Spotting
 Timeline
 Travel Tip
 Trip
 Race
 Social
 Greeting
 Poll
 Img
 PNR
 Pic
 Blog
 News
 Conf TL
 RF Club
 Convention
 Monitor
 Admin
 Followed
 Rating
 Correct
 Wrong
 Stamp
 HJ
 Vote
 Pred
 @
 FM Alert
 FM Approval
 Pvt
Forum Super Search
 ↓ 
×
HashTag:
Freq Contact:
Member:
Posting Date From:
Posting Date To:
Blog Category:
Train Type:
Train:
Station:
ONLY with Pic/Vid:
Sort by: Date:     Word Count:     Popularity:     
Public:    Pvt: Monitor:    RailFan Club:    

Search
  Go  

22222/22221-->Aapli Rajdhani, Asli VIP number waali - Somanko

Full Site Search
  Full Site Search  
 
Sat Jul 20 00:58:45 IST
Home
Trains
ΣChains
Atlas
PNR
Forum
Gallery
News
FAQ
Trips/Spottings
Login
Feedback
Post BlogPost Trn TipPost Stn TipAdvanced Search

Blog Entry# 4286991
Posted: Apr 10 (20:05)

No Responses Yet
  
Rail News
0 Followers
1245 views
Apr 10 (20:04)   Indian Railway Finance Corporation raises $500 million through dollar bonds

Rahul^~   627 news posts
Entry# 4286991   News Entry# 380449         Tags   Past Edits
Indian Railway Finance Corporation (IRFC) has raised $500 million in overseas bonds as part of its fund raising activity, a move that signals a stable currency regime and will help the railway arm to meet extra budgetary resources (EBR) target, a critical part of the Indian Railways capex. According to a source, the five-year bonds received bids for thrice the amount on offer at a rate of 2.23%. Dollar bonds are pegged to the US treasury yields which has come down from 3.23% in early November 2018 to around 2.44% by the end of March 2019.
IRFC will add a spread of 150 basis points and will fund railway projects at 3.73%. The source added that given that the rupee has strengthened in
...
more...
the past few months, IRFC has opted to not go for currency hedging. The Reserve Bank of India norms does not require upfront hedging for bond issue up to $500 million. “Hedging, which come at an additional cost of 2.5-5 percentage points, can be done later at an opportune time in case markets become volatile,” said the source.
The Indian rupee has strengthened 5% against the US dollar since November. Analysts believe that there is opportunity for Indian firms to tap overseas market given the rupee is stable and credit from the domestic banking channels have dried. “Global interest rates are softening and so it is a good time to raise overseas funds which are available at a lower cost compared with domestic funds,” said Kalpesh Mehta, partner, Deloitte India.
Mehta, however, cautioned that usually an un-hedged exposure is taken by firms whose balance sheets have a natural hedge, that is inflows are also in the same currency in which it avails loans.
IRFC is entrusted to raise EBR for the Indian Railways. EBR is usually raised from financial institutions. As per a March 2015 memorandum of understanding between the transporter and LIC, the insurer was to provide a financial assistance to the tune of `1.5 lakh crore to the latter’s identified projects between 2015 and 2019, and became a part of EBR. However, insurance regulator Irdai’s single-entity exposure cap for insures had come in the way of the railway’s plan to raise funds form LIC. While the IRFC was to raise `26,000 crore from LIC for FY19 as part of EBR, it could raise only `1,600 crore. The overseas bonds issue will help IRFC make up for a part of the shortfall due to non-committal LIC funds.
The overseas bond issue comes close on the heels of the Indian Railways set to raise $750 million from the Asian Development Bank (ADB) through IRFC. As reported by FE earlier, a deal with ADB will be signed soon, and the money will be used to fund the transporter’s plan to electrify 100% of its routes by 2021-22. The ADB fund does not carry currency risk as it will be provided in rupee-equivalent of $750 million. Recently, World Bank’s Multilateral Investment Guarantee Agency backtracked from a proposal to arrange a virtual soft loan of $500 million to IRFC, which was to come at an interest rate of 5%.

ARP (Advanced Reservation Period) Calculator

Reservations Open Today @ 8am for:
Trains with ARP 10 Dep on: Tue Jul 30
Trains with ARP 15 Dep on: Sun Aug 4
Trains with ARP 30 Dep on: Mon Aug 19
Trains with ARP 120 Dep on: Sun Nov 17

  
  

Rail News

New Trains

Site Announcements

  • Entry# 4246530
    Mar 02 2019 (12:59AM)


    @all: Regarding the new SCoR zone, our VSKP and other SCoR members are excited and interested to change the train/station zones. We may let them go ahead with it. This piece of info is NOT critical for trains and TTs which would affect regular passengers - so it's FINE. . We may let them...
  • Entry# 4239625
    Feb 22 2019 (10:22PM)


    @all: This is a repeat warning to all that: Anonymous posting may NOT be used to directly address regular members -> like scolding them, commenting about their blogging habits, arguing with them, or ANY other personal comment/remark against any other member, EVEN if it is not offensive. ANY personal remark (even if not...
  • Entry# 4214881
    Feb 01 2019 (07:45PM)


    This is an advance notice of the last and CORE feature of the RailFan app - Trips/Spottings - which will be enabled next week. A week after that, RailFan will go into Open Beta, whereby all members will be able to download the app without providing their email. . The Trip/Spotting feature of...
  • Entry# 4213057
    Jan 31 2019 (05:45AM)


    A few small enhancements will be made to the site in the coming days, regarding Member profiles. . 1. Hereafter, we shall require REAL permanent names of members. Members will have the option of reporting those whose name is fake or not real. An SW will be issued, whereupon the member will have...
  • Entry# 4205675
    Jan 23 2019 (08:11PM)


    This is an advance notice of a small enhancement to the Forum. Within a couple of days, we shall introduce "anonymous posting" for Blogs and Trips. With "anonymous posting", members will still be required to login to your account and abide by all Forum guidelines, but your name will be hidden...
  • Entry# 4200970
    Jan 18 2019 (10:12PM)


    @all: This is to formally announce the END of the RailCal app. Due to the information blockade, the app has lost its value, and has been rendered completely useless. We are unable to support RailCal anymore. Sorry to disappoint our users. . RailCal has already been taken off the Google PlayStore. So once...
Scroll to Top
Scroll to Bottom
Go to Mobile site
Important Note: This website NEVER solicits for Money or Donations. Please beware of anyone requesting/demanding money on behalf of IRI. Thanks.
Disclaimer: This website has NO affiliation with the Government-run site of Indian Railways. This site does NOT claim 100% accuracy of fast-changing Rail Information. YOU are responsible for independently confirming the validity of information through other sources.
India Rail Info Privacy Policy