IRFC Signs Rs 135.27 bn Refinance Deal For Hyderabad Metro
RAILWAYS & METRO RAIL

IRFC Signs Rs 135.27 bn Refinance Deal For Hyderabad Metro

Indian Railway Finance Corporation Ltd. (IRFC), a Navratna central public sector enterprise under the Ministry of Railways, has signed a Rs 135.27 billion (Rs 135.27 bn) term loan agreement with L&T Metro Rail (Hyderabad) Limited (L&TMRHL) to refinance the debt of the Hyderabad Metro Rail project. The transaction marks a major refinancing in India’s urban transit sector and reflects IRFC’s diversification into transportation finance aligned with the Government of India’s Viksit Bharat vision. The agreement was executed on May 25, 2026.

The signing took place in the presence of IRFC chief Manoj Kumar Dubey and Telangana Chief Secretary K. Ramakrishna Rao, underlining the strategic importance for city mobility. It follows the transfer of 100 per cent ownership of L&TMRHL from Larsen & Toubro to the Government of Telangana through Hyderabad Metro Rail Limited, converting the network into a state-owned mobility asset and strengthening the project’s financial base. IRFC said the deal demonstrates its ability to structure long-tenor financing for significant infrastructure.

The facility will refinance existing non-convertible debentures, commercial papers and term loans and is structured over a 20-year tenure with quarterly repayments, replacing higher-cost borrowings with competitively priced rupee funding. The arrangement carries no processing fees, commitment charges or prepayment penalties and is backed by an unconditional and irrevocable undertaking from the Government of Telangana, a state guarantee and an RBI-backed direct debit mandate. IRFC indicated the package aims to improve long-term sustainability and allow an orderly exit for lenders.

Hyderabad Metro Rail Phase-I spans 69.2 kilometres across three corridors with 57 stations and currently serves over 0.5 million (0.5 mn) passenger journeys daily, acting as a key urban transport backbone. The refinancing is expected to strengthen financial flexibility, support planned expansion including new corridors and last-mile connectivity, and create a replicable financing model for urban transit systems nationwide as India intensifies investment in sustainable mobility. The agreement advances IRFC’s calibrated diversification into high-impact public utility infrastructure.

Indian Railway Finance Corporation Ltd. (IRFC), a Navratna central public sector enterprise under the Ministry of Railways, has signed a Rs 135.27 billion (Rs 135.27 bn) term loan agreement with L&T Metro Rail (Hyderabad) Limited (L&TMRHL) to refinance the debt of the Hyderabad Metro Rail project. The transaction marks a major refinancing in India’s urban transit sector and reflects IRFC’s diversification into transportation finance aligned with the Government of India’s Viksit Bharat vision. The agreement was executed on May 25, 2026. The signing took place in the presence of IRFC chief Manoj Kumar Dubey and Telangana Chief Secretary K. Ramakrishna Rao, underlining the strategic importance for city mobility. It follows the transfer of 100 per cent ownership of L&TMRHL from Larsen & Toubro to the Government of Telangana through Hyderabad Metro Rail Limited, converting the network into a state-owned mobility asset and strengthening the project’s financial base. IRFC said the deal demonstrates its ability to structure long-tenor financing for significant infrastructure. The facility will refinance existing non-convertible debentures, commercial papers and term loans and is structured over a 20-year tenure with quarterly repayments, replacing higher-cost borrowings with competitively priced rupee funding. The arrangement carries no processing fees, commitment charges or prepayment penalties and is backed by an unconditional and irrevocable undertaking from the Government of Telangana, a state guarantee and an RBI-backed direct debit mandate. IRFC indicated the package aims to improve long-term sustainability and allow an orderly exit for lenders. Hyderabad Metro Rail Phase-I spans 69.2 kilometres across three corridors with 57 stations and currently serves over 0.5 million (0.5 mn) passenger journeys daily, acting as a key urban transport backbone. The refinancing is expected to strengthen financial flexibility, support planned expansion including new corridors and last-mile connectivity, and create a replicable financing model for urban transit systems nationwide as India intensifies investment in sustainable mobility. The agreement advances IRFC’s calibrated diversification into high-impact public utility infrastructure.

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