In a capital starved economy, the Indian equipment rental firm SREI Infrastructure Finance has secured an $100 million loan by way of external commercial borrowing from a consortium led by FMO of the Netherlands.
The loan amount will be used to help grow the London Stock Exchange-listed SREI’s infrastructure project finance as well as equipment financing business. FMO has syndicated the loan as the lead lender. The other lenders include DEG of Germany and Proparco of France. The loan will be sanctioned after the approval of Reserve Bank of India (RBI).
Kanoria said there is no long term debt available in the domestic market at the moment, while urging RBI to relax some of the clauses for overseas borrowing by non-banking finance companies (NBFCs). Currently, NBFCs are allowed to borrow from multilateral and bilateral funding institutions and not banks.