Exim raises $230 m via Samurai bond

Export Import Bank of India (Exim Bank) has tied up $230 million from the Japanese market as part of its strategy of raising funds from advanced overseas markets. S R Rao, executive director, Exim Bank, confirmed this.

The entire fund will be in yen and will be called 'Samurai' bond. This will be Exim Bank's second fund-raising exercise through bonds in Japan.

"This is the second time in the current year, we are raising money from Japan," Rao said.

Rao, who was in Kolkata on Saturday to attend a seminar on 'Globalisation through Overseas Investments', organised by Indian Institute of Social Welfare & Business Management, said Japan was becoming a major source for the bank for raising funds.

Besides floating bonds, the bank has received $100 million import line of credit from Japan Bank of International Co-operation.

According to Rao, the bank was now laying a special thrust on West Africa, and the fund could be used for the Indian companies' ventures in economically week West African countries. It has already sanctioned a line of credit to the Democratic Republic of Congo.

"Our major thrust is on West Africa, which is more underdeveloped. We shall help Indian companies if they want to go to West Africa," he said.

Incidentally, Exim Bank has already entered into $250 million line of credit with financial agency Icolus for the development of the region.

"The West African countries now realised that India has the right technology for them. They are comfortable to work with us," the ED added. Rao indicated that the bank might set up a branch office in West Africa. At present, Exim Bank has five overseas offices including one in South Africa.