FINANCING SUPPORTBY

EXPORT-IMPORT BANK OF INDIA Chitra Raste

Assistant General Manager

Export-Import Bank of India

India-Italy Business Forum, Rome

September 21, 2016

Set up in September 1981 under an Act of Parliament to finance, facilitate and promote

India’s international trade and investment.

Wholly owned by Government of India.

Commenced operations in March 1982.

Objectives:

“… for providing financial assistance to exporters and importers, and for functioning as the principal financial

institution for coordinating the working of institutions engaged in financing export and import of goods and

services with a view to promoting the country’s international trade…”

“… shall act on business principles with due regard to public interest”

(Export-Import Bank of India Act, 1981)

Export-Import Bank of India

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“To develop commercially viable relationships with a target set of externally oriented companies by

offering them a comprehensive range of products and services, aimed at

enhancing their internationalisation efforts”

Comprehensive Range of Products And Services

– All Stages of the Export Business Cycle –

Leadership and Expertise in India’s Export Finance

Product Centric Approach

Customer Centric Approach

ExportCredits

1982-85

Export Capability Creation

1986-94

Exim Bank TODAY

Evolving Vision

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Domestic and Overseas Presence

India

• Mumbai (HO)

• Ahmedabad

• Bangalore

• Chandigarh

• Chennai

• Guwahati

• Hyderabad

• Kolkata

• New Delhi

• Pune

Washington

London

Abidjan

Johannesburg

YangonDubai

Addis Ababa

Singapore

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Management-Board of Directors

CMD

DMDs

Govt of India

Scheduled Banks

ExpertsRBI

IDBI

ECGC

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International Trade

Financing Promoting Facilitating

Through

Variety of Financing Programmes

Value Added Business Advisory Services

Research and Analysis

Projects Products Services

Catalyst for Financing

Operational Philosophy

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India-Italy Trade and Investment Relations

• Italy is the 14th-largest source for foreign direct investment (FDI) inflows to India. During April 2000 to March 2016, total investment by Italy in India amounted to US$ 1.9 bn, accounting for 0.67% of India’s global FDI inflows

• During FY16, Italy accounted for 1.6% of India’s global exports and 1.1% of India’s global imports

• Around 140 large Italian companies are active in India. Some of the major Italian companies that have invested in India are FIAT Auto, Heinz Italia, Italcementi, Piaggio, Ferrero, etc.

Source: Ministry of Commerce & Industry, Government of India 7

India's Trade with Italy, Components (2015-16)

Source: Ministry of Commerce & Industry, Government of India

Transport equipts.11.4%

Iron and steel9.2%

Articles of apparel

9.0%Machinery &

equipts.7.7%

Organic chemicals

7.5%

Plastic & articles

5.3%

Coffee, tea, mate, spices

4.4%

Articles of iron or steel

3.7%

Articles of leather

3.5%

Machinery & equipts.

37.3%

Organic chemicals

5.9%Electrical, electronic

equipments 5.4%

Articles of Iron Or

Steel 5.49%

Plastic and articles

3.6%

Salt, sulphur,

lime3.5%

Optical instruments

3.3%

Vehicles other than

railway, tramway

3.0%

India’s Major Exports to Italy (US$ 4.2 bn) India’s Major Imports from Italy (US$ 4.1 bn)

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Pre-Shipment

MarketingAdvisory

Export Production

Export Product

Development

Import Finance

Consulting/Advisory Services

Investment Abroad

Post-Shipment

ADVISORYSERVICES

KNOWLEDGE BUILDING

INFORMATION

SUPPLEMENTS FINANCING PROGRAMMES

FINANCING, FACILITATING INDIA’S TWO WAY TRADE & INVESTMENT

At All Stages of Export Business Cycle Value Based Services to Exporters

Range of Products & Services

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Financing Program (Various Currencies)

