Apollo Global Management is planning to lend about $1 billion (Rs 7750 crore) to developers in India this year, betting on a recovery in the residential property market as the pandemic eases. That’s up from the $750 million (Rs 5800 crore) that Apollo lent to Indian developers last year, with two-thirds of that sum directed to residential projects, according to Nipun Sahni, a partner at the private equity firm. About 70 per cent of this year’s lending will go to home builders and the rest to commercial developers. “The market volumes are back to pre-Covid-19 level and in some markets it’s higher than 2019,” Sahni said.
Apollo, which opened its Mumbai office in 2008, currently manages about $513 billion of assets globally, according to its website. The firm began lending to Indian property developers in 2017. A year later, shadow banks like IL&FS Investment Managers and Dewan Housing Finance ran into troubles, leading to dislocation in the credit market. Apollo stepped in, increasing its lending activity. When financing demand grew during the pandemic, the business took off, Sahni said. Apollo’s average loan size will be between $40 million (Rs 310 crore) and $60 million (Rs 465 crore), he said.
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