L&T Finance Holdings and Apis Partners announce equity investment of up to US$ 110 million byApis Growth Fund II into L&T IDF, a leading infrastructure refinancing firm in India
L&T Finance Holdings and Apis
Partners announce equity investment of up to US$ 110 million byApis Growth Fund
II[1] into L&T IDF, a leading
infrastructure refinancing firm in India
- Apis Growth Fund II (the “Fund”), a private equity fund managed by Apis Partners LLP (“Apis”), hasentered into a binding agreement to acquire a minority stake in L&T Infra Debt FundLtd. (“L&T IDF”), a specialised re-financier of operating infrastructure projects in India with a loan book of ~Rs. 8,000crore[2] and 0%2non-performing assets since inception
- L&T IDF is a subsidiary ofL&T Finance Holdings Ltd. (“LTFH”), part of the Larsen & Toubro Group, one of the largest Indian multi-national engineering and infrastructure conglomerates, with businesses spanning engineering, construction, electrical and electronics manufacturing, IT and financial services
- Apis Growth Fund II’s investment will support the growth of L&T IDF’s loan book across a number of infrastructure subsectors in India such as renewable energy, roads, power transmission, airports and ports
- Apis Partners LLP is a Private Equity asset manager that supports growth stage financial services businesses in Asia and Africa; Apis Growth Fund II investors include leading institutional investors, developmental financial institutions, global banks and insurance companies, sovereign wealth funds, family offices and HNWIs across Europe, North America, Asia, Africa and Latin America
Mumbai, India, 25April2019 -L&T
IDF, a subsidiary of LTFH,has entered into a commitment for up to 25.1%1minority equity investment from Apis Growth
Fund II, a private equity fund managed by Apis Partners LLP.Out of the total
investment amount, 70% is in the form of growth capitalfor L&T IDF and30%
is for purchase of shares from existing shareholders (subsidiaries of LTFH). The
Fund’s investment into 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 accessinglow cost international sources of
fundswhich will be utilised to refinance operational infrastructure projects in
India.
L&T IDF is a leading Infrastructure Debt Fund Non-Banking
Financial Company (IDF-NBFC) in India. It provides long-term refinancing
to private sector and PPP (public private partnership) infrastructure
projects across multiple high-growth infrastructure sub-sectors including alternative
energy projects, such as solar and wind, and highways, that have each completed at least 1year
of satisfactory commercial operations. IDF-NBFCs are a class of financial
institutions that were created by the Government of India as a potential solution
to the typical challenges in infrastructure financing faced by banks (such
as asset liability mismatches and group concentration limits) and to also facilitateinvestment
from pension and insurance funds intoinfrastructureprojects.
L&T IDF, a AAA rated[3]
company since inception,has a loan book of ~Rs. 8,000 crore2 across 94projects,with
~50% of the portfolio guaranteed by a government authority. The
Company has had 0%2non-performing assets (NPAs) since inception.The Fund’s investment will support the growth of the Company’s
loan book for current and new infrastructure sub-segments across all clients
the Company serves (domestic developers, foreign developers, and private equity
players engaged in infrastructure).
Mr. Dinanath Dubhashi, Managing
Director &Chief Executive Officer, L&T Finance Holdings Ltd.
said “Our IDF business has built significant strengths in core areas of
renewable energy, road and transmission financing,resulting in a high quality loan
book and consistent returns. This partnership with Apis is a reflection of the
value creation that the Indian infrastructure financing space offers to
investors looking for sustainable returns in the long term. Apis’ extensive
experience in financial services will further strengthen our integration withglobal
financial markets, as we continue on the path of robust growth.”
Mr. Shiva Rajaraman, Chief Executive,
L&T Infra Debt Fund Ltd. said “The India infrastructure market
offers significant growth opportunitiesfor specialised re-financiers such as
ourselves. Through thislong term partnership with Apisand the continued support
from our promoter shareholders, our IDF platform is well-positioned to tap into
these opportunities, as well as maintain leadership position in key areas of the
infrastructure refinancing space. Our experienced team of professionals look
forward to an exciting journey ahead to create value for all our stakeholders.”
