L&T Finance arm closes $100-million external commercial borrowing from Asian Infrastructure Investment Bank

By: |
Published: July 8, 2020 2:00 AM

L&T Finance had earlier disclosed that it had plans to raise up to Rs 2,000 crore by issuing preference shares through public offer or private placement.

The development marks AIIB’s first loan to a non-banking financial company (NBFC) in India, the company said.The development marks AIIB’s first loan to a non-banking financial company (NBFC) in India, the company said.

L&T Infrastructure Finance Company, a subsidiary of L&T Finance, has bagged a $100-million external commercial borrowing (ECB) loan from Asian Infrastructure Investment Bank (AIIB). The company has received the first tranche of $50 million, of the total $100 million ECB, it said in a release. The loan proceeds will be used to on-lend to large and mid-scale wind and solar power infrastructure projects in India.

Dinanath Dubhashi, MD and CEO of L&T Finance, said, “Investments from an organisation like AIIB, that follows a stringent due diligence process of the company’s capacity, viability, past performance and regulatory compliances before any investments, reiterates our commitment to green project financing.”

The development marks AIIB’s first loan to a non-banking financial company (NBFC) in India, the company said.

L&T Finance had earlier disclosed that it had plans to raise up to Rs 2,000 crore by issuing preference shares through public offer or private placement.

The company will seek shareholders’ approval for the proposal at its annual general meeting (AGM) scheduled for July 28.

“Being the holding company, the company would need to raise funds for such infusion. The company would also need funds for its working capital requirements, including redemption of preference shares from time to time,” L&T Finance said.

L&T Finance had reported a 30% year-on-year (y-o-y) decline in net profit at Rs 385 crore in the March quarter. Income for the quarter under review rose to Rs 3,427 crore from Rs 3,384 crore a year ago.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1JSW forays into wind energy, wins 970 MW projects in Seci auctions
2Reliance Jio’s spectrum trade deal with RCom failed, sharing continues
3TS Kalyanaraman, CMD, Kalyan Jewellers on post-Covid sales: ‘We are now close to same-store performance Y-o-Y’