Indian Railway Finance Corporation Secures USD 300 Million External Commercial Borrowing Loan from Sumitomo Mitsui Banking Corporation

Indian Railway Finance Corporation Limited (IRFC), a government enterprise, has entered into a loan agreement with Sumitomo Mitsui Banking Corporation, GIFT City branch, in Gandhinagar, Gujarat. The agreement is for raising an External Commercial Borrowing (ECB) loan amounting to USD 300 million, equivalent to Japanese Yen (JPY).

This loan marks IRFC’s re-entry into the ECB market after a hiatus of more than three years, reflecting renewed investor confidence and strategic financial planning to support India's railway infrastructure development.

The funds raised from this ECB will strengthen IRFC’s capital base, facilitating efficient financing of railway projects with favorable foreign currency borrowing terms. The loan agreement was duly disclosed under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring compliance transparency.

IRFC’s move aligns with the government’s broader vision of expanding and modernizing railway infrastructure to enhance connectivity, efficiency, and economic growth.

Key Highlights

IRFC signed an ECB loan agreement with Sumitomo Mitsui Banking Corporation, GIFT City branch.

Loan amount: USD 300 million (JPY equivalent).

Marks IRFC’s first ECB market borrowing in over three years.

Objective: To finance Indian railway infrastructure projects.

Compliance with SEBI Listing Regulations ensured via timely disclosures.

Indicates strengthened financial position and enhanced capacity for infrastructure funding.

Supports India’s continued railway modernization and expansion.

Sources: Indian Railway Finance Corporation official disclosure dated December 2, 2025