Srei BNP Paribas, a 50:50 joint venture between SREI Infrastructure Finance and BNP Paribas Lease Group, have signed a loan agreement to raise $ 50 million from overseas markets, a press release from SREI BNP Paribas said.
The funds will be raised through external commercial borrowings (ECB) from Singapore’s DBS Bank.
Spread over seven years, the loan amount would be used to finance purchase of infrastructure equipment in India, Sunil Kanoria, joint managing director of SREI BNP Paribas said.
“The ECB will help us access long term funds, and the overall cost after hedging would be 8 per cent,” he added.
The development assumes special significance against a backdrop of huge investments being made by the government and private sector towards massive infrastructure development of the country, the press release said.
“The country’s growth trajectory has moved up. With investment in the infrastructure sector targeted at $1 trillion in the 12th Five Year Plan, the scope for infrastructure equipment financing is immense,” Sunil Kanoria added.