Exim Bank to raise $3.5 bn from overseas, Rs 8,000 cr from domestic market

Exim Bank (Export Import Bank of India) plans to borrow $3.5 billion from overseas markets and Rs 8,000 crore from domestic market in the current financial year, a top official said.

"We are looking to borrow $3.5 billion from overseas markets in this financial year. This would be our gross borrowing. We are also looking to raise Rs 8,000 crore from the domestic market," said Exim Bank's Deputy Managing Director Debasish Mallick here.

He said the bank raises funds from euro bond market which is called Reg S issue and also from US bond market under Regulation 144.

"Domestically we raise mainly through private placements and $3.5 billion gross borrowing will have Reg S component of borrowing (from euro bond market), US 144 A borrowing also," he said.

The Exim Bank provides finances broadly in three segments -- overseas investment finance scheme, project exports and lines of credit which is basically a government to government credit.

Apart from supporting exports oriented companies, the bank provides financial assistance to Indian companies which go for overseas acquisition or implement projects outside India.

The lender, owned by the central government, supports airports and ports for facilitating exports activities.

"We are having advanced level discussion with Paradip Port, Jawaharlal Nehru Port Trust," he said.

Continent-wise, Asia has been becoming increasingly important while earlier its exposure was more in Africa, Mallick said, adding that Indian manufacturers and project executors were facing intense competition from Chinese counterparts.

"Of late, one thing is slowly getting recognised that Indian investment and Indian work execution are better than the Chinese. They have been able to make good inroads even in Asian markets," he said.

Indian manufacturers and project executors have also started getting projects in the advanced countries, he added.

--IANS

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