IRFC secures $400 million ECB to boost railway financing

Indian Railway Finance Corporation (IRFC) has signed a loan agreement to raise a Japanese Yen-equivalent $400 million [~₹3,702 crore] External Commercial Borrowing (ECB).

The agreement was signed in New Delhi with a consortium comprising Sumitomo Mitsui Banking Corporation and MUFG Bank operating through their respective branches in GIFT City.

This marks IRFC’s second ECB in the current financial year 2025-26, after it successfully raised JPY-equivalent $300 million in December 2025.

The funds raised through this facility will primarily be used to finance projects that are directly or indirectly linked to the railway sector. It may also support other approved projects, in line with India’s prevailing ECB guidelines.

IRFC has been trying to diversify its funding sources and secure cost-effective resources from international markets.

The five-year loan is benchmarked to TONAR, the Tokyo Overnight Average Rate.