Apollo Global eyes L&T FIn realty loan book with $1-B deal

Apollo Global Management is in talks with L&T Finance Holdings Ltd to acquire real estate loans worth INR 8,000-9,000 crore. The L&T Group company is looking to pivot toward the retail segment by pruning its infrastructure and real estate exposure. The deal, pegged at USD 1 Billion, will also will help L&T get cash upfront instead of through staggered payments, allowing it to deleverage its balance sheet, while the private equity group gets a portfolio of real estate assets with some first-loss protection. Under the plan, the debt outstanding on the L&T Finance real estate book will be refinanced and move to an AIF (alternative investment fund) that will be owned by both Apollo Global and L&T Group. These loans have a 15-16% rupee return on average. Shardul Amarchand Mangaldas and Trilegal are the legal advisors to the deal.