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EXim bank

EXim bank

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Published by: saps156 on Sep 21, 2010
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THE INSTITUTION Export-Import Bank of India is the premier export finance institution of the country, set up in 1982 under the Export-Import Bank of India Act 1981. Government of India launched the institution with a mandate, not just to enhance exports from India, but to integrate the country¶s foreign trade and investment with the overall economic growth. Since its inception, Exim Bank of India has been both a catalyst and a key player in the promotion of cross border trade and investment. Commencing operations as a purveyor of export credit, like other Export Credit Agencies in the world, Exim Bank of India has, over the period, evolved into an institution that plays a major role in partnering Indian industries, particularly the Small and Medium Enterprises, in their globalisation efforts, through a wide range of products and services offered at all stages of the business cycle, starting from import of technology and export product development to export production, export marketing, pre-shipment and post-shipment and overseas investment.


Exim Bank of India has been the prime mover in encouraging project exports from India. The Bank provides Indian project exporters with a comprehensive range of services to enhance the prospect of their securing export contracts, particularly those funded by Multilateral Funding Agencies like the World Bank, Asian Development Bank, African Development Bank and European Bank for Reconstruction and Development. The Bank extends lines of credit to overseas financial institutions, foreign governments and their agencies, enabling them to finance imports of goods and services from India on deferred credit terms. Exim Bank¶s lines of Credit obviate credit risks for Indian exporters and are of particular relevance to SME exporters. The Bank¶s Overseas Investment Finance programme offers a variety of facilities for Indian investments and acquisitions overseas. The facilities include loan to Indian companies for equity participation in overseas ventures, direct equity participation by Exim Bank in the overseas venture and non-funded facilities such as letters of credit and guarantees to facilitate local borrowings by the overseas venture. The Bank provides financial assistance by way of term loans in Indian rupees/foreign currencies for setting up new production facility, expansion/modernization/upgradation of existing facilities and for acquisition of production equipment/technology. Such facilities particularly help export oriented Small and Medium Enterprises for creation of export capabilities and enhancement of international competitiveness.




the Bank has put in place the Export Marketing Services (EMS) Programme. and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country¶s international trade«´ ³« shall act on business principles with due regard to public interest´ : The Export-Import Bank of India Act. 1981 Evolving Vision . starting from identification of prospective business partners to facilitating placement of final orders. on best efforts basis. y y In order to assist the Small and Medium Enterprises. The programme is intended to benefit rural poor through creation of export capability in rural enterprises. the Bank seeks to establish. y Exim Bank supplements its financing programmes with a wide range of value-added information. Through EMS. thereby helping them in their globalisation efforts. Exim Bank supports Small and Medium Enterprises in their export marketing efforts including financing the soft expenditure relating to implementation of strategic and systematic export market development plans. The Bank has launched the Rural Initiatives Programme with the objective of linking Indian rural industry to the global market. The service is provided on success fee basis. advisory and support services. which enable exporters to evaluate international risks. exploit export opportunities and improve competitiveness. :: OBJECTIVES ³« for providing financial assistance to exporters and importers.y Under its Export Marketing Finance programme. SME sector products in overseas markets.


Exim Bank can now accord clearance to project export proposals up to US$ 100 million in value. The Working Group comprises Exim Bank. This interinstitutional Working Group accords clearance to contracts (at the post-award stage) sponsored by commercial bank or Exim Bank. a source of finance. Export Credit Guarantee Corporation of India Ltd. . On its own. Commerce.FINANCE & SERVICES :: INTRODUCTION: Exim Bank plays four-pronged role with regard to India's foreign trade: those of a coordintator. Government of India representatives (Ministries of Finance. and commercial banks who are authorised foreign exchange dealers. Exim Bank is the Coordinator of the Working Group Mechanism for clearance of Project and Services Exports and Deferred Payment Exports (for amounts above a certain value currently US$ 100 million). Reserve Bank of India.and operates as a one-window mechanism for clearance of term export proposals. External Affairs). consultant and promoter.

