Kolkata, September 05, 2020.
With the successful close of an export financing transaction, KfW IPEX-Bank is enabling the export of construction machinery for Srei Equipment Finance Limited (“SEFL”) to India by providing a framework loan of EUR 10 million. The financing is backed by cover from Euler Hermes.
Through this commitment, KfW IPEX-Bank is helping to provide modern and energy-efficient construction machinery for use in Indian infrastructure projects. The financed machinery from a German construction machine manufacturer includes asphalt machines, road pavers and rollers.
“Particularly in these times it is important to actively support the German and European export industry,” explains Andreas Ufer, Member of the Management Board of KfW IPEX-Bank. “This financing is so successful because we were able to rely on a framework cover agreement with Euler Hermes – this enables us to finance technical equipment of a lower value under an international export financing agreement.”
Conveying his appreciation, Devendra Kumar Vyas, Managing Director, SEFL, said: “It is indeed encouraging to witness KfW IPEX-Bank’s continued partnership with us. We at Srei have always believed in creating an equipment life cycle solution for our customers and in that endeavour, manufacturer partnerships become crucial. This initiative will help our German and European manufacturing partners to benefit from our strong customer connect in addition to our agile risk understanding in credit buying. We look forward to more such programmes in the future.”
The borrower is SEFL, which was set up in 2008 to pool orders from individual Indian construction companies and make the newly ordered machines available to the respective users.
With this financing, KfW IPEX-Bank is underscoring its pledge to support the German and European export industry, even in economically challenging times.