Equis sets sights on infrastructure debt in India

The Asian energy specialist is tapping the private debt space in India with a special focus on direct lending opportunities.

Equis, the Singapore-based asset manager, is planning to start a non-banking financial company in India to further expand its exposure in the Asian infrastructure market.

The NBFC will look at direct lending in the infrastructure sector in India with a focus on the renewable energy sector, according to David Russell, partner and chief executive officer.

“Over the years, we have seen a lot of investments that are more attractive from an infrastructure debt or infrastructure lending perspective, it just makes sense given the Indian banking sector is slowing their commitment to infrastructure due to the tighter regulation for the banks and their conservative history,” Russell told sister publication Private Debt Investor.

“Those who are traditionally linked to infrastructure now have huge advantages for the infrastructure debt in the market. We are talking about the largest market, if not, the largest private infrastructure market in Asia, it will require hundreds billions dollars for debt over the coming years.”

The proposal is now undergoing internal approval and is expected to go to the government within the next few months.

Equis is a specialist in Asian energy and infrastructure market manages more than $2.7 billion with 13 offices in the region. The company currently has two offices in India with 230 staffs on the ground. Half of its investment portfolio in India is in wind energy, 30 percent in the solar energy and 20 percent in hydro power.