Export-Import Bank of India Role and Functions July 15, 2010
2Exim Bank of India 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)
3 Management BOARD OF DIRECTORS (16)* OFFICES Chairman and Managing Director Domestic Offices: 10 Overseas Offices:7 5 Directors: Government of India Ahmedabad Addis Ababa Bangalore Dakar 3 Directors: Scheduled Banks Chandigarh Dubai 4 Directors : Professionals/Experts Chennai Durban 1 Director nominated by RBI Guwahati London 1 Director nominated by IDBI Hyderabad Singapore 1 Director nominated by ECGC Kolkata Washington D.C. New Delhi Appointed by Mumbai Govt. of India Pune* As per Exim Bank Act
4Operational Philosophy International Trade Financing Promoting Facilitating ThroughVariety of Financing Value Added Business Research and Programmes Advisory Services Analysis Catalyst for Financing Projects Products Services
5Financing Programmes Financing Programmes (Various Currencies)Export Credit Import Credit Loans for Exporting UnitsMedium / Long Term - Import Loan for - Term Loans for expansion/ diversification/ new projects/- Lines of Credit capital goods export product development/- Buyer‟s Credit - Bulk Import Loan for export marketing/ research & development- Supplier‟s Credit Raw Materials - Term Loans for overseas equity investmentShort Term - Direct equity stake in Indian/- Pre/Post Shipment Overseas ventures of exporting Credit 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 LoansTerm Finance (For exporting companies – Criteria is minimum 10% of theturnover should be by way of exports on FOB basis or Rs.5 crs exports ofFOB 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 FinanceExport 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 Companys 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
10Lines of Credit Programme Lines of Credit (LOCs)Exim‟s own LOCs to At behest of GOI, concessional LOCs to developing countries ineconomically strong Asia/ Africa/ Latin America with a long-term perspective. While Eximdeveloping countries raises the resources and funds disbursement, GOI guarantee andand regional provide interest equalisation support under India Developmentdevelopment banks 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 Promoting Project 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. 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
13Exim Bank and SMEs EMS & Skill Upgradation for SMEs 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
14Cluster Approach Clusters of Excellence 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
15Agri 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
16Research & Analysis 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.
17Capacity Building for SMEs Export Marketing Services 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 : Ayurvedic Products to Hungary Processed foods to Singapore & Italy Tiger Prawns to a leading restaurant Agarbathis to S. Africa and Singapore chain in S.Africa Natural Sandstone and Tiles to Hungary Cotton fabrics to S. Africa Incense sticks to Singapore, S. Africa, Lucknow Chikan Kurtas to Singapore USA Grapes and Pomegranates to Singapore
18Innovative Programs for Empowering SMEs GLOBAL TRADE FINANCE PROGRAM (GTFP)) 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 IFCs 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 IFCs operation and Exim Bank may confirm the L/Cs & other trade instruments issued by pre- approved banks for supporting Indias exports to these countries.
19Institutional Linkages Multilateral Agencies Trade & Invt. Promotion Agencies Export Credit Agencies World Bank JETRO Exim Bank Romania ADB Netherlands Council for Czech Export Bank African Development Trade Promotion Hungarian Exim Bank Bank Polish Agency for JBIC EBRD Foreign Investment US Exim Bank MIGA Board of Investment of PT Bank Ekspor IFC Sri Lanka Indonesia UNCTAD Board of Invt. Mauritius Exim Bank of China
20Exim Bank: Partner in Globalisation Technology Final Products Capital Capital Goods (Foreign Investment) Capital Raw Materials (Overseas Ventures) Capital Goods Product Development Production Marketing Pre shipment Post shipment
22Major 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
23Major 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: email@example.com firstname.lastname@example.org 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