Key Highlights
- IRFC signs loan agreement with SMBC GIFT City Branch.
- External Commercial Borrowing raised for JPY equivalent USD 300 million.
- First ECB market entry by IRFC after more than three years.
- Five year unsecured loan benchmarked to Overnight TONAR.
- Funds to support railway linked and approved infrastructure projects.
Indian Railway Finance Corporation (IRFC) has formalised a loan agreement with the Sumitomo Mitsui Banking Corporation (SMBC), GIFT City Branch, to secure an External Commercial Borrowing (ECB) of JPY equivalent USD 300 million. This marks IRFC’s re-entry into the global ECB market after a gap of more than three years, aligning with its strategy to strengthen and diversify funding channels.
The agreement was executed in Gandhinagar at GIFT City, where officials from both organisations were present. The unsecured loan carries a five-year tenor and is benchmarked to the Overnight Tokyo Overnight Average Rate (TONAR), reflecting prevailing international interest rate standards.
IRFC plans to deploy the ECB proceeds for projects that have forward or backward linkage with the railway sector, along with other approved infrastructure-oriented developments. These allocations are in accordance with established borrowing guidelines.
The company noted that returning to the ECB market forms part of its effort to raise funds at competitive pricing, optimise borrowing costs and reinforce its presence in global financial markets. The infusion of funds is expected to support initiatives that contribute to upgrading and expanding railway-related infrastructure across the country.