+
IRFC Raises JPY-Equivalent $400 Mn ECB
ECONOMY & POLICY

IRFC Raises JPY-Equivalent $400 Mn ECB

Indian Railway Finance Corporation Limited (IRFC) has signed a loan agreement with a consortium comprising Sumitomo Mitsui Banking Corporation, GIFT City Branch, and MUFG Bank Limited, Gift City Branch to raise an External Commercial Borrowing facility of JPY-equivalent USD 400 mn. The agreement was executed on 25 February 2026 and records an aggregated commitment equal to the stated amount. The facility is unsecured and the lenders and the borrower have recorded the terms in a facility agreement.

The borrowing has a five-year tenor and is benchmarked to the Tokyo Overnight Average Rate (TONAR), which will determine interest accrual over the life of the loan. The company stated that the loan amount in Japanese yen will be availed in accordance with market conditions and the facility agreement. The documentation specifies that security is not applicable given the unsecured nature of the arrangement.

Proceeds from the facility will be used to finance projects that have forward or backward linkage with the railway sector or other projects approved by the company in line with External Commercial Borrowing guidelines. This transaction marks the second ECB raised by IRFC in the financial year following a JPY-equivalent USD 300 mn transaction in December 2025, and reflects continued access to international lenders. The company described the operation as part of its ongoing funding strategy.

IRFC said the transaction is intended to mobilise resources through diversified avenues at competitive rates to support projects aligned with Indian Railways and to deliver long-term value for the nation. The company indicated that the borrowing will contribute to optimising its weighted average borrowing cost and to deepening engagement with global capital markets. The board will disclose any material amendments or terminations as required by listing regulations.

Indian Railway Finance Corporation Limited (IRFC) has signed a loan agreement with a consortium comprising Sumitomo Mitsui Banking Corporation, GIFT City Branch, and MUFG Bank Limited, Gift City Branch to raise an External Commercial Borrowing facility of JPY-equivalent USD 400 mn. The agreement was executed on 25 February 2026 and records an aggregated commitment equal to the stated amount. The facility is unsecured and the lenders and the borrower have recorded the terms in a facility agreement. The borrowing has a five-year tenor and is benchmarked to the Tokyo Overnight Average Rate (TONAR), which will determine interest accrual over the life of the loan. The company stated that the loan amount in Japanese yen will be availed in accordance with market conditions and the facility agreement. The documentation specifies that security is not applicable given the unsecured nature of the arrangement. Proceeds from the facility will be used to finance projects that have forward or backward linkage with the railway sector or other projects approved by the company in line with External Commercial Borrowing guidelines. This transaction marks the second ECB raised by IRFC in the financial year following a JPY-equivalent USD 300 mn transaction in December 2025, and reflects continued access to international lenders. The company described the operation as part of its ongoing funding strategy. IRFC said the transaction is intended to mobilise resources through diversified avenues at competitive rates to support projects aligned with Indian Railways and to deliver long-term value for the nation. The company indicated that the borrowing will contribute to optimising its weighted average borrowing cost and to deepening engagement with global capital markets. The board will disclose any material amendments or terminations as required by listing regulations.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code