IRFC Share Price in Focus; Secures $300 Million ECB Loan from Sumitomo Mitsui Banking Corp

Indian Railway Finance Corporation (IRFC) has signed a loan agreement with Sumitomo Mitsui Banking Corporation (SMBC), GIFT City Branch, for an external commercial borrowing (ECB) equal to $300 million in Japanese yen terms.  

The agreement was executed on December 2, 2025, in Gandhinagar. This is IRFC’s 1st ECB deal in more than 3 years, and the company confirmed that the borrowing is unsecured and yet to be drawn. 

Loan Terms and Benchmark 

The facility has a 5-year tenure and will be benchmarked to the Tokyo Overnight Average Rate (TONAR). IRFC said the arrangement falls under standard ECB rules and does not involve shareholding, board rights, or control-related provisions.  

The lender's role is limited to the loan facility, and the agreement does not fall under related-party transactions. 

Use of Funds 

The funds raised will be used for projects linked to the railway sector through forward or backward linkages, as well as other proposals approved internally. These include infrastructure-related requirements that fall under the permitted end-use norms.  

IRFC described the borrowing as part of its broader shift into a wider set of infrastructure financing areas under its current plans. 

Participation at the Signing 

Senior officials from IRFC, including Deepa Kotnis (Executive Director - Finance) and Rakhi Dua (Senior General Manager - Finance), were present during the signing.  

Members of the company’s ECB team - Nav Goel and Dhruv Taparia - also participated. Representatives from SMBC’s GIFT City Branch attended the execution of the agreement. 

Read More: Yes Bank and Union Bank to Be Added in Bank Nifty by the End of December 2025! 

IRFC Share Price Performance  

As of December 03, 2025, 9:50 am, Indian Railway Finance Corp (IRFC) share price was trading at ₹115.93, a 0.42% decline from the previous closing price. 

Conclusion 

The agreement adds an additional overseas funding route for IRFC as it prepares to support railway-related and approved infrastructure projects. 

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