IRFC shares in news as firm to raise ECB loan worth $300 million

Shares of Indian Railway Finance Corporation (IRFC) are in news today after the firm said it has inked a loan agreement with Sumitomo Mitsun Banking corporation for raising external commercial borrowing loan of JPY equivalent $300 million. IRFC stock ended on a flat note at Rs 116.40 on Tuesday against the previous close of Rs 117.05.  Market cap of the firm stood at Rs 1.52 lakh crore 

"This is to inform you that Indian Railway Finance corporation Limited ("lRFC") has signed a loan agreement with Sumitomo Mitsun Banking corporation, GIFT city Branch at Gift city in Gandhinagar, Gujarat for raising External commercial Borrowing loan of I PY equivalent USD 300 million, " sadi IRFC

This becomes the first foray of IRFC 2.0 in the ECB market after its diversification move in infrastructure space having backward / forward linkage, said the firm.

"The ECB, being raised for /JPY equivalent USD 300 million has been tied up for a 5-year tenor and benchmarked to Overnight TONAR CTokyo 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 Guldellnes," said IRFC. 

IRFC's principal business is to borrow funds from the financial markets to finance the acquisition / creation of assets which are then leased out to the Indian Railways as finance lease. IRFC is a Schedule ‘A’ Public Sector Enterprise under the administrative control of the Ministry of Railways, Govt. of India. It serves as the financing arm of Indian Railways, mobilizing funds from both domestic and international markets.