IRFC, BPCL cumulatively raise Rs 5,000 crore via corporate bonds

Two public sector units, Indian Railway Finance Corporation (IRFC) and BPCL, cumulatively raised Rs 5,000 crore from the corporate bond market on Thursday, according to information provided by dealers. While bond yields have been coming down in recent times, sufficient liquidity in the system and incremental participation by investors have helped bring down spreads in recent times.

IRFC raised Rs 3,000 crore via 15-year bonds at 6.73% on Thursday. The firm had paid 6.90% for a similar tenor bond in early June, according to Bloomberg data. IRFC’s bonds have also seen a compression in spreads in recent times, having narrowed by about 13 basis points compared to early June. BPCL also raised close to Rs 2,000 crore from the corporate bond market through 5-year paper on Thursday.