SBI Signs Line of Credit Worth USD 500 Million with K-EXIM

NewsVoir | 13 Jan, 2016

The State Bank of India (SBI) and The Export-Import Bank of Korea (K-EXIM) today concluded a USD 500 million (INR 3,300 crores) Line of Credit.

The agreement was signed by Ms. Arundhati Bhattacharya, Chairman, State Bank of India and Mr. Duk Hoon, Lee, Chairman and President, The Export-Import Bank of Korea. Mrs Varsha Purandare, MD & CEO, SBI Capital Markets Ltd also graced this occasion with her presence.

On this occasion, Ms. Bhattacharya said, âThere is huge opportunity for Korean Companies to take part in honourable PMâs mission of âMake in Indiaâ. This Line of Credit will help SBI in arranging long term foreign currency funds to finance Korean Companies setting up manufacturing unit or Indian corporates sourcing goods from joint ventures or subsidiaries of Korean companies having manufacturing set up in India which will be a push to the mission.â

On the occasion Mr Lee said, âWe will provide the fullest possible financial support to Korean and Indian companies for the successful cooperative partnershipâ

Line of credit can be utilized for financing corporates in India or neighbouring countries to purchase goods which are of Korean origin or manufacture and/or services rendered by Korean Person. This Line of Credit can also be utilised to finance clients of SBI having business relationships either by way of equity participation or regular trade with Korean companies globally, as well as joint ventures or subsidiaries of Korean companies. The loan shall have a maturity of maximum 15 years. With the signing of this Line of Credit, the total facility from K-EXIM for SBI will be USD 1.0 billion.

The entire process of fund raising was facilitated by SBI subsidiary, SBI Capital Markets.