IRFC to raise 10 billion rupees via bonds-bankers

MUMBAI, May 20 (Reuters) - Indian Railway Finance Corp., the dedicated financing arm of Indian Railways, is selling bonds to raise up to 10 billion rupees, merchant bankers associated with the deal said.

Bidding for the bonds closes at noon on Thursday and cash settlements will be on Friday.

The company is selling bonds in four tranches. These are 10-year bonds with bullet repayment, 15-year with amortised equal repayment every year, 20-year with amortised equal repayment every year and 20-year with a bullet repayment.

There is no indicative yield specified by the company and the bonds will be sold via book-building, bankers said.

The minimum subscription amount under each of the above tranches is 500 million rupees and coupon on the bonds is payable semi-annually, merchant bankers said. (Reporting by Swati Bhat; Editing by Ramya Venugopal)