IRFC IRFC to raise $ 1.1 billion from Japanese lenders to finance Indian Railways' green initiatives: Report
New Delhi: Indian Railways Finance Corp (IRFC) has decided to raise $1.1 billion (about 130 billion yen, or Rs 8,440 crore) through a yen-denominated syndicated offshore loan to finance the green initiatives of the India Railways, ET reported.
According to the report, Japan-based Mizuho Bank, MUFG and Sumitomo Mitsui Banking Corp (SMBC) are expected to sign an agreement for the loan during Japanese Prime Minister Fumio Kishida’s India visit this week.
The Indian Railways plans to use the proceeds for reducing its dependence on fossil fuels with measures like electrification of its tracks and addition of electric locos.
The loan may be raised in two tranches: a seven-year loan of $400 million and $700 million for 10 years, the people in the know said, the ET report stated.
The Indian Railways is reportedly working towards becoming the largest green railway in the world with the aim to achieve "net zero carbon emitter” by 2030.
IRFC is the official financier of Indian Railways.
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