The Hindu Business Line : Good response to Srei $50-m ECB float

The $50-million syndicated external commercial borrowing (ECB) loan floated by Srei Infrastructure Finance Ltd (Srei) has received an overwhelming response from the international community. It is learnt that the participating banks have expressed interest in participating for much larger amounts than what could be allotted under the existing ECB approval.

Talking to Business Line here today, Mr Hemant Kanoria, Managing Director of the company, said since only a few international banks would be accommodated in this loan, Srei has approached the Reserve Bank for further approval. The debt instrument, for financing infrastructure equipment, carries a price band of 1.4-1.7 per cent over Libor (against the usual 2 per cent over Libor). HSBC is the book runner and mandated lead arranger.

Equipment financing

Mr Kanoria said the company's equipment financing business in the current fiscal was well within the targeted growth projections, "and we have been able to manage our loans and liabilities well".

He said owing to the big response from international investors, Srei has been able to continuously manage costs within acceptable limits.

Mr Kanoria said the board has also approved an amendment in the resolution (after the recent EGM) regarding raising of capital in one or more tranches.

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