The joint venture between SREI Infrastructure Finance Limited (SREI) and BNP Paribas Lease Group which was announced last year, will start operations as of today.
SREI, one of the largest equipment finance companies in India, specialising in the infrastructure sector, had entered with BNP Paribas Lease Group, a 100% BNP Paribas subsidiary focused on equipment financing related services, into an agreement wherein the asset finance division of SREI is brought in a newly formed joint venture.
The operation has been made through a reserved capital increase for BNP Paribas Lease Group towards its acquisition of a 50% stake in the joint venture whilst SREI remains holder of the remaining 50% of the equity capital.
BNP Paribas Lease Group brings to the joint venture its specialised equipment finance skills, its international experience combined with the global strength of BNP Paribas The joint venture will also benefit from the significant brand value that SREI has already created in the Indian infrastructure equipment sector.
SREI is already the largest player in the financing of infrastructure equipment in India and the partnership with BNP Paribas Lease Group is aimed at increasing further the leadership of the business in its core market whilst expanding the product line further into financing of agriculture, information technology and medical and other equipment. Furthermore, this partnership is also expected to result in a reduction in the cost of funding the operations. The joint venture has received all necessary legal and statutory clearances.
“This joint venture between BNP Paribas, one of the largest global banking institutions, and SREI will result in strengthening one of the strongest equipment financing institutions which would immensely benefit all stakeholders. In SREI’s journey towards being the largest infrastructure financial institution with all financial products and services, it is an important milestone. With this, our asset base as a group will multiply into billions of dollars,” says Hemant Kanoria, vice chairman and managing director, SREI.
“We are delighted to be associated in this new Joint Venture with SREI which is an experienced and powerful partner having a pan-India coverage. It is critical for BNP Paribas Lease Group to be in India, to serve our clients in their own development projects. This partnership further evidences the willingness of the BNP Paribas Group to expand its presence in India in activities where it has a strong expertise and therefore to participate in the financing of the development of the Indian economy,” adds Bertrand Gousset, member of the Executive Committee of BNP Paribas Lease Group.