Proparco and the FMO join to finance an Indian financial institution

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Proparco and the FMO join to finance an Indian financial institution

Proparco to take part of FMO led syndicate to provide ECB of USD 70 million to SREI

Asset finance Company Srei Infrastructure Finance Ltd, India leading private sector infrastructure financing institution has entered into an agreement to raise 70 M$ senior loan syndicated by the Nederlands based FMO, one of the world’s largest bilateral private sector development banks. Proparco, the private sector investment arm of Agence Française de Développement (AFD), the leading French development finance agency, will take part of the loan through a 20 M$ funding dedicated to renewable energies and energy efficiency.

Due to the recent global financial crisis and limited channel of credit, project developers in the infrastructure sector have been adversely affected; the worst hit are small and medium size companies who depend on Non Banking Financial Companies (NBFCs) like Srei for their funding requirement. The government of India has set up a fiscal and monetary stimulus package with a focus on infrastructure creation. In this framework, a special refinance window has been opened allowing Infrastructure NBFCs like Srei to raise External Commercial Borrowings.

This syndicated loan will be used for funding infrastructure projects directly and also for leasing of infrastructure equipment. It will ensure that long term funds are available so that Srei can continue lending.

Proparco funding is in line with the strategy of the AFD Group in India focusing on promoting renewable energies. Srei has a long track record of investment and innovation in this sector.

About Srei Infrastructure Finance Ltd.

Funded in 1989, Srei is a Non Banking Financial Company, which is delivering innovative solutions to its customers, and thus playing a significant role in nation-building over a period of two decades, both in urban and rural India.

Srei’s businesses include Infrastructure Equipment Leasing & Finance, Project Finance, Advisory & Development, Insurance, Venture Capital and Capital Market. Srei is managing more than 2 bn$ assets and has a pan-India presence with a network of 51 branches and has also expanded overseas with offices in Russia and Germany.

Srei is the first Indian infrastructure financing institution to get listed on the London Stock Exchange. Srei Equipment Finance Pvt. Ltd. is a joint venture between Srei and BNP Paribas Lease Group, a wholly owned subsidiary of BNP Paribas; it will allow the development of assets financing.

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ABOUT US

Development Finance Institution, PROPARCO was created over 30 years ago on the conviction that the private sector plays a key role in the development of South countries.
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ACTIVITY

PROPARCO promotes private investment in emerging and developing countries with the aims of supporting growth, sustainable development and the Millenium Developement Goals.
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PRODUCTS & SERVICES

PROPARCO provides a full range of financial products tailored to the specific needs of investors in South countries.
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CSR AND IMPACTS

PROPARCO’s ambition is to promote accountable funding with a high level environmental, social and development standards. This approach is supported by its own Environmental and Social Impacts Unit.
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PROPARCO benefits from the support of regional offices implanted in intervention areas
PROPARCO in Southern Africa and Madagascar
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PROPARCO in North and Southeast Asia

FISEA

FISEA is an investment fund that makes equity investments in businesses, banks, microfinance institutions and investment funds operating in Sub-Saharan Africa. FISEA aims to be a lever for economic growth in this region.