IRFC Raises JPY-Equivalent USD 400 mn ECB
ECONOMY & POLICY

IRFC Raises JPY-Equivalent USD 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, in New Delhi for raising External Commercial Borrowing equivalent to United States dollar (USD) 400 mn. The facility marks the second External Commercial Borrowing raised by IRFC in the fiscal year after it raised United States dollar (USD) 300 mn in December 2025. The agreement was executed on 25 February 2026.

The ECB is structured as an unsecured facility with a five year tenor and is benchmarked to the Tokyo Overnight Average Rate, known as TONAR. The facility agreement has been signed for the aggregated JPY equivalent of United States dollar (USD) 400 mn while the exact amount in Japanese yen will be availed in due course. Lenders to the transaction are Sumitomo Mitsui Banking Corporation, Gift City Branch, and MUFG Bank Limited, Gift City Branch, with IRFC acting as the borrower.

Proceeds of the facility will be utilised to finance projects that have forward or backward linkage with the railway sector or other projects approved by the company in compliance with the External Commercial Borrowing guidelines. The transaction follows IRFC's re-entry into the ECB market in December 2025 and is intended to contribute towards optimising the company's weighted average borrowing cost and deepening engagement with global capital markets. The facility is expected to strengthen IRFC's ability to support the ongoing expansion and modernisation of railway infrastructure.

IRFC stated that the transaction reflects investor confidence in the organisation's financial fundamentals and strategic approach to resource mobilisation. The company acknowledged the contribution of its ECB team led by the executive director finance and supported by senior and junior managers in completing the transaction. Further disclosures as required under applicable listing regulations have been furnished to the stock exchanges.

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, in New Delhi for raising External Commercial Borrowing equivalent to United States dollar (USD) 400 mn. The facility marks the second External Commercial Borrowing raised by IRFC in the fiscal year after it raised United States dollar (USD) 300 mn in December 2025. The agreement was executed on 25 February 2026. The ECB is structured as an unsecured facility with a five year tenor and is benchmarked to the Tokyo Overnight Average Rate, known as TONAR. The facility agreement has been signed for the aggregated JPY equivalent of United States dollar (USD) 400 mn while the exact amount in Japanese yen will be availed in due course. Lenders to the transaction are Sumitomo Mitsui Banking Corporation, Gift City Branch, and MUFG Bank Limited, Gift City Branch, with IRFC acting as the borrower. Proceeds of the facility will be utilised to finance projects that have forward or backward linkage with the railway sector or other projects approved by the company in compliance with the External Commercial Borrowing guidelines. The transaction follows IRFC's re-entry into the ECB market in December 2025 and is intended to contribute towards optimising the company's weighted average borrowing cost and deepening engagement with global capital markets. The facility is expected to strengthen IRFC's ability to support the ongoing expansion and modernisation of railway infrastructure. IRFC stated that the transaction reflects investor confidence in the organisation's financial fundamentals and strategic approach to resource mobilisation. The company acknowledged the contribution of its ECB team led by the executive director finance and supported by senior and junior managers in completing the transaction. Further disclosures as required under applicable listing regulations have been furnished to the stock exchanges.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code