Expanding at the helm of India's export portfolio
In recent years, Indian project exporters have secured diverse contracts exemplifying their versatility and technological capabilities. We, at EXIM Bank, have been one of the prime movers in encouraging project exports from India; and have enabled Indian companies to secure contracts across various geographies over two decades and supplement the development objectives of host countries.
We have been providing a steady stream of support to project activities in engineering, procurement, construction (civil, mechanical, electrical or instrumental). This includes the provision of specific equipment related to supplies, construction and building materials, consultancy, technical know-how, technology transfer, design, engineering (basic or detailed). We also support existing or new projects, plants or processes that require additional assistance in processes such as international competitive bidding: including multilaterally funded projects in India.
We extend funded and non funded facilities to export of projects and services categorized as:
Civil engineering and construction projects
Involves civil works, steel structural works, and associated supply of construction material and equipment for various infrastructure projects.
Involves supply of equipment along with related services, like design, detailed engineering, civil construction, erection and commissioning of plants and power transmission and distribution.
Technical and Consultancy Service contracts
Involves the provision of know-how, skills and personnel training. Typical examples of services contracts are: project implementation services, management contracts, super vision of erection of plants, CAD / CAM solutions in software exports, finance and accounting systems.
Involves export of capital goods and industrial manufactures. Typical examples of supply contracts are: supply of stainless steel slabs and ferro-chrome manufacturing equipments, diesel generators, pumps and compressors.
Indian manufacturers and project exporters can use these facilities to support their export trade financing requirement.
The facilities cover Indian capital and engineering goods and related services.
To use our facilities, any of the following securities can be provided:
Shareholders and / or Director's guarantee
Charge on fixed and/or floating assets of customers
Assignment of insurance policies, agreements, contract proceeds, rights and benefits
Any other security acceptable to the Bank.
The following entities can avail of credit under our Finance for Deemed Exports facility:
Indian companies executing contracts within India, but financed by multilateral funding agencies.
Contracts for which export benefits are available under Foreign Trade Policy
NON FUNDED FACILITIES
Indian companies can avail non-funded facilities to secure and facilitate execution of export contracts or deemed export contracts.
Advance Payment Guarantee (APG):
This helps secure a project mobilization advance as a percentage (10-20%) of the contract value. This is a guarantee issued to project exporters and is generally recovered (on a pro-rata basis) from the progress payment during project execution.
Performance Guarantee (PG):
A performance guarantee for up to 5-10% of contract value may be availed of by an exporter. This is valid until completion of maintenance period and/or grant of Final Acceptance Certificate (FAC) by the overseas client.
Retention Money Guarantee (RMG):
This enables one to obtain the release of retained payments from the client prior to issuance of Project Acceptance Certificate (PAC) / Final Acceptance Certificate (FAC).
e.g. in lieu of customs duty or security deposit for expatriate labour, equipment etc.
Indian project exporters securing overseas or deemed export contracts.
CONFIRMATION OF LETTERS OF CREDIT BY EXIM BANK UNDER THE GTFP PROGRAM OF IFC, WASHINGTON DC
Name of Programme :
Confirmation of letters of credit (L/C) by exim bank under the Global trade finance program (GTFP) of the international finance Corporation (IFC), Washington DC.
Eligibility to avail finance or services :
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. IFC will provide guarantee facility to Exim Bank to cover such L/C confirmation and confirmation of other trade instruments
Exim Bank's L/C confirmation will cover the risk of non-payment by the Issuing Bank. Eligibility Criteria: The Issuing Bank must be in IFC's list of pre-approved banks. (List of issuing Banks is attached). Eligible Goods means export of all types of goods and commodities and related cost of selected transport and other services to any one of IFC’s countries of operation and not included in IFC’s exclusion list (exclusion list is attached). Pricing: The fee payable to Exim Bank (including fee payable to IFC) for adding confirmation to the L/C will be advised by Exim Bank along with the approval for confirmation of L/Cs and other trade instruments. The fee will be payable before confirmation of instruments by Exim Bank.
Knowledge of exporters requirements
Capability to leverage extensive international network
Lending in both INR and foreign currency
Competitive rates of interest and flexible repayment schedules