INTRODUCTION

THE INSTITUTION

Export-Import Bank of India is the premier export finance institution of the country, set up in
1982 under the Export-Import Bank of India Act 1981. Government of India launched the
institution with a mandate, not just to enhance exports from India, but to integrate the country’s
foreign trade and investment with the overall economic growth. Since its inception, Exim Bank
of India has been both a catalyst and a key player in the promotion of cross border trade and
investment. Commencing operations as a purveyor of export credit, like other Export Credit
Agencies in the world, Exim Bank of India has, over the period, evolved into an institution that
plays a major role in partnering Indian industries, particularly the Small and Medium
Enterprises, in their globalisation efforts, through a wide range of products and services offered
at all stages of the business cycle, starting from import of technology and export product
development to export production, export marketing, pre-shipment and post-shipment and
overseas investment.

THE INITIATIVES

 Exim Bank of India has been the prime mover in encouraging project exports from India.
The Bank provides Indian project exporters with a comprehensive range of services to
enhance the prospect of their securing export contracts, particularly those funded by
Multilateral Funding Agencies like the World Bank, Asian Development Bank, African
Development Bank and European Bank for Reconstruction and Development.

 The Bank extends lines of credit to overseas financial institutions, foreign governments
and their agencies, enabling them to finance imports of goods and services from India on
deferred credit terms. Exim Bank’s lines of Credit obviate credit risks for Indian
exporters and are of particular relevance to SME exporters.

 The Bank’s Overseas Investment Finance programme offers a variety of facilities for
Indian investments and acquisitions overseas. The facilities include loan to Indian
companies for equity participation in overseas ventures, direct equity participation by
Exim Bank in the overseas venture and non-funded facilities such as letters of credit and
guarantees to facilitate local borrowings by the overseas venture.

 The Bank provides financial assistance by way of term loans in Indian rupees/foreign
currencies for setting up new production facility, expansion/modernization/upgradation
of existing facilities and for acquisition of production equipment/technology. Such
facilities particularly help export oriented Small and Medium Enterprises for creation of
export capabilities and enhancement of international competitiveness.
  Under its Export Marketing Finance programme, Exim Bank supports Small and Medium
Enterprises in their export marketing efforts including financing the soft expenditure
relating to implementation of strategic and systematic export market development plans.

 The Bank has launched the Rural Initiatives Programme with the objective of linking
Indian rural industry to the global market. The programme is intended to benefit rural
poor through creation of export capability in rural enterprises.

 In order to assist the Small and Medium Enterprises, the Bank has put in place the Export
Marketing Services (EMS) Programme. Through EMS, the Bank seeks to establish, on
best efforts basis, SME sector products in overseas markets, starting from identification
of prospective business partners to facilitating placement of final orders. The service is
provided on success fee basis.

 Exim Bank supplements its financing programmes with a wide range of value-added
information, advisory and support services, which enable exporters to evaluate
international risks, exploit export opportunities and improve competitiveness, thereby
helping them in their globalisation efforts.

:: OBJECTIVES

“… for providing financial assistance to exporters and importers, and for functioning as
the principal financial institution for coordinating the working of institutions engaged in
financing export and import of goods and services with a view to promoting the country’s
international trade…”

“… shall act on business principles with due regard to public interest”

: The Export-Import Bank of India Act, 1981

Evolving Vision
Genesis:

 SET UP BY AN ACT OF PARLIAMENT IN SEPTEMBER 1981

 WHOLLY OWNED BY GOVERNMENT OF INDIA
 COMMENCED OPERATIONS IN MARCH 1982
 APEX FINANCIAL INSTITUTION
 FINANCE & SERVICES

:: INTRODUCTION:

Exim Bank plays four-pronged role with regard

to India's foreign trade: those of a coordintator,
a source of finance, consultant and promoter.

