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L&T Infrastructure Debt Fund (L&T IDF), a subsidiary of L&T Finance Holdings Ltd (LTFH), has entered into an agreement with private equity fund Apis Partners to raise $110 million in lieu of a 25.1 per cent stake.
Of the total investment, 70 per cent is growth capital for L&T IDF, while 30 per cent would be used to purchase shares from existing shareholders, the company said in a statement.
Apis Partners will make the investment through one of its funds, Apis Growth Fund II. LTFH, an infrastructure refinancing firm, is part of engineering and infrastructure conglomerate, Larsen & Toubro Group.
“The fund’s investment will support the company in its mission to facilitate infrastructure growth, a critical factor for the development of industry, agriculture and trade in emerging markets,” Matteo Stefanel, co-founder and Managing Partner at Apis Partners said, adding, India is projected to be the fastest growing infrastructure market over the next five years.
The fund’s investment in 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, it added.
L&T IDF provides long-term refinancing to private sector and public-private partnership infrastructure projects across sectors such as alternative energy projects, solar and wind, and highways.
“The India infrastructure market offers significant growth opportunities for specialised re-financiers such as ourselves. Through this long-term partnership with Apis and the continued support of our promoter shareholders, our IDF platform is well-positioned to tap into these opportunities, as well as maintain our leadership position in key areas of the infrastructure refinancing space,” Shiva Rajaraman, Chief Executive at L&T Infra Debt Fund, said.
L&T IDF has a loan book of Rs 8,000 crore across 94 projects, with about 50 per cent of the portfolio guaranteed by a government authority.
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