IRFC Shares Rise 3% After ₹13,527 Cr Hyderabad Metro Refinancing Deal

Shares of Indian Railway Finance Corporation (IRFC) rose nearly 3% on Monday after the company signed a ₹13,527-crore term loan agreement with L&T Metro Rail Hyderabad to refinance debt obligations linked to the Hyderabad Metro Rail project.

The refinancing agreement is among the largest transactions in India's urban transit financing space and follows the transfer of complete ownership of L&T Metro Rail Hyderabad from Larsen & Toubro to the Government of Telangana through Hyderabad Metro Rail.

The facility will refinance existing liabilities, including non-convertible debentures, commercial papers and term loans. The move is expected to facilitate an orderly exit for current lenders while improving the long-term financial sustainability of the metro project.

IRFC Chairman and Managing Director Manoj Kumar Dubey said the transaction highlights the company's increasing ability to create long-tenure financing structures for major infrastructure assets. He added that IRFC remains committed to serving as a domestic financing partner for large infrastructure projects.

Hyderabad Metro Gets Financial Boost

The Hyderabad Metro Rail Phase-I network spans 69.2 kilometres across three corridors and includes 57 stations. The metro network currently serves more than five lakh passenger journeys every day.

IRFC said the refinancing package is expected to improve the project's financial flexibility and support future expansion plans for the metro network.

The loan has been structured over a 20-year tenure with quarterly repayments. The refinancing package replaces higher-cost borrowings with competitively priced long-term rupee financing. The company said the facility does not carry processing fees, commitment charges or prepayment penalties.

The deal is backed by an unconditional and irrevocable undertaking from the Government of Telangana for servicing payments due to IRFC. It is also supported by a state government guarantee and an RBI-backed direct debit mechanism.

The transaction marks another step in IRFC's efforts to diversify its financing portfolio beyond conventional railway assets into urban mobility and broader infrastructure projects.

Following the announcement, shares of IRFC rose as much as 2.94% and were trading 2.42% higher at ₹100.57 around noon. Despite Monday's gains, the stock remains under pressure, declining nearly 5% over the past month and delivering a negative return of around 28% over the last year.