Larsen and Toubro Infrastructure Finance Company Limited
Encyclopedia
L&T Infrastructure Finance Company Limited (Infra) is a part of L&T Finance Holdings Limited which is a wholly owned subsidiary of Larsen & Toubro Limited. LT Infra is a Non Banking Financial Company (NBFC) registered under Reserve Bank of India (RBI) Act 1934. The company commenced operations in January 2007.
Larsen & Toubro Limited(L&T) is a Technology, Engineering, Construction and Manufacturing company. It is one of the largest companies in India's private sector.
Larsen & Toubro Infrastructure Finance was set up as a 100% subsidiary of L&T with an initial capital of . It commenced its business in January 2007 upon obtaining Non-Banking Financial Company (NBFC) license from the Reserve Bank of India
(RBI).
As of March 31, 2008, L&T Infrastructure Finance has approved financing of more than more than two billion USD to selected projects in the infrastructure sector (as on 31st March 2011).
Project Finance Group (PFG) is primarily responsible for business development, appraisal of projects and client relationship management including monitoring, collection & recovery. This group facilitates decision making for LT Infra to lend/invest in various projects.
The main objective of PFG is to structure and provide tailor made solutions to its clients in terms of debt, sub-debt, quasi-equity funding, equity Investments etc. The bouquet of financing products being offered by this group is as under:-
Risk Management:
As part of the appraisal process undertaken by the PFG, a risk analysis for the projects is carried out by the Risk Management department.
Based on the risk analysis, PFG designs/recommends the appropriate risk mitigation structures to enhance the viability. After the project feasibility is established by PFG, the proposal is put forward for approval.
Project Development:
The project development group has been set up as a distinct group to explore business opportunities in infrastructure projects, particularly energy and transportation sectors.
The objective of the group is to identify and work on projects where LT Infra can participate in development of infrastructure projects as co-developer by taking equity/equity linked positions in the Developer Company.
s. In this regard, the following will be the main types of assistances available from LT Infra:
Larsen & Toubro Limited(L&T) is a Technology, Engineering, Construction and Manufacturing company. It is one of the largest companies in India's private sector.
Larsen & Toubro Infrastructure Finance was set up as a 100% subsidiary of L&T with an initial capital of . It commenced its business in January 2007 upon obtaining Non-Banking Financial Company (NBFC) license from the Reserve Bank of India
Reserve Bank of India
The Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of...
(RBI).
As of March 31, 2008, L&T Infrastructure Finance has approved financing of more than more than two billion USD to selected projects in the infrastructure sector (as on 31st March 2011).
Board of directors
| Name | Designation | Positions Held |
|---|---|---|
| Mr. Y M Deosthalee | Chairman | CFO and Member of Board, L&T Limited |
| Mr. N Sivaraman | Director | Executive Vice President, L&T Limited |
| Mr. B V Bhargava | Independent Director | Chairman, CRISIL & NCDEX Ex- Vice Chairman & Managing Director, ICICI Ltd. |
| Mr. R H Patil | Independent Director | Chairman, Clearing Corporation of India Ltd.,Founder Chairman of NSE (1993–2001) |
Management team
| Name | Designation | Experience |
|---|---|---|
| Mr. Suneet K Maheshwari | Chief Executive | 24 yrs in advisory and financing of infrastructure projects at ICICI Ltd., Feedback Ventures & SREI Infrastructure Finance Ltd. |
| Mr. Ramesh Bhujang | Chief - Risk and Asset Management | 28 yrs in financial sector in India & abroad at UBI, UTI, IDBI and AFIC |
| Mr. Mr. G. Krishnamurthy | General Manager - Project Finance Group | B. Tech (Mechanical) from IIT Mumbai and PGDM from IIM Bangalore, with over 19 years of work experience in Project Finance, Infrastructure Finance and Project Development |
| Mr. Akshayaa Singh | Head - Infrastructure Private Equity | 16+ years of experience in the infrastructure, real estate and telecom sectors with focus on private equity investments and real estate investments. |
| Mr. N. Suryanarayan | Chief Financial Officer | Chartered Accountant, cost accountant, company secretary and a law graduate with over 25 years of experience in finance, accounts, secretarial and human resources. |
Functional Areas
Project Finance Group:Project Finance Group (PFG) is primarily responsible for business development, appraisal of projects and client relationship management including monitoring, collection & recovery. This group facilitates decision making for LT Infra to lend/invest in various projects.
The main objective of PFG is to structure and provide tailor made solutions to its clients in terms of debt, sub-debt, quasi-equity funding, equity Investments etc. The bouquet of financing products being offered by this group is as under:-
Term loan
Mezzanine debt/ Sub debt
LeasingLeasingLeasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments....
Structured financeStructured financeStructured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid lawsStructured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid laws...
Risk Management:
As part of the appraisal process undertaken by the PFG, a risk analysis for the projects is carried out by the Risk Management department.
Based on the risk analysis, PFG designs/recommends the appropriate risk mitigation structures to enhance the viability. After the project feasibility is established by PFG, the proposal is put forward for approval.
Project Development:
The project development group has been set up as a distinct group to explore business opportunities in infrastructure projects, particularly energy and transportation sectors.
The objective of the group is to identify and work on projects where LT Infra can participate in development of infrastructure projects as co-developer by taking equity/equity linked positions in the Developer Company.
Products & Services
LT Infra offers a range of products and services to its clients in the infrastructure sector so as to provide them with total financing solutionSolution
In chemistry, a solution is a homogeneous mixture composed of only one phase. In such a mixture, a solute is dissolved in another substance, known as a solvent. The solvent does the dissolving.- Types of solutions :...
s. In this regard, the following will be the main types of assistances available from LT Infra:
Term loan
LeaseLeaseA lease is a contractual arrangement calling for the lessee to pay the lessor for use of an asset. A rental agreement is a lease in which the asset is tangible property...
SyndicationSyndicated loanA syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as arrangers....
Structured financeStructured financeStructured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid lawsStructured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid laws...
EquityStockThe capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...