IRFC Completes Rs 12,842 Crore Refinancing Deal with HURL

Indian Railway Finance Corporation Ltd (IRFC) has entered into a significant refinancing agreement with Hindustan Urvarak and Rasayan Limited (HURL) for Rs 12,842 crore. This transaction aligns with IRFC’s strategic vision to support infrastructure sectors that are closely linked to the railways. The agreement was formalized in New Delhi, with key representatives from both organizations present.

The refinancing agreement involves a major Rupee Term Loan aimed at restructuring HURL’s existing long-term debt. The total amount involved in this transaction is Rs 12,842 crore. The refinancing is structured to provide HURL with competitive financing terms and an optimized repayment plan that aligns with its operational cash flows. This financial arrangement is designed to enhance HURL’s financial flexibility and improve its debt servicing efficiency.

The scope of this refinancing includes supporting HURL’s operational strengthening and future growth. The transaction is part of IRFC’s broader strategy under its IRFC 2.0 initiative, which focuses on a whole-of-government approach. This approach aims to deliver cost-effective, long-term financing solutions to strategically important sectors such as fertilizers. The refinancing is expected to free up resources for HURL, allowing it to focus on operational improvements and expansion.

IRFC, established in 1986, serves as the dedicated financing arm of the Ministry of Railways. It has played a crucial role in strengthening India’s rail infrastructure by mobilizing long-term resources at competitive rates. As a Navratna CPSE, IRFC is expanding its role as a diversified infrastructure financier within the railway ecosystem. Its mandate now includes projects with forward and backward linkages to railways, such as power generation, mining, and logistics. IRFC maintains a strong asset quality record with a zero-NPA portfolio.

The agreement was signed by Sunil Kumar Goel, Executive Director (Finance) of IRFC, and Poonam Jeswani, Chief Financial Officer of HURL. The signing ceremony was attended by the Chairman & Managing Director of IRFC and the Chairman of HURL, along with senior officials from both organizations. This transaction represents one of IRFC’s largest refinancing initiatives and marks a significant step forward in advancing its strategic vision.

Hindustan Urvarak and Rasayan Limited (HURL) is a joint venture of leading PSUs, including NTPC, Coal India, and Indian Oil. It was established under the Government of India’s initiative to revive closed fertilizer plants at Gorakhpur, Sindri, and Barauni. These plants are now operational and contribute significantly to India’s domestic urea production capacity.

Indian Railway Finance Corporation Ltd (IRFC) is a Navratna CPSE under the Ministry of Railways. It focuses on financing projects with strong linkages to the railway sector. IRFC’s strategic priorities include expanding its role as a diversified infrastructure financier and maintaining a zero-NPA portfolio. The corporation continues to support critical infrastructure sectors through long-term financing solutions.