Srei to raise $100mn via ECB next fiscal

Srei Infrastructure Finance, one of the leading project and infrastructure finance company in the country, is planning an external commercial borrowing (ECB) of $100 million (Rs 450 crore) in the next fiscal. The company has already lined up a $50 million ECB in March.

Hemant Kanoria, vice-chairman and managing director of Srei Infrastructure, refused to divulge details of the next ECB offering.  "There is a lot of demand for ECBs in India. Now, it is only for infrastructure equipment finance but we feel ECBs are needed for infrastructure project finance too because this is one of the sources of cheap funds for small and medium sized companies," he said.

RBI had barred the access of finance companies, including banks, to ECBs in November 2003. The apex bank allowed NBFCs to tap the ECB route for infrastructure equipment financing last year.

At present, corporates, other than those in the finance business, can mobilise up to $500 million via the ECB route without any prior approvals.