IRFC shares in focus on securing $300 million ECB loan from Sumitomo Mitsui Banking Corp

IRFC share price: Shares of the Indian Railway Finance Corporation Ltd (IRFC) will be in focus on Wednesday, December 3, after it signed a loan agreement with Sumitomo Mitsui Banking Corp (SMBC), GIFT City Branch, Gujarat, for raising an external commercial borrowing (ECB) loan of Japanese yen (JPY) equivalent to $300 million.

The ECB loan, with a tenure of five years, will be benchmarked to Overnight Tokyo Overnight Average Rate (TONAR), the Navranta PSU said in a regulatory filing dated December 2.

“This becomes the first foray of IRFC 2.0 in the ECB market after its diversification move in the infrastructure space, having backward or forward linkage,” the company stated.

It added that the proceeds from this facility will be utilised for financing projects that have forward or backward linkage with the railway sector or any other project as may be approved by IRFC in compliance with the ECB guidelines.

ECBs are commercial loans that Indian companies raise from foreign sources in the form of loans, bonds, or other financial instruments.

Commenting on the development, Manoj Kumar Dubey, Chairman and Managing Director & CEO, IRFC, said: “At IRFC, our priority is to mobilise resources from various available avenues at the most competitive rates, thereby supporting projects that are closely integrated with Indian Railways and delivering enduring benefits. By tapping the External Commercial Borrowing market after more than 3 years, we are not only intending to reduce our weighted average borrowing cost but also reviving our presence in the international market, which shall play a crucial role in further strengthening of the railway infrastructure that is vital for nation building."

IRFC share performance

Shares of IRFC ended at ₹116.60 apiece, down by 0.42% on the National Stock Exchange (NSE) on Tuesday. However, the development was announced after the markets closed.

The stock has declined 0.1% in the last week and more than 5% over the month. On a year-to-date basis, it has fallen above 22%.

While the scrip reached a year’s low of ₹108.04 on March 3, 2025, it touched a 52-week high of ₹166.90 per equity share on December 12, 2025.

IRFC has a total market capitalisation of ₹1.52 lakh crore, as of December 2, 2025, according to data on the NSE.