Wednesday, January 17, 2007

EBRD invests Rs. 40 crores for a 15% stake in SREI’s Russian unit

SREI Infrastructure & Finance Limited is diluting a 15% stake in its Russian arm Zao SREI Leasing to The European Bank for Reconstruction & Development (EBRD) for a consideration of around Rs. 40 crores. Zao SREI Leasing is the wholly owned Russian subsidiary of Kolkata-based SREI Group and is held through the group’s German arm, IIS GmbH.

SREI has set up Zao SREI in 2005, and is involved in construction equipment leasing in Russia and CIS countries. It recently structured and financed work-over rigs to be deployed in West Siberia. SREI said its immediate plan was to extend presence from the capital Moscow to St. Petersburg and other regions in Russia. Apart from EBRD, few other strategic investors are also interested in picking up stake in the Russian arm of SREI. However, Zao SREI Leasing will continue to be a subsidiary of the SREI Group. In future, Zao SREI may participate in PPP projects like its parent company in India.

Read the Business Standard and The Economic Times articles.

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