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IRFC to raise $400-mn ECB from Japan's Sumitomo Mitsui Banking Corp & MUFG BankThis the second ECB raised by IRFC in FY26, following a JPY equivalent of $300 million ECB in December 2025. Shares of Indian Railway Finance Corp Ltd ended at ₹104.55, down by ₹4.85, or 4.43%, on the BSE today, February 25.By Jomy Jos Pullokaran  February 25, 2026, 5:57:16 PM IST (Updated)2 Min ReadState-owned Indian Railway Finance Corporation Ltd (IRFC) on Wednesday, February 25, said it has signed a loan agreement with Sumitomo Mitsui Banking Corporation, GIFT City Branch, and MUFG Bank Ltd, GIFT City Branch, to raise an external commercial borrowing (ECB) of JPY equivalent $400 million.

The agreement was executed on February 25, 2026, making this the second ECB raised by IRFC in FY26, following a JPY equivalent of $300 million ECB in December 2025.

The loan has a tenure of five years and is benchmarked to the Tokyo Overnight Average Rate (TONAR). The proceeds will be used to finance projects with forward or backward linkages to the railway sector or other projects approved by IRFC under ECB guidelines.

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IRFC stated that the facility is unsecured and the total amount of the loan in JPY is yet to be availed, with the aggregate sanctioned amount equivalent to $400 million. The borrowing is not related to any promoter, promoter group, or related party transaction.

Earlier on Wednesday, Indian Railway Finance Corporation Ltd said it sees a significant opportunity emerging from the Union Budget announcements. The proposed seven high-speed rail corridors and a new dedicated freight corridor could open up sizeable funding requirements over the next five years.

Manoj Kumar Dubey, Chairman and Managing Director, Indian Railway Finance Corporation, said, “We are going to be one of the important financers for this more than $20 billion kind of investment, which is coming in the next five years. We are already working on that, giving a solution in terms of ECB loans, as well as the domestic mix, so that is coming out with more than ₹2 lakh crore."

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Shares of Indian Railway Finance Corp Ltd ended at ₹104.55, down by ₹4.85, or 4.43%, on the BSE today, February 25.

Continue Reading(Edited by : Shoma Bhattacharjee)First Published: Feb 25, 2026 5:56 PM ISTTagsexternal commercial borrowingIRFCshare market today