Mumbai, May 31: Srei Infrastructure Finance has set up a 50:50 joint venture with BNP Paribas Lease Group, an arm of French financial services firm BNP Paribas. BNP Paribas Lease will invest Rs 775 crore in the joint venture, which will have an initial net worth of Rs 800 crore.

Calcutta-based Srei, which has a presence in infrastructure equipment business and wealth management services, has a net worth of about Rs 400 crore. It will invest up to Rs 25 crore in the joint venture. “We are the largest player in the financing of infrastructure equipment and collaborating with BNP Paribas Lease will increase our market share and help us expand into sectors such as agriculture, information technology and medical equipment,” said Hemant Kanoria, vice-chairman and managing director of Srei.

An independent chairman will head the new entity. Hemant Kanoria will be the managing director and Sunil Kanoria the joint managing director. The company will deal with infrastructure equipment financing and insurance broking (both life and non-life). Sunil Kanoria said, “BNP Paribas Lease has a strong brand visibility globally, which will help us gain more business for our construction equipment business and reduce the cost of funds.”