Project lender Ethos plans to finance $1 billion in India over the next five years

5 Jul 2023 , 11:36 AM

According to news reports, US-based project lender Ethos Asset Management has prepared plans for lending in India and hopes to invest more than $1 billion there over the next five years. Since beginning operations in 2012, the company has disbursed approximately USD 9 billion across numerous markets worldwide, including the US, South America, and Europe. The company normally writes long-term loans that are repaid by the borrowers in roughly 12 years.

According to its founder and CEO Carlos Santos who talked to ET, the company is interested in India because of its young population and potential for economic growth.

He continued by saying that his company places a major emphasis on six of the 10 industries driving India’s growth, including infrastructure, energy, agribusiness, manufacturing, and information technology.

‘In the second half of 2023, we will invest $100 million, and in 2024, we will invest $200 million. We intend to increase it to USD 350 million in 2027, he added, adding that the deployment would total more than USD 1 billion over the following five years.

According to Santos, the company relies on revenue from rentals generated by an algorithm that helps traders earn more money. Client repayments are also reinvested into the company.

Typically, the client receives a complete grace period during which time they pay no interest or principal as a project develops, followed by a three-year payback holiday for the initial portion.

It has examined roughly three potential loan arrangements over the past two years, but none of them have materialized. The lender is more assured, though, about the current round of talks it is conducting.

Two transactions, one in the infrastructure and one in the energy sectors, would have been finalized by December.

He explained to ET that because the company is not present in India, it will be up to local partners to handle due diligence, audits, and regulatory obligations.

According to Santos, it now has offices in the US, Brazil, and the UK, and if the India business expands, it might have a local presence as well.

For feedback and suggestions, write to us at [e-mail]