Oct 11: Srei Group, part of the Kanoria Foundation, and New Zealand’s CBL Corporation Ltd (CBL) have entered into an MoU to form a first of its kind 50:50 joint venture company to offer surety and guarantee bonds in India.
According to Srei Infrastructure Finance Ltd, a Srei group firm, the joint venture company will offer performance guarantees and sureties through bonds to its customers in India for participating in projects in the infrastructure and allied sectors. This unique offering will reduce working capital needs of the players and shall facilitate project completions without delays, and allow them to develop and grow their businesses, it said.
Commenting on the JV, Sunil Kanoria, Vice Chairman, Srei Infrastructure Finance Ltd, said, “in developed nations like USA, Canada, Germany, a bid bond or surety or performance guarantee is a part of pre-qualification criteria for bidders, especially for government sponsored infrastructure projects. In India, the market for such instruments has not yet developed. 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 Ltd to offer this unique financial solution to Indian businesses.”
Based in Kolkata, Srei Infrastructure Finance Ltd is a non-banking finance company (NBFC). Shares of the company were trading at Rs 111.90, up 0.58% from the previous closing of Rs 111.25, on BSE at 2.33 pm today.