IRFC returns to the External Commercial Borrowing market after more than three years for raising JPY equivalent USD 300 million

Indian Railway Finance corporation (IRFC) today signed a loan agreement with Sumitomo Mitsui Banking Corporation GIFT city Branch at Gift city in Gandhinagar, Gujarat for raising External Commercial Borrowing loan of JPY equivalent USD 300 million. This becomes the first foray of IRFC 2.0 in the ECB market after its diversification move in infrastructure space having backward / forward linkage.

The loan agreement was signed today in presence of Ms. Deepa Kotnis, Executive Director (Finance), IRFC at Gift City in Gandhinagar, Gujarat between Ms. Rakhi Dua, Senior General Manager (Finance), IRFC and Mr. Manoj Kaushik, Executive Director, SMBC.

Senior officials from IRFC's ECB team Mr. Nav Goel (General Manager Finance) and Mr. Dhruv Taparia (Deputy Manager Finance) were also present on this momentous occasion.

The ECB, being raised for JPY equivalent USD 300 million has been tied up for a 5-year tenor and benchmarked to Overnight TONAR (Tokyo Overnight Average Rate).

The proceeds from this facility shall be utilised towards financing projects having forward or backward linkage with the railway sector or any other project as may be approved by the Company in compliance with the ECB Guidelines.

Speaking on the occasion, Shri Manoj Kumar Dubey, Chairman and Managing Director & CEO, IRFC said: "At IRFC, our priority is to mobilise resources from various available avenues at the most competitive rates thereby supporting projects that are closely integrated with Indian Railways and delivering enduring benefits. By tapping the External Commercial Borrowing market after more than 3 years, we are not only intending to reduce our weighted average borrowing cost but also reviving our presence in the international market which shall play a crucial role in further strengthening Of the railway infrastructure that is vital for nation building."

Shares of Indian Railway Finance Corporation Limited was last trading in BSE at Rs. 116.40 as compared to the previous close of Rs. 117.05. The total number of shares traded during the day was 304014 in over 3748 trades.

The stock hit an intraday high of Rs. 117.00 and intraday low of 116.10. The net turnover during the day was Rs. 35416825.00.

Source : Equity Bulls

Keywords

IndianRailwayFinanceCorporation INE053F01010 IRFC NBFC LoanAgreement SumitomoMitsuiBankingCorporation ECB