IRFC Raises JPY-Equivalent USD 400 Million ECB from SMBC and MUFG in FY26

New Delhi, February 25, 2026: Indian Railway Finance Corporation (IRFC) has signed a loan agreement with a consortium comprising Sumitomo Mitsui Banking Corporation, GIFT City Branch, and MUFG Bank Ltd, GIFT City Branch, to raise an External Commercial Borrowing (ECB) of JPY equivalent USD 400 million.

The agreement was executed in New Delhi and disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The ECB carries a tenure of five years and is benchmarked to Overnight TONAR (Tokyo Overnight Average Rate). The facility is unsecured in nature.

Second ECB in FY 2025–26

This transaction marks IRFC’s second External Commercial Borrowing in the current financial year. Earlier, in December 2025, the company had successfully raised JPY equivalent USD 300 million from overseas markets, reaffirming its strong access to global capital pools.

The newly signed facility agreement is for an aggregate amount of JPY equivalent USD 400 million. The proceeds will be utilized for financing projects with forward or backward linkages to the railway sector, or other approved projects in compliance with prevailing ECB guidelines.

Strengthening Global Capital Market Presence

The loan agreement was signed by Mr. Nav Goel, General Manager (Finance), IRFC, along with Mr. Manoj Kaushik, Executive Director, SMBC, and Ms. Parul Shah, Head IBU, MUFG.

Speaking on the occasion, Shri Manoj Kumar Dubey, Chairman and Managing Director & CEO of IRFC, highlighted the strategic importance of diversified funding sources. He noted that following IRFC’s successful re-entry into the ECB market in December 2025, the fresh USD 400 million equivalent borrowing further strengthens investor confidence in the company’s financial fundamentals and long-term vision.

He emphasized that the transaction will help optimize IRFC’s weighted average borrowing cost, deepen engagement with global investors and enhance its capacity to support the expansion and modernization of railway infrastructure in India.

Key Disclosure Highlights

• Borrower: Indian Railway Finance Corporation Limited

• Lenders: Sumitomo Mitsui Banking Corporation (GIFT City Branch) and MUFG Bank Ltd (GIFT City Branch)

• Facility Size: JPY equivalent USD 400 million

• Tenor: 5 years

• Benchmark: Overnight TONAR

• Security: Unsecured

IRFC continues to play a pivotal role in mobilizing funds for Indian Railways and related infrastructure, ensuring sustained financial support for one of the country’s most critical growth engines.