Export-Import Bank of India

Role and Functions

July 15, 2010

2

SET UP BY AN ACT OF PARLIAMENT IN SEPTEMBER 1981

WHOLLY OWNED BY GOVERNMENT OF INDIA

COMMENCED OPERATIONS IN MARCH 1982

APEX FINANCIAL INSTITUTION

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)

Exim Bank of India

3

Management

Chairman and Managing Director

5 Directors: Government of India

3 Directors: Scheduled Banks

4 Directors : Professionals/Experts

1 Director nominated by RBI

1 Director nominated by IDBI

1 Director nominated by ECGC

Appointedby

Govt. of India

* As per Exim Bank Act

BOARD OF DIRECTORS (16)* OFFICES

Domestic Offices: 10

Ahmedabad

Bangalore

Chandigarh

Chennai

Guwahati

Hyderabad

Kolkata

New Delhi

Mumbai

Pune

Overseas Offices:7

Addis Ababa

Dakar

Dubai

Durban

London

Singapore

Washington D.C.

4

Operational Philosophy

International Trade

Financing Promoting Facilitating

Through

Variety of Financing Programmes

Value Added Business Advisory Services

Research and Analysis

Catalyst for Financing

Projects Products Services

5

Financing Programmes

Financing Programmes (Various Currencies)

Export Credit Import Credit Loans for Exporting Units

Medium / Long Term

- Lines of Credit

- Buyer’s Credit

- Supplier’s Credit

Short Term

- Pre/Post Shipment Credit

- Import Loan for

capital goods

- Bulk Import Loan for

Raw Materials

- 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

6

Exim Bank’s Competitive Advantage

Comprehensive range of products and services for exporters.

Knowledge of exporters’ requirements

International experience. We can leverage on our international network.

Competitive finance.

Lending in both rupee and foreign currency.

Foreign currency financing for SMEs.

Exim Bank provides term loan for financing soft expenditure such as

marketing, product development, R&D financing.

Special products like LOC, Overseas Investment Financing etc.

7

Term Loans

Term Finance (For exporting companies – Criteria is minimum 10% of the

turnover should be by way of exports on FOB basis or Rs.5 crs exports of

FOB basis, whichever is less)

Project Finance (Green Field / Brown Field)

Production Equipment Finance Programme (PEFP)

Import of Technology & Related Services

Domestic Acquisitions of businesses/companies/brands

Export Product Development/ Research & Development

Long Term Working Capital Finance / General Corporate Finance

Import Finance Programme (IFP) for non-exporting Companies.

8

Working Capital Finance

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)

General Working Capital Finance Working Capital Term Loans Bulk Import Finance Programme

9

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

10

Lines of Credit Programme

Lines of Credit (LOCs)

Exim’s own LOCs to economically strong developing countries and regional development banks

At behest of GOI, concessional LOCs to developing countries in Asia/ Africa/ Latin America with a long-term perspective. While Exim raises the resources and funds disbursement, GOI guarantee and provide interest equalisation support under India Development Initiative. Total Lines – 136, Countries – 94 and Amt. USD 4.49 bn.

BENEFITS

No recourse to Indian Exporters

Exporters get payment on shipment

Lines of Credit : A catalyst for trade promotion

Enables import of Indian equipment and technology on deferred credit terms

Direct Exposure on overseas borrowers

An arrangement for financing a number of export contracts under one umbrella.

11

Select Major Lines of Credit

AFRICA (US$ 2.4 bn)

Gambia, Ghana, Guinea, Nigeria, Senegal, Sierra Leone, DR Congo, Eritrea, Togo, Equatorial Guinea, Rwanda,

Egypt, Morocco, Sudan, Ethiopia, Kenya, Mauritius, Malawi, Mozambique, Afreximbank, EBID, BOAD

South & South-East Asia (US$ 880 mn)

Cambodia, Myanmar, Nepal, Sri Lanka, Vietnam

West Asia (US$ 290 mn)

Bank Markazi, Iran; Iranian Commercial Banks (13), Syria

LAC (US$ 168 mn)

Suriname, Banco Bradesco S.A., Brazil; Uniao De Bancos Brasileiros S.A.(UNIBANCO), Brazil;

Bancomext, Mexico; CAF, Central American Bank for Economic Integration

CIS (US$ 65 mn)

Oceania (US$ 50 mn)

Europe (US 20 mn)

12

Project & Services Exports

Exports of projects and services, broadly categorised into Civil engineering

construction projects, Turnkey projects, Consultancy services.

