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Srei Infrastructure to raise $100mn

BS Reporter  |  Kolkata 

Kolkata-based Srei Infrastructure Finance is planning raise $ 100 million as secured external commercial borrowing (ECB) from FMO, a private sector bilateral financial institution based in the Netherlands.

Spread over nine-years, with a three years moratorium period, the debt would carry an interest rate of LIBOR plus 450 basis points, said Hemant Kanoria, Srei's chairman and managing director, Srei Infrastructure Finance Ltd at a press conference in Kolkata on Monday.

The fund will be used for long term project and equipment financing.

For the fourth quarter of the fiscal, Srei expects total disbursal of Rs 1,200 crore, against Rs 300 crore in the last 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," said Kanoria.

In January, the government had permitted non banking finance (NBFC) in infrastructure space to raise funds from multilateral, regional and government owned development financial institutions under the approval route.

Srei will seek Reserve Bank of India (RBI) approval for the funding in the next few days.

Srei's balance sheet size as on 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.

"There had been marked slowdown in credit off take in the last quarter. However, it has improved in the present quarter. However, till June we do not expect much disbursals, due to the elections," said Kanoria.

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First Published: Tue, March 24 2009. 00:38 IST