Exim Bank's facility helps them meet these expenses. For Project Exporters Indian project exporters incur Rupee expenditure while executing overseas project export contracts i. so that they can. personnel and equipment etc.e.:: EXPORT CREDITS Exim Bank offers the following Export Credit facilities. commercial banks and overseas entities. which can be availed of by Indian companies. in turn. costs of mobilisation/acquisition of materials. Guarantee Facilities Indian companies can avail of these to furnish requisite guarantees to facilitate execution of export contracts and import transactions. extend term credit to overseas importers.enabling exporters to purchase raw materials and other inputs. For Indian Companies executing contracts overseas Pre-shipment credit Exim Bank's Pre-shipment Credit facility. Supplier's Credit This facility enables Indian exporters to extend term credit to importers (overseas) of eligible goods at the post-shipment stage. provides access to finance at the manufacturing stage . in Indian Rupees and foreign currency. . For Exporters of Consultancy and Technological Services Exim Bank offers a special credit facility to Indian exporters of consultancy and technology services.

Eligible Goods Capital goods. We also offer Refinance of Supplier's Credit. can avail of credit under our Finance for Deemed Exports facility. Other Facilities for Indian Companies Indian companies executing contracts within India. industrial manufactures. aimed at helping them meet cash flow deficits. consumer durables and any other items eligible for being exported under the 'Exim Policy' of the Government of India. who in turn extend them credit over 180 days to importers overseas. but which are categorized as Deemed Exports in the Foreign Trade Policy of India or contracts secured under international competitive bidding or contracts under which payments are received in foreign currency. For Overseas Entities Buyer's Credit Overseas buyers can avail of Buyer's Credit from Exim Bank. . with usance not exceeding 90 days. enabling commercial banks to offer credit to Indian exporters of eligible goods. plant and machinery. enabling them to rediscount export bills of their SSI customers. for import of eligible goods from India on deferred payment terms.For commercial Banks Exim Bank offers Rediscounting Facility to commercial banks.

:: FINANCE FOR EXPORT ORIENTED UNITS Term Finance (For Exporting Companies) y y y y y y Project Finance Equipment Finance Import of Technology & Related Services Domestic Acquisitions of businesses/companies/brands Export Product Development/ Research & Development General Corporate Finance Working Capital Finance (For Exporting Companies) y Funded o Working Capital Term Loans [< 2 years] o Long Term Working Capital [upto 5 years] o Export Bills Discounting o Export Packing Credit o Cash Flow financing y Non-Funded o Letter of Credit Limits o Guarantee Limits Working Capital Finance (For Non.Exporting Companies) y Bulk Import of Raw Material Term Finance (For Non.Exporting Companies) y Import of Equipment .

a company producing hybrid seeds of sunflower. y y y Direct Equity by Exim Bank in the overseas JV/ WOS of an Indian Company . inter alia. corn. Mumbai based United Phosphorus. with support from Exim Bank. includes new project/ expansion/ acquisition of business/company/ brands/research & development) :: OVERSEAS INVESTMENT FINANCE y Finance for Indian Company's equity participation in the overseas Joint Venture (JV)/ Wholly Owned Subsidiary (WOS) Direct Finance (Term & Working Capital) to the overseas JV / WOS Finance (for equity/debt component) for acquisition of overseas businesses / companies including leveraged buy-outs including structured financing options Manufacturing facility of 'Advanta Semillas'. in addtion to Argentina. sorghum etc. has acquired Advanta which has similar facilities in Australia and Thailand. Argentina.Export Finance y y y y y y y y Pre-shipment Credit Post Shipment Credit Buyers' Credit Suppliers' Credit [including deferred payment credit] Bills Discounting Export Receivables Financing Warehousing Finance Export Lines of Credit (Non-recourse finance) Equity Participation (In Indian Exporting Companies) y To part finance project expenditure(Project.

