SREI gets Rs 210 cr syndicated loan
The infrastructure finance company is getting the loan from 3 global entities syndicated by FMO of Netherlands.india Updated: Sep 15, 2006 17:33 IST
Infrastructure finance company Srei Infrastructure Finance will get Rs 45 million dollars (Rs 210 crore) as loan from three global entities, syndicated by Netherlands Development Finance Company FMO.
Fortis Bank of Belgium, Cordiant Bank of Canada and FMO will chip in $15 million (Rs 70 crore) each in the syndicated loan, SREI Vice Chairman and Managing Director Hemant Kanoria told reporters in New Delhi.
An agreement to this effect was signed on Friday between SREI and FMO.
The loan, in the nature of external commercial borrowings, will be invested in infrastructure equipment financing, he said.
The other areas that SREI invests money are project financing and rural electrification, but ECBs are mainly allowed for equipment financing.
SREI expects to disburse around Rs 3,500 crore loans this year, 40 per cent up from last year's figure.
Since FMO is 'AAA' rated company, it generally raises money at Libor plus 5-10 per cent, which is very competitive, Kanoria said.
Though he declined to comment on the rate of interest charged by FMO for the loan, sources said the rate would be much lower than existing PLRs in the domestic market, which is around 11.5-12.5 per cent.
FMO had eight per cent stake in SREI, but exited from it to book profit.
FMO has brought $100 million into India to fund infrastructure, give loans to NBFCs and SMEs and another $100 million are in the pipeline, company Regional Director Wiem Wienk said.