EconomyFriday, 27 February 2026·The Hindu
IRFC raises JPY-equivalent USD 400 million ECB from SMBC and MUFG for railway-linked projects
IRFC signed a loan agreement in New Delhi to raise a JPY-equivalent USD 400 million ECB from Japanese banks for railway-linked projects.
Key highlights
Direct fact
In February 2026, Indian Railway Finance Corporation (IRFC) signed a loan agreement in New Delhi with SMBC GIFT City Branch and MUFG Bank GIFT Branch to raise External Commercial Borrowing equivalent to USD 400 million in Japanese Yen.
Key specifics
- The borrowing amount is equivalent to USD 400 million in Japanese Yen.
- The lenders are Sumitomo Mitsui Banking Corporation (SMBC) GIFT City Branch and MUFG Bank GIFT Branch.
- The facility has a 5-year tenor.
- The loan is benchmarked to Overnight TONAR, the Tokyo Overnight Average Rate.
- Funds will finance projects with forward or backward linkages to the railway sector.
Exam lens
Economy and banking, IRFC, ECB, SMBC, MUFG, TONAR, railway sector — TNPSC may ask the borrowing amount, lenders, tenor, and benchmark rate.