IRFC inks loan pact of yen-equivalent $400 mln from Sumitomo Mitsui, MUFG Bk
This story was originally published at 17:45 IST on 25 February 2026
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--IRFC signs pact for loan of $400 mln from Sumitomo Mitsui, MUFG Bank
NEW DELHI – Indian Railway Finance Corp. Ltd. Wednesday signed a loan agreement with consortium of Sumitomo Mitsui Banking Corp. and MUFG Bank Ltd. to raise yen-equivalent $400 million as part of external commercial borrowing. This is the second offshore borrowing raised by IRFC during this fiscal after it successfully raised yen-equivalent $300 million in December, the non-banking financial company said in an exchange filing.
The fund, which will be raised from the GIFT City branch of both the banks, will have a tenor of five years and will be benchmarked to Overnight TONAR--Tokyo Overnight Average Rate, according to the exchange filing. "The proceeds from this facility shall be utilised towards financing projects having forward or backward linkage with the railway sector or any other project as may be approved by the Company in compliance with the ECB Guidelines," IRFC said in a press release.
"The transaction will contribute towards optimising our weighted average borrowing cost, deepening our engagement with global capital markets, and strengthening our ability to support the ongoing expansion and modernisation of railway infrastructure that remains integral to India's growth and nation-building," Manoj Kumar Dubey, chairman and managing director and chief executive officer, IRFC, said commenting on the development.
For the December quarter, IRFC reported a net profit of INR 18.02 billion on total revenues of INR 66.61 billion. Wednesday, the company's shares closed 4.5% lower at INR 104.56 on the National Stock Exchange. End
US$1 = INR 90.95
Reported by Priyasmita Dutta
Edited by Akul Nishant Akhoury
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