Exim Bank set to unveil IFC-promoted SME fund

Export Import Bank of India (Exim Bank) is looking at promoting a grassroot business fund, an initiative of the International Finance Corporation (IFC), for financing small and medium enterprises (SMEs).

“Under this fund, originally promoted by the IFC, seed capital is given to SMEs, mostly in the form of equity investment of up to 25 per cent,” said T C Venkat Subramanian, chairman and managing director, Exim Bank, on the sidelines of a CII seminar in Kolkata on Wednesday. This apart, Exim Bank is also planning to promote MSMEs by financing up to 50 per cent of the expenses for export market development.

During the current financial year, the bank is planning to raise a total of about Rs 19,500 crore, out of which Rs 14,500 crore would be raised in the domestic market, while about $1-1.2 billion is expected to be raised through international borrowings.

“We are interested in raising funds through Samurai bonds this year, but the amount will depend upon market conditions. We have tapped the Japanese market with Samurai bonds twice earlier and have had a good experience. We are also in touch with merchant bankers in this regard,” Subramanian had said earlier.

During the last financial year, the bank had raised Rs 17,650 crore, with $1,170 million raised in the international market.