Loan Agreement Details

Indian Railway Finance Corporation Limited (IRFC) has signed a loan agreement on 21st May 2026 with a consortium of five banks for raising External Commercial Borrowings (ECB).

Lenders Consortium:

  • State Bank of India
  • HDFC Bank Ltd
  • Sumitomo Mitsui Banking Corporation, GIFT City Branch
  • DBS Bank ltd

Loan Terms:

  • Facility Amount: JPY equivalent USD 1.1 billion
  • Tenor: 5 years
  • Benchmark: Overnight TONAR (Tokyo Overnight Average Rate)
  • Security: Unsecured facility
  • Execution Date: 21.05.2026

Transaction Status:

The loan amount in JPY is yet to be availed. The facility agreement is signed for an aggregated amount of JPY equivalent USD 1.1 billion.

Purpose of Funds:

The proceeds shall be utilized towards financing projects having forward or backward linkage with the railway sector or any other project as may be approved by the Company in compliance with the ECB Guidelines.

Historical Context:

This marks the first ECB being raised by IRFC in FY 2026-27, following successful ECB raises of JPY equivalent USD 700 million across two transactions in FY 2025-26.

Management Commentary:

Shri Manoj Kumar Dubey, Chairman and Managing Director & CEO, IRFC stated that this transaction:

  • Reinforces investor confidence in IRFC's strong financial fundamentals and strategic vision
  • Will contribute towards optimizing weighted average borrowing cost
  • Deepens engagement with global capital markets
  • Strengthens ability to support ongoing expansion and modernisation of railway infrastructure
  • Supports India's growth and nation-building

Signing Authority:

The loan agreement was signed by Ms. Rakhi Dua, Senior General Manager (Finance), IRFC on behalf of the company.

Team Recognition:

The ECB Team of IRFC was led by Ms. Deepa Kotnis, ED/Finance, and supported by Ms. Rakhi Dua (Sr.GM), Mr. Nav Goel (GM), Mr. Dhruv Taparia (Dy.Mgr) and Mr. Mehar Chand (Jr. Mgr).

Regulatory Compliance:

Related Party Status:

The transaction does not fall within related party transactions. There is no shareholding in the entity with whom the agreement is executed.