INDIAN RAILWAY FINANCE CORPORATION LIMITED

OptionsMode of InterestPaymentCoupon Rate (%)p.a.Series of BondsTranche 1 Series IThrough various modes available*For Category I Investors: 7.18%For Category II Investors: 7.18%For Category III Investors: 7.18%For Category IV Investors: 7.68%**AnnualCoupon TypeInterest onApplication MoneyDiscount at whichBonds are issued andeffective yield as aresult of suchdiscountEffective Yield For Category I Investors: 7.18%For Category II Investors: 7.18%For Category III Investors: 7.18%For Category IV Investors: 7.68%Nature ofIndebtedness andRankingTranche 1 Series IIFor Category I Investors: 7.34%For Category II Investors: 7.34%For Category III Investors: 7.34%For Category IV Investors: 7.84%**See Section titled “Terms of the Issue – Interest on Application Amounts” on page51 of the Prospectus Tranche-1.Not applicableFor Category I Investors: 7.34%For Category II Investors: 7.34%For Category III Investors: 7.34%For Category IV Investors: 7.84%The claims of the Bondholders shall rank pari-passu inter-se and shall be superior tothe claims of any unsecured creditors of the Company and subject to applicablestatutory and/or regulatory requirements, rank pari passu to the claims of creditors ofthe Company secured against charge on the movable assets comprising of rolling stocksuch as wagons, locomotives and coaches.Option to retain Upto the Shelf LimitoversubscriptionThe Company would allot Tranche 1 Series II Bonds to all valid applications, wherein the applicants have not indicatedtheir choice of the relevant series of Bonds in their Application Form.*For various modes of interest payment, see “Terms of the Issue – Modes of Payment” on page 53.**Please note that the additional interest of 0.50% p.a shall only be available to the original Allottees under Category IV forthe Tranche – 1 Series I Bonds and the Tranche – 1 Series II Bonds. In the event the Bonds held by the original Allotteesunder Category IV are sold/ transferred (except in case of transfer of Bonds to legal heir in the event of death of the originalAllottee), the coupon rate shall stand revised to the coupon rate applicable for Allottees falling under Category I, CategoryII and Category III.45