Indian infrastructure companies continue to take advantage of attractive primary market yields and buoyant investor demand by locking in low fixed-rate funding. Yesterday, Indian Railway Finance Corporation IRFC launched a small five-year issue, a few days after NTPC raised $500 million to help fund capital spending in the power sector.
The new IRFC notes were reoffered at par and pay a 3.417% with a maturity date of October 10, 2017. The yield was at a spread of 280bp over the US Treasury five-year benchmark.
The lead managers had approached investors early yesterday morning with spread guidance of 310bp, 30bp wider than the issue eventually priced late last...
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