Indian Railway Finance Corporation (IRFC) has strengthened its overseas fundraising programme by securing a JPY-equivalent $1.1 billion External Commercial Borrowing (ECB) facility from a consortium of domestic and international lenders.
The transaction represents the company’s first ECB fundraising exercise in FY27 and follows 2 overseas borrowing transactions completed during FY26.
The agreement was executed in New Delhi on May 21, 2026, as IRFC continues to diversify its funding sources to support railway-linked infrastructure financing.
The borrowing arrangement has been signed with a consortium comprising State Bank of India, HDFC Bank, Sumitomo Mitsui Banking Corporation's GIFT City Branch and DBS Bank.
The facility has been structured for a tenure of 5 years and is benchmarked to the Tokyo Overnight Average Rate (TONAR).
According to the company, the agreement has been executed for an aggregate amount equivalent to $1.1 billion in Japanese yen terms.
The facility is unsecured, and the loan amount will be drawn as required under the terms of the agreement.
IRFC stated that proceeds from the borrowing will be utilised for financing projects that have either forward or backward linkages with the railway sector.
The funds may also be deployed towards other approved projects in accordance with applicable ECB guidelines.
The fundraising adds to the company's international borrowing programme after it raised JPY-equivalent $700 million through 2 ECB transactions during FY26.
The latest transaction further expands IRFC’s access to global capital markets while enhancing funding flexibility for future infrastructure requirements.
As per the exchange filings, commenting on the transaction, Manoj Kumar Dubey, Chairman and Managing Director & CEO of IRFC, 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.”
He added, “This JPY equivalent $1.1 billion ECB further reinforces investor confidence in IRFC’s strong financial fundamentals and strategic vision.”
According to Dubey, the transaction is expected to support optimisation of borrowing costs, strengthen engagement with international investors and enhance the company’s ability to support railway infrastructure expansion and modernisation initiatives.
Read More: IRFC Plans to Raise Up to ₹28,000 Crore Via ECBs in FY27: CMD Manoj Kumar Dubey!
As of 25 May 2026, at 9:26 AM, IRFC share price is trading at ₹99.57 per share, reflecting a surge of 1.41% from its previous closing price.
IRFC’s $1.1 billion equivalent ECB facility marks another step in its efforts to diversify funding sources and deepen its presence in international debt markets. The proceeds are expected to support railway-linked infrastructure projects while strengthening the company’s long-term financing capabilities.
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Published on: May 25, 2026, 9:48 AM IST
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