Srei Infra Finance to raise Rs 1,000 cr via NCD

Kolkata-based Srei  Infrastructure Finance Ltd is planning to raise Rs 1,000 crore through issue of  Non Convertible Debentures (NCDs) in the next few months.

The company has informed the Bombay Stock Exchange  that the "board of directors of the company at its meeting held on April 29, 2009, gave in-principle nod to raise up to a maximum of Rs 1,000 crores through public issue of Non Convertible Debentures (NCDs), in one or more tranches, to meet the company's requirement of funds for its long term working capital and other general corporate purposes."

The board has authorised the Committee of Directors (COD) of Srei to decide on the terms, including size, coupon rate and timing of the issue.

Sunil Kanoria, director, Srei Infrastructure Finance said, "We think this is a good time to raise money through NCD. We will shortly appoint merchant bankers and take up other necessary procedures."

Recently,   Srei Infrastructure Finance had inked a deal with FMO, a private sector bilateral financial institution based in the Netherlands, for raising   $ 100 million as secured external commercial borrowing (ECB). Spread over nine-years, with a three-year moratorium period, the ECB would carry an interest rate of  LIBOR plus 450 basis points. The fund will be used for long term project and equipment financing.

Earlier, Kanoria had said, the total disbursement for the last quarter of 2008-09  fiscal, by the company could be close to Rs 1,200 crore, against Rs 300 crore in the third quarter quarter. Till December, the total business of the company was Rs 5,000 crore.
"Over the last few years we have been growing on a year-on-year basis at 30 per cent.
However, this fiscal, there will be  a slowdown in growth at about 5-10 per cent," Kanoria had said.

Srei's balance-sheet size as in December 2008 was close to Rs 10,000 crore, with about Rs 8,500 crore in Srei Equipment Finance, a joint venture company between BNP Paribas Lease Group and Srei.