According to the company, the five-year ECB facility is benchmarked to the Tokyo Overnight Average Rate (TONAR). Although the loan amount is yet to be drawn, the facility agreement, covering an aggregated amount equivalent to USD 300 million in JPY, was formally executed on 2 December 2025.
IRFC stated that this development marks its first entry into the ECB market under the IRFC 2.0 framework, following the company’s strategic diversification into infrastructure projects with backward and forward linkages.
The company added that proceeds from the loan will be used to finance projects connected to the railway sector or other approved initiatives, in line with the External Commercial Borrowing guidelines.
Manoj Kumar Dubey, Chairman and Managing Director & CEO, IRFC, said, "At IRFC, our priority is to mobilise resources from various available avenues at the most competitive rates, thereby supporting projects that are closely integrated with Indian Railways and delivering enduring benefits. By tapping the external commercial borrowing market after more than 3 years, we are not only intending to reduce our weighted average borrowing cost but also reviving our presence in the international market, which shall play a crucial role in further strengthening of the railway infrastructure that is vital for nation building."
Indian Railway Finance Corp.'s principal business is to borrow funds from the financial markets to finance. The Government of India held an 86.36% stake in the company as of 30 September 2025.
Indian Railway Finance Corporation (IRFC)’s standalone net profit jumped 10.19% to Rs 1,776.98 crore in Q2 FY26 as against Rs 1,612.65 crore posted in Q2 FY25. However, total revenue from operations declined 7.64% year-on-year (YoY) to Rs 6,371.89 crore in the quarter ended 30 September 2025.
The counter shed 0.52% to Rs 115 on the BSE.