Indian Railway Finance Corporation Secures USD 300M Loan Agreement
Filing Summary
Indian Railway Finance Corporation Ltd (IRFC) has entered into a loan agreement with Sumitomo Mitsui Banking Corporation, GIFT City Branch, to raise an External Commercial Borrowing (ECB) loan of JPY equivalent to USD 300 million. The agreement was signed on December 2, 2025, in Gandhinagar, Gujarat. The loan has a five-year tenor and is benchmarked to the Overnight TONAR. The funds will be used for projects related to the railway sector. This marks IRFC’s return to the ECB market after more than three years.
Indian Railway Finance Corporation Ltd (IRFC) has signed a loan agreement with Sumitomo Mitsui Banking Corporation, GIFT City Branch, to raise an External Commercial Borrowing (ECB) loan of JPY equivalent to USD 300 million. The agreement was executed on December 2, 2025, in Gandhinagar, Gujarat. This development is in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The loan agreement specifies that the facility amount is JPY equivalent to USD 300 million. The loan is unsecured and has a tenor of five years. It is benchmarked to the Overnight TONAR (Tokyo Overnight Average Rate). The loan amount is yet to be availed, and the facility agreement has been signed for the aggregated amount. There is no shareholding or related party transaction involved in this agreement.
The purpose of this agreement is to raise funds through ECBs. The proceeds from this facility will be utilized towards financing projects that have forward or backward linkage with the railway sector. The agreement does not involve any special rights such as the right to appoint directors or restrict changes in capital structure. The transaction does not fall within related party transactions, and no security is provided as it is an unsecured facility.
The agreement marks IRFC’s return to the ECB market after more than three years. The company aims to utilize the funds for projects that are closely integrated with the Indian Railways. The loan agreement was signed in the presence of senior officials from both IRFC and Sumitomo Mitsui Banking Corporation. The ECB is intended to support projects that align with the company’s strategic objectives in the railway sector.
The execution of the loan agreement took place on December 2, 2025. The parties involved in the agreement include IRFC as the borrower and Sumitomo Mitsui Banking Corporation as the lender. The agreement is part of IRFC’s strategy to mobilize resources from various avenues at competitive rates.
Sumitomo Mitsui Banking Corporation is a prominent financial institution known for providing a wide range of financial services. The bank has a significant presence in the global financial market and is involved in various strategic financial partnerships.
Indian Railway Finance Corporation Ltd is a government-owned entity responsible for raising financial resources for the development of the Indian Railways. The company focuses on mobilizing funds through various financial instruments to support the expansion and modernization of railway infrastructure.