Apis Growth Fund II, a private equity fund managed by Apis Partners LLP (Apis), has entered into a binding agreement to acquire a minority stake in L&T Infra Debt Fund Ltd. (L&T IDF), a specialised re-financier of operating infrastructure projects in India with a loan book of US$ 1.1 billion and 0% non-performing assets since inception. L&T IDF is a subsidiary of L&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.

L&T IDF, a subsidiary of LTFH, has entered into a commitment for up to 25.1% minority 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 capital for L&T IDF and 30% 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 digitization strategy. This long-term partnership will support the Company in accessing low-cost international sources of funds which will be utilized 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 the 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 1 year 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 facilitate investment from pension and insurance funds into infrastructure projects.

L&T IDF, a AAA rated company since inception, has a loan book of US$ 1.1 billion across 94 projects, with c. 50% of the portfolio guaranteed by government authority. The Company has had 0% non-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).