IRFC has been talking to large investors because they know tax-free bonds don?t have any takers,? said a merchant banker with a leading private bank. Rural Electrification Corporation ( REC ) fell short of its aim to raise R4,500 crore through tax-free bonds, attracting just R2,100 crore earlier this month. Power Finance Corporation (PFC), which launched its tax-free bond offer after REC, had to extend the closing date by a week till Thursday. PFC has received just around R670 crore worth of bids so far, a merchant banker said. Merchant bankers said the IIFCL offer that opened on Wednesday and the Hudco bonds expected in January, may fare even worse. Hudco can raise around Rs 10,000 crore while IIFCL is targetting Rs 9,200 crore. The last quarter of any financial year typically sees a surge in bond issuances as non-banking financial companies see higher demand for credit.