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What is the story about?
Shares of Indian Railway Finance Corp Ltd (IRFC) rose nearly 3% on Monday, May 25, after the company signed a ₹13,527 crore term loan agreement with L&T Metro Rail (Hyderabad) Ltd. (L&TMRHL) to refinance the debt obligations of the Hyderabad Metro Rail project.
The refinancing deal marks one of the largest transactions in India’s urban transit financing space and comes after the transfer of 100% ownership of L&T MRHL from Larsen & Toubro Ltd. to the Government of Telangana through Hyderabad Metro Rail Ltd. (HMRL).
The facility will refinance existing debt obligations, including non-convertible debentures (NCDs), commercial papers and term loans, enabling an orderly exit for existing lenders while improving the project’s long-term financial sustainability.
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IRFC CMD and CEO Manoj Kumar Dubey said, “This transaction reinforces IRFC’s growing capability to structure innovative, long-tenor financing solutions for nationally significant infrastructure assets.”
He added, “IRFC stands ready to serve as a trusted domestic financing partner, channelling Indian savings into India’s infrastructure on Indian terms.”
Hyderabad Metro Rail Phase-I spans 69.2 kilometres across three corridors with 57 stations and currently caters to over five lakh passenger journeys daily. The company said the refinancing support is expected to strengthen the project’s financial flexibility and support future metro network expansion across the city.
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Structured over a 20-year tenure with quarterly repayments, the refinancing replaces higher-cost debt with competitively priced long-term rupee financing. IRFC said the facility carries no processing fees, commitment charges or prepayment penalties.
The transaction is backed by an unconditional and irrevocable undertaking from the Government of Telangana for servicing dues payable to IRFC, along with a state government guarantee and an RBI-backed direct debit mandate.
The company said the transaction marks another step in diversifying its financing portfolio beyond conventional railway assets into urban mobility and public infrastructure projects.
Shares of the company rose 2.94% following the announcement and were trading 2.42% up at ₹100.57 as of noon. The stock has declined close to 5% in the last month, while delivering a negative 28% return over the last year.
The refinancing deal marks one of the largest transactions in India’s urban transit financing space and comes after the transfer of 100% ownership of L&T MRHL from Larsen & Toubro Ltd. to the Government of Telangana through Hyderabad Metro Rail Ltd. (HMRL).
The facility will refinance existing debt obligations, including non-convertible debentures (NCDs), commercial papers and term loans, enabling an orderly exit for existing lenders while improving the project’s long-term financial sustainability.
Also read: Park Medi shares jump 8% on ₹177 crore Uttarkhand hospital acquisition
IRFC CMD and CEO Manoj Kumar Dubey said, “This transaction reinforces IRFC’s growing capability to structure innovative, long-tenor financing solutions for nationally significant infrastructure assets.”
He added, “IRFC stands ready to serve as a trusted domestic financing partner, channelling Indian savings into India’s infrastructure on Indian terms.”
Hyderabad Metro Rail Phase-I spans 69.2 kilometres across three corridors with 57 stations and currently caters to over five lakh passenger journeys daily. The company said the refinancing support is expected to strengthen the project’s financial flexibility and support future metro network expansion across the city.
Also read: It's time to invest in equities, not hold cash, says Renaissance's Pankaj Murarka
Structured over a 20-year tenure with quarterly repayments, the refinancing replaces higher-cost debt with competitively priced long-term rupee financing. IRFC said the facility carries no processing fees, commitment charges or prepayment penalties.
The transaction is backed by an unconditional and irrevocable undertaking from the Government of Telangana for servicing dues payable to IRFC, along with a state government guarantee and an RBI-backed direct debit mandate.
The company said the transaction marks another step in diversifying its financing portfolio beyond conventional railway assets into urban mobility and public infrastructure projects.
Shares of the company rose 2.94% following the announcement and were trading 2.42% up at ₹100.57 as of noon. The stock has declined close to 5% in the last month, while delivering a negative 28% return over the last year.
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