IRFC executes landmark refinancing of WB loan

Indian Railway Finance Corporation Limited (IRFC) on Wednesday executed a Rupee Term Loan Agreement of INR9,821 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 for which the amount has been disbursed.

According to IRFC Press release, the agreement was executed in the presence of Chairman & CEO, Railway Board, Satish Kumar, along with senior officials of IRFC and DFCCIL.

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.

“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,” said IRF