SREI International Finance has roped in BIO of Belgium for a Rs 25 crore (Rs 250 million) investment for funding of infrastructure equipment and renewable energy products.

"The tie-up with BIO is another forward looking step in the growth path charted out by SREI and will further strengthen our position in the infrastructure financing market," SREI managing director Hemant Kanoria said after getting the nod from Foreign Investment Promotion Board.

The Belgian state-owned company BIO will invest Euro 5 million (about Rs 25 crore) in the country's leading infrastructure finance company using the unique mezzanine capital route without changing the shareholding pattern.

BIO is the fourth multilateral agency to invest in SREI after World Bank's private lending arm International Finance Corporation, DEG of Germany and FMO of The Netherlands.

IFC has about 9.18 per cent interest in SREI, while DEG of Germany has 3.53 per cent stake and FMO of The Netherlands about 6.18 per cent.

Apart from equity investments, SREI also has taken loans from the multilateral funding agencies.

Referring to the first of its kind investment by a Belgian company in India, Kanoria said: "The funds will be used exclusively for financing infrastructure equipment and renewable energy products."

The unique funding route from a European company assumes importance for SREI especially at a time when infrastructure sector has being accorded the highest priority by government.

So far, SREI has financed infrastructure construction equipment and projects in sectors of power, roads, ports and urban development.