US Ex-Im has approved a US$2.2bn loan guarantee programme to support US exports to India in support of energy and other infrastructure developments.
Under the programme, the first transaction is a US$29.4mn long-term loan guarantee to support exports of US medical, building and office equipment and services to support the construction of Bhopal Medical College in the Indian city of Bhopal.
Future projects will include sectors such as power and renewable energy generation, oil and gas development, small aircraft, airport development and healthcare.
In a statement, US Ex-Im president James Lambright comments: "There is a rising demand for US goods and services in India because of their high quality and competitive prices.”
A total of eight Indian financial institutions will provide guarantees under the programme to speed up the processing of US Ex-Im-backed medium-term and long-term financing for Indian buyers of US exports.
Each bank will have an underlying pre-approved credit line of US$50 to $250mn, with one lender, Power Finance Co, having a pre-approved line of US$800mn.
The Indian financial institutions taking part in the facility are Power Finance Co, Infrastructure Development Finance Corp, Industrial Development Bank of India, India Infrastructure Finance, State Bank of India, Infrastructure Leasing & Financial Services, India Renewable Energy Development Agency and Punjab National Bank.
The Washington DC-based US Ex-Im Bank is holding its annual conference this week, attracting bankers and corporates from across the US and globally.
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