EXIM BANK

INTRODUCTION

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 globalization 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.

Initiatives of Exim bank

 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.

CONSTITUTION

Exim Bank is managed by a Board of Directors, which has representatives from the Government,
Reserve Bank of India, Export Credit Guarantee Corporation of India, a financial institution,
public sector banks, and the business community.

The Bank's functions are segmented into several operating groups including:

Corporate Banking Group which handles a variety of financing programmes for Export Oriented
Units (EOUs), Importers, and overseas investment by Indian companies.

Project Finance / Trade Finance Group handles the entire range of export credit services such as
supplier's credit, pre-shipment Agri Business Group, to spearhead the initiative to promote and
support Agri-exports. The Group handles projects and export transactions in the agricultural
sector for financing.
Small and Medium Enterprise: The group handles credit proposals from SMEs under various
lending programmes of the Bank.

Export Services Group offers variety of advisory and value-added information services aimed at
investment promotion.

Export Marketing Services Bank offers assistance to Indian companies, to enable them establish
their products in overseas markets.

Besides these, the Support Services groups, which include: Research & Planning, Corporate
Finance, Loan Recovery, Internal Audit, Management Information Services, Information
Technology, Legal, Human Resources Management and Corporate Affairs.

SERVICES
EXPORT CREDIT

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

  Finance for Indian Company's equity participation in the overseas Joint Venture
(JV)/ Wholly Owned 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

Small and Medium Enterprises (SME) Finance

The importance of SME sector is well-recognized world over owing to its significant
contribution in achieving various socio-economic objectives, such as employment
generation, contribution to national output and exports, fostering new entrepreneurship
and to provide depth to the industrial base of the economy. India has a vibrant SME
sector that plays an important role in sustaining economic growth, increasing trade,
generating employment and creating new entrepreneurship in India.

Indian SMEs require business advisory services to enhance their international

competitiveness in a highly competitive globalising world. The SMEs find the services of
reputed national and international consultants as not cost effective and often, not
adequately focused. Recognising this knowledge gap, Exim Bank of India has been
endeavouring to provide a suite of services to its SME clients. These include providing
business leads, handholding during the process of winning an export contract and thus
assisting the generation of export business on success fee basis, countries/ sector
information dissemination, capacity building in niche areas such as quality, safety, export
marketing, etc. and financial advisory services such as loan syndication, etc.

AGRI FINANCE

The globalization and post-WTO scenario offers considerable scope for exports of Indian
agricultural products. Exim Bank has a dedicated Agri Business Group to cater to the
financing needs of export oriented companies dealing in agricultural products.

Financial assistance is provided by way of term loans, pre-shipment/post-shipment credit,

overseas buyers' credit, bulk import finance, guarantees etc. Term loans with varying
maturities are provided for setting up processing facilities, expansion, modernization,
purchase of equipment, import of equipment/technology, financing overseas joint
ventures and acquisitions etc.
The Bank has strong linkages with other stakeholders in agri sector such as Ministry of
Food Processing Industries, GoI, NABARD, APEDA, Small Farmers' Agri-Business
Consortium (SFAC), National Horticultural Board etc. Apart from financing, the Bank
also provides a range of advisory services to agri exporters.

Film finance

The Bank has till date sanctioned loans more than Rs 33.15 crores for film production.
The first three films financed by Exim Bank have been commercially successful across
India and overseas markets .

Nature of Finance

 Cashflow financing for film production

 Cashflow financing for film distribution/exhibition in overseas markets
 Term loans for fixed assets finance
 Term financing for export market development

The Bank also publishes a number of Occasional Papers, Working Papers on export
potential of various sub-sectors in agriculture and a bi-monthly publication in different
languages on global scenario in agri-business and opportunities therein.

Rural Initiatives

Exim Bank believes that there is a strong linkage between export development and poverty
reduction. For a country like India, with a large (70%) rural population, creation of export
capability in rural grassroot enterprise is a must. Globalisation will be successful and acceptable
only if benefits reach the rural population. Rural enterprises suffer from various handicaps
including image, quality, capacity, packaging, delivery, etc. NGOs and SHGs are the front for
rural enterprises. Through proper guidance and support, rural grassroot enterprises can access the
global market and realize better prices for their products thereby contributing to poverty
reduction. Exim Bank's experience in working with NGOs/SHGs and rural enterprises is
encouraging. Exim Bank, leveraging its presence in both India as well as overseas, is facilitating
linkage between rural grassroot enterprises and corporates and with overseas buyers and agencies
with the objective of bringing the benefits of globalisation to the rural population.

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

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