Indian Railway Finance Corp to raise at least 1.5 bln rupees via tax free bonds: Sources

MUMBAI: Indian Railway Finance Corp ( IRFC) plans to raise at least 1.5 billion rupees via tax free bonds by way of private placement, five bankers with knowledge of the deal told Reuters.

The firm will raise funds via 10-year bonds at 7.55 percent and 15-year bonds at 7.77 percent, they said.

The issue, which is rated "AAA" by Crisil, Care and Icra, opens on Monday and closes on Oct 21, said the bankers.

India has allowed four firms to raise 300 billion rupees via tax-free bonds in the current financial year that began April 1.

National Highways Authority of India (NHAI) and Indian Railway Finance Corp (IRFC) can each raise 100 billion, while Housing and Urban Development Corp. (HUDCO) and Power Finance Corp can each raise 50 billion rupees, the Central Board of Direct Taxes said in a notification posted on its website.

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