You are here: Home » Companies » News
Business Standard

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.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

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