Why Japanese Investors are Betting Big on Indian Railways Financing Arm

NEW DELHI, February 28, 2026 – Indian Railway Finance Corporation (IRFC), the dedicated market borrowing arm of the Indian Railways, has successfully concluded a strategic two-day External Commercial Borrowing (ECB) roadshow in Tokyo, Japan.

The delegation, led by Ms. Deepa Kotnis (Executive Director, Finance) and Mr. Sunil Kumar Goel (Executive Director, Business Development), engaged with prominent Japanese regional investors on February 26–27 to diversify the corporation’s funding sources and optimize borrowing costs.

Strengthening Indo-Japanese Financial Ties

The roadshow focused on mobilizing long-term funds at competitive rates while strategically diversifying IRFC’s currency profile. Supported by Mandated Lead Arrangers Sumitomo Mitsui Banking Corporation (SMBC) and Mitsubishi UFJ Financial Group (MUFG), the meetings highlighted IRFC’s unique position in the Indian economy.

Key Highlights for Investors

During the one-on-one sessions, IRFC emphasized several core strengths to the Japanese investment community:

Sovereign Linkage: IRFC’s credit rating remains at par with the Government of India, reinforced by a stable rating from the Japan Credit Rating Agency (JCRA).
Infrastructure Expansion: The delegation showcased IRFC’s role in fueling India’s massive railway modernization and its recent expansion into high-quality PSU and infrastructure financing beyond the Ministry of Railways.
Financial Stability: Investors were briefed on IRFC’s robust asset-liability management (ALM) framework and its consistent track record of stable cash flows.

Why Japan?

Japanese regional investors are known for providing stable, long-term capital. By engaging this specific demographic, IRFC aims to tap into diversified pools of global capital that offer favorable terms compared to domestic markets. The strong investor response in Tokyo underscores global confidence in India’s infrastructure growth story and IRFC’s creditworthiness.

This move aligns with IRFC’s broader strategy to reduce reliance on any single market and ensure a steady pipeline of cost-effective funding to meet the growing financial requirements of the Indian transport sector.