Now Reading: IRFC to raise $2 billion via ECB for railway projects
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IRFC to raise $2 billion via ECB for railway 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 the current financial year. The board has…
The Story in Brief
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 the current financial year. The board has approved a ₹70,000-crore resource mobilisation plan for FY27.
PTI reports that IRFC has signed a loan agreement for a JPY-equivalent $1.1 billion ECB with a consortium of banks, with a five-year tenor benchmarked to the overnight TONAR rate. IRFC Chairman Manoj Kumar Dubey expects disbursements within the June quarter. The company aims to sanction loans worth ₹1 lakh crore in FY27, after sanctioning ₹72,949 crore and disbursing ₹35,067 crore in FY26. IRFC reported a record profit of ₹7,009 crore last year, with zero non-performing assets.
The Indian Opinion
Cheap Japanese yen borrowing is a double-edged sword. IRFC’s zero-NPA streak and rising profits are impressive, but the ₹70,000-crore target rests on a strong project pipeline and forex risk management. The real test: whether the TONAR-linked loan stays cheaper than domestic borrowing over five years. Can IRFC keep its net interest margin promise of 1.65 per cent if the yen hardens?
Source: millenniumpost.in
This story was synthesised by AI from the source linked above.
