Calcutta, March 29: Srei Infrastructure Finance Ltd has raised $50 million through an external commercial borrowing (ECB) syndicated by 11 foreign and Indian banks.

The non-banking infrastructure finance company today signed an agreement for the deal with Hong Kong and Shanghai Banking Corporation, the lead arranger of the issue which will contribute $5 million.

“We will receive part disbursement of the fund ($50 million) by Friday and the remaining amount in the next one to two months,” said Sunil Kanoria, director, Srei Infrastructure Finance Ltd.

“The fund so raised will be used to finance infrastructure equipment,” said Hemant Kanoria, vice-chairman and managing director of the company.

The ECB with a 12-year maturity will cost Srei an interest rate of 1.7 per cent above the London Interbank Offered Rate (Libor). Srei would have to pay a higher rate had it raised the loan from the domestic market.

“The company has identified road, power, airport and port projects in that priority for financing,” said a company official.

Encouraged by the response to the ECB issue, Kanoria said the company will approach the RBI for more overseas borrowing.