|
|  |
| Exim Bank of India Trade Finance |
|
| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 27868 |
| Company name | Export-Import Bank of India |
| Country | India |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | Active |
|
| Date SPI disclosed | April 9, 2009 |
| Projected board date | May 28, 2009 |
| Previous Events | Invested: June 22, 2009
Signed: June 16, 2009
Approved: June 12, 2009 |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Export-Import Bank of India (“Exim Bank”) was formed in 1981 under the Export-Import Bank of India Act, and is a financial institution whose capital has been wholly subscribed by the Government of India. Exim Bank provides financial assistance to exporters and importers and also aims to develop relationships with export-oriented companies by assisting them in various capacities such as identifying overseas markets, providing loans and guarantees and export credit. Its non-institutional clients include mainly private sector entities.
The proposal is to extend a loan of up to $60 million ($30 million for IFC’s account, $30 million to be mobilized from at least one commercial private sector bank) for a tenor of up to 6 months. The proceeds of the IFC loan will be mainly used to extend loans to the SME exporters in the private sector to finance their exports. |
|
| Project sponsor and major shareholders of project company |
| The capital of Exim Bank is wholly subscribed by the Government of India. Exim Bank has been a client of IFC. |
| Total project cost and amount and nature of IFC's investment |
| The proposed investment is in the form of a short term loan of up to $60 million, for a tenor of up to six months. $ 30 million will be provided directly by IFC and $30 million will be mobilized from at least one other financial institution / commercial bank in the private sector. |
| Location of project and description of site |
| Exim Bank is headquartered in Mumbai, India. It has nine domestic offices and six overseas offices. |
|
| Anticipated development impact of the project |
- Access to finance for the SME sector: IFC’s portion of the loan will be used by the Bank mainly to on-lend to the export-oriented SME sector.
- Support for International Trade: The project will support international trade as it will help corporates including SMEs secure financing to execute their export orders which may currently be held in abeyance for the lack of financing.
- Relationship with Government of India: The loan will be extended to an undertaking, 100% owned by the Government of India engaged in export promotion activities and will demonstrate IFC’s commitment in supporting the exports and the SME sector and the economy at a time of an economic downturn. |
 |
| IFC's expected development contribution |
| IFC’s support to Exim Bank through this transaction may be helpful in sustaining international credit flows to India. IFC will also focus on mobilizing an equivalent amount from the market. |
| Environmental and social issues - Category FI |
This project involves IFC support for the business of trade finance and has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Considering the nature of activities supported, the project will be required to:
- Develop a procedure relevant to its business process, prior to disbursement, that is satisfactory to IFC, and that ensures that all its proposals are screened and processed to avoid supporting activities on the FI exclusion list
- Identify qualified persons to manage and implement the procedure
- Demonstrate commitment and resources to implementing the procedure
- Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions
- Submit a periodic report to IFC as per a format to be provided by IFC |
|
| For inquiries about the project, contact: |
Mr. R. W. Khanna
Chief General Manager
Center One Building, World Trade Center Complex, Cuffe Parade, Mumbai 400005, India
Telephone: +91 22 2217 2641
Fax: +91 22 2218 2497 |
|
| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
|
|
|
|
|