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IRFC signs Rs 13,527 crore term loan agreement with L&T Metro Rail

25 May 2026 Evaluate

Indian Railway Finance Corporation (IRFC) has signed a Rs 13,527 crore term loan agreement with L&T Metro Rail (Hyderabad) (L&TMRHL) to refinance the debt obligations of the Hyderabad Metro Rail project, marking a landmark refinancing transaction in India’s urban transit sector. The transaction reflects IRFC’s continued evolution into a diversified infrastructure financing institution while leveraging its core strength in long-term transportation finance, in alignment with the Government of India’s vision of Viksit Bharat.

The refinancing follows the transfer of 100 per cent ownership of L&TMRHL from Larsen & Toubro to the Government of Telangana through Hyderabad Metro Rail (HMRL), transforming the metro network into a strategic public mobility asset under state ownership and creating a stronger financial foundation for the phased expansion of Hyderabad’s metro ecosystem. The facility will refinance existing debt obligations, including non-convertible debentures (NCDs), commercial papers and term loans, enabling an orderly exit for existing lenders while significantly improving the project’s long-term financial sustainability.

The transaction is supported by a robust credit enhancement framework, including an unconditional and irrevocable undertaking by the Government of Telangana for servicing all dues payable to IRFC, a state government guarantee, and an RBI-backed direct debit mandate. For IRFC, the agreement marks another significant step in the calibrated diversification of its financing portfolio beyond conventional railway assets into high-impact public utility infrastructure with strong national development relevance.

Indian Railway Finance Corporation is the dedicated market borrowing arm of the Indian Railways.

Indian Railway Fin. Share Price

96.48 0.40 (0.42%)
05-Jun-2026 16:59 View Price Chart
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Power Finance Corp 432.25
REC 343.90
Indian Railway Fin. 96.48
NHIT 160.00
Satin Creditcare 241.20
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