IFC to invest $150 mn in Exim Bank

International Finance Corporation (IFC), a World Bank group arm, is planning to invest around $150 million (around Rs 660 crore) in Export-Import Bank of India (Exim). The proposed investment includes $75 million (Rs 337.5 crore) on IFC’s own account. The remaining $75 million will be mobilised from another private sector commercial bank. The investment involves a long-term loan to Exim Bank. The proceeds of the IFC loan component will be used to finance exports to Africa from private sector exports clients of Exim Bank.

The corporation would help Exim to mobilise financing from at least one private sector commercial bank for financing exports to Africa. IFC, in collaboration with Exim Bank, will explore providing institution building support including training of staff of financial institutions engaged in export-import finance in technical and managerial functions, according to the corporation.

“The proposed funding would support international trade between India and Africa and will provide access to finance to the undeserved small and medium enterprise sector as they would be able to secure financing to execute export orders in the current weak market conditions and providing access to long-term import finance to African importers”.

Headquartered in Mumbai, Exim Bank has ten domestic offices and six overseas offices. The capital of Exim Bank is wholly subscribed by the Indian government. The bank provides financial assistance to exporters and importers assist them in various capacities such as identifying overseas markets, providing loans and guarantees and export credit. Its non-institutional clients include mainly private sector entities.