NEW DELHI: The Export-Import Bank of the US has committed $2.45 billion under the India Infrastructure Facility, which provides for medium- and long-term financing of guaranteed, dollar loans to Indian borrowers, to fund infrastructure projects and capital goods purchases, a senior bank official said here Monday.
"The facility is available for long- and medium-term transactions and projects and provides for expedited processing and minimises documentation," said Raymond Ellis, vice president of the US Ex-IM Bank's strategic initiatives division.
It has also approved nine Indian financial institutions, these being India Infrastructure Finance Co, Indian Renewable Energy Development Agency, IDBI Bank, IDFC Bank, Infrastructure Leasing and Financial Services, Power Finance Corp, Punjab National Bank, State Bank of India and ICICI Ltd.
"The Ex-IM Bank has a current exposure to Indian borrowers of $7.2 billion in sectors such as aviation, telecom, oil and gas, heavy equipment sales and leases, medical equipment, services and energy," Ellis said at a meet organised by the Federation of Indian Chamber of Commerce and Industry (Ficci).
Ex-Im Bank assists US exporters by guaranteeing term financing to creditworthy international buyers, both private and public sector, for purchases of American goods and services.
With Ex-Im Bank's loan guarantee, international buyers are able to obtain competitive term financing from lenders when financing is otherwise not available or there are no economically viable interest rates on terms over one-to-two years.
Source : The Economic Times