IRFC raises $400 million ECB through Japanese lenders

New Delhi: Indian Railway Finance Corporation (IRFC) has raised an External Commercial Borrowing (ECB) of JPY equivalent to USD 400 million by signing a loan agreement with a consortium of Sumitomo Mitsui Banking Corporation (SMBC) and MUFG Bank through their GIFT City branches.

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The agreement, signed in New Delhi, marks IRFC’s second ECB transaction in the current financial year 2025–26, following its earlier USD 300 million equivalent borrowing in December 2025.

The five-year loan is benchmarked to the Tokyo Overnight Average Rate (TONAR) and has been structured as an unsecured facility. The funds raised will be utilised to finance projects linked to the railway sector, including those with forward and backward linkages, in line with applicable ECB guidelines.

Speaking on the development, IRFC Chairman and Managing Director (CMD) Manoj Kumar Dubey said the transaction reflects strong investor confidence in the company’s financial fundamentals and strategic direction. He added that the ECB will help optimise borrowing costs, deepen engagement with global capital markets, and enhance IRFC’s capacity to support the expansion and modernisation of railway infrastructure in India.

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