Export Credit

Medium / Long Term

Lines of Credit

Buyer’s Credit

Supplier’s Credit

Short Term

Pre / Post Shipment

Credit

Import Credit

Import Loan for

capital goods

Bulk Import Loan

for Raw Materials

Loans for Exporting Units

Term Loans for expansion/

diversification / new projects/ export

product development/ export

marketing / research & development

Term Loans for overseas equity

investment

Direct equity stake in Indian/ Overseas

ventures of exporting companies

Financing Programs

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Buyers’ Credit

Contractor

Sub-contractor

Customer

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Buyers’ Credit

Contractor

Sub-contractor

Customer

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Supplier’ Credit

EPC contractor

Customer

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Financing Program (Various Currencies)

Export Credit

Medium / Long Term

Lines of Credit

Buyer’s Credit

Supplier’s Credit

Short Term

Pre / Post Shipment

Credit

Import Credit

Import Loan for

capital goods

Bulk Import Loan

for Raw Materials

Loans for Exporting Units

Term Loans for expansion/

diversification / new projects/ export

product development/ export

marketing / research & development

Term Loans for overseas equity

investment

Direct equity stake in Indian/ Overseas

ventures of exporting companies

Financing Programs

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Financing for Export Oriented UnitsTerm Loan Financing

Financing Export-oriented manufacturing enterprises and trading houses / units set up in SEZwith minimum export orientation of 10% or export turnover of INR 50 million, present orproposed, whichever is lower.

Financing can also be extended to companies in the services sector such as turnkey contractors,companies in the healthcare sector, shipping companies, etc. having foreign exchange earnings.

Purpose of financing is for expansion, modernization, upgradation or diversificationprogrammes of existing export oriented units (EOU) or setting up of an export-oriented unit.Financing also extended for purchase/ import of equipments for production activities of EOU’s.

Loan can be extended in Indian Rupees /Euro/ US Dollars / other International currenciesavailable with Exim Bank.

Tenor is upto 10 years with suitable moratorium.

Financing Program (Various Currencies)

Export Credit

Medium / Long Term

Lines of Credit

Buyer’s Credit

Supplier’s Credit

Short Term

Pre / Post Shipment

Credit

Import Credit

Import Loan for

capital goods

Bulk Import Loan

for Raw Materials

Loans for Exporting Units

Term Loans for expansion/

diversification / new projects/ export

product development/ export

marketing / research & development

Term Loans for overseas equity

investment

Direct equity stake in Indian/ Overseas

ventures of exporting companies

Financing Programs

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Overseas Investment Finance

Equity investment: INR/ FC funding to Indian parent company for its equity/ capital

investment in its overseas JV/ WOS;

Indian parent/ promoter loan: INR/ FC loan extended to Indian parent/ promoter to

overseas venture

Funding to Overseas Indian Ventures: Foreign currency loans directly extended to the

overseas venture of the Indian company for capex, working capital, acquisition etc.

Direct Equity Investment: Direct equity participation in Indian ventures abroad.

Structured finance: Funding Indian parent/ overseas JV/WOS/ SPV backed by cash-flow

of third party.

Exim Bank has so far provided finance to more than 559 ventures set up by around 530 companies

Promoting Overseas Investments/ Acquisition from India – funding options available

Loan & Non Funded Portfolio

54530

65563

75873

86953

102537

2011-12 2012-13 2013-14 2014-15 2015-16

Loan Portfolio

5069

7726

9426

1084711555

2011-12 2012-13 2013-14 2014-15 2015-16

Non-Funded Portfolio

INR cr (as on 31st March)

Loan Portfolio as on March 31, 2016

Term Loan to

Exporters22.7%

Import Finance

5.9%

Export Facilitation

2.4%

Export Finance

51.2%Others

(bills, etc.)1.1%

Stand By Letters of

Credit37%

Financial Guarantee

3%

Performance

Guarantee30%

Retention Money

Guarantee2%

Advance Payment

Guarantee19%

Bid-Bond Guarantee

1%

Letters of Credit

8%

Total Loan Assets: INR 102,537 crore Non Funded Portfolio: INR 11,554 crore

Gross NPAs to Gross Loan Assets stood at 4.17% ; Net NPAs to Net Loan Assets stood at 0.86%Fully compliant with RBI prudential norms - exposures; investment valuation; provisioning; cap. adequacy

