Srei BNP Paribas raises USD 50 million from DBS.

June 11, 2010 - PRLog -- Srei BNP Paribas raises USD 50 million from DBS.

June 11, 2010, Pune:
Srei BNP Paribas, a 50:50 joint venture between Srei Infrastructure Finance Limited (SIFL) and BNP Paribas Lease Group (BPLG), and India’s leading infrastructure and construction equipment financier, today announced the signing of a Loan Agreement with DBS Bank Limited, Singapore, part of DBS Group Holdings, one of the largest financial services groups in Asia, to secure External Commercial Borrowing (ECB) of USD 50 million. This loan amount would be used to finance the purchase of infrastructure equipment for further on lending / leasing / hire – purchase to infrastructure projects.

This was announced today by Mr. Sunil Kanoria, Joint Managing Director, Srei BNP Paribas and Mr. Sanjiv Bhasin, CEO, DBS India. This development assumes special significance in the backdrop of the huge investments being made by the Government and the private sector towards massive infrastructure development of the country. The Indian Infrastructure development has been on a high agenda for the Indian government over past few years as it is a key driver for the overall economy development.

“The country’s growth trajectory has moved up. With investment in the infrastructure sector targeted at USD 1 trillion in the 12th Five Year Plan, the scope for infrastructure equipment financing is immense,” said Sunil Kanoria, Joint Managing Director, Srei BNP Paribas. He further added, “As such, the loan from DBS to a large extent would help Srei BNP Paribas cater to the rising demand of the infrastructure sector. Rapid infrastructure creation in the country would lead to rapid growth of the construction equipment sector. Construction equipment sector is expected to grow at 15%. Moreover, India by and large, being a labour oriented industry, with more new and technologically advanced equipment, we expect that the extent of mechanization will also pick up.”

Speaking about this transaction, Mr. Sanjiv Bhasin, CEO, DBS Bank India, said, “DBS’ origin as a development bank has given us rich experience of working in the infrastructure domain across some of Asia’s most dynamic economies. This transaction, gives us another opportunity to indirectly participate in facilitating India’s infrastructure growth by strengthening our relationship with Srei Group, who have done significant work in infrastructure related financing.”

About Srei BNP Paribas

Srei BNP Paribas (Registered name: Srei Equipment Finance Private Limited) is a 50:50 joint-venture between Srei Infrastructure Finance Ltd., India’s leading and only private sector Non Banking Financial Institutions in the infrastructure space and BNP Paribas Lease Group (BPLG), a wholly owned subsidiary of BNP Paribas, France. Srei BNP Paribas started its operation from January 01, 2008 with the infrastructure and construction equipment financing and insurance businesses and has further plans to expand its business to new verticals. Srei BNP Paribas has already started financing Technology Solutions (financing of IT equipment, software and services) and has effectively partnered with leading global IT vendors for financing their customers and expects to ramp up this portfolio significantly in the coming months. It is in advanced stage of strategy formulation to venture into financing of new Equipment classes: Agriculture Equipment, Healthcare Equipment, Office Automation, Equipment in Education sector etc. With its foray into new equipment classes, Srei BNP Paribas will become probably the one and only Company to offer complete Equipment Solutions.

Srei BNP Paribas enjoys a strong national presence with a network of 71 offices in India.

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