L&T Infrastructure Finance Company Ltd, a wholly-owned subsidiary of L&T Finance Holdings Ltd, has received the first tranche of $50 million of the total $100 million of an external commercial borrowing from the Beijing-headquartered Asian Infrastructure Investment Bank (AIIB). While AIIB typically lends to large infrastructure projects in India, this marks its first loan to a non-banking financial company.
The loan will be used to on-lend to large and mid-scale wind and solar power infrastructure projects in India, a press note from L&T Infrastructure Finance said.
The company’s collaboration with AIIB will also enable it to tap the international market for green finance in the future, it added.
“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,” said Dinanath Dubhashi, managing director & CEO, L&T Finance Holdings.
“Our lending to clean energy goes beyond the actual book and we have today built an ecosystem for all stakeholders to be a part of the green energy initiative. We firmly believe that renewable power holds great potential in fighting the dual challenge of climate change and the ever-growing demand for energy.”