Export-Import Bank of India (EXIM) Bank
has been playing a unique
role in supporting Indian direct investment abroad since its inception.
It acts as a nodal agency for financing the overseas investments by Indian
firms. It has been facilitating Indian corporates’ access to new
markets and technologies, and thereby enhancing their international competitiveness.
It offers financial assistance to Indian companies to enable them to establish
their products in overseas markets.
EXIM Bank was established as a wholly
Government-owned financial institution, under the Export-Import
Bank of India Act, 1981, by relocating International Finance Division
of Industrial Development
Bank of India (IDBI), which had first initiated a program of rupee
term loans to Indian companies towards their equity contribution in overseas
ventures. Since then, EXIM Bank has been involved in supporting Indian
direct investment overseas and has developed its financing programme further
and enlarged its scope from time to time:-
- It offers a range of fund and non-fund based support to enhance the export competitiveness of Indian companies.
- Its major operations comprise financing
projects, products and services exports, building export competitiveness,
promotional programmes and financing research and development activities
of exporting companies.
- It provides information, advisory
and support services to enable exporters to evaluate international risks,
exploit export opportunities and improve their competitiveness.
- It assists Indian companies in identifying
technology suppliers, partners and in consummation of domestic and overseas
joint ventures.
- It also provides market driven export-financing
solutions for small and medium sized Indian exporters.
The bank has launched a 'Overseas
Investment Finance (OIF)' programme which seeks to cover the entire
cycle of Indian investment overseas including the financing requirements
of Indian Joint Ventures (JV) and Wholly Owned Subsidiaries (WOS) with
the help of the following financing instruments:-
- Loan against investment in share
capital.
- Loan against Indian promoter company’s
loan.
- Loans to Overseas Indian Ventures.
- Non-fund based facilities to Indian
Overseas Ventures.
- Finance for direct equity Investment.
- Direct Finance, that is, the term and
working capital to the overseas ventures.
- Finance for equity or debt component
for acquisition of overseas businesses or companies including leveraged
buy-outs including structured financing options.
Many other banks provide the necessary financial support for overseas investment. For example, State
Bank of India (SBI). It's International
Banking Group delivers the full range of cross-border finance solutions
through its four divisions:- (i) the Domestic division; (ii) the Foreign
Offices division; (iii) the Foreign Department; and (iv) the International
Services division. The bank has a network of 66 offices/branches in 29
countries. It's offshore joint ventures and subsidiaries enhance its global
stature.
Its Trade
finance facilities include:-
- Rupee Export Credit (Pre-Shipment
and Post-Shipment)
- Pre-Shipment Export Credit
- Post-Shipment Export Credit
- Pre-Shipment Credit in Foreign Currency (PCFC)
- Getting Started - Opening a PCFC
- Operating PCFC
- Export Bill Rediscounting
- Letter of Credit
- Foreign Currency import credit
SBI's Merchant
Banking Group specialize in the arrangement of various forms of Foreign
Currency Credits for Corporates through:-
- Commercial loans
- Syndicated loans
- Lines of Credit from Foreign Banks and Financial
Institutions
- FCNR loans
- Loans from Export Credit Agencies
- Financing of Imports.
