Export-Import Bank is the premier export finance institution of India. The institution has been established by the Government of India in 1982 under Export-Import Bank of India Act 1981. Exim Bank has played a pioneering role in promoting project exports from India and has been actively encouraging Indian firms to participate in overseas project opportunities. With Exim Banks’ support, many Indian companies have been executing projects in overseas markets.
Services by Exim Bank
Buyers Credit under NEIA
In order to provide further impetus to project exports from India, especially in the infrastructure sector, Exim Bank, in April 2011, in conjunction with ECGC Ltd., introduced a new initiative, Buyer’s Credit under Government of India (GOI)’s National Export Insurance Account (NEIA), under which the Bank finances and facilitates project exports from India.
Buyer’s Credit – NEIA is a unique financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters and serves as an effective market entry tool to traditional as well as new markets in developing countries, which need deferred credit on medium or long term basis.
NEIA is a Trust, set up by the Ministry of Commerce and Industry (MOCI), Government of India, for providing medium to long term export credit insurance cover for promoting project exports from India, administered by ECGC Ltd.
Under Corporate Banking Exim Bank will provide Financial Assitance to Corporates, SME Sector and Grassroot Enterprises
Line of Credit
Exim Bank is extending Lines of Credit (LOC) to enable Indian exporters to enter new geographies or expand their business in existing export markets without any payment risk from overseas importers.
Also, it extends LOCs to overseas financial institutions, regional development banks, sovereign governments, and other entities overseas, to enable buyers in those countries to import developmental and infrastructure projects, equipment, goods and services from India, on deferred credit terms.
Overseas Investment finance
a) Term loans to Indian companies for Equity investment in their overseas Joint Venture (JV)/Wholly Owned Subsidiaries (WOS) Onward lending to their overseas JV/WOS.
b) Term loans to overseas JV/WOS of Indian Companies towards part financing:
Capital expenditure towards the acquisition of assets
Working capital requirements
Equity investment in another company
Acquisition of brands/patents/rights/other IPR
Acquisition of another company
Any other activity that would otherwise be eligible for finance from Exim Bank had it been an Indian entity
Guarantee facility to the overseas JV/WOS for raising term loans/working capital
a) Funded Facilities
i) Pre-shipment Credit
ii) Post-shipment Credit
iii) Export Project Cash Flow Deficit Finance (EPCDF)
b) Non funded Facilities
i)Advance Payment Guarantee (APG)
ii)Performance Guarantee (PG):
iii)Retention Money Guarantee (RMG):
c) Confirmation of letters of credit (L/C) by Exim bank under the Global trade finance program (GTFP) of the International Finance Corporation (IFC), Washington DC.