According to a report, Indian Railway Finance Corporation (NSE: IRFC) is considering swapping part of its U.S. dollar debt into the Swiss franc as India prepares to chair this year’s BRICS summit in New Delhi. The proposal seeks to limit foreign exchange losses and reduce funding costs after India’s currency fell about 6% versus the U.S. dollar over the past year.
About 70% of the rail financier’s foreign loans are U.S. dollar denominated, leaving the firm exposed to currency moves. IRFC has roughly $8 billion in overseas borrowings, is valued near $6.34 billion, and holds about $56 billion in total assets.
If IRFC proceeds with the Swiss franc swap, other state-run firms could follow the example. (Ed. note: Wider adoption by public sector undertakings could increase demand for non-dollar borrowings.)
