New Delhi: “Indian Railway Finance Corp (IRFC) has postponed its Rs7 billion bond issue,” three sources, including a company official, said.
A company official, who declined to be named, said that the bond sale had been deferred due to the rise in government bond yields after India late on Tuesday announced a higher-than-expected borrowing schedule till end-March.
“The issue will be launched again when the market stabilises,” the official said.
After market hours on Tuesday, the government said that it would issue Rs500 billion of fresh bonds until the end of the current fiscal year that ends in March, with a Rs150 billion of bond sale scheduled for 9 January, 2009.
Indian federal bond yields shot up to near one-month highs, spooked by excess supplies hitting the market.
IRFC had invited bids from investors on Monday to sell 5-year, 10-year and 15-year bonds with a greenshoe option to retain oversubscription for an unspecified amount.