SREI-BNP Paribas Lease Group announce joint ventureApril 5th, 2008 - 1:09 pm ICT by admin
Paris, April 5 (IANS) A joint venture between SREI Infrastructure Finance Ltd. of India and BNP Paribas Lease Group of France has begun operations in Kolkata this week in the area of infrastructure equipment financing, it was announced here. SREI, a leading equipment finance company specialising in the infrastructure sector, and BNP Paribas Lease Group (BPLG), a 100 percent BNP Paribas subsidiary focused on equipment financing-related services, have entered into an agreement which brings the asset finance division of SREI into the newly formed joint venture.
BNP Paribas Lease Group brings to the 50:50 joint venture its specialised equipment finance skills, international experience and 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, BNP Paribas said in a statement issued here Friday.
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 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.
This partnership is also expected to result in a reduction in the cost of funding the operations.
Hemant Kanoria, vice chairman and managing director of SREI, said the joint venture “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.”
Bertrand Gousset, a member of the BPLG executive committee, added: “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.”
SREI is one of India’s leading private sector infrastructure equipment finance, project finance and project advisory and development services companies. It has also developed strong expertise in investment banking, venture funds and insurance broking.
The company operates across India with a network of 51 offices and has expanded its operations overseas in Russia. SREI was the first Indian infrastructure financing company to be listed on the London Stock Exchange.
Its stakeholders include the World Bank’s International Finance Corporation (IFC) and the state financial institutions of Germany, the Netherlands, Belgium and Finland.
BNP Paribas Lease Group has been in this market for over 50 years and is the French and European market leader. It offers manufacturers, importers and distributors of logistics and software editors a comprehensive service to finance their sales and, with them, develops local, national and international partnerships, which range from advisory agreements to joint financing companies.
BNP Paribas Lease Group also provides and manages the asset and real estate lease-financing services that the BNP Paribas banking network offers its customers. It operates in 17 countries.
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