INDIAN RAILWAY FINANCE CORPORATION LIMITED

THE ISSUEAs per the terms of the CBDT Notification, the aggregate volume of the issue of Bonds (having benefits underSection 10(15)(iv)(h) of the Income Tax Act) by the Company during the Fiscal 2013 shall not exceed `10,00,000 lakhs. Out of the said amount, the Company had undertaken the following private placements ofsecured tax free, redeemable, non-cumulative, non-convertible bonds:1. On November 26, 2012, the Company allotted on a private placement basis, tax-free bonds, in the nature ofsecured, redeemable, non-convertible bonds of face value ` 10,00,000 each in two separate series (81 and81-A series) having a coupon rate of 7.21% and 7.38% respectively, aggregating to ` 32,270 lakhs.2. On November 30, 2012, the Company allotted on a private placement basis, tax-free bonds, in the nature ofsecured, redeemable, non-convertible bonds of face value ` 10,00,000 each, in two separate series (82 and82 A series) having a coupon rate of 7.22% and 7.38% respectively, aggregating to ` 7,100 lakhs.3. On December 6, 2012, the Company allotted on a private placement basis, tax-free bonds, in the nature ofsecured, redeemable, non-convertible bonds of face value ` 10,00,000 each, in two separate series (83 and83 A series) having a coupon rate of 7.22% and 7.39% respectively, aggregating to ` 12,500 lakhs.4. On December 7, 2012, the Company allotted on a private placement basis, tax-free bonds, in the nature ofsecured, redeemable, non-convertible bonds of face value ` 10,00,000 each, through a separate series (84series) having a coupon rate of 7.22% aggregating to ` 49,990 lakhs.5. On December 14, 2012, the Company allotted on a private placement basis, tax-free bonds, in the nature ofsecured, redeemable, non-convertible bonds of face value ` 10,00,000 each, through a separate series (85series) having a coupon rate of 7.19% aggregating to ` 9,500 lakhs.Hence, the Company shall issue the Bonds upto an aggregate amount of ` 8,88,640 lakhs through this Issueduring the Fiscal 2013 out of the total permissible amount of ` 10,00,000 lakhs, as approved by its Boardthrough its resolution dated July 31, 2012.The following table summarizes the Issue details. This section should be read in conjunction with, and isqualified in its entirety by, more detailed information in “Issue Structure” & “Terms of the Issue” on page 40and 46 respectively.COMMON TERMS FOR ALL SERIES OF THE BONDSIssuerMode of issue and natureof instrumentIndian Railway Finance Corporation LimitedPublic issue by Indian Railway Finance Corporation Limited of tax free, secured,redeemable, non-convertible bonds of face value of ` 1,000 each in the nature ofdebentures having tax benefits under section 10(15)(iv)(h) of the Income Tax Act,1961, as amended, , aggregating up to ` 8,88,640 lakhs* in the Fiscal Year 2013.The Bonds will be issued in one or more tranches subject to the Shelf Limit.This Tranche Issue by the Issuer of bonds aggregating to ` 1,00,000 lakhs with anoption to retain oversubscription upto the Shelf Limit* (i.e. Upto ` 8,88,640lakhs*) and is being offered by way of this Prospectus Tranche-1 containing, interalia, the terms and conditions of the Tranche-1, which should be read together withthe Shelf Prospectus dated December 21, 2012 filed with the RoC, DesignatedStock Exchange, NSE and SEBI.* Pursuant to the CBDT Notification, our Company has raised ` 1,11,360 lakhsthrough the private placements of Bonds. In case our Company raises any furtherfunds through private placement not exceeding ` 2,50,000 lakhs, i.e. upto 25% ofthe allocated limit for raising funds through Tax Free Bonds during Fiscal Year2013, during the process of the present Issue, the Shelf Limit for the Issue shall getreduced by such amount raised.ListingThe Bonds are proposed to be listed on BSE and NSE within 12 Working Days ofthe respective Issue Closing Date.13