Piramal Fund to provide line of credit to select developers

Piramal Fund Management, a part of the Piramal Group, plans to provide line of credit to the extent of Rs 15,000 crore to select developers for funding their projects.
The firm has announced 'Piramal Preferred Partner' programme whereby developers selected by the company are allowed to draw from a pre-sanctioned limit to pursue opportunistic acquisitions, Piramal Fund Management said in a statement.
"We intend to commit around of Rs 15,000 crore in the first phase of this program to a select group of existing relationships. We have shortlisted around 8-10 developers who will receive the funds in the next 10-15 days," Piramal Fund Management Managing Director Khushru Jijina said.

He said by making capital available at earlier stage, the developers would be able to focus on their core competence.
The funds would be available to the developers right from early stage equity to senior secured debt or construction finance and even a structured bulk purchase of individual units.
"We were already prevalent across the entire capital stack and able to act as a perpetual provider of capital for multiple projects. By offering this facility, our development partners will always be able to demonstrate a competitive advantage as against their peer group and close their choice of transactions much faster," Jijina said.

He further said the limit would also be arrived at keeping in mind various other organisation and project specific parameters and would be reset on a periodic basis.
The company expects the funds would be utilised by the developers over the period of 12-18 months.