SREI Infrastructure Finance announces JV with BNP Paribas

SREI Infrastructure Finance Ltd has informed that the Joint Venture ("JV") between SREI Infrastructure Finance Ltd ("SREI") and BNP Paribas Lease Group which was announced last year, will start operations as of April 03, 2008. SREI, one of the leading equipment finance Companies in India, specialized 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 into a newly formed JV. The operation has been made through a reserved capital increase for BNP Paribas Lease Group towards its acquisition of a 50% stake in the JV whilst SREI remains holder of the remaining 50% of the equity capital.

BNP Paribas Lease Group brings to the JV its specialized equipment finance skills, its international experience combined with the global strength of BNP Paribas. The JV 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 JV has received all necessary legal and statutory clearances.

Speaking on this occasion, Hemant Kanoria, Vice Chairman & Managing Director of SREI, said "This joint venture between BNP Paribas, one of the largest global banking institutions, and SREI will result in strengthening one of the strong 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."