Exim Bank is the Coordinator of the Working

Group Mechanism for clearance of Project and
Services Exports and Deferred Payment Exports
(for amounts above a certain value currently
US$ 100 million). The Working Group comprises
Exim Bank, Government of India representatives
(Ministries of Finance, Commerce, External
Affairs), Reserve Bank of India, Export Credit
Guarantee Corporation of India Ltd. and
commercial banks who are authorised foreign
exchange dealers. This inter-institutional
Working Group accords clearance to contracts
(at the post-award stage) sponsored by
commercial bank or Exim Bank,and operates as
a one-window mechanism for clearance of term export proposals. On its own, Exim Bank can now
accord clearance to project export proposals up to US$ 100 million in value.
 :: EXPORT CREDITS

Exim Bank offers the following Export Credit facilities, which can be availed of by Indian companies,
commercial banks and overseas entities.

For Indian Companies executing contracts overseas

Pre-shipment credit

Exim Bank's Pre-shipment Credit facility, in Indian Rupees and foreign

currency, provides access to finance at the manufacturing stage -
enabling exporters to purchase raw materials and other inputs.

Supplier's Credit

This facility enables Indian exporters to extend term credit to importers (overseas) of eligible goods at
the post-shipment stage.

For Project Exporters

Indian project exporters incur Rupee expenditure while executing overseas project export contracts i.e.
costs of mobilisation/acquisition of materials, personnel and equipment etc. Exim Bank's facility helps
them meet these expenses.

For Exporters of Consultancy and Technological Services

Exim Bank offers a special credit facility to Indian exporters of consultancy and technology services, so
that they can, in turn, extend term credit to overseas importers.

Guarantee Facilities

Indian companies can avail of these to furnish requisite guarantees to facilitate execution of export
contracts and import transactions.
For commercial Banks

Exim Bank offers Rediscounting Facility to commercial banks, enabling them to rediscount export bills of
their SSI customers, with usance not exceeding 90 days.

We also offer Refinance of Supplier's Credit, enabling commercial banks to offer credit to Indian
exporters of eligible goods, who in turn extend them credit over 180 days to importers overseas.

Other Facilities for Indian Companies

Indian companies executing contracts within India, but which are categorized as Deemed Exports in the
Foreign Trade Policy of India or contracts secured under international competitive bidding or contracts
under which payments are received in foreign currency, can avail of credit under our Finance for
Deemed Exports facility, aimed at helping them meet cash flow deficits.

For Overseas Entities

Buyer's Credit

Overseas buyers can avail of Buyer's Credit from Exim Bank, for import of eligible goods from India on
deferred payment terms.

Eligible Goods

Capital goods, plant and machinery, industrial manufactures, consumer durables and any other items
eligible for being exported under the 'Exim Policy' of the Government of India.
 :: FINANCE FOR EXPORT ORIENTED UNITS

Term Finance (For Exporting Companies)

 Project Finance
 Equipment Finance
 Import of Technology & Related Services
 Domestic Acquisitions of
businesses/companies/brands
 Export Product Development/ Research &
Development
 General Corporate Finance

Working Capital Finance (For Exporting Companies)

 Funded
o Working Capital Term Loans [< 2 years]
o Long Term Working Capital [upto 5 years]
o Export Bills Discounting
o Export Packing Credit
o Cash Flow financing

 Non-Funded
o Letter of Credit Limits
o Guarantee Limits

Working Capital Finance (For Non- Exporting Companies)

 Bulk Import of Raw Material

Term Finance (For Non- Exporting Companies)

  Import of Equipment

Export Finance

 Pre-shipment Credit
 Post Shipment Credit
 Buyers' Credit
 Suppliers' Credit [including deferred payment credit]
 Bills Discounting
 Export Receivables Financing
 Warehousing Finance
 Export Lines of Credit (Non-recourse finance)

Equity Participation (In Indian Exporting Companies)

 To part finance project expenditure(Project, inter alia, includes new project/ expansion/
acquisition of business/company/
brands/research & development)

:: OVERSEAS
INVESTMENT FINANCE
Manufacturing facility of 'Advanta Semillas',
Argentina, a company producing hybrid seeds of
sunflower, corn, sorghum etc. Mumbai based
 Finance for Indian Company's United Phosphorus, with support from Exim Bank,
equity participation in the overseas has acquired Advanta which has similar facilities
Joint Venture (JV)/ Wholly Owned in Australia and Thailand, in addtion to Argentina.
Subsidiary (WOS)

 Direct Finance (Term & Working

Capital) to the overseas JV / WOS

 Finance (for equity/debt component) for acquisition of overseas businesses / companies

including leveraged buy-outs including structured financing options

 Direct Equity by Exim Bank in the overseas JV/ WOS of an Indian Company
 :: LINES OF CREDIT : INTRODUTION

Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions, regional
development banks, sovereign governments and other entities overseas, to enable buyers in those
countries, to import goods and services from India on deferred credit terms. The Indian exporters
can obtain payment of eligible value from Exim Bank, without recourse to them, against
negotiation of shipping documents. LOC is a financing mechanism that provides a safe mode of
non-recourse financing option to Indian exporters, especially to SMEs, and serves as an effective
market entry tool.

