The bond issuances by Power Finance Corporation (PFC) and Indian Railway Finance Corporation (IRFC) received strong response on Wednesday, with investors bidding more than double the notified amount.
The issuances by these two public sector units received bids aggregating Rs 14,589 crore, against the total notified amount of Rs 6,500 crore. However, funds have been raised at a relatively higher cost due to the hardening in coupon rates in recent months.
The IRFC issue received total bids worth Rs 7,610 crore, against the issue size of Rs 3,000 crore, while PFC received total bids worth Rs 6,979 crore for its Rs 3,500-crore issuance. IRFC raised funds at a coupon rate of 7.67% while PFC mopped up at 7.69%.
