IRFC Secures $400 Million JPY-Linked ECB from SMBC and MUFG
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Indian Railway Finance Corporation (IRFC) has inked an External Commercial Borrowing (ECB) agreement with Sumitomo Mitsui Banking Corporation (SMBC) and MUFG Bank, Gift City branches, raising a JPY-equivalent of USD 400 million. Executed on February 25, the five-year unsecured facility is benchmarked to the Tokyo Overnight Average Rate (TONAR).
This marks IRFC’s second ECB of the fiscal year, following a USD 300 million JPY-linked facility in December 2025. Proceeds will fund projects tied to railway infrastructure expansion and modernisation, in line with ECB guidelines. The transaction is structured on an arm’s-length basis, with no related-party involvement or security arrangements.
IRFC expects the borrowing to optimise its weighted average cost of capital, strengthen ties with global investors, and reinforce confidence in its financial profile. Senior management commended the ECB team for executing the deal efficiently.
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