Date:02/04/2005 URL: http://www.thehindubusinessline.com/2005/04/02/stories/2005040201250600.htm

Back IRFC raises 13 b yen via bonds

Our Bureau

Mumbai , April 1

INDIAN Railway Finance Corporation Ltd (IRFC) has issued a five-year international bond worth 13 billion yen. This is the first yen-denominated public issue to come out of India since 1991.

Priced at par, the five-year bonds carry a coupon of 1.43 per cent to yield, 70 basis points over Yen swap.

According to a release, a broad range of investors took part with 59 per cent of the allocations going to banks, 29 per cent to fund manager and 12 per cent to insurers. Around 15 per cent of the bonds were placed with Japanese investors, 54 per cent with ex-Japan Asia, and 31 per cent with investors in Europe.

Moody's and Standard & Poor's rate the bonds Baa3 and BB+.

ABN Amro, Dalwa Securities SMBC and UBS Investment Bank were joint book runners and joint lead managers.

Securitisation of receivables: IRFC has completed the country's first securitisation of sovereign lease receivables of Rs 196 crore by way of direct assignment of receivables to a syndicate of banks. Citigroup was the sole structurer and arranger for the securitisation.

The receivables consist of lease amounts payable by the Government of India to IRFC. These receivables have been originated under a lease agreement whereby rolling stock (wagons, coaches, locomotives, etc) is leased by IRFC to the Government through the Ministry of Railways.

The transaction has been rated AAA (so) by Crisil. The receivables have a tenor of 10 years with an average maturity of around five years.