SREI BNP Paribas to raise $50 mn through ECB

SREI BNP Paribas to raise $50 mn through ECB

Kolkata: SREI BNP Paribas, a 50:50 joint venture between SREI Infrastructure Finance Ltd and BNP Paribas Lease Group, is planning to raise $50 million, Sunil Kanoria, joint managing director, SREI BNP Paribas, said.

The funds will be raised through External Commerical Borrowing (ECB) from DBS Bank Ltd, he added.

The money would be repaid over a period of 7 years and the average cost works out to be around 8%, he said.

“It’s a long-term funding, so it will help us to disburse longer tenure loans particularly in the infrastructure sector," Kanoria said.

“With the demand for loans increasing, particularly in the infrastructure space, our fresh disbursal during FY11 would be in the region of Rs9,000-Rs10,000 crore," Kanoria said.

To fund this, the company would be raising Rs5,000-6,000 crore during 2010-11, he added.