IRFC, NHB raise Rs 4,500 crore via bond issues

Mumbai: National Housing Bank (NHB) and Indian Railway Finance Corporation (IRFC) on Wednesday raised funds worth a total of ₹4,500 crore though sales of three-year bonds.

NHB issued three-year debt worth ₹2,000 crore at a rate of interest of 7.22%, people aware of the development said. The bonds will mature in July 2026.IRFC sold three-year non-convertible debentures worth ₹2,500 crore at a rate of interest of 7.23%. IRFC's bonds will mature in October 2026.

On Thursday, the most-traded three-year government bond closed at 6.87% yield. Issuances of bonds by firms have become cheaper over the last month due to a sharp decline in government bond yields, which are the pricing benchmarks for corporate debt.


Short-term bond yields, in particular, have witnessed a sharp decline of late due to improved liquidity conditions in the banking system. A large part of corporate borrowing is in the three-year maturity bracket.