Mr. Udayan Goyal, Co-founder and Managing
Partner, Apis Partners LLP said “We are excited to partner with
L&T IDF’s experienced team.The Company has an exceptional track record in
refinancing high potential infrastructure projects and raising funds at
competitive fixed rates in tenors of up to 20 years, whilst maintaining perfect
asset quality.We look forward
to helping the team to expand its presence ininternational capital markets and to
create further efficiencies through digitisation and the use of technology
across its operations.”
Mr. Matteo Stefanel, Co-founder and
Managing Partner, Apis Partners LLP said “With India projected to be the
fastest growing infrastructure market over the next five years, we are
delighted for the Fund to invest in L&T IDF.The Fund’s investmentwill
support the Company in its mission of facilitating infrastructure growth, a
criticalfactor for the development of industry, agriculture and trade in
emerging markets.The Company’s
mission is fully aligned to Apis’ own objective of assisting in the deepening of
the financial sectoras a necessary ingredient for the promotion of economic
development in growth markets.”
About L&T Infra Debt Fund Ltd.:
L&T
IDF (www.ltfs.com/companies/lt-infra-debt.html)
is classified as an Infrastructure Debt Fund – Non-Banking Financial Company
(“IDF-NBFC”), regulated by the Reserve Bank of India (“RBI”). The company has
established leadership positions in the core areas of renewable energy and road
financing and has raised long term funds of upto 20-year tenorsthrough domestic
bond markets from pension and insurance fundsat competitive rates. L&T IDF
is backed by a strong corporate governance framework, well established credit
and risk management processes, anexperienced management team and a board
consisting of independent directors of impeccable credentials. The Company has provided
financing solutions to 92 infrastructure projects as of 30thSeptember
2018. L&T IDF benefits greatly from being part of L&T Financial
Services, inter aliaIndia’s leading
financier of renewable energy projects and the Larsen & Toubro group, one
of India’s largest engineering and construction conglomerates.
About Apis Partners LLP:
Apis Partners LLP (www.apis.pe) is a private equity asset manager that supports
growth stage financial services and financial infrastructure businesses in
Africa and Asia by providing them with catalytic growth equity capital. Apis’team
is comprised of over 27 professionals with specialised expertise in financial
services and technology in growth markets. Apis is highly conscious of the
developmental impact that the provision of growth capital for financial
services in growth markets can achieve, and as such, financial inclusion is a
core tenet of Apis Partners LLP’s approach and investment mandate. Apis
Partners LLP is authorised and regulated by the U.K. Financial Conduct
Authority (auth. n. 628289).
About L&T Finance Holdings Ltd.:
LTFH
(www.ltfs.com)
is a financial holding company offering a focused range of financial products
and services across rural, housing and wholesale finance sectors, as well as
mutual fund products and wealth management services, through its wholly-owned
subsidiaries, viz., L&T Finance Ltd., L&T Housing Finance Ltd., L&T
Infrastructure Finance Company Ltd., L&T Infra Debt Fund Limited, L&T
Investment Management Ltd. and L&T Capital Markets Ltd. LTFH is registered
with RBI as a CIC-ND-SI[4].
LTFH is promoted by Larsen & Toubro Ltd. (“L&T”) (www.larsentoubro.com),
one of the leading companies in India, with interests in engineering,
construction, electrical & electronics manufacturing & services, IT and
financial services.
For further details please contact:
Shveta Singh
L&T Finance Holdings
+91 9004287034
shvetasingh@ltfs.com
SporshitaGoswami
L&T Finance Holdings
+91 9920883234
sporshitagoswami@ltfs.com
Gustavo Eiben
Apis Partners
Phone: +1 2034893831
gustavo.eiben@apis.pe
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