By A Newsman
Kolkata, 11 October: CITY-headquartered Srei Group today inked a MoU with New Zealand’s CBL Corporation Limited to form a joint venture company that will offer surety and guarantee bonds to infrastructure and allied projects in India.
The JV will offer performance guarantees and sureties through bonds to its customers for participating in projects so to meet the working capital needs of real-estate developers. Contractors, who are undertaking projects across key sectors such as roads, energy, defence, telecommunication, and construction, etc. are likely to benefit the most.
Bringing in credit products such as sureties and guarantees which are widely used in other developed nations can help in bringing about a change, and these can also prove to be a solid alternative to bank guarantees, Srei said in an official statement.
Vikash Khandelwal, CEO designate of the proposed JV said that CBL’s strong track record and experience in bonds, sureties, and guarantees, and Srei Group’s expertise and knowledge of the local market will create value for the businesses across India.
Peter Harris, MD of CBL Corporation said that the decision to float a JV is the outcome of negotiations over the past one year. The JV will be 50:50 partnership, he said.