In February 2026, Indian Railway Finance Corporation Limited (IRFC), Schedule ‘A’ Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Railways (MoR), signed a loan agreement with a consortium of Japan’s Sumitomo Mitsui Banking Corporation (SMBC) and MUFG Bank through their Gujarat International Finance Tec-City(GIFT City) Branches, to raise an External Commercial Borrowing (ECB) of JPY equivalent USD 400 million.
- This marks IRFC’s 2nd overseas borrowing in Financial Year 2025-26 (FY26) after its previous USD 300 million equivalent borrowing in December 2025.
Key Details:
Signatories: The loan agreement was signed by Nav Goel, General Manager (GM) (Finance), IRFC; and Manoj Kaushik, Executive Director (ED), SMBC; and Parul Shah, Head IBU, MUFG, in New Delhi, Delhi.
Nature of Borrowing: As per the agreement, the 5-year ECB, is benchmarked to the Overnight TONAR (Tokyo Overnight Average Rate) and has been structured as an unsecured facility.
Regulatory Disclosure: The agreement has been disclosed in compliance with Regulation 30 of the Securities and Exchange Board of India(SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring adherence to statutory reporting and transparency requirements.
Funds Usage: The funds raised from the latest arrangement will be used to finance projects linked to the railway sector, including those with forward and backward linkages, in compliance with ECB guidelines.
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