Transparent Approach Simplified Execution.
Altico Capital gets board approval to raise additional Rs 2,000 crore
MUMBAI: Altico Capital, the non-banking finance company, promoted by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners has received board approval to raise additional debt of Rs 2,000 crore. The board has enhanced its debt limit to Rs 7,000 crore.
In the last 18 months since the firm started leveraging, it has raised gross debt of Rs 5,000 crore over 40 deals through a variety of lenders such as multilateral financial institutions, public sector banks, private banks, debt capital markets (MFs/AIFs), NBFCs, corporates and ECBs through a mix of instruments such as bank loans, CPS, NCDS, working capital lines and other structured instruments.
The funds being raised would be used to support Altico’s robust asset pipeline across its focus areas.
“Altico’s strategy reflects the most active areas in real estate space. We continue to engage with developers who are focused on completing their under-construction projects to meet their RERA timelines. Another key area is to focus on funding the growth capital requirements of developers building products conducive to market needs, such as the fast growing affordable housing segment,” said Amit Pachisia, Chief Credit Officer, Altico Capital.
He added that Altico’s current portfolio already comprises 16% in terms of exposure to mass housing. Additionally, it will continue to augment ongoing funding to the commercial and office construction activity besides exploring new emerging segments like the industrial and warehousing space.
Altico has so far deployed over Rs 7,000 crore over 100 projects covering more than 100 million sq ft area in 7 cities.
“Altico intends to be an end to end capital solutions provider across all sub-segments offering diversified product range including structured finance, construction finance, and going forward, as our cost of capital comes down further, we also intend to explore lease rental discounting,” said Sanjay Grewal, Chief Executive Officer, Altico Capital.
Altico recently concluded its first ECB issuance of Rs 320 crore with Mashreq Bank. Altico has recently made application to Registrar of Companies (ROC) for converting itself from a Private Ltd. Co. to Public Ltd. Co. that may help in opening a fresh source of debt raising in the form of Insurance Companies.
“We intend to build further on our robust leverage program by deepening our existing relationship and adding on new investor categories like Insurance Companies, Foreign Portfolio Investors (FPIs), other development finance institutions, etc. as we move forward in this journey,” said Dhruv Jain, Chief Financial Officer, Altico Capital.
Altico has so far raised capital from global institutions like International Finance Corporation, Deutsche Bank, Mashreq Bank besides domestic institutions like State Bank of India - BSE 0.82%, Bank of Baroda - BSE 1.14%, Punjab National Bank - BSE 1.53%, HDFC Bank - BSE -0.02%, Kotak Mahindra Bank - BSE 0.17% and mutual fund houses like Franklin Templeton, UTI, Reliance, SBI - BSE 0.82% and some large corporates.