IRFC Signs Loan Agreement Worth Rs 13,527 Crores with Hyderabad Metro for Debt Refinancing

Indian Railway Finance Corporation Refinances Hyderabad Metro Rail Project Debt Obligations

The State-owned Indian Railway Finance Corporation (IRFC) has signed a significant agreement with L&T Metro Rail (Hyderabad) Ltd to refinance the debt obligations of the Hyderabad Metro Rail project. This development marks a significant milestone for IRFC, which will provide a term loan of Rs 13,527 crore to support the project.

The agreement outlines that IRFC will disburse Rs 13,500 crore to Hyderabad Metro by June this year. This strategic move is expected to have a positive impact on the project's financials and will help in the completion of the project on schedule. IRFC is a leading player in the Indian railway financing sector, and this agreement is a testament to its commitment to supporting key infrastructure projects in the country.

Hyderabad Metro is the first metro project financed by IRFC, and the Railway Ministry PSU expects to finance more such brownfield projects in the near future. This move is expected to generate significant revenue for IRFC and will help in the growth of the company.

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IRFC plans to raise Rs 70,000 crore from both domestic and overseas markets in the current financial year to support its business growth. To fulfill Hyderabad Metro's financing requirements, the company has already raised External Commercial Borrowing (ECB) worth USD 1.1 billion in Japanese Yen. This strategic move is expected to provide the necessary funds to support the growth of the company and its future projects.