Indian Railway Finance Corporation (IRFC) has signed a loan agreement with a consortium comprising Sumitomo Mitsui Banking Corporation (SMBC), Gift City Branch, and MUFG Bank Ltd (MUFG), Gift City Branch, in New Delhi on 25 February 2026 to raise External Commercial Borrowings (ECBs) equivalent to JPY-denominated USD 400 mn. This represents the second ECB secured by IRFC in the financial year after a December 2025 facility equivalent to JPY-denominated USD 300 mn. The company filed the requisite disclosure under Regulation 30 of the SEBI Listing Regulations and submitted the details to the stock exchanges.

The facility agreement, executed on 25 February 2026, covers an aggregated amount of the JPY-equivalent USD 400 mn and is unsecured. The loan is structured for a five-year tenor and is benchmarked to the Tokyo Overnight Average Rate (TONAR). The aggregate amount under the facility corresponds to the total amount outstanding upon drawdown. Lenders named in the agreement are SMBC, Gift City Branch, and MUFG, Gift City Branch, while IRFC is the borrower.

The proceeds from the ECB will be utilised for financing projects that have forward or backward linkage with the railway sector or for other projects as may be approved by the company in compliance with ECB guidelines. The disclosure annex sets out the terms, confirms that no security is being provided and indicates that there is no related party involvement. The agreement records that the lending is on an arm’s length basis and that there is no shareholding arrangement with the lenders. IRFC indicated that the facility will support financing needs linked to the expansion and modernisation of railway infrastructure.

IRFC said senior management praised the efforts of the ECB team led by the executive director for finance and acknowledged support from other officers. The company expects the transaction to optimise its weighted average borrowing cost, deepen engagement with global capital markets and reinforce investor confidence in its financial profile.