Srei BNP Paribas, a joint venture of Srei Infrastructure Finance and BNP Paribas Lease Group, signed a loan agreement with Singapore’s DBS Bank to raise $50 million as external commercial borrowings.
The company, one of the major non-banking financial companies in the equipment financing business, will use the loan amount to finance the purchase of infrastructure equipment for further leasing.
?Almost $1 trillion will be invested in infrastructure during the 12th five year plan period. This will open up a huge opportunity for us,? said Sunil Kanoria, joint managing director of the company.
Meanwhile, w ith the increase in demand for loans in the infrastructure sector, Srei’s fresh disbursal during 2010-11 is expected to be around Rs 9,000-Rs 10,000 crore. To fund this, the company will raise Rs 5,000-6,000 crore during 2010-11.
? It?s a long-term funding, so it will help us to disburse longer tenure loans particularly in the infrastructure sector,? he said. While the amount will be repaid over a period of seven years, the average cost is around 8%.