New Delhi: Indian Railway Finance Corporation (IRFC), the dedicated financing arm of Indian Railways, has signed an External Commercial Borrowing (ECB) agreement worth JPY-equivalent USD 1.1 billion with a consortium of leading domestic and international banks.
The agreement was signed in New Delhi on May 21, 2026, marking IRFC’s first overseas borrowing in the FY 2026–27 fiscal year.
Consortium of Global and Domestic Banks Participates in Deal
The lending consortium includes major financial institutions:
- State Bank of India
- HDFC Bank
- Sumitomo Mitsui Banking Corporation (GIFT City Branch)
- DBS Bank
The agreement was executed on behalf of IRFC by Senior General Manager (Finance) Rakhi Dua.
Read also: IRFC Q4 FY26 Result: PAT ₹7,009 Cr, EPS ₹5.36, AUM Crosses ₹4.85 Lakh Crore with Zero NPA
Five-Year ECB Facility Benchmark to TONAR
The loan structure includes:
- Tenor: 5 years
- Type: Unsecured ECB facility
- Benchmark rate: Overnight TONAR (Tokyo Overnight Average Rate)
- Total value: JPY-equivalent USD 1.1 billion
According to IRFC, the loan will be drawn as per funding requirements under ECB guidelines.
Funds to Support Railway and Infrastructure Development
The proceeds from the ECB will be used for:
- Financing railway-linked infrastructure projects
- Supporting backward and forward integration projects
- Other approved infrastructure initiatives under ECB norms
The company stated that the funding will help strengthen India’s railway modernization and expansion efforts.
Continued Global Investor Confidence in IRFC
IRFC Chairman and Managing Director & CEO Manoj Kumar Dubey said the transaction reflects strong investor confidence in the company’s financial stability and long-term strategy.
He added that IRFC aims to diversify its funding sources and secure capital at competitive rates to:
- Reduce weighted average borrowing cost
- Strengthen global market engagement
- Support large-scale railway infrastructure development
The ECB team for the transaction was led by ED (Finance) Deepa Kotnis.
Compliance and Regulatory Disclosure
IRFC confirmed that:
- The facility is unsecured
- No related-party transactions are involved
- No equity issuance or special rights were granted to lenders
The disclosure was made under SEBI Listing Regulations (Regulation 30) to the National Stock Exchange (NSE) and BSE Limited.
About IRFC
Indian Railway Finance Corporation Limited (IRFC) is the dedicated financing arm of Indian Railways. As a premier Public Sector Undertaking, IRFC mobilizes funds from domestic and international markets to support railway infrastructure projects, playing a pivotal role in India’s transportation and infrastructure development.
