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Informist, Friday, Jun. 12, 2026

 

--IRFC official: Eyeing up to $1 bln via 5-year dollar bond by Jun-end 

--IRFC official: Expect coupon on 5-year, dollar-denominated bond at 6.6%-6.7% 

--IRFC official: May borrow more overseas via FX bonds if required 

 

By J. Navya Sruthi

 

MUMBAI – India Railways Finance Corp. Ltd. is planning to raise up to $1 billion through five-year dollar-denominated bonds by the end of June, an official in the company said. "We are planning to raise it within June and as early as possible," the official told Informist on condition of anonymity. 

 

The move by the state-owned company comes in the backdrop of the Reserve Bank of India announcing a concessional dollar-rupee swap facility for external commercial borrowings raised by public sector undertakings. The RBI introduced a forex swap facility for external commercial borrowings and overseas foreign currency borrowings raised by banks with a minimum maturity of three years.   

 

The coupon on five-year dollar-denominated bonds is expected at 6.6-6.7%, the official said. The company plans to raise up to $1 billion in June and may issue more dollar bonds later, depending on funding requirements, the official said.

 

According to an Informist Poll, the RBI's concessional dollar-rupee swap facility and overseas foreign currency borrowings are expected to push overall borrowing to $65 billion in 2026-27 (Apr-Mar).  

 

The company's overseas borrowing is expected to be around 30% of its total borrowing, the official said. "We have 70,000 crores (INR 700 billion) approved borrowing limit (for FY27). We have borrowed $1.1 billion through yen-denominated bonds and now we are planning $1 billion (through dollar-denominated bonds)," the official said. "So it would be around $2 to $2.2 billion in total, which will be around 20,000 crores (INR 200 billion), which is around 30% of the total," the official said.  

 

As of now, the state-owned company has no plans to raise funds through domestic borrowing. "We will plan one, mostly five-year or 10-year, if conditions are good. We also want levels to be around 7.10% or 7.20%, so no substantial plan as of now," the official said.

 

For the March quarter, IRFC reported a net profit of INR 16.84 billion on a total revenue of INR 73.36 billion. Friday, the company's shares ended at INR 95.89 on the National Stock Exchange, up 2.7% from the previous close.  End

 

US$1 = INR 95.11

 

Edited by Saji George Titus

 

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