Indian Railway Finance Corporation (IRFC) has taken a significant step in expanding its global financing footprint by signing a major External Commercial Borrowing (ECB) loan agreement with Sumitomo Mitsui Banking Corporation (SMBC), GIFT City Branch. The agreement, executed in Gandhinagar, Gujarat, marks IRFC’s first major entry into the ECB market under its “IRFC 2.0” diversification strategy, which focuses on funding infrastructure projects with strong forward and backward linkages to the railway ecosystem.
The loan facility amounts to JPY equivalent of USD 300 million and carries a five-year tenor. It is benchmarked to the Tokyo Overnight Average Rate (TONAR), aligning IRFC’s borrowing strategy with globally accepted interest rate standards.
The signing ceremony took place in the presence of Ms. Deepa Kotnis, Executive Director (Finance), IRFC. The agreement was formally signed between Ms. Rakhi Dua, Senior General Manager (Finance), IRFC, and Mr. Manoj Kaushik, Executive Director, SMBC. Senior members of IRFC’s ECB team, including Mr. Nav Goel (General Manager–Finance) and Mr. Dhruv Taparia (Deputy Manager–Finance), were also present during the event.
IRFC plans to utilise the loan proceeds to finance infrastructure projects that support the growth and modernisation of India’s railway sector. This includes projects connected to both upstream and downstream railway operations, along with other eligible initiatives approved by the company under existing ECB guidelines.
