L&T Finance raises $275m from IFC,3 foreign lenders in ECB

L&T Finance has raised USD 275 million in the first tranche of ECB funds, led by IFC, and three foreign lenders BNP Paribas, Citibank and DBS Bank. The amount, which was raised on June 28, is part of the USD 550-million the NBFC is looking to raise through the ECB route, helping it diversify the funding source, the company said in a statement Thursday.

Of the USD 275 million in the first round of debt rasing, IFC, which is part of the World Bank group, alone has extended USD 125 million. The company will be using the proceeds to expand its farm equipment finance book by extending loans to farmers for buying equipment and modernize farming, L&T Finance, an arm of L&T Finance Holding company.

"Lending scientifically and methodically to customers who do not have access to last-mile credit is the next growth opportunity for NBFCs. We are investing in technology, and data and analytics to lead this change," managing director and chief executive Dinanath Dubhashi said. In 2017, IFC had invested USD 100 million of debt in L&T Infrastructure Finance for on-lending to developers of solar power projects.

The multilateral financial institution had also pumped in USD 75 million into L&T Housing Finance for on-lending to developers of affordable housing units in 2018.