IFC, a member of the World Bank Group, and the Bank of Tokyo-Mitsubishi UFJ, Ltd have provided up to $150 million to India’s Export-Import Bank to help expand Indian exporters’ access to finance—including for small and medium enterprises--and support their exports to Africa.
IFC and BTMU have each provided a medium-term trade-finance loan of up to $75 million to India’s 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 T.C.A Ranganathan, Exim Bank’s Chairman and Managing Director. “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.”
Rashad Kaldany, IFC Vice President, Asia, Eastern Europe, Middle East and North Africa, said: “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.”
Katsunori Nagayasu, BTMU’s President, 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.”
The tie-up continues the long-standing relationship that IFC shares with Exim Bank and BTMU to provide support to emerging economies. To learn more about IFC in South Asia, visit www.ifc.org/southasia.
About IFC
IFC, a member of the World Bank Group, is the largest development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives—by providing financing to help businesses employ more people and provide essential services, mobilizing capital from others, and delivering advisory and risk-management services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.
About the Bank of Tokyo-Mitsubishi UFJ, Ltd
BTMU is the core member company of Mitsubishi UFJ Financial Group, one of the world’s leading financial groups. The group’s services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management and leasing. BTMU is Japan’s leading bank, with around 750 domestic branches and offices, more than 400,000 corporate customers, and about 40 million individual customers. It also has the largest overseas network of any Japanese bank, comprising about 450 offices and subsidiaries in more than 40 countries.
About Export Import Bank of India
India Exim Bank, set up under an Act of Parliament, is the leading financial institution engaged in financing, facilitating and promoting India’s International trade and investment. The Bank offers to Indian companies a comprehensive range of products and services. The Bank enjoys investment-grade rating on par with the Indian sovereign from four international agencies, viz., —Baa3 from Moody's, BBB- from Standard and Poor's and Fitch, and BBB+ from the Japan Credit Rating Agency. The Bank seeks to leverage its strong financials and sovereign rating to raise foreign-currency resources from international debt market through a variety of instruments and a diversified investor base, thereby enabling it to extend financial assistance to Indian exporting companies, including SMEs, at competitive rates.
