IRFC signs loan agreement for raising ECB loan of JPY equivalent $1.1 billion

Indian Railway Finance Corporation Limited (IRFC) has signed a loan agreement with a consortium of SBI, HDFC Bank Limited, Sumitomo Mitsui Banking Corporation, GIFT City Branch and DBS Bank Limited for raising external commercial borrowing (ECB) loan of JPY equivalent $1.1 billion. The loan has been tied up for a five-year tenor and benchmarked to Overnight TONAR (Tokyo Overnight Average Rate). The proceeds through this will be used for financing projects having forward or backward linkage with the railway sector or other projects as may be approved by the company in compliance with the ECB guidelines. Besides, this marks the first ECB raised by IRFC during FY 2026-27 after it successfully raised JPY equivalent $700 million across two ECB transactions in FY 2025-26. Moreover, IRFC is planning to sanction a loan amount of Rs 1 trillion along with disbursement of about Rs 400 billion during FY 2026-27.