Piramal, Dutch APG tie up for $1 bln infra investment.

Piramal Enterprises Ltd. (PIRA.NS) has tied up with Dutch pension fund APG Asset Management to invest $1 billion in Indian infrastructure companies over three years, in a move that would help indebted firms access funds to complete projects.

A sluggish economy and stalled bureaucratic decision-making for the past two years thwarted capital investment and dented earnings, making it tough for infrastructure companies to raise funds and launch or complete road and power projects.

Piramal, controlled by billionaire Ajay Piramal, and APG will invest in local infrastructure companies through rupee-denominated mezzanine instruments, the two sides said in a statement.

Mezzanine debt, commonly used by private equity firms, comes between senior debt and equities.

Piramal and APG have each initially committed $375 million for investments under the alliance, the companies said.

in.reuters.com