Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Indian Railway Finance Corporation (IRFC) has approved a borrowing programme of up to INR 70,000 crore for the financial year 2026-27 to meet the funding needs of Indian Railways and support its lending operations. The funds will be raised through a mix of financial instruments depending on market conditions. The borrowing will be used for railway project financing, refinancing of existing liabilities and supporting new initiatives under the company's IRFC 2.0 strategy. As the dedicated financing arm of the Ministry of Railways, IRFC continues to play a key role in raising capital for railway infrastructure development in India.
Indian Railway Finance Corporation (IRFC) has approved a borrowing programme of up to INR 70,000 crore for the financial year 2026-27. The decision was taken during a board meeting held earlier this week as the company prepares to raise funds from domestic and international markets to meet the financing requirements of Indian Railways and support its lending operations. Advertisement
The state-owned financier plans to raise the funds in phases depending on market conditions and project funding requirements. The borrowing programme will primarily be used to finance railway infrastructure projects, refinance existing debt obligations and meet other financial commitments linked to railway development.
IRFC indicated that it may use a mix of financial instruments while raising the capital. These could include taxable bonds, zero coupon bonds, perpetual bonds, subordinated bonds and other market-linked instruments, subject to regulatory approvals. The company is also expected to explore ESG-linked funding options as financial markets increasingly move towards sustainable investment structures.
The funds raised through the borrowing programme will support the ongoing expansion of railway infrastructure across the country. Indian Railways continues to invest heavily in rolling stock, electrification, freight corridors, station redevelopment and capacity enhancement projects. IRFC plays a key role in ensuring that the required capital is available for these large infrastructure investments.
Apart from supporting traditional railway financing, the borrowing plan is also aligned with the company's diversification strategy known as IRFC 2.0. Under this approach, the organisation is looking to expand its role beyond conventional railway asset financing and participate in a wider range of infrastructure financing opportunities while maintaining its core focus on railway funding.
IRFC was established in 1986 as the dedicated financing arm of the Ministry of Railways. The company raises funds from financial markets and lends them to Indian Railways and related entities for acquiring rolling stock such as locomotives, coaches and wagons, as well as for funding railway infrastructure projects. Over the decades, it has become one of the largest government-owned non-banking financial companies focused on infrastructure financing.
The organisation has also been involved in refinancing several large railway projects to reduce borrowing costs and manage financial risks. In recent years, it supported refinancing of foreign currency loans associated with major projects such as the Dedicated Freight Corridor, helping convert them into rupee-denominated debt and reduce exposure to currency fluctuations.
In a separate decision taken during the same board meeting, the company approved a second interim dividend of INR 1.05 per equity share for the financial year 2025-26. The record date to determine shareholder eligibility has been fixed as March 13, 2026, and the dividend is expected to be paid within 30 days of its declaration.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