Overseas Investment

Finance16.7%

Resources/BorrowingsTotal Resources: INR 104,803 crore

International Ratings at Par with SovereignMoody’s: Baa3 (Positive); S&P : BBB- (Stable); Fitch : BBB- (Stable); JCRA: BBB+ (Stable)

Foreign Currency

Borrowings Outstanding

44.18%

Net Worth 10.96%

Rupee Borrowings Outstanding

44.86%

The Bank received capital of INR 1300crore from the GOI during 2015-16.

Total borrowings raised during 2015-16:

Rupee borrowings : INR 23,183crore

FC borrowings: INR 13,781 cr. equiv.

Highest ratings (AAA)/(AI+) for Rupeedebt instruments

Foreign Currency Resources

Bonds issued under Rule 144A and Reg S of the US Securities Act: The Bank tapped the deep and wide144A market and raised USD 1bn via a 10 year bond issue. the bond was very well received by investorswith a book that was over two times oversubscribed

Green Bonds: Successfully launched a 5 year Reg S Green Bond issue of US$ 500 mn ,the 1st ever USD-denominated Green bond offering out of India.

Uridashi Bonds: The Bank has tapped the Uridashi Bond market on four occasions and continues to bethe only Indian entity in this market

Nine Currencies: Bank has raised Foreign Currency Resources in diverse currencies including AustralianDollars, Euros, Japanese Yen, Mexican Peso, Offshore Remnibi, Singapore Dollars, South African Rand,Turkish Lira, and United States Dollars.

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Marketing Advisory Services

Exim Bank assists importers in identifying Indian exporters of eligible products.

Seeks to help Indian exporters to establish their products overseas and enter new markets throughExim’s overseas offices and institutional partner network.

Overseas Offices of the Bank contribute to identifying and understanding the requirements ofimporters and co-ordinate with the Marketing Advisory Services (MAS) Group at Head Office,Mumbai, which in turn identifies appropriate exporters

Identified and generated orders for a number of products ranging from medical, handicrafts andhandloom, agriculture, food & beverages, engineering, textile, pharmaceutical & cosmetics,floriculture, etc.

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Placement of Products (International market) Products Export Destination

Alphanso Mango Singapore

Fruit & Vegetables Singapore

Diwali Diyas Singapore

Wedding Artefacts France

Incense Sticks South Africa

Fisheries & Seafood South Africa

Readymade Garments South Africa

Triple Refined IodizedSalt

Qatar

Laminated Tubes Sri Lanka

Mango Puree United Kingdom

Steel Link Chain Colombia

Hand-woven Garment United States of America

Marketing Advisory Services

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Research and Advisory Services• Research studies are undertaken on products, sectors, countries, macro economic issues relevant to

international trade and investment; a total of 20 studies brought out in 2015-16.

• Exim Bank has been partnering the Ministry of New and Renewable Energy (MNRE), Government of India in its plan towards establishing the International Solar Alliance (ISA) drawn as a part of the COP21 initiative in Paris, to boost solar energy in developing countries.

• Kukuza Project Development Company for Africa, based out of Nairobi, has been floated by Exim Bank, IL&FS, AfDB and SBI. A few projects in Africa are currently under consideration by the PDC.

• Exim Bank is the nominated member development bank under the BRICS Interbank Cooperation Mechanism.

• Exim Bank will support India as hosts of the 2017 Annual Meetings of the African Development Bank (AfDB) in Ahmedabad, Gujarat in May next year

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Partner in India’s

Globalization

www.eximbankindia.in