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L&T Infrastructure Finance receives first tranche of $50 mn ECB loan from AAIB

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Capital Market
Last Updated : Jul 07 2020 | 3:31 PM IST

To fund large and mid-scale wind and solar power infrastructure projects in India

L&T Infrastructure Finance Company, the wholly owned subsidiary of L&T Finance Holdings has received the first tranche of $ 50 million of the total $ 100 million ECB loan from Asian Infrastructure Investment Bank (AIIB), a multilateral development bank that invests in sustainable infrastructure. This development marks AIIB's first loan to a non-banking financial company (NBFC) in India.

The loan proceeds will be used to on-lend to large and mid-scale wind and solar power infrastructure projects in India. LTIF's collaboration with AIIB will also help the company bolster its environmental and social capabilities, which will enable it to tap the international market for green finance, in the future. The proposed financing supports AIIB's Sustainable Energy for Asia Strategy and Strategy on Mobilizing Private Capital for Infrastructure.

L&T Infrastructure Finance is a leading arranger and financier of renewable energy in India. With the closure of this financing deal with AIIB, LTIF has further diversified its long-term funding sources.

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First Published: Jul 07 2020 | 3:10 PM IST

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