Srei BNP Paribas, a 50: 50 joint venture between Srei Infrastructure Finance (SIFL) and BNP Paribas Lease Group, today signed a loan agreement with Singapore's DBS Bank Limited for raising $50 million as external commercial borrowings (ECBs).
Spread over seven years, loan amount would be used to finance purchase of infrastructure equipment, said Sunil Kanoria, joint managing director, Srei BNP Paribas.
“The ECB will help us access long term funds, and the overall cost after hedging would be 8 per cent,” said Kanoria. This financial year the company planned to disburse about Rs 10,000 crore, he added. Last financial year Srei BNP Paribas disbursed about Rs 6,000 crore. To fund the growth plans, Srei BNP will raise about Rs 6000 crore this year, through a mix of ECB and domestic borrowings.
“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. In addition, it would raise about Rs 3,000 crore from internal accruals, added Kanoria.