KfW has extended an ECA-backed €12mn export finance loan for a medium-sized German enterprise to supply roll shop equipment to Indian company JSW Steel.

The financing benefits from the German government’s export credit guarantee and ERP Export Financing Programme, which offers a 10-year fixed interest rate based on the commercial interest reference rate (CIRR).

German machinery company WaldrichSiegen Werkzeugmaschinen will supply roll grinders and texturing machines for JSW’s new cold rolling mill the Indian federal state of Karnataka.

In June 2011, KfW signed a €190mn Euler Hermes-covered syndicated loan co-financed with Deutsche Bank to finance the export of German equipment for the same project.

The loan included a €117mn tranche with a 10.25-year tenor, and a €73mn tranche with a tern of 12.5 years.

“For the German exporters, this is an important next step for expanding business in a rapidly developing market,” KfW said at the time.