IRFC Signs $400 Million ECB Agreement With Japanese Banks Under Regulation 30
Indian Railway Finance Corporation officially signed a loan agreement for JPY equivalent USD 400 million External Commercial Borrowing with Japanese banks SMBC and MUFG under regulatory compliance. This marks IRFC's second ECB in FY 2025-26, featuring a 5-year tenor benchmarked to Overnight TONAR rate, aimed at supporting railway infrastructure projects and optimizing borrowing costs.
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Indian Railway Finance Corporation has officially signed a loan agreement for JPY equivalent USD 400 million External Commercial Borrowing with a consortium of Japanese banks. The agreement was executed under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements, marking IRFC's second ECB in the current financial year.
Loan Agreement Details
The formal loan agreement was signed between IRFC and the consortium of Sumitomo Mitsui Banking Corporation GIFT City Branch and MUFG Bank Ltd GIFT City Branch. This represents IRFC's second External Commercial Borrowing during FY 2025-26, following a successful JPY equivalent USD 300 million ECB raised in December 2025.
| Parameter: | Details |
|---|---|
| Loan Amount: | JPY equivalent USD 400 million |
| Lenders: | SMBC GIFT City Branch and MUFG Bank Ltd GIFT City Branch |
| Tenor: | 5 years |
| Benchmark Rate: | Overnight TONAR (Tokyo Overnight Average Rate) |
| Security: | Unsecured facility |
| Agreement Date: | February 25, 2026 |
Regulatory Compliance
The transaction has been disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. IRFC has submitted comprehensive details to both NSE and BSE, ensuring full regulatory compliance for this External Commercial Borrowing arrangement.
Strategic Significance
According to Shri Manoj Kumar Dubey, Chairman and Managing Director & CEO of IRFC, this ECB reinforces investor confidence in the company's strong financial fundamentals and strategic vision. The facility will contribute towards optimizing IRFC's weighted average borrowing cost while deepening engagement with global capital markets.
Fund Utilization
The proceeds from this facility will be utilized towards financing projects having forward or backward linkage with the railway sector or any other project as approved by the company in compliance with ECB Guidelines. This funding arrangement strengthens IRFC's ability to support ongoing expansion and modernization of railway infrastructure integral to India's growth.
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