IRFC Returns to Global Market with USD 300 Million ECB from SMBC
IRFC signs a USD 300 million ECB loan agreement with SMBC’s GIFT City branch, marking its return to global borrowing after 3 years to support railway-linked projects.
New Delhi, December 2, 2025: Indian Railway Finance Corporation (IRFC) has signed a major External Commercial Borrowing (ECB) loan agreement worth JPY equivalent of USD 300 million with Sumitomo Mitsui Banking Corporation (SMBC), GIFT City branch, Gandhinagar. The development marks IRFC’s return to the international ECB market after more than three years, coinciding with the company’s expanded role in financing infrastructure projects with forward and backward linkage to the railway sector.
The loan agreement was formally executed at GIFT City in the presence of Ms. Deepa Kotnis, Executive Director (Finance), IRFC. The documentation was signed by Ms. Rakhi Dua, Senior General Manager (Finance), IRFC, and Mr. Manoj Kaushik, Executive Director, SMBC. Senior officials from IRFC’s ECB team, including Mr. Nav Goel (General Manager – Finance) and Mr. Dhruv Taparia (Deputy Manager – Finance), were also present.
Loan Structure and Purpose
The ECB facility carries a five-year tenor and is benchmarked to Overnight TONAR (Tokyo Overnight Average Rate). The funds raised will be used to finance projects connected to the railway sector or other initiatives approved by the company, in full compliance with ECB guidelines.
IRFC stated that the borrowing strengthens its objective of tapping diverse funding sources at competitive rates to support critical infrastructure projects.
Leadership Statement
Commenting on the development, Shri Manoj Kumar Dubey, Chairman & Managing Director & CEO, IRFC, said:
“At IRFC, our priority is to mobilize resources from various available avenues at the most competitive rates, thereby supporting projects closely integrated with Indian Railways. By tapping the ECB market after more than three years, we aim to reduce our weighted average borrowing cost while re-establishing our presence in the international market. This will play a crucial role in strengthening railway infrastructure essential for nation building.”
Regulatory Disclosure
As per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, IRFC confirmed that the agreement involves no shareholding component, no related-party transaction, and no security creation, as it is an unsecured facility.
The details were disclosed to both the National Stock Exchange of India (NSE) and BSE Limited on December 2, 2025, along with an annexure outlining all required parameters under Regulation 30.
Significance
The loan marks IRFC’s strategic re-entry into foreign borrowing channels, expected to diversify its funding base and support large-scale railway-linked infrastructure projects.