mix of financial instruments across domestic and international markets, including bonds, bank loans, and external commercial borrowings (ECBs), the company said recently.