Export-Import Bank of India will get up to $150 million from International Finance Corporation (IFC), a member of the World Bank group, and the Bank of Tokyo-Mitsubishi UFJ, Ltd to help India's exporters, including small and medium enterprises, access finance for their exports to Africa.
IFC and BTMU will each provide a medium-term trade-finance loan of up to $75 million to Exim Bank. IFC supports the transaction as part of its strategy of promoting trade and investment among countries in emerging markets.
"A large number of Indian corporations, including small and medium enterprises, have started looking at Africa as an export destination," said TCA Ranganathan, chairman and managing director of Exim Bank. "The financing agreement with IFC and BTMU marks a key step in our relationship with them and in our strategy to provide finance to India's exporters with a focus on Africa."
"With this agreement, IFC will contribute to the development of long-term partnerships between strong emerging-market players in India and Africa, helping them invest and accelerate development." Rashad Kaldany, IFC vice president, Asia, Eastern Europe, Middle East and North Africa, said.
"We are pleased to be associated with IFC and Exim Bank in a medium-term trade finance transaction that will have such a clear benefit to both Indian and African markets," added Katsunori Nagayasu, president of BTMU.
IFC and BTMU share a long-standing relationship with Exim Bank to provide support to emerging economies, a BTMU release said.