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IFC to offer $125 mn in debt funding to L&T Finance

April 02, 2019 / Ranjani Raghavan

International Finance Corporation plans to provide Rs 900 crore ($125 million) to L&T Finance Ltd to help the non-bank lender expand its farm equipment financing portfolio.IFC will offer the funding through five-year senior, secured debt, the World Bank's private-sector investment arm said in a disclosure. L&T Finance will match IFC's investment by contributing up to $375 million for farm equipment financing. At least 60% of the combined fund will be used for lending in the low-income states of India, IFC said. The World Bank arm said it may also mobilise additional funding from other investors for the project. IFC said that this debt funding was part of its measures “in response to the recent liquidity shortage” that NBFCs in India had been facing.