FOR IMMEDIATE RELEASE April 15, 2008
Linda Formella (202) 565-3200
WASHINGTON, D.C. - The Export-Import Bank of the United States (Ex-Im Bank) today approved a $2.2 billion Indian Infrastructure Facility that will support U.S. exports to Indian projects in sectors such as power and renewable energy generation, oil and gas development, small aircraft, airport development and health care.
Under the facility, eight Indian financial institutions provide their guarantees to expedite processing of Ex-Im Bank-backed medium-term and long-term financing for Indian buyers of U.S. exports. Each financial institution has an underlying pre-approved credit line of $50 to $250 million, and one lender, Power Finance Co., has a pre-approved line of $800 million. Financing provided under the facility is denominated in U.S. dollars.
The Indian financial institutions participating in the facility are Power Finance Co. (PFC), Infrastructure Development Finance Corp. (IDFC), Industrial Development Bank of India (IDBI), India Infrastructure Finance Co. Ltd. (IIFCL), State Bank of India (SBI), Infrastructure Leasing & Financial Services (IL & FS), India Renewable Energy Development Agency (IREDA) and Punjab National Bank.
There is a rising demand for U.S. goods and services in India because of their high quality and competitive prices, said Ex-Im Bank Chairman and President James H. Lambright. This new facility will help Ex-Im Bank to work with major Indian lenders to provide dollar-denominated financing for U.S. exports to India's current and future infrastructure projects.
India's Ministry of Finance has estimated that more than $500 billion will be needed to finance development of India's infrastructure. To facilitate financing for U.S. exports for Indian projects, Ex-Im Bank has been working to establish partnerships with business, government and financial institutions in India. In October 2007, Ex-Im Bank Chairman Lambright participated with U.S. Treasury Secretary Henry Paulson in the U.S.-India CEO Forum Infrastructure Investment Conference in Mumbai. Last month, Ex-Im Bank Board Member Diane Farrell and staff conducted business development meetings, focusing on small and medium-sized enterprises, with officials in Hyderbad, Pune, Mumbai and New Dehli.
Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 74th year, helps create and maintain U.S. jobs by financing the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export-credit insurance and direct loans.
In fiscal year 2007, Ex-Im Bank authorized $12.6 billion in financing to support an estimated $16 billion of U.S. exports worldwide. The Bank approved more than $1.4 billion in financing for U.S. exports to India, including $500 million for U.S. equipment and services to the Reliance petroleum refinery project. For more information, visit www.exim.gov.