New Delhi [India], Oct. 11 (ANI): Srei Group, and New Zealand's CBL Corporation Limited (CBL) have announced entering into an MOU with the intent to form a first of its kind 50:50 joint venture company offering surety and guarantee bonds in India.
This unique offering will reduce working capital needs of players in infrastructure and its allied sectors and shall facilitate project completions without delays; allowing companies to develop and grow their businesses.
"As of now, only banks provide such instruments in India and there is an urgent requirement to develop such products and offerings here. We are very proud to partner with CBL Corporation Limited to offer this unique financial solution to Indian businesses," said vice chairman, Srei Infrastructure Finance Ltd., Sunil Kanoria.
India is on the rise in terms of its infrastructure growth, and domestic businesses need to comply with the ever-changing requirements of the sector. The contractors who are undertaking projects across key sectors such as roads, energy, defence, telecommunication, and construction amongst others are the major harbingers of this growth.
However, even though the growth opportunity is immense, these contractors in most cases are faced with the challenge of working capital issues because of the traditional models of financing that continue to dominate Indian market.
"India is a vibrant and growing country full of special people. CBL and Srei Group's JV would add to India's growth aspirations by giving India's businesses greater options in the guarantee and bonding sector," said deputy chairman CBL, Alistair Hutchison.
Adding to this, Vikash Khandelwal, CEO of the proposed joint venture added, "We at Srei Group are excited about this collaboration. CBL's strong track record and experience in bonds, sureties and guarantees, and Srei Group's expertise and knowledge of the local market will create value for businesses across India. The Government's focus on the infrastructure space has improved business confidence and many new infrastructure projects are in the pipeline." (ANI)