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India’s DFCCIL, IRFC sign pact to refinance $1.11-bn World Bank loans
DFCCIL had availed of the loans for the ₹51,000-crore (~$5.68 billion), 1,337-kilometre-long Eastern Dedicated Freight Corridor (DFC) from Punjab to Bihar.
The Indian Railway Finance Corporation and the Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) have signed an agreement to refinance $1.11 billion of World Bank foreign-currency loans.
DFCCIL had availed of the loans for the $5.68-billion, 1,337-kilometre-long Eastern Dedicated Freight Corridor from Punjab to Bihar.
The government is expected to save $300.65 million in the process.
“This first-of-its-kind refinancing arrangement, structured in close coordination with the Ministry of Finance, Ministry of Railways, DFCCIL, IRFC, and the World Bank, is expected to result in savings of ₹2,700 crore [~$300.65 million] for the government of India,” DFCCIL said in a social media post.
“This transaction marks a significant milestone in lndia’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,” an IRFC release said.
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, the release noted.
Fibre2Fashion News Desk (DS)