Indian Railway Finance Corporation Ltd (IRFC) raises JPY-equivalent $400 million overseas loan

Key facts

• The Indian Railway Finance Corporation Ltd (IRFC) has signed a loan agreement for a JPY-equivalent $400 million External Commercial Borrowing (ECB).
• The loan was raised from a consortium comprising Sumitomo Mitsui Banking Corporation (SMBC), GIFT City Branch, and MUFG Bank Ltd, GIFT City Branch.
• The ECB has a five-year tenor and is benchmarked to the Tokyo Overnight Average Rate (TONAR).
• This transaction marks the second overseas borrowing for IRFC in Financial Year 2025-26 (FY26), following a $300 million raise in December 2025.
• The facility agreement was executed on February 25, 2026, and the loan is unsecured in nature.
• The proceeds will be utilised for financing projects with forward or backward linkages to the railway sector or other projects compliant with ECB guidelines.