IRFC to raise $2 billion via ECB for infrastructure projects

State-owned Indian Railway Finance Corporation (IRFC) plans to raise $2 billion through external commercial borrowing (ECB), mostly in Japanese yen, to fund business growth in FY27. The company has signed a loan agreement for a JPY equivalent $1.1 billion facility with a consortium of banks, with a five-year tenor benchmarked to Overnight TONAR.

The ECB is part of a Rs 70,000 crore resource mobilisation plan approved by IRFC's board. Proceeds will finance projects linked to the railway sector or other approved ventures. IRFC Chairman Manoj Kumar Dubey said disbursements are expected within the June quarter.

IRFC aims to sanction Rs 1 lakh crore in loans and disburse about Rs 40,000 crore this fiscal. The company reported a record net profit of Rs 7,009 crore in FY26, up 7.8% from the previous year, and maintained zero non-performing assets. It targets a net interest margin of 1.65% in FY27.