Mumbai, