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IRFC Signs JPY Equivalent $400 Mn ECB With SMBC And MUFG
ECONOMY & POLICY

IRFC Signs JPY Equivalent $400 Mn ECB With SMBC And MUFG

Indian Railway Finance Corporation (IRFC) announced on 25 February 2026 that it 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, for raising an external commercial borrowing facility. The disclosure to stock exchanges stated that the facility agreement was executed in New Delhi and that the arrangement marks IRFC's second external commercial borrowing in the financial year. The disclosure was made under the SEBI Listing Regulations and related master circulars as part of regulatory compliance.

The facility is for JPY equivalent USD 400 mn and is structured as a five?year unsecured loan benchmarked to the Tokyo Overnight Average Rate (TONAR). The company indicated that it previously raised JPY equivalent USD 300 mn in December 2025, making this the second such transaction in the current financial year and reaffirming access to international debt markets. The five?year tenor aligns with the company’s liability management objectives.

The disclosure set out that the proceeds will be utilised to finance projects with forward or backward linkages to the railway sector or any other projects approved by the company in compliance with external commercial borrowing guidelines. The agreement carries no security, reflecting its unsecured nature, and the total aggregate facility amount is stated as JPY equivalent USD 400 mn with the loan to be availed as per the facility terms. The facility amount will be availed as per the terms of the facility agreement and is recorded as an aggregate commitment.

IRFC noted that the transaction is intended to optimise the weighted average borrowing cost and to deepen engagement with global capital providers while supporting the expansion and modernisation of railway infrastructure. The company said that the new borrowing demonstrates investor confidence in its financial fundamentals and strategy, and that the arrangement complements its earlier re?entry into the external commercial borrowing market.

Indian Railway Finance Corporation (IRFC) announced on 25 February 2026 that it 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, for raising an external commercial borrowing facility. The disclosure to stock exchanges stated that the facility agreement was executed in New Delhi and that the arrangement marks IRFC's second external commercial borrowing in the financial year. The disclosure was made under the SEBI Listing Regulations and related master circulars as part of regulatory compliance. The facility is for JPY equivalent USD 400 mn and is structured as a five?year unsecured loan benchmarked to the Tokyo Overnight Average Rate (TONAR). The company indicated that it previously raised JPY equivalent USD 300 mn in December 2025, making this the second such transaction in the current financial year and reaffirming access to international debt markets. The five?year tenor aligns with the company’s liability management objectives. The disclosure set out that the proceeds will be utilised to finance projects with forward or backward linkages to the railway sector or any other projects approved by the company in compliance with external commercial borrowing guidelines. The agreement carries no security, reflecting its unsecured nature, and the total aggregate facility amount is stated as JPY equivalent USD 400 mn with the loan to be availed as per the facility terms. The facility amount will be availed as per the terms of the facility agreement and is recorded as an aggregate commitment. IRFC noted that the transaction is intended to optimise the weighted average borrowing cost and to deepen engagement with global capital providers while supporting the expansion and modernisation of railway infrastructure. The company said that the new borrowing demonstrates investor confidence in its financial fundamentals and strategy, and that the arrangement complements its earlier re?entry into the external commercial borrowing market.

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