The Export-Import Bank of the US (Exim Bank) is intending to commit US$8.2bn in competitively priced credit assistance to eight Indian financial institutions to fund infrastructure projects in the country. James Lambright, Ex-Im chairman, has also projected that the bank's growing commitments and exposure to India will lead to the country overtaking Mexico as the leading market for its export credit.
Lambright, in India to sign eight agreements relating to the approval of a US$2.2bn Indian infrastructure facility that will support US exports to Indian projects in sectors such as power and renewable energy generation, oil and gas development, small aircraft, airport development and health care, also indicated that US$6bn in future pipeline commitments, focused on supporting aircraft purchases by Air India and Jet Airways, could be transacted in the next five years.
The Indian financial institutions participating in the US$2.2bn special delegated credit line are Power Finance Co (PFC), Infrastructure Development Finance Corp. (IDFC), Industrial Development Bank of India (IDBI), India Infrastructure Finance Co. Ltd. (IIFCL), State Bank of India (SBI), Infrastructure Leasing & Financial Services (IL & FS), India Renewable Energy Development Agency (IREDA) and Punjab National Bank. The export credit agency has already approved one transaction for equipment and supplies involved in the construction of a medical college in Bhopal, facilitated through a partnership with the Punjabi National Bank.
The financing tenors are reported to be 10 years for balance sheet transactions, 12 years for power project financing, 14 years for greenfield project finance and 15 years for eco-beneficial projects, including drinking water, waste treatment and renewable energy projects.
Last Updated May 19, 2008
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