U.P. POWER CORPORATION LIMITED SR II B 9.95 BD 31M
Factors
Yield
MODERATE
Issue Size
LARGE
Rating Category*
A
Tax Saving
NO
Issue Type
PRIVATE
Credit Rating
A+(CE)
Credit Outlook
Stable
IRFC Limited
IRFC, the dedicated funding arm of Indian Railways, was established in December 1986 to raise funds from both domestic and overseas markets. Its primary goal is to meet a significant portion of the Extra Budgetary Resources requirement of Indian Railways.
Over the years, Indian Railway Finance Corporation has showcased strong financial performance, enabling it to secure funds at competitive rates and maintain a lower cost of borrowing. Its close collaboration with the Ministry of Railways has contributed to maintaining a low-risk profile. As a result, IRFC bonds have received substantial investor interest.
The indicative coupon rate for 10-year AAA-rated paper has seen a rise of around 20 basis points compared to the previous year. Despite the tight liquidity conditions in the money market, companies like IRFC are willing to raise funds at higher costs due to the prevailing market situation, as noted by a senior official from a private bank’s treasury department.
Yield Interest rate
12.8 %
Face value/ minimum investment
Rs. 10,000 per bond; Minimum investment Rs. 20,000
Issue Dates
Subscriptions Closed
Credit rating
AAA by CRISIL, ICRA and CARE
Lock-in period
1 year from the date of allotment
Tax/ TDS
No TDS- Interest is taxable; principal amount on maturity is tax free
