The amount will be used to fund the payout for the voluntary retirement scheme (VRA), which is likely to cost over Rs 200 crore.
Interest paid on this loan will be 9%.
The backers of first fund, Abu Dhabi Investment Authority, Singapore's GIC and family office Premji Invest have committed to invest in the second fund also.
The 3 entities that will be merged in it are L&T Finance Limited, L&T Infra Credit Limited, and L&T Mutual Fund Trustee Limited.
The scheme is a fixed maturity fund and will invest in debt securities like Corporate Bonds, Non-convertible Debentures and Government Securities have Low volatility with minimal churn.
Amendment to end long term capital gains tax treatment of debt mutual funds put pressure on AMC stocks.
Money market funds saw inflows of $121 billion in the week in which SVB collapsed.
The Scheme will dynamically allocate its net assets to equity and equity related securities and debt instruments.
The fund management team will endeavor to maintain a consistent performance in the scheme by maintaining a balance between safety, liquidity and profitability aspects of various investments.
The investment strategy of the Scheme will be to invest in a basket of securities forming part of Nifty 100 Low Volatility 30 Index in similar weight proportion.