L&T Finance secures $550 mn ECB funding led by World Bank arm IFC

L&T Finance has secured USD 550 million funding through external commercial borrowing (ECB) anchored by World Bank arm IFC along with three more investors, the company said Thursday.

L&T Finance Ltd will receive USD 550 million (about Rs 3,800 crore) in the investment round anchored by IFC, BNP Paribas, Citibank, and DBS Bank, the company said in a release.

In the first tranche, the investors have contributed USD 275 million. Of this, IFC is bringing in USD 125 million which will be utilized by L&T Finance to expand its farm equipment finance book by extending loans to farmers for buying equipment and modernizing farming.

"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," said Dinanath Dubhashi, Managing Director and CEO, L&T Finance Holdings, the parent company of L&T Finance.

Hemalata Mahalingam, Manager, Financial Institutions Group, IFC South Asia said addressing the large rural finance gap and supporting modernisation of agriculture are key components in sustaining India's growth story and meeting the government's commitment to double farmers' income by 2022.