India’s L&T Infrastructure Finance Co Ltd will get USD 100 million (EUR 88.9m) in debt by the Asian Infrastructure Investment Bank (AIIB) to expand on-lending for renewables in India.
AIIB said on Friday that the deal will mark its first loan extension to a non-banking financier. The Indian lender will use the debt facility to on-lend to wind and solar projects across India, which aims to cut its carbon dioxide (CO2) emissions by 30%-35% of 2005 levels by 2030.
According to the press release, the loan mobilises private capital from sponsors, other financiers and L&T Infrastructure Finance’s own sources. “AIIB’s financing will help secure the funding supply for renewable energy project development in India,” said AIIB vice president and chief investment officer D J Pandian.
L&T Infrastructure Finance is a unit of L&T Finance Holdings Ltd and is India’s leading non-bank finance company in the renewables sector.