Piramal Enterprises and APG Asset Management come together
The Piramal Enterprises Ltd has come together with Dutch pension fund APG Asset management in order to invest $1 billion in Indian infrastructure companies over three years in a move that will help indebted firms’ access funds to complete their projects.
A slow economy and stopped bureaucratic decision making since the last two years has thwarted the capital investment and dented earnings thereby making it tough for the infrastructure companies to raise the funds and launch or complete road and power projects.
Piramal which is controlled by billionaire Ajay Piramal and APG will be investing in the local infrastructure companies through the rupee denominated mezzanine instruments as the two sides stated last Wednesday.
Mezzanine debt commonly used by private equity firms comes between the senior debt and equities. Piramal and APG have each and initially committed $375 million for the investments under the alliance as the companies stated. This investment is being done to improve and fasten the work of several construction companies. Many construction companies go under debt and their work comes to a halt. These access funds will be helping these companies to carry forward their work without any problem.
Source: The Financial Express
