EXIM BANK’S GOI-SUPPORTED LINE OF CREDIT [LOC] OF USD 1 BILLION EXTENDED TO THE GOVERNMENT OF NEPAL

Institution: 
The Export-Import Bank of India

Mr. David Rasquinha, Deputy Managing Director, on behalf of Exim Bank signing the Line of Credit Agreement for USD 1 billion for financing Hydropower, Irrigation and Infrastructural Development Projects in Nepal with Mr. Madhu Kumar Marasini, Joint Secretary, Ministry of Finance, on behalf of the Government of Nepal, on November 25, 2014, in the presence of the Prime Minister of India H.E. Mr. Narendra Modi and the Prime Minister of Nepal H.E. Mr. Sushil Koirala.

Export-Import Bank of India [Exim Bank] has, at the behest of Government of India, extended a Line of Credit [LOC] of USD 1 billion to the Government of Nepal for financing Hydropower, Irrigation and Infrastructural Development Projects in Nepal. The LOC Agreement to this effect was signed in Kathmandu, Nepal, on Tuesday, November 25, 2014, by Mr. David Rasquinha, Deputy Managing Director, on behalf of Exim Bank and Mr. Madhu Kumar Marasini, Joint Secretary, Ministry of Finance, on behalf of the Government of Nepal. The LOC Agreement was signed in the presence of the Prime Minister of India H.E. Mr. Narendra Modi, the Prime Minister of Nepal H.E. Mr. Sushil Koirala and diplomats from the Government of India and the Government of Nepal.

 

With the signing of the above LOC Agreement for USD 1 billion, Exim Bank, till date, has extended three Lines of Credit to the Government of Nepal, at the behest of the Government of India, taking the total value of LOCs extended to USD 1.35 billion. The first LOC of USD 100 million was extended to the Government of Nepal in September 2007 for financing road, rural electrification, power transmission and hydro power projects in Nepal. The second LOC of USD 250 million was extended to the Government of Nepal in October 2011 for financing infrastructure projects such as highways, airports, bridges, irrigation, roads, railways and hydropower projects in Nepal. Nepal is a landlocked country located in South Asia and bordered to the north by China, and to the south, east, and west by India. Nepal is separated from Bangladesh by the narrow Indian Siliguri Corridor. The major items that India exports to Nepal are petroleum products, primary and semi-finished iron and steel, transport equipment, cereals, machinery and instruments, and plastics and articles.  

 

Under the LOC, Exim Bank will reimburse 100% of contract value to the Indian exporters, upfront upon shipment of goods. The LOC will be used for sourcing of goods and services from India. With the signing of this LOC Agreement, Exim Bank has now in place 189 Lines of Credit, covering 63 countries in Africa, Asia, Latin America and the CIS, with credit commitments of over USD 11.51 billion, available for financing exports from India. Exim Bank's LOCs afford a risk-free, non-recourse export financing option to Indian exporters. Besides promoting India’s exports, Exim Bank's LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets.

 

For further information, please contact
Mrs. Geeta Poojary,
General Manager,
Export-Import Bank of India, Centre One Building,
Floor 21, World Trade Centre Complex,
Cuffe Parade, Mumbai 400 005.
Telephone: [022] 22162073 / 2217 2310,
Fax: [022] 22182460.
E-mail: eximloc@eximbankindia.in

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