Indian Railway Finance corporation (IRFC) has signed a loan agreement with Sumitomo Mitsui Banking corporation, GIFT city Branch at Gift city in Gandhinagar, Gujarat for raising External Commercial Borrowing loan of JPY equivalent $300 million. This becomes the first foray of IRFC 2.0 in the ECB market after its diversification move in infrastructure space having backward / forward linkage.
The ECB, being raised for JPY equivalent $300 million has been tied up for a 5-year tenor and benchmarked to Overnight TONAR (Tokyo Overnight Average Rate). The proceeds from this facility shall be utilised towards financing projects having forward or backward linkage with the railway sector or any other project as may be approved by the company in compliance with the ECB guidelines.
Indian Railway Finance Corporation (IRFC) is the dedicated market borrowing arm of the Indian Railways.