Over the past two decades, increasing number of contracts have been secured by

Indian companies in West Asia, North Africa, Sub Saharan Africa, South & South

East Asia, CIS and Latin America.

Such projects have supplemented the efforts of the host country governments in

achieving their developmental objectives.

Promoting Project Exports

Projects Currently Under Execution with Exim Bank Support (as on 31st Mar, 2010)

No. of Contracts : 235 Value of Contracts : US$ 17.73 billion

No. of Countries : 38 No of Indian companies : 46

13

Exim Bank – Supporting exports from Rural Grassroots Enterprises

Export Marketing support given for finding international market for products of rural

industries produced by SHGs / NGOs in different states.

Exim’s network of overseas offices play a proactive role.

Export Marketing Services Programme

Seeks to help Indian SME sector to establish their products overseas and enter new

markets through Exim’s overseas offices and MOU partner network

No upfront fees, but operates on success-fee basis

Eximius Centres of Learning in Bangalore/ Pune/ Ahmedabad – for knowledge

building & capacity creation for SMEs

EMS & Skill Upgradation for SMEs

Exim Bank and SMEs

14

Exim Bank initiated a ‘Clusters of Excellence’ programme to assist small and

medium sized companies in achieving international quality standards

The programme aimed to assist SMEs to:

Achieve international quality certification

Enhance their capability and acceptance in overseas markets

Facilitate knowledge sharing with other companies in the cluster

Enabled companies to access international consultancy at low cost due to

cluster approach

Nearly 100 companies were assisted in a range of sectors including

engineering goods

Clusters of Excellence

Cluster Approach

15

Agri Business Group

The Bank has put in place an ‘Agri Business Group’

The Group looks for viable projects and export transactions in agriculture sector.

The Bank has set up an agro-portal, in-house, which is an IT initiative to promote

knowledge-based agriculture enterprise. www.eximbankagro.in

The Bank brings out a bi-monthly newsletter ‘Agri Export Advantage’ to facilitate

information dissemination in 10 regional languages.

Brought out following study reports;

Organic Farming

Plantation Sector

Agro & Processed foods –Export Opportunities

Assisted a number of Small and Medium exporters in the Agro Sector covering

following products;

Honey, Mango pulp, mushrooms, gherkins,fresh & processed fruits & Vegetables

16

Knowledge Building: Research Publications

Research Studies on products, sectors, countries, macro economic issues

relevant to international trade and investment

Sector Studies assessing export potential.

Bilateral Trade and Investment Studies.

International Trade Related Studies.

Exim Newsletters

Export Advantage (bilingual)

Agri Export Advantage (in English, Hindi and 10 regional languages)

Indo-China Newsletter (bilingual)

Indo-Africa, Indo-Latin America and Indo-CIS Magazines (all bilingual)

Contribution to Public Policy formulation through inputs on WTO aspects, impact

of exchange rates on exports, transaction costs, etc.

Research & Analysis

17

Exim Bank has launched an ‘Export Marketing Services’ programme

Seeks to help Indian SME sector to establish their products overseas and enter new

markets through Exim’s overseas offices and institutional partner network

Helps Indian SMEs in their export efforts by proactively assisting in locating overseas

buyers/partners for their products/services

No upfront fees, but operates on success-fee basis

Over 300 companies supported in various sectors. Some of Cos. assisted include :

Export Marketing Services

Capacity Building for SMEs

Ayurvedic Products to Hungary

Tiger Prawns to a leading restaurant chain in S.Africa

Cotton fabrics to S. Africa

Incense sticks to Singapore, S. Africa, USA

Processed foods to Singapore & Italy

Agarbathis to S. Africa and Singapore

Natural Sandstone and Tiles to Hungary

Lucknow Chikan Kurtas to Singapore

Grapes and Pomegranates to Singapore

18

Innovative Programs for Empowering SMEs

The program envisages confirmation of Letters of credit (L/Cs), Standby letters of credit, demand guarantees, promissory notes or bills of exchange denominated in Dollars, Euro, Yen or in other freely available convertible currencies acceptable to IFC, received by Indian exporters from pre-approved banks in the countries of IFC's operation, i.e. Central Asia, Central and Eastern Europe, Latin America & the Caribbean, Middle East & North Africa as also other regions of Asia and Africa.

