Asian Infrastructure Investment Bank (AIIB) has announced that it will deliver $100 million in loans to L&T Infrastructure Finance Company for on-lending to green energy (wind and solar power) infrastructure projects in India.
This deal with the arm of L&T Finance Holdings scripts the bank’s first loan to a non-banking finance company (NBFC).
“Our latest project will increase the supply of renewable energy in India by mobilizing private capital. The loan proceeds of USD 100 million will be used to on-lend to wind and solar power infrastructure projects in India,” AIIB said in a statement.
The loan mobilizes private capital from sponsors, other financiers, and LTIF’s own sources.
“Our financing will help secure the funding supply for renewable energy project development. The project supports our commitment to sustainable energy for Asia to reduce the carbon intensity of energy supply,” AIIB vice-president and chief investment officer DJ Pandian said.
LTIF’s association with AIIB will also help the company develop its environmental and social capabilities which will in the future enable it to tap the international market for green finance, the bank said.
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