SREI Infrastructure raises USD 45 mn from FMO to fund Infrastructure Development in India

SREI Infrastructure Finance Ltd has announced that the Netherlands Development Finance Company FMO will provide a long-term syndicated loan of USD 45 Million (Rs 210 crore) to the Company - the leading Indian private sector infrastructure equipment finance, infrastructure project finance and renewable energy products financing company. The cooperation agreement has been signed in New Delhi on September 14, 2006.

FMO has been stakeholder of the Company since the last ten years and over the years the relationship has strengthened. This is one of the large investment commitments by FMO in India. As lender of record FMO expands the Company's funding basis by attracting long-term investors in the syndicate. Furthermore FMO supports the Company on environmental and social reporting issues. Mr. Wim Wienk Regional Director, FMO signed the agreement with the Company.

Mr. Wim Wienk of FMO and Mr. Hemant Kanoria - Vice Chairman and Managing Director of the Company described the contract as the strengthening of an intensive cooperation for the financing of infrastructure investments in India.

Speaking on this occasion, Mr. Hemant Kanoria, Vice Chairman & Managing Director, of the Company said, "Our association with FMO has been for more than over a decade now. The present commitment from FMO will definitely strengthen our relationship further. This amount will also provide us with the funds to extend assistance to small and medium enterprises involved in the infrastructure sector in India. We are extremely fortunate to have relationship with global institutions like FMO who have continuously supported our initiatives for the development and growth of infrastructure in our country."

The Company has researched extensively the paramount need to improve affordability of infrastructure equipments currently available in India, in order to move the industry more efficiently. In its core business of financing infrastructure construction equipment, the Company has been constantly increasing its presence in the market and now is the leading player among the non- banking financial institutions in India. The Company uniquely combines asset knowledge, structuring expertise and providing end-to-end solution, creative partnering and risk sharing of assets to provide holistic business expertise to customers and partners.

Source : Equity Bulls

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