IRFC Raises JPY-Equivalent USD 400 Million ECB, Marks Second Borrowing In FY 2025–26

Indian Railway Finance Corporation (IRFC) has signed a loan agreement with a consortium comprising Sumitomo Mitsui Banking Corporation GIFT City Branch and MUFG Bank Ltd GIFT Branch to raise an External Commercial Borrowing (ECB) of JPY equivalent to USD 400 million. 

The agreement was signed in New Delhi by Mr. Nav Goel, General Manager (Finance), IRFC, along with representatives from SMBC and MUFG.

This marks IRFC’s second ECB transaction in the current financial year, following the successful raising of JPY equivalent USD 300 million in December 2025.

Key Terms of the Facility

The ECB has been arranged for a tenure of five years and is benchmarked to the Tokyo Overnight Average Rate (TONAR). By opting for a JPY-linked structure, IRFC aims to diversify its borrowing profile and potentially benefit from competitive international interest rate benchmarks.

Utilisation of Proceeds

The funds raised through this facility will be deployed toward financing projects with forward or backward linkages to the railway sector. The proceeds may also support other projects as approved by the company, in compliance with prevailing 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). 

He 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.” 

He further added, “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.”

IRFC Share Price Performance

On February 26, 2026, IRFC share price opened at ₹104.40, touching the day’s high at ₹105.29, as of 11:21 AM on the NSE.

Also Read: Govt to Divest Up to 4% Stake in IRFC via OFS!

Conclusion

With this latest borrowing, IRFC continues to strengthen its funding base and diversify capital sources in global markets. The move aligns with its mandate of supporting railway infrastructure development while ensuring prudent financial management.

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