The Hindu Business Line : SREI raises $45-m syndicated loan

EXCHANGING DOCUMENTS: Mr Hemant Kanoria, Vice-Chairman & MD, SREI, and Mr Wim Wienk, Regional Director, FMO, at a press conference in the Capital on Friday. - Ramesh Sharma

New Delhi , Sept. 15

SREI Infrastructure Finance Ltd has raised a long-term syndicated loan of $45 million (Rs 210 crore) from the Netherlands Development Finance Company (FMO).

While FMO accounts for $15 million of the loan, Fortis-Bank of Belgium and Cordiant Bank Canada, account for $15 million each.

"The funds would be used for infrastructure lending ," said Mr Hemant Kanoria, Vice-Chairman and Managing Director, SREI. The tenor of the term loan is five years. Mr Kanoria declined to share details regarding the cost of the finance. FMO also has an equity stake in the equity bank business of SREI.

Mr Wim Wienk, Regional Director, FMO, said that the company has a $200-million exposure in India ($100 million this year and $100 million next year). On a sectoral basis, he said FMO has invested in sectors, including infrastructure, telecom, equipment finance, steel and cement. "We aim to stimulate small and medium enterprise financing in India," he added.

FMO is looking closely at India and is open to increasing its exposure here.

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