IRFC raises ₹2,981 crore via maiden zero-coupon bonds

State-owned

has raised ₹2,981 crore through its first-ever zero-coupon bond issue to fund and refinance key railway and allied infrastructure projects. The 10-year issue drew strong demand, with bids of over ₹7,500 crore against a base size of ₹1,000 crore and a green-shoe option of ₹4,000 crore, allowing IRFC to price the bonds at a yield of 6.79%, below the prevailing ~7.15% AAA PSU benchmark.​ Zero-coupon bonds are issued at a discount and pay no periodic interest; investors receive the face value at maturity, making returns entirely from price appreciation. The successful pricing underscores IRFC’s market standing and its ability to mobilise long-term capital at competitive rates, reinforcing its role as a preferred issuer supporting India’s railway infrastructure build-out. Source: The Economic Times No Recommendations