6. especially to SMEs. Exim Bank signs agreement with Borrower and announces when effective. The Indian exporters can obtain payment of eligible value from Exim Bank. 3. Exim Bankreimburses Commercial bank on receipt of claim by debit to borrower. 4. Borrower approves contract. and serves as an effective market entry tool. Exporter ships goods. regional development banks. without recourse to them. Procedural flow chart 1. 7. sovereign governments and other entities overseas.:: LINES OF CREDIT : INTRODUTION Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions. . 5. to import goods and services from India on deferred credit terms. against negotiation of shipping documents. Borrower repays Exim Bank on due date. Commercial bank negotiates shipping documents and pays exporter. 8. 9. Exporter checks procedures and Service fee with Exim Bank and negotiates contract with Importer. Exim Bank approves contract and advises borrower and also exporter and commercial bank. to enable buyers in those countries. 2. Importer consults borrower and signs contract with exporter. LOC is a financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters.

consumer durables and any other items eligible for being exported under the 'Exim Policy' of the Government of India.Eligible Goods Capital goods. plant and machinery. payable by the exporters on the contracts to be covered under the relative LOC. details of service fee and other charges. :: EXPORT SERVICES ADVISORY SERVICES: MULTILATERAL AGENCIES FUNDED PROJECTS OVERSEAS (MFPO) Information and support services to Indian companies to help improve their prospects for securing business in multilateral agencies funded projects. y For terms and particulars of specific LOCs. General y Exporters are advised to check with Exim Bank before finalizing the contracts with the buyers. Policies. Capability Profile Bid Intervention . Practices of Multilateral Agencies Assistance for Registration with Multilateral Agencies Advising Indian companies on preparation of Expression of Interest. industrial manufactures. y y y y y y Dissemination of business opportunities in funded projects Providing detailed information on projects of interest Information on Procurement Guidelines. if any. please refer to relevant brochures available with Exim Bank's offices in India.

Washington D.Ghana Financial Training .Vietnam Textile .Cameroon Software .C. Eastern & Southern African Trade & Development Bank (PTA Bank) African Management Services Company (AMSCO).Madagascar Wool Knitting . Regional cooperation in export finance and export credit guarantees for ESCAP.PROMOTING INDIAN CONSULTANCY Tie-up with: y y y International Finance Corporation. Netherlands Examples: y y y y y y y y Gems & Jewellery Study .Poland EXIM BANK AS A CONSULTANT y y y y y y y y y y y y Feasibility study for establishment of an export credit and guarantee facility for Gulf Cooperation Council countries. Setting up the Afrexim Bank Designing of Export Financing Programmes .Zambia Financial Training Mission . Study on promotion of international competitiveness and exports of manufactured goods for ESCAP.Nigeria Refrigeration .Turkey Setting up an Exim Bank in Malaysia Designing of Export Marketing Seminars for SMEs in Vietnam Export Development Project: Ukraine Enterprise Support Fund: Armenia Establishing an Export Credit Guarantee Company in Zimbabwe Advisory services to Industrial Development Corporation of South Africa for international finance products Study on Projecting Mauritius as an Investment Hub for Indian Firms .Kenya Cement Project .

Others . starting from identification of prospective business partners to facilitating placement of final orders.y Blue Print for setting up of an Exim Bank in Zimbabwe Export Marketing Services The Bank provides assistance to Indian companies. Food Processing . to enable them establish their products in overseas markets through its Export Marketing Services. spices and condiments Office Stationery Ayurveda medicines/cosmetics. in-depth knowledge and understanding of the international markets and well established institutional linkages. Service offered across sectors y y y y y y Marine Products Textiles . fabrics.yarns. apparels.Ready to Serve. coupled with its physical presence. to support Indian companies in their overseas marketing efforts on a success fee basis. The Export Marketing service leverages the Bank¶s high international standing.

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