Indian Railway Finance Corp. Ltd. · NSE:IRFC
Indian Railway Finance — Debt Investor Presentation (January 2022)
27 slides from Indian Railway Finance's debt investor presentation, Jan 12, 2022
Slide 1: Intimation of Investor Presentation to stock exchanges
INDIAN RAILWAY FINANCE CORPORATION LTD. (A Government of India Enterprise) (CIN : L65910DL1986GOI026363) Regd. Office : Room Nos. 1316 - 1349, 3rd Floor, Hotel The Ashok, Diplomatic Enclave, 50-B, Chanakyapuri, New Delhi – 110021, Phone - 011 24100885 E-mail : info@irfc.nic.in, Website : www.irfc.ni
Slide 2: Indian Railway Finance Corporation Investor Presentation
INDIAN RAILWAY FINANCE CORPORATION Investor Presentation January 2022
Slide 3: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, EXCEPT TO “QUALIFIED INSTITUTIONAL BUYERS” (AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR IN ANY OTHER JURISDICTION IN WHICH SUCH
Slide 4: Disclaimer
Disclaimer This presentation has been prepared by the Company based on information and data which the Company considers reliable, but none of the Company and the Joint Lead Managers makes any representation or warranty, express or implied, as to and no reliance should be placed on, the fairness, acc
Slide 5: Offering Summary
Offering Summary Issuer Indian Railway Finance Corporation Limited (the “Issuer” or “IRFC”) Issue Type Senior Unsecured Fixed Rates Green Notes Documentation US$ 7 billion Global Medium-Term Notes Programme Issuer Ratings Moody’s: Baa3 (Stable) / S&P: BBB- (Stable) / Fitch: BBB- (Negative) Expected
Slide 6: Indian Railways at a Glance
Indian Railways at a Glance Departmental commercial undertaking of Govt. of India (“GoI”) which owns and operates India’s Rail Largest 67,956 kms Transport Rail Network Administration and policy formation by Ministry of Railways (“MoR”) in Asia Pan India Rail Route Network[2] Policy Support Driving
Slide 7: Indian Railways – Sources of Financing & Total Capital Outlay
Indian Railways – Sources of Financing & Total Capital Outlay Sources of Financing Capital Outlay (in USD Mn) FY19 FY20 FY21 FY22^ Extra Budgetary 7,075 9,614 14,055 8,788 Internal Freight and Passenger Resources-IRFC 1 Resources Revenue Other Sources* 10,890 10,330 6,845 20,174 Total 17,965 19,944
Slide 8: IRFC – Structure
Indian Railway Finance Corporation Limited (“IRFC”) – Structure Government of India (GoI) 1 Acquisition of rolling stock assets on behalf of IRFC 2 Ownership of Assets Rolling Stock ~86%* 1 Ministry of Railways (MoR) Assets leased to MoR for 30 years Assets Ownership 3 Primary Lease period: 15 Years
Slide 9: IRFC - Overview
Indian Railway Finance Corporation (“IRFC”) - Overview Strong Linkage with the Government of India Set up in 1986, Indian Railway Finance Corporation Limited has been the sole financial institution to the MoR since inception Critical role in the Indian Government's economic development plans and pol
Slide 10: Strategic role in financing growth of Indian Railways
Strategic role in financing growth of Indian Railways Indian Railways is fairly underpenetrated compared to the Global peers[1] Route Km per million population (2019) 593 456 421 403 151 49 48 Russia USA France Germany Japan India China MoR’s increasing dependence on IRFC for financing USD Bn 67% 48
Slide 11: Key Strengths
Key Strengths • Dedicated market borrowing arm for the Indian Railways (IR) Strategic role in AUM CAGR (FY19-21) • Financed 67% of the capital outlay of the IR in FY 20-21 1 growth of Indian 32.6% • Highest ever annual disbursement to MoR, at USD 14.05 Bn during the FY 20- 21 Railways • AUM has grow
Slide 12: Key Investment Highlights
Key Investment Highlights Low risk business model fully integrated with Ministry of 01 Railways Government ownership (~86%) with strategic role in financing 02 growth of the Indian Railways Competitive cost of borrowings and diversified sources of 03 funding 04 Experienced senior management and comm
Slide 13: Business Model
01 Business Model Unique Business MoR and its entities being the sole client till date Model Financial Leasing 30 year lease arrangement with MoR, comprising a primary period of 15 years Model and a secondary period of 15 years for financing rolling stock Borrowing Targets Reflected in the Union Bud
Slide 14: Notable Contributions to IR (1/3)
