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.?