Asian Infrastructure Investment Bank (AIIB) has released $50 million in the first tranche of assistance to L&T Infrastructure Finance Ltd for funding Renewable Energy projects in the country.
The Bejing-based a multilateral development bank, which invests in sustainable infrastructure, has sanctioned total $100 million loan to unit of L&T Finance Holdings. This is AIIB’s first loan to a non-banking financial company (NBFC) in India, the company said in a statement.
The loan proceeds will be used to on-lend to large and mid-scale wind and solar power infrastructure projects in India. With the closure of this financing deal with AIIB, LTIF has further diversified its long-term funding sources.
Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings said that lending to clean energy goes beyond the actual book and the company has built an ecosystem for all stakeholders to be a part of the green energy initiative.