Shares of Indian Railway Finance Corporation Limited (IRFC) moved sharply higher by over 5% in early trade on Thursday after the company executed a major rupee-term loan agreement worth ₹9,821 crore with Dedicated Freight Corridor Corporation of India Limited (DFCCIL). The deal marks an important step in strengthening domestic infrastructure financing and reducing exposure to foreign currency borrowings.
The loan agreement was signed on December 23, 2025, at the Railway Board in New Delhi, and the entire loan amount has already been disbursed. The rupee-term loan has been extended by IRFC to refinance DFCCIL’s existing foreign currency debt availed from the World Bank (IBRD) for the development of the Eastern Dedicated Freight Corridor, one of India’s most critical rail infrastructure projects.
IRFC, a Government of India-owned non-banking financial company operating under the administrative control of the Ministry of Railways, continues to play a central role in funding large-scale railway and logistics infrastructure. By replacing foreign currency loans with a domestic rupee loan, the refinancing is expected to reduce currency risk for DFCCIL while ensuring more stable long-term financing for the freight corridor project.
The agreement was executed in the presence of the Chairman and CEO of the Railway Board, Shri Satish Kumar, along with senior officials from both organisations. It was formally signed by Shri Rahul Kapoor, Director (Finance) of DFCCIL, and Ms. Deepa Kotnis, Executive Director (Finance) of IRFC.
Following the announcement, IRFC shares witnessed strong buying interest in the market. As of 9:46 AM, the stock was trading 5.62% higher at ₹5.62, reflecting positive investor sentiment.
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