Srei Infra defers plan to raise $1 bn for infra fund

MUMBAI: Srei Infrastructure Finance has deferred its plan to raise around USD 1 billion for its proposed infra fund in the current fiscal due to dollar scarcity in the global markets, sources in the company said.

The Kolkata-based infrastructure financing firm is now looking at raising the money in the first half of FY13 as it expects global situation to improve in the next fiscal.

"We have deferred our plan to raise USD 1 billion for the proposed infra fund as there is shortage of dollars in the global markets due to economic turmoil," the sources said, adding it will now raise the money in the first half of the next fiscal.

Srei was planning to raise USD1 billion via an infra equity fund to spend on roads, power and ports projects. Of the total amount, the first tranche worth USD 500 million was planned to be raised from overseas investors by March 2012.

As per the sources, the company may look at raising the money in a mixed currency portfolio than only on dollar depending on the situation.

Currently, Srei is in the process of raising Rs 300 crore through its maiden retail bond issue. The issue opened on December 31 will be closing on January 31.

The bonds, having a face value of Rs 1,000, will be issued in four series with an annual interest rate of 8.90 per cent for series 1 and 2, and 9.15 per cent for 3 and 4.

The bonds will have two maturity periods of 10 and 15 years and a lock-in period of five years and will be listed on the BSE after the lock-in period.

Srei is engaged in infrastructure project finance, development, advisory, infra equipment finance, investment banking, venture capital and insurance broking businesses.