IRFC Enters ₹13,000 Crore Refinancing Agreement For Hyderabad Metro Project
IRFC signs ₹13,000 crore refinancing deal for Hyderabad Metro debt restructuring.
Indian Railway Finance Corporation (IRFC) has signed a ₹13,527 crore term loan agreement with L&T Metro Rail (Hyderabad) Limited to refinance the debt associated with the Hyderabad Metro Rail project, marking one of the largest refinancing deals in India’s urban transport sector. The agreement was confirmed through an exchange filing on Monday.
The transaction comes after the complete transfer of ownership of L&T Metro Rail (Hyderabad) from Larsen & Toubro to the Government of Telangana, through Hyderabad Metro Rail Limited. The refinancing arrangement is aimed at restructuring existing liabilities and improving the long-term financial stability of the metro project.
Under the terms of the agreement, the facility will be used to refinance existing debt instruments, including non-convertible debentures, commercial papers, and term loans. The restructuring is expected to facilitate an orderly exit for existing lenders while replacing high-cost debt with more sustainable long-term rupee financing.
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The loan has been structured over a 20-year tenure with quarterly repayments and includes favourable conditions such as the absence of processing fees, commitment charges, and prepayment penalties. It is further supported by a government guarantee from the Telangana government, along with an RBI-backed direct debit mechanism to ensure repayment security.
Hyderabad Metro Phase I spans 69.2 kilometres across three corridors with 57 stations and currently handles over five lakh passenger journeys daily. It is among the largest metro rail projects in the world developed under the public-private partnership model and plays a key role in urban mobility across the city.
IRFC leadership described the deal as an example of domestic financial institutions supporting large-scale infrastructure through long-tenor funding structures aligned with project cash flows. Following the announcement, shares of both IRFC and Larsen & Toubro saw gains of around 2.5% in Monday’s trading session.
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