IRFC raises JPY-equivalent USD 1.1 billion ECB loan

New Delhi: Indian Railway Finance Corporation (IRFC) has raised a JPY-equivalent External Commercial Borrowing (ECB) loan worth USD 1.1 billion through a consortium of banks, marking its first ECB transaction in FY 2026-27.

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The state-run financing company said it signed the loan agreement on May 21 with a consortium comprising State Bank of India, HDFC Bank, Sumitomo Mitsui Banking Corporation, GIFT City Branch, and DBS Bank in New Delhi.

According to the company, the ECB facility has been tied up for a tenure of five years and is benchmarked to the Tokyo Overnight Average Rate (TONAR). The loan is unsecured in nature.

IRFC said the proceeds from the borrowing will be utilised for financing projects having forward or backward linkage with the railway sector and other approved projects in compliance with ECB guidelines.

The company noted that it had earlier raised JPY-equivalent USD 700 million through two ECB transactions during FY 2025-26.

Commenting on the development, IRFC Chairman and Managing Director & CEO Manoj Kumar Dubey said the company continues to mobilise resources through diversified avenues at competitive rates to support projects aligned with Indian Railways.

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He said the latest ECB transaction would help optimise IRFC’s weighted average borrowing cost, strengthen engagement with global capital markets, and enhance its capacity to support the expansion and modernisation of railway infrastructure in the country.

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