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Finnfund loan to Indian leasing finance market

15/12/2005

SREI Infrastructure Finance Limited is an Indian financing company specialising in infrastructure equipment financing and infrastructure project financing, including energy, transport, telecommunications and mining. Finnfund has granted a long-term loan to the company.

In many emerging countries, investments in machinery and equipment are financed by leasing. It is difficult for small and medium-sized companies, in particular, to obtain long-term bank finance because of lack of collateral or principal difficulties in establishing Intia1.jpgcollaterals.

SREI Infrastructure Finance Limited of India  specialises in financing the building blocks of the economy. It finances power generation, including renewable energy, roads, ports, airports, telecommunications and mining. India’s economic infrastructure has been seriously neglected, especially in comparison with China’s, but investment has picked up sharply in the past few years. In most cases, the machinery and equipment, vehicles and other transport modes are leased. Many SREI customers are contractors and builders.

In developing countries, leasing finance is used for more than just machinery and equipment investments. Leasing is significantly more common than in, for example, Finland.

SREI has long experience of infrastructure sector

SREI is among the largest institutions in its field in India. It has long experience and comprehensive know-how regarding the infrastructure sector. It is independent of other Indian financial institutions and is quoted on the stock exchanges of Mumbai and London. Operations have grown steadily and the company has been profitable.

Finnfund has granted SREI a 5 million euro long-term loan. SREI has financed the purchase of machinery and equipment manufactured in Finland. However, Finnfund’s loan is not tied to imports from Finland.

SREI has also received finance from other bilateral and multilateral development finance companies, such as DEG of Germany, FMO of the Netherlands, BIO of Belgium and the IFC, part of the World Bank Group.

 

For further information at Finnfund please contact Mr Jyrki Halttunen,
tel. +358 9 3484 3318 or by email firstname.lastname@finnfund.fi