IRFC Executes Landmark Refinancing of world Bank Loan for Dedicated Freight Corridor Project

Indian Railway Finance Corporation Limited (IRFC), a Government of India NBFC under the administrative control of the Ministry of Railways, today executed a Rupee Term Loan Agreement of Rs. 9,821 crore with Dedicated Freight Corridor Corporation of India Limited (DFCCIL) for refinancing DFCCIL's existing foreign currency debt availed from the World Bank (IBRD) for the Eastern Dedicated Freight Corridor (EDFC) project on 23rd December 2025 and the amount has been disbursed. The agreement was executed at the Railway Board, New Delhi, in the presence of Chairman & CEO, Railway Board, Shri Satish Kumar, along with senior officials of IRFC and DFCCIL. The loan agreement was formally signed between Shri Rahu] Kapoor, Director (Finance), DFCCIL and Ms. Deepa Kotnis, Executive Director (Finance), IRFC.

Established in 1986 as the dedicated financing arm of the Ministry of Railways, IRFC has played a pivotal role in strengthening India's rail infrastructure by mobilising long-term resources at competitive rates. As a Navratna CPSE, IRFC is expanding its role as a diversified infrastructure financier within the railway ecosystem, with a mandate covering projects having forward and backward linkages with railways, including power generation and transmission, mining, fuel and coal, warehousing, telecom, hotels and catering, metro rail, freight corridors, ports and multimodal logistics. IRFC continues to maintain a strong asset quality track record with a zero-NPA portfolio.

DFCCIL, a wholly owned company of the Ministry of Railways, plays a pivotal role in the development, operation and maintenance of dedicated freight corridors, which are critical to achieving Indian Railways' long-term freight traffic growth and logistics efficiency objectives.

This transaction marks a significant milestone in India's infrastructure financing landscape, underscoring the growing depth, maturity and capability of Indian financial institutions to support large-scale, long gestation critical infrastructure projects through domestic funding solutions.

The refinancing covers existing IBRD loans. By shifting from foreign currency debt to rupee-denominated financing, DFCCIL will benefit from reduced exposure to exchange rate volatility, enhanced predictability in debt servicing, and closer alignment of long-term liabilities with its rupee-based revenue streams, thereby improving overall cash flow management.

The Eastern Dedicated Freight Corridor is a flagship national infrastructure project aimed at transforming freight transportation in the country by decongesting passenger lines, improving logistics efficiency, reducing transit time, and supporting industrial growth across the northern and eastern regions of India.

Commenting on the transaction, the Chairman & Managing Director of IRFC said: "This refinancing marks a landmark step in India's infrastructure financing journey and reflects IRFC's pivotal role in bringing financial efficiencies to the railway ecosystem. As the dedicated financing arm of the Ministry of Railways, IRFC has consistently backed critical railway infrastructure, and this transaction underscores our commitment to financing strategic assets such as the Dedicated Freight Corridors, while remaining ready to support future DFCCIL projects through domestic financing solutions. This milestone has been made possible through the close collaboration of the Ministry of Finance, the Ministry Of Railways, IRFC, DFCCIL and World Bank. By mobilising long-term resources, IRFC continues to fulfil its core mandate and contribute meaningfully to India's logistics transformation and long-term economic growth through strong, indigenous financial solutions."

This refinancing reflects the evolving role of IRFC as a diversified infrastructure financier while remaining firmly anchored to its foundational objective of supporting railway infrastructure in India.

Shares of Indian Railway Finance Corporation Limited was last trading in BSE at Rs. 121.45 as compared to the previous close of Rs. 121.40. The total number of shares traded during the day was 1918371 in over 14939 trades.

The stock hit an intraday high of Rs. 123.80 and intraday low of 120.60. The net turnover during the day was Rs. 234437544.00.

Source : Equity Bulls

Keywords

IndianRailwayFinanceCorporation INE053F01010 IRFC Refinancing