Malaysian Exim signs Indian loan
The Export-Import Bank of Malaysia has granted a US$100mn trade finance loan to Indian bank YES, promoting Malaysian exports into the country.
The credit facility will be used by the Indian bank to provide financing at competitive rates for its clients importing goods and services from Malaysia.
Arun Agrawal, senior president and global head of international banking at YES Bank, tells GTR: “The arrangement will benefit both Indian importers and Malaysian exporters and further promote bilateral trade between the two countries.
“Indian clients importing commodities, raw material and services from Malaysian suppliers will gain access to foreign currency funding from the Exim Bank at competitive rates to meet its import payment obligations.”
He adds that although the facility is available to all sectors, it is likely to benefit Indian importers of “prominent” Malaysian products such as crude palm oil, vegetable oils, organic chemicals, mineral fuel or paper pulp.
According to YES Bank managing director and CEO Rana Kapoor, bilateral trade in the “Indo-Malaysia business corridor” grew to US$10bn in 2011 and is expected to significantly increase with the signing of the Comprehensive Economic Cooperation Agreement (CECA) – a partnership aiming to enhance trade relationships between the two countries – in February 2011.
“This is a first-of-its-kind trade finance facility extended by Exim Bank to banks in India, which will further augment the trade and investment ties between the two countries,” Kapoor adds.