The Hindu Business Line : IIEL gets Rs 55-cr credit line from German bank

INDIAN Infrastructure Equipment Ltd (IIEL), a member of the Srei International Finance group, has been sanctioned a 10-million euro (Rs 55 crore) line of credit by Hypo-und Vereins Bank AG, Germany (HVB), one of the largest banks in Europe.

IIEL has also formed a new subsidiary outfit in Andhra Pradesh to cater to the needs of the southern region.

Talking to Business Line here today, Mr Sunil Kanoria, Chairman and Managing Director of IIEL, said the line of credit was mainly for sourcing construction and earthmoving equipment from European buyers. He said the German bank already had a working relationship with Srei International Finance in the area of equipment financing. IIEL manages Quipo, the equipment bank, which acquires, maintains, and rents a full range of infrastructure equipment.

Mr Kanoria, expressing satisfaction over such association with one of the largest banks in Europe, said the equipment bank concept was now gaining popularity in India, as evidenced by the spurt in business. He said Quipo actually helps users to bring down costs of direct purchase and also minimises operating expenditure on maintenance.

Srei currently has a stake of 24.75 per cent in IIEL with other major shareholders being IFC (Washington) and FMO (a financial institution of the Netherlands government) with 19.8 per cent each. Sounding upbeat over IIEL's foray in the southern region, Mr Kanoria said a new company by the name of NAC Infrastructure Equipment Ltd has already been set up in Hyderabad, mainly with the support of the AP Government. IIEL holds 50 per cent in this outfit and L&T 30 per cent. Mr Kanoria said NAC would soon be opening offices in Tamil Nadu, Karnataka and Kerala.

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