IRFC raises JPY-equivalent USD 400 Million ECB, marks second ECB in FY 2025-26

Indian Railway Finance Corporation (IRFC) today signed a loan agreement with the consortium of Sumitomo Mitsui Banking Corporation GIFT City Branch and MUFG Bank Ltd Gift Branch in New Delhi for raising External Commercial Borrowing loan of JPY equivalent USD 400 million. This is the second ECB being raised by IRFC during this FY after it successfully raised JPY equivalent USD 300 million in December 2025.

The loan agreement was signed today between Mr. Nav Goel, General Manager (Finance), IRFC and Mr. Manoj Kaushik, Executive Director, SMBC & Ms. Parul Shah, Head IBU, MUFG.

The ECB, being raised for JPY equivalent USD 400 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 lauded the efforts of ECB Team of IRFC led by Mrs. Deepa Kotnis, ED/Finance, and ably supported by Mrs. Rakhi Dua (Sr.GM), Mr. Dhruv Taparia (Dy.Mgr) and Mr. Mehar Chand(Jr. Mgr) and said: "At IRFC, our continuous endeavour is to mobilise resources through diversified avenues at the most competitive rates, enabling sustained support to projects closely aligned with Indian Railways and delivering long-term value to the nation. Following the successful re-entry into the External Commercial Borrowing market in December 2025, this JPY equivalent USD 400 million ECB further reinforces investor confidence in IRFC's strong financial fundamentals and strategic vision. The transaction will contribute towards optimizing our weighted average borrowing cost, deepening our engagement with global capital markets, and strengthening our ability to support the ongoing expansion and modernisation of railway infrastructure that remains integral to India's growth and nation-building."

Shares of Indian Railway Finance Corporation Limited was last trading in BSE at Rs. 104.55 as compared to the previous close of Rs. 109.40. The total number of shares traded during the day was 1759238 in over 10301 trades.

The stock hit an intraday high of Rs. 106.20 and intraday low of 104.40. The net turnover during the day was Rs. 184725255.00.

Source : Equity Bulls

Keywords

IndianRailwayFinanceCorporation INE053F01010 IRFC FundRaising LoanAgreement SumitomoMitsuiBankingCorporation MUFGBank GIFTCityBranch ECB