Procedural flow chart

1. Exim Bank signs agreement with Borrower and announces when effective.
2. Exporter checks procedures and Service fee with Exim Bank and negotiates contract
with Importer.
3. Importer consults borrower and signs contract with exporter.
4. Borrower approves contract.
5. Exim Bank approves contract and advises borrower and also exporter and commercial
bank.
6. Exporter ships goods.
7. Commercial bank negotiates shipping documents and pays exporter.
8. Exim Bankreimburses Commercial bank on receipt of claim by debit to borrower.
9. Borrower repays Exim Bank on due date.
Eligible Goods

Capital goods, plant and machinery, industrial manufactures, consumer durables and any other
items eligible for being exported under the 'Exim Policy' of the Government of India.

General

 Exporters are advised to check with Exim Bank before finalizing the contracts with the
buyers, details of service fee and other charges, if any, payable by the exporters on the
contracts to be covered under the relative LOC.

 For terms and particulars of specific LOCs, please refer to relevant brochures available
with Exim Bank's offices in India.

:: EXPORT SERVICES

ADVISORY SERVICES:

MULTILATERAL AGENCIES FUNDED PROJECTS OVERSEAS (MFPO)

Information and support services to Indian companies to help improve their prospects for
securing business in multilateral agencies funded projects.

 Dissemination of business opportunities in funded projects

 Providing detailed information on projects of interest
 Information on Procurement Guidelines, Policies, Practices of Multilateral Agencies
 Assistance for Registration with Multilateral Agencies
 Advising Indian companies on preparation of Expression of Interest, Capability Profile
 Bid Intervention
PROMOTING INDIAN CONSULTANCY

Tie-up with:

 International Finance Corporation, Washington D.C.

 Eastern & Southern African Trade & Development Bank (PTA Bank)
 African Management Services Company (AMSCO), Netherlands

Examples:

 Gems & Jewellery Study - Zambia

 Financial Training Mission - Kenya
 Cement Project - Cameroon
 Software - Madagascar
 Wool Knitting - Vietnam
 Textile - Nigeria
 Refrigeration - Ghana
 Financial Training - Poland

EXIM BANK AS A CONSULTANT

 Feasibility study for establishment of an export credit and guarantee facility for Gulf
Cooperation Council countries.
 Regional cooperation in export finance and export credit guarantees for ESCAP.
 Study on promotion of international competitiveness and exports of manufactured goods
for ESCAP.
 Setting up the Afrexim Bank
 Designing of Export Financing Programmes - Turkey
 Setting up an Exim Bank in Malaysia
 Designing of Export Marketing Seminars for SMEs in Vietnam
 Export Development Project: Ukraine
 Enterprise Support Fund: Armenia
 Establishing an Export Credit Guarantee Company in Zimbabwe
 Advisory services to Industrial Development Corporation of South Africa for
international finance products
  Study on Projecting Mauritius as an Investment Hub for Indian Firms
 Blue Print for setting up of an Exim Bank in Zimbabwe

Export Marketing Services

The Bank provides assistance to Indian companies, to enable them establish their products in
overseas markets through its Export Marketing Services, starting from identification of
prospective business partners to facilitating placement of final orders.

The Export Marketing service leverages the Bank’s high international standing, in-depth
knowledge and understanding of the international markets and well established institutional
linkages, coupled with its physical presence, to support Indian companies in their overseas
marketing efforts on a success fee basis.

Service offered across sectors

 Marine Products
 Textiles - yarns, fabrics, apparels.
 Food Processing - Ready to Serve, spices and condiments
 Office Stationery
 Ayurveda medicines/cosmetics.
 Others