Amid liquidity squeeze faced by non-bank lenders, global buyout major KKR on Wednesday said it will infuse $150 million into its Indian non-banking finance company.
The capital commitment will enhance the KKR India Financial Services' ability to provide loans to local companies by bolstering the financial position, an official statement said.
The NBFC sector has been in troubles for over a year now, starting with the collapse of infra-focused Infrastructure Leasing & Financial Services, triggering a liquidity crisis.
In the statement, KKR's co-presidents and co-chief operating officers Joe Bae and Scott Nuttall said this is a "unique" time in the Indian credit markets, with many lenders being unable to invest despite a demand for alternative credit.
The commitment "solidifies KIFS' financial position, allows KIFS to be proactive in a dislocated market, and reflects our confidence in KIFS and its mission to finance India's homegrown champions", they said.
In the past 10 years, KIFS has deployed more than $5 billion in over 150 deals in India, it said.
"Private lending in India is more important than ever. India has been an important part of KKR's global growth strategy in Asia," KKR India Chief Executive Officer Sanjay Nayar said.
The statement said KKR, a majority owner of KIFS, will fund the investment through its balance sheet.
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