Debt

Debt financing

IRFC raises $1.1 B in ECB from Japanese banks

Economic Times   Indian Railway Finance Corporation  

New Delhi-based Indian Railway Finance Corporation (IRFC) is raising USD 1.1 Billion, tied up for a 5-year tenor and benchmarked to the overnight TONAR (Tokyo Overnight Average Rate) from a consortium of Japanese banks.This is the first ECB being raised by IRFC during FY27 after it had raised the Japanese yen equivalent of USD 700 million across two ECB transactions in FY26.IRFC serves as a public sector undertaking under the Ministry of Railways and focuses on financing projects with linkages to the railway sector. The company intends to use the proceeds from this facility to fund business growth during the current financial year.This fundraising initiative is part of a broader resource mobilisation plan of INR 70,000 crore approved by the board for the ongoing financial year. For the financial year ended March 31, 2026, IRFC reported its highest-ever profit of INR 7,009 crore compared to INR 6,502 crore in 2024-25.

For FY25, Indian Railway Finance had reported about INR 27,152 Cr in Operating Income and about INR 6,502 Cr in PAT.