Export Import Bank of India (Exim Bank) is considering raising funds through Samurai bonds, or Yen-denominated bonds issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
This financial year, the bank is planning to raise a total of Rs 19,500 crore, out of which Rs 14,500 crore would be raised in the domestic market, while $1 billion is expected to be raised through international borrowing.
“We are interested in raising funds through Samurai bonds this year, but the amount will depend upon the market conditions. We have tapped the Japanese market with Samurai bonds twice earlier and have had a good experience. We are also in touch with merchant bankers in this regard,” said T C Venkat Subramanian, chairman and managing director, Exim Bank, at a Ficci banking conclave here today. So far, the bank has raised Rs 5,203 crore, out of which it raised about $461 million through foreign resources, mainly through loan syndication. In 2006 also, the bank had raised funds through Samurai bonds.
Last financial year, the bank had raised Rs 17,650 crore, with $1,170 million raised in the international market.
Exim Bank is also in talks with Japan Bank for International Development (JBIC) for new bilateral trade finance loan for financing exports under negotiation.
It is also in discussions with the US Exim Bank and SACE (export credit agency of Italy) for finance.
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Exim Bank is also planning to expand the line of credit (LOC) facility worth $500 million to Africa this year.
During 2008-09, the bank extended 25 LOCs,aggregating $783.5 million to 20 countries.
Overseas investments by Indian companies witnessed a decline of 14.90 per cent during 2008-09.
Exim Bank is also planning to open one office in Ethopia this year.
Exim Bank is aiming at a 20 per cent growth in disbursals in 2009-10. The disbursements grew by 18.6 per cent at Rs 30,000 crore in 2008-09, he said.