Indian Railway Finance Corporation (IRFC) has successfully signed a loan agreement to raise an External Commercial Borrowing (ECB) of JPY equivalent USD 1.1 billion. The agreement, signed on 21st May 2026 in New Delhi, involves a consortium of lenders including State Bank of India, HDFC Bank Ltd, Sumitomo Mitsui Banking Corporation, GIFT City Branch, and DBS Bank Ltd. This marks the first ECB raised by IRFC in the financial year 2026-27, following a successful raising of JPY equivalent USD 700 million across two ECB transactions in the previous financial year.
The loan, which is benchmarked to the Tokyo Overnight Average Rate (TONAR), has a tenor of five years. The proceeds from this facility are intended to finance projects with linkages to the railway sector or other approved projects, in compliance with the ECB guidelines.
The signing ceremony saw the participation of Ms. Rakhi Dua, Senior General Manager (Finance) at IRFC, who signed the agreement on behalf of the corporation. The ECB team at IRFC, led by Ms. Deepa Kotnis, Executive Director of Finance, played a pivotal role in securing this loan, with support from other key team members.
Commenting on the development, Shri Manoj Kumar Dubey, Chairman and Managing Director & CEO of IRFC, highlighted the corporation’s commitment to mobilising resources through diverse avenues at competitive rates. He emphasised that this transaction not only reinforces investor confidence in IRFC’s financial strength and strategic vision but also contributes to optimising borrowing costs and supporting the expansion and modernisation of India’s railway infrastructure.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).