Shares of Indian Railway Finance Corp Ltd (IRFC) dropped 1.5% after touching a day’s high of Rs 117.60 on 3rd December. This happened after the company announced it had signed a loan agreement with Sumitomo Mitsui Banking Corporation to raise an external commercial borrowing (ECB) of $300 million, equivalent in Japanese yen.

The agreement was signed at the Japan-based bank’s GIFT City branch in Gandhinagar, Gujarat, on 2nd December. This marked IRFC’s return to the ECB market after over three years.

The five-year loan is linked to the Tokyo overnight average rate (TONAR). It will fund railway-related or other approved projects in line with ECB guidelines.

The facility is unsecured, the amount is yet to be drawn, and there is no shareholding or related-party involvement. The lender also has no special rights, such as board representation or control over the company’s capital structure.

At 1:55 PM, shares of IRFC were trading 1.5% lower at Rs 114.67 on NSE.

Ready to invest like a pro? Unicorn Signals app equips you with 100+ Free tools and knowledge you need to succeed. Download the Unicorn Signals app and gain access to daily stock lists and insightful market analysis and much more!