ICICI Bank, India’s second largest bank, and Export Development Canada (EDC), Canada’s export credit agency, have signed a US$50mn line of credit agreement. This is to be utilised to support Indian corporations importing capital goods and services from Canada.
In November 2006, ICICI had signed a memorandum of understanding (MoU) with EDC to work together on various initiatives to help businesses on both sides and to provide financing support to Indian buyers of capital goods and professional services from Canada.
The credit line is the first of many initiatives that has emerged from the MoU. It is to be used to assist ICICI Bank’s customers interested in procuring capital goods and services from Canada and will facilitate projects between Canadian and Indian companies.
Sectors that will benefit from this credit include: telecoms, advanced technology, agriculture, environmental technology, transportation, airports, plastics and biotech services.