L&T Infra Finance closes deal worth US$ 100 million for renewable energy finance

A leading arranger and financier of renewable energy in India, L&T Infrastructure Finance (LTIF) announced on Tuesday that it has received an external commercial borrowing (ECB) loan from Asian Infrastructure Investment Bank (AIIB).

The fully-owned subsidiary of L&T Finance Holdings Ltd received its first tranche of US$ 50 million from AIIB. The total loan amounts to US$ 100 million external commercial borrowing ECB loan. This is AIIB’s first loan to a non-banking financial company (NBFC) in India.

The proceeds of this loan will be further lent to mid and large-scale wind and solar power infrastructure projects in India. The association with AIIB will support the company’s environmental and social capabilities by further enabling it to tap the global markets for green finance. With the closure of this deal, LTIF has further diversified its long-term funding source.

LTIF is an NBFC engaged in financing infrastructure projects including power, roads, communication and social as well as commercial infrastructure. The company leverages on L&T’s knowledge in engineering and construction space to provide infrastructure financing solutions.

The stock of L&T Finance Holdings Ltd closed at Rs 71.35 with a growth of 2 per cent on BSE.