Exim to tap overseas market to raise up to $2 billion

Mumbai: Export credit Agency Exim Bank is planning to raise up to $ 2 billion raise from the overseas markets this year to fund exporters.

“We may be looking at going back to the overseas market where we for raising of long-term funding in the second half of the financial year that is in the October-December quarter and January-March quarter” said, MD, David Rasquinha.” At the At the moment we are in no hurry to go to the market”

Over 90 per cent of Exim’s loans are in the form of export finance and term loan to exporters and over 80 per cent of such loans are extended in foreign currency.

“We have ample liquidity on hand. We raised a $ one billion in January and we have been active participants in the bilateral market as well as the onshore swap market. So we have plenty of liquidity”

The bank has already repaid $500 million in April and another maturing in August for which it has the ability to meet, said Exim officials.

Exim has also not utilised the special refinance extended by RBI to tide over any funding challenges as part of its stimulus package. “The RBI facility was meant to be a back stop in the event we cannot access the international market” Rasquinha said. ” But it has not been utilised till now” The export credit agency was also given a Rs 15000 crore , an equivalent to $2 billion- line of credit by the Reserve Bank of India in May to tide over the funding crisis in wake of the COVID crisis. ” We had asked for the facility in April when investors had turned very cautious and rates had surged. But rates are now back to the levels that were January” Rasquinha said.

Its loan portfolio grew 6.23 per cent to Rs 99,446 crore in 2019-20 as against Rs 93,617 crore in the preceding financial year. Non-funded portfolio grew by around 13 per cent to Rs 15,869 crore in the year from Rs 14,096 crore in 2018-19.

Exim has extended 27 lines of credit worth $ 3.40 billion, to support country’s project exports as well as merchandise goods and services. It supported 38 project export contracts worth $ 2.81 billion on a commercial basis.

[Source – Economic Times]


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