Exim Bank inks pact with Japanese bank to boost infrastructure development

MUMBAI: State-run Exim Bank has signed an agreement with Japan Bank for International Cooperation (JBIC) to boost infrastructure development in India as well as to enhance connectivity and regional integration between the country and its neighbours.

The agreement was inked by Exim Bank Chairman and Managing Director Yaduvendra Mathur and JBIC Governor and Chief Executive Hiroshi Watanabe in Tokyo on September 1 during the visit of Prime Minister Narendra Modi.

"It (the MoU) reinforces the strong commercial relationship between the two nations. The availability of financing from both the institutions will allow Indian and Japanese companies to realise their full potential in infrastructure development projects," Mathur said.

"This collaboration will help Indian and Japanese companies to participate in critical infrastructure development projects for the region's development," said Watanabe.

Under the agreement, both the institutions will also explore the possibility of financing business opportunities in other countries, including those in Africa where Indian and Japanese companies have large presence, a statement from Exim Bank said here today.

Last January, New Delhi and Tokyo had announced their intention to further cooperate in building infrastructure that would improve connectivity and regional integration between India and its neighbouring countries to support cross-border business, regional growth and development.

JBIC is into lending, investment and guarantee operations while complementing the private sector financial institutions.