The Indian Railway Finance Corporation (IRFC) has secured an overseas loan equivalent to USD 400 million through the issuance of Japanese yen-denominated bonds, the company said in a statement.
The financing was raised via a 5-year bond issue, with proceeds earmarked for refinancing of existing debt and funding of rolling stock acquisition and other capital requirements for Indian Railways. The bonds carry a fixed interest rate and were subscribed by a mix of international institutional investors.
The transaction marks IRFC’s continued engagement in global capital markets to diversify its funding sources and support long-term financing needs for railway infrastructure and equipment. The company has been raising funds overseas periodically to meet the investment requirements of Indian Railways, particularly for locomotives, passenger coaches and freight wagons.
The use of yen-denominated funding is part of IRFC’s strategy to tap into diversified investor bases and potentially benefit from favourable interest rate environments in international markets. The raised funds are expected to strengthen the corporation’s liquidity profile and provide capital for priority asset acquisition plans.
The issuance attracted interest from global institutional investors and reflects confidence in IRFC’s credit profile and the underlying growth prospects of the Indian rail sector. The transaction also aligns with broader efforts by Indian public sector entities to leverage overseas borrowings as a component of their overall financing mix.
