The refinancing follows the transfer of 100 per cent ownership of L&TMRHL from Larsen & Toubro Limited to the Government of Telangana through Hyderabad Metro Rail Limited (HMRL), transforming the metro network into a strategic public mobility asset under state ownership and creating a stronger financial foundation for the phased expansion of Hyderabad’s metro ecosystem.
The facility will refinance existing debt obligations, including non-convertible debentures (NCDs), commercial papers and term loans, enabling an orderly exit for existing lenders while significantly improving the project’s long-term financial sustainability.
Structured over a 20-year tenure with quarterly repayments, the refinancing replaces higher cost debt with competitively priced long-term rupee financing. The facility carries no processing fees, commitment charges or prepayment penalties, making it an efficient and borrower-friendly refinancing mechanism.
The transaction is supported by a robust credit enhancement framework, including an unconditional and irrevocable undertaking by the Government of Telangana for servicing all dues payable to IRFC, a state government guarantee, and an RBI-backed direct debit mandate, the company said.
Hyderabad Metro Rail Phase-I, spanning 69.2 kilometres across three corridors with 57 stations, is among the world’s largest metro rail projects developed under the public-private partnership (PPP) model and serves as a critical urban transport backbone for Hyderabad.
The loan agreement was signed in the presence of IRFC CMD & CEO Manoj Kumar Dubey, and Telangana Chief Secretary K. Ramakrishna Rao.
The refinancing is expected to materially strengthen the project’s financial flexibility, enabling the Government of Telangana to accelerate the planned expansion of Hyderabad’s metro network, including new corridors and enhanced connectivity. The transaction also establishes a replicable financing framework for urban transit systems across the country as India accelerates investment in sustainable mobility and integrated urban infrastructure. For IRFC, the agreement marks another significant step in the calibrated diversification of its financing portfolio beyond conventional railway assets into high-impact public utility infrastructure with strong national development relevance.
“This transaction reinforces IRFC’s growing capability to structure innovative, long-tenor financing solutions for nationally significant infrastructure assets. It also reinforces our commitment to supporting sustainable urban mobility through efficient capital mobilisation,” Dubey said.
