L&T Finance Holdings partners with Apis Partners for investment in L&T IDF

Mumbai, Apr 25 (UNI) L&T IDF, a subsidiary of L&T Finance Holdings (LTFH), has entered into a commitment for up to 25.10 per cent minority equity investment from Apis Growth Fund II, a private equity fund managed by Apis Partners LLP.
Out of the total investment amount, 70 percent is in the form of growth capital for L&T IDF and 30 percent is for purchase of shares from existing shareholders (subsidiaries of LTFH).
The Fund's investment into L&T IDF will support the growth of its loan book focused on infrastructure projects in India, strengthen its capital structure, and further its technology and digitisation strategy. This long-term partnership will support the Company in accessing low cost international sources of funds which will be
utilised to refinance operational infrastructure projects in India.
L&T IDF is a leading Infrastructure Debt Fund Non-Banking Financial Company (IDF-NBFC) in India.
It provides long-term refinancing to private sector and PPP (public private partnership) infrastructure projects across multiple high-growth infrastructure sub-sectors including alternative energy projects, such as solar and wind, and highways, that have each completed at least 1 year of satisfactory commercial operations.
IDF-NBFCs are a class of financial institutions that were created by the Government of India as a potential solution to the typical challenges in infrastructure financing faced by banks (such as asset liability mismatches and group concentration limits) and to also facilitate investment from pension and insurance funds into
infrastructure projects.
Mr Dinanath Dubhashi, Managing Director & Chief Executive Officer, L&T Finance Holdings Ltd. said "Our IDF business has built significant strengths in core areas of renewable energy, road and transmission financing, resulting in a high quality loan book and consistent returns. This partnership with Apis is a reflection of
the value creation that the Indian infrastructure financing space offers to investors looking for sustainable returns in the long term. Apis' extensive experience in financial services will further strengthen our integration with global financial markets, as we continue on the path of robust growth."