US Exim Bank lines up $8 bn credit for India
The US Exim has committed a $2.2 billion line of credit to fund infrastructure projects in the country. Investor options | Investing plan not for rich alone | Day in Pics
By TNN |
MUMBAI: The US Exim has committed a $2.2 billion line of credit to fund infrastructure projects in the country. In addition, it also plans credit support of another $6 billion for funding of aircraft purchases by Air India and Jet Airways over the next few years.
It is working towards India to be the largest market for the export credit.
US Exim Bank chairman and president James Lambright said on Tuesday: ���We have pre-approved lines of credit worth $2.2 billion for infrastructure projects. The content, either products or services, has to be originated from the US. In addition, we are looking at providing support worth around $6 billion for aircraft finance over the next few years.
These are expected to be medium-term funding arrangements for aircraft purchase by Jet Airways and Air India, according to a senior US Exim official.
It is working towards India to be the largest market for the export credit.
US Exim Bank chairman and president James Lambright said on Tuesday: ���We have pre-approved lines of credit worth $2.2 billion for infrastructure projects. The content, either products or services, has to be originated from the US. In addition, we are looking at providing support worth around $6 billion for aircraft finance over the next few years.
These are expected to be medium-term funding arrangements for aircraft purchase by Jet Airways and Air India, according to a senior US Exim official.
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US Exim, an export credit agency, is a government body engaged in promoting US exports. Currently, US Exim���s India exposure is nearly $3.5 billion. The largest market is Mexico and it is expected to be replaced by India in a few years.
The US Exim officials signed agreements with four financial institutions in Mumbai this week. These include, financing facility of $250 million for Infrastructure Development Finance Company (IDFC), $250 million for IDBI, $100 million for IL&FS and $250 million for State Bank of India.
In addition, four Delhi-based institutions ��� Indian Renewable Energy Development Agency ($50 million), Power Finance Corporation ($800 million) and India Infrastructure Finance Company ($250 million) also have pre-approvals from the US Exim bank.
The facility provides for medium-term and long-term financing of guaranteed dollar loans for infrastructure, where Exim���s primary source of repayment will be one of the eight institutions.
Financing tenors will be till 10 years for balance sheet transactions, 12 years for power project financing, 14 years for greenfield project finance and 15 years for eco-beneficial projects, including drinking water, waste treatment and renewable energy projects.
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