The 50:50 JV between SREI Infrastructure Finance Ltd and BNP Paribas Lease Group of France will be formalised by October this year. ?The new entity will not be listed on the stock exchanges.
We are working out options to shift all the equipment financing business and insurance broking to the new entity while the parent company will focus on advisory services, project financing and project funding,? KK Mohanty, executive director, SREI Infrastructure Finance Ltd said.
BNP Paribas will invest Rs 775 crore in the JV. For the present, the JV will be known as SREI Infrastructure Development Finance Ltd.
On the completion of the restructuring exercise, the company will be expanding its footprint overseas.
Offices will be set in Indonesia and Dubai by the year-end. SREI has operations in Russia where it made revenues worth $15 million last year.
This year, the company is targeting revenue worth $ 50 million from Russia.
Mohanty said the company has bagged seven major road projects with the National Highway Authority of India (NHAI) and a couple of power projects worth Rs 5,000 crore. SREI intends to expand financing options to agriculture equipment, medical equipment, information technology and other equipment classes.
?We are still analysing the situation and are yet to develop the business model,? Mohanty said. The company will hold its Paison ki Nilami auction in Pune on Friday.
Here the interest rates are auctioned for acquiring infrastructure equipment. In the last six auctions, the company did business worth Rs 1,000 crore.