L&T Finance receives $50M of total ECB loans from AIIB for lending to the renewable energy sector

The transaction was carried through a subsidiary namely L&T Infrastructure Finance.

Jul 07, 2020 04:07 IST India Infoline News Service

LT Finance
L&T Finance Holdings on Tuesday said that they have received the first tranche of $50M of the total $100M ECB loan from Asian Infrastructure Investment Bank (AIIB), a multilateral development bank that invests in sustainable infrastructure. The transaction was carried through a subsidiary namely L&T Infrastructure Finance.

Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings said, “ Investments from an organization 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."

Proceeds of the loan will be utilized for financing large and mid-scale wind and solar power infrastructure projects in India.

Dubhashi added, "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.”

Further, the collaboration is expected to help the company bolster its environmental and social capabilities, which will enable it to tap the international market for green finance, in the future.

Notably, this would be AIIB’s first loan to a non-banking financial company (NBFC) in India.

Post announcement, the L&T Finance stock ended at Rs71.35 per piece up by 2% on Sensex.

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