The Hindu Business Line : SREI ties up with BNP Paribas Lease for equipment finance

NEW VENTURE: (from left) Mr Hemant Kanoria, Vice-Chairman and MD, and Mr M.S. Verma, Chairman, SREI Infrastructure Finance Ltd, with Mr Bertrand Gousset, Member of the Executive Committee, BNP Paribas Lease Group, at a press conference in Mumbai on Thursday. — Paul Noronha

Mumbai May 31 The Kolkata-based SREI Infrastructure Finance Ltd has entered into a 50:50 joint venture with BNP Paribas Lease Group (BPLG) for equipment finance in India. The joint venture formed will have an initial networth of Rs 800 crore.

"BPLG will invest Rs 775 crore in the joint venture while SREI plans to invest a sum of Rs 25 crore and on the assets side it will invest assets worth Rs 5,000 crore," said Mr Hemant Kanoria, Vice-Chairman and Managing Director of SREI.

He further said that, "Equipment finance requires a huge capital and with this infusion of Rs 800 crore we plan to grow our business further."

TO bring expertise

"The current infrastructure equipment (asset finance) business of SREI along with its insurance broking activity will be transferred to the joint venture," said Mr Kanoria.

The partners will bring their respective expertise and know-how as well as combine the strength of the SREI brand and the local expertise of SREI with the specialised equipment finance skills and global brand strength of BPLG, in order to further develop the equipment finance business.

Mr Kanoria said, "We are the largest player in the financing of infrastructure equipment and collaborating with BPLG will help in increasing our market share further and also expanding the product line into financing of agriculture, information technology, medical and other equipment."

SREI, a non-banking financial institution, proposes to focus on infrastructure project finance, fund management, investments, advisory and development business.

The SREI stocks went up by 19.97 per cent to Rs 71.80 on the BSE today.

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