“With the strong infrastructure push from the government, construction equipment demand will remain strong,” said Vyas. Construction equipment financing sector is likely to grow at a CAGR of 20-21 per cent between 2017-18 and 2020-21.
“The construction sector in India has been experiencing significant growth over the past few years, and with it, the demand for equipment leasing has gone up.
“The loan facility agreed by Srei Equipment Finance and NIB will provide financing and support cooperation between Indian enterprises and Nordic equipment manu-facturers,” said Henrik Normann, NIB president and CEO.
Earthmoving and mining equipment, road construction and material processing are some of the broad sectors within construction equipment.
The Nordic Investment Bank (NIB) and Srei Equipment Finance Limited, the wholly owned subsidiary of Srei Infrastructure Finance, have agreed on a 20-million-euro loan programme for financing the acquisition or leasing of industrial equipment designed or produced in the NIB’s member countries.
The loan has a maturity period of eight years. The funds from the programme will be used to finance acquisitions and leasing of industrial equipment designed or supplied by equipment manufacturers in NIB’s member countries to Indian enterprises.
Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden are the member countries of NIB.
Atlas Copco, Sandvik, Scania, Volvo are among some of the prominent manufacturers from the region.
“This facility would enable original equipment manufacturers and customers of the Nordic region to understand the thriving opportunities in the Indian construction equipment market through Srei and participate in the growth story. For us, it is a win-win situation and we stand committed with NIB to accomplish our common objectives,” said Devendra Kumar Vyas, CEO of Srei Equipment Finance.
The Telegraph