Srei Equipment Fin Receives EoIs From Global PE Players For Infusions Of Up To $ 250M
Srei Equipment Finance, a wholly-owned subsidiary of Srei Infrastructure Finance, announced Thursday that it has received expressions of interest (EoIs) from international private equity investors for a capital injection of up to $ 250 million. The PE funds are arena investors from the USA and Makara Capital Partners from Singapore.
In particular, the Reserve Bank of India appointed an auditor last November to conduct a special audit for Srei Infrastructure Finance and Srei Equipment Finance (SEFL).
SEFL’s strategic coordination committee, chaired by independent director Malay Mukherjee, will coordinate, negotiate and finalize discussions with PE investors to bring the capital into the business and advise management, Srei Infrastructure Finance said in a listing. Ernst & Young will advise the committee on the proposed fundraising campaign.
“The SCC is conducting an independent investor identification process and has expressed interest from Arena Investors and Makara Capital Partners. This process runs in parallel with the debt realignment plan. The SCC will hold talks with potential investors to raise new capital for the company, which will cushion the stress caused by pandemics in India’s financial services sector, ”the statement said.
Srei has a consolidated debt to Indian banks of around Rs 20,000 and bonds and other financial institutions of around Rs 10,000.
In a separate listing on Thursday, Chairman Hemant Kanoria informed investors that Srei would see concrete commitment / progress in the areas of debt realignment over the coming months through a consultation process across different creditor classes under the auspices of the NCLT or as expected advice the commercial banks and capital raising plans to support the capital base in Srei Equipment Finance, the operating company.
Interestingly, Brickwork Ratings (BWR) downgraded SIFL’s long-term ratings for the innovative instrument of perpetual indebtedness from “BWR BB” / Credit Watch with negative effects to “BWR D”. “The rating downgrade is due to continuous delays in meeting debt repayment obligations by SEFL and the applicability of SWR’s cross-default policy, which complies with SEBI guidelines,” said the rating agency.
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