million through an External Commercial Borrowing (ECB), marking its second overseas fundraising in FY 2025–26. The agreement was executed in New Delhi with a consortium comprising Sumitomo Mitsui Banking Corporation (SMBC) GIFT City Branch and MUFG Bank Ltd GIFT Branch.
The five-year ECB facility is benchmarked to the Tokyo Overnight Average Rate (TONAR), enabling IRFC to tap into Japan’s low-interest rate environment while maintaining a diversified funding profile. The transaction follows the company’s earlier successful ECB raise of JPY equivalent USD 300 million in December 2025, taking the total overseas borrowing this financial year to JPY equivalent USD 700 million.
The proceeds from the USD 400 million facility will be utilised for financing projects that have forward or backward linkages with the railway sector. Funds may also be deployed for other projects as approved by the company, in compliance with prevailing ECB guidelines.
As the dedicated financing arm of Indian Railways, IRFC continues to expand its global funding footprint to optimise borrowing costs and strengthen its liquidity position. The latest ECB transaction further reinforces the company’s access to international capital markets and supports ongoing railway infrastructure development across India.