02 Notable Contributions to IR (1/3) 01 Over a Third of IR’s Plan Outlay was financed by IRFC 02 As of 31st March 2020, IRFC funded more than 75% of the aggregate Rolling Stock Asset held by IR 03 Recent foray into funding of Railway Projects through Institutional Financing (EBR-IF) 04 Cumulative fu
Slide 15: Notable Contributions to IR (2/3)
02 Notable Contributions to IR (2/3) Total Plan outlay of Railways & IRFC’s Share (USD bn) Total Capital outlay Funding by IRFC IRFC’s share of Capital outlay 50 45 40 35 33% 67% 24% 39% 48% 30 25 20 21 20 18 15 14 14 15 10 9 7 3 4 5 0 2016-17 2017-18 2018-19 2019-20 2020-21 Share of IRFC in Total P
Slide 16: Notable Contributions to IR (3/3)
02 Notable Contributions to IR (3/3) IRFC Share in Indian Railways Rolling Stock (Cumulative) Asset position as on 31st March, 2020 241,060 Wagons 82.25% 293,077 64,648 Coaches 84.38% 76,608 11,332 Locomotives 89.29% 12,690 0 40,000 80,000 120,000 160,000 200,000 240,000 280,000 320,000 Assets held
Slide 17: Sources of Finance
03 Sources of Finance Strategically Placed Diversified Sources of Funding(1) Strong Credit Rating • Highest domestic long-term borrowing credit rating of AAA/A1+ from CRISIL, ICRA and CARE • On par with India sovereign ratings on long-term foreign borrowing ratings Domestic from Moody’s (Baa3), S&P
Slide 18: Experienced Management Team
04 Experienced Management Team • Has been associated with Konkan Railway Corporation Limited, Hindustan Paper Corporation Limited and Delhi Metro Rail Corporation Limited Shri Amitabh Banerjee • Prior experience in the fields of finance, accounts, and general administration Chairman & Managing Direc
Slide 19: Key Financial Indicators (1/2)
05 Key Financial Indicators (1/2) PAT Total Income (USD Mn) (USD Mn) 2,123.8 594.7 1,807.4 429.9 1,479.7 404.5 1,248.6 288.2 2018-19 2019-20 2020-21 H1 FY 2022 2018-19 2019-20 2020-21 H1 FY 2022 CAGR of 43.64% CAGR of 19.80% Loans Outstanding Net Worth (USD Mn) (USD Mn) 46,151.4 5,241.0 43,513.6 4,8
Slide 20: Key Financial Indicators (2/2)
05 Key Financial Indicators (2/2) Assets under Management (AUM) as on 30th September, 2021 (USD Bn) 51.5 48.5 35.8 27.1 2018-19 2019-20 2020-21 H1 FY 22 IRFC’s AUM has witnessed a CAGR of 21.20% during FY 19-21 # INR numbers converted to USD @ 74.2551 19
Slide 21: Snapshot of Key Financials
05 Snapshot of Key Financials (All figures are in USD Mn) Half-Year ended Year-Ended Particulars 30th Sept 2021 30th Sept 2020 Growth in % 31st March 2021 Revenue from Operations 1,249 994 26% 2,124 Finance Cost 839 733 15% 1,513 Net Interest Income 410 262 57% 610 Profit Before Tax 404 254 59% 595
Slide 22: Financial Summary
05 Financial Summary (All figures are in USD Mn) For the Year Sep-21 2020-21 2019-20 2018-19 Total Income 1,248.62 2,123.87 1,807.43 1,479.67 Total Expenditure 844.15 1,529.15 1,377.55 1,108.62 Profit Before Tax 404.47 594.72 429.88 371.06 Profit After Tax 404.47 594.72 429.88 288.18 Equity 1,759.94
Slide 23: Key Ratios- Q2 of FY 2021-22
Key Ratios- Q2 of FY 2021-22 Particulars Quarter-ended 30th September 2021 Net Interest Margin 1.64% (Annualized) Return on Equity 15.4% (Annualized) Net Gearing Ratio 8.81 x CRAR 465 % 22
Slide 24: Green Financing Framework
Green Financing Framework • The Government of India, as part of its Nationally Determined Contributions (NDCs) has set a target of 33% emissions intensity reduction - Transport sector being one of the key sectors with substantial mitigation potential • Indian Railways (IR) aims to enhance the share
Slide 25: Certified Green Bond
Certified Green Bond A gONDs S> LX o , $ 9 5B: “err Re? This is to certify that the IRFC-Green Financing 2022 Issued by Indian Railway Finance Corporation Limited Has met the criteria for certification by the Climate Bonds Standard Board on behalf of the Climate Bonds Initiative beled, 20 October 20
Slide 26: Plan for FY 2021-22
Plan for FY 2021-22 Lending Targets of Borrowing Targets of USD 8,788Mn USD 8,788Mn CSR to MoR and RVNL from market & institutions MoR : Rolling Stocks : Market Borrowing through USD 4,080Mn Bonds, RTL : MoR : Railway Projects : Planned outlay of USD 6,788 Mn USD 4,614Mn USD 9.4 Mn Alternative plan/
Slide 27: Thank You
Thank You
Indian Railway Finance — Debt Investor Presentation (January 2022) on 6ix