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State-owned Indian Railway Finance Corporation Ltd (IRFC) on Tuesday, December 2, said it has signed a loan agreement with Sumitomo Mitsui Banking Corporation, GIFT City Branch, Gandhinagar, Gujarat, for raising an external commercial borrowing (ECB) of JPY (yen) equivalent $300 million. The agreement was executed on December 2, 2025, marking IRFC’s return to the ECB market after more than three years.
The ECB facility has a tenure of five years and is benchmarked to the overnight TONAR (Tokyo overnight average rate). The proceeds from the loan will be used to finance projects with forward or backward linkages to the railway sector or other projects approved by the company, in compliance with ECB guidelines. The facility is unsecured, and the loan amount has yet to be availed.
Also Read: IRFC shares are down over 50% from their peak; check latest price targets
The agreement was signed in the presence of IRFC officials, including Deepa Kotnis, Executive Director (Finance), Rakhi Dua, Senior General Manager (Finance), and representatives from Sumitomo Mitsui Banking Corporation. Senior officials from IRFC’s ECB team, including Nav Goel and Dhruv Taparia, were also present.
IRFC confirmed that there is no shareholding involved with the lender, and the transaction does not fall under related party transactions. The loan agreement does not grant any special rights, such as board representation or control over capital structure, to the lender.
Shares of Indian Railway Finance Corp Ltd ended at ₹116.40, down by ₹0.65, or 0.56%, on the BSE today, December 2.
Also Read: IRFC aims for steady double-digit profit growth under new 2.0 strategy
The ECB facility has a tenure of five years and is benchmarked to the overnight TONAR (Tokyo overnight average rate). The proceeds from the loan will be used to finance projects with forward or backward linkages to the railway sector or other projects approved by the company, in compliance with ECB guidelines. The facility is unsecured, and the loan amount has yet to be availed.
Also Read: IRFC shares are down over 50% from their peak; check latest price targets
The agreement was signed in the presence of IRFC officials, including Deepa Kotnis, Executive Director (Finance), Rakhi Dua, Senior General Manager (Finance), and representatives from Sumitomo Mitsui Banking Corporation. Senior officials from IRFC’s ECB team, including Nav Goel and Dhruv Taparia, were also present.
IRFC confirmed that there is no shareholding involved with the lender, and the transaction does not fall under related party transactions. The loan agreement does not grant any special rights, such as board representation or control over capital structure, to the lender.
Shares of Indian Railway Finance Corp Ltd ended at ₹116.40, down by ₹0.65, or 0.56%, on the BSE today, December 2.
Also Read: IRFC aims for steady double-digit profit growth under new 2.0 strategy
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