IFC will provide guarantee facility to Exim Bank to cover such L/C confirmation and confirmation of other trade instruments

The program currently covers 74 countries of IFC's operation and Exim Bank may confirm the L/Cs & other trade instruments issued by pre-approved banks for supporting India's exports to these countries.

GLOBAL TRADE FINANCE PROGRAM (GTFP))

19

World Bank

ADB

African Development

Bank

EBRD

MIGA

IFC

UNCTAD

JETRO

Netherlands Council for

Trade Promotion

Polish Agency for

Foreign Investment

Board of Investment of

Sri Lanka

Board of Invt. Mauritius

Exim Bank Romania

Czech Export Bank

Hungarian Exim Bank

JBIC

US Exim Bank

PT Bank Ekspor

Indonesia

Exim Bank of China

Institutional Linkages

Multilateral Agencies Trade & Invt. Promotion Agencies Export Credit Agencies

20

Exim Bank: Partner in Globalisation

Technology

Capital

(Foreign Investment)

Raw Materials

Capital Goods

Final Products

Capital Goods

Capital

(Overseas Ventures)

Product

Development

Production

Marketing

Pre shipment

Post shipmentVALUEVALUE ADDITIO

N

ADDITION

EXPORT

EXPORT

MMII

TTRR

OOPP

21

Export & Import Statistic of NER: 2009-10

(Rs. Crs)Division Export ImportShillong 759.76 0.37Dhubri 132.27 13.05Guwahati 465.94 0.98Agartala 0.33 167.84Karimganj 33.96 46.4Imphal 2.15 8.31TOTAL 1394.41 236.95Source: Commissioner of Customs, NER, Shillong

22

Major commodities of export from NER: 2009-10

(Rs. Crs)Commodity Value % of total

export

Limestone 548.11 39%Tea 465.47 33%Coal 318.61 23%TOTAL 1332.19 96%Source: Commissioner of Customs, NER, Shillong

23

Major commodities of import into NER: 2009-10

(Rs. Crs)Commodity Value % of total

export

Cement 73.68 31%Stone chips 35.00 15%Hilsa Fish 30.40 13%TOTAL 139.08 59%Source: Commissioner of Customs, NER, Shillong

24

Exim Bank in the North East Region Exim Bank endeavours to play a role in promoting exports from the NER – through creating

awareness about export potential to financing of exports and export-oriented units - Office

in Guwahati estd. in 2003- covers the entire NER – 8 States

No. of seminars conducted at key centres in NER (Guwahati, Itanagar, Shillong,

Kohima, Gangtok )

– covering various sectors including: Export of Agricultural Products; Handicrafts; Medicinal Plants; Export Oriented Food Processing Industry; Export Procedure & Documentation; Entrepreneurship Development.

Linkages with key financial institutions and organisations – SIDBI, NABARD, APEDA, UBI,

NEDFi, North East Handicrafts & Handlooms Development Corp.; Promoter-member of

Small Farmers Agri Business Consortium (SFAC). Financed no. of units in various sectors including: passion fruit processing; cancer research

institute & hospital; tourist resort; mfg. of refractories; bamboo flooring; ginger oil processing & pineapple slices; mfg. of potato chips; mfg. of IV fluids; BPO; export of Agar oil/perfumery; mushroom processing; mfg. of handloom products; ornamental fish; instant tea processing; stevia powder processing and floriculture export .

25

Export Potential of NE Region

Mineral based products

Agricultural & allied products, mainly organic products

Spices – ginger, large cardamom, turmeric etc.

Processed food products (niche products)

Services exports – ITes, Tourism, Deemed Exports, Education & Healthcare

Services

Handicrafts and handlooms

Floriculture

Aromatic and medicinal products

Plantations crops – Tea, Rubber

Bamboo based products

For any information and clarification. Please contact:

Mr. Shonly Litting

Chief Manager & Resident representative

Email: shonly@eximbankindia.in

eximgro@eximbankindia.in

Export-Import Bank of India

4th Floor, Sanmati Plaza

Near Sentinel Building, G.S. Road

Guwahati – 781 005

Tel: 0361-2462951/ 2450618

Fax: 0361-2462925

Website

www.eximbankindia.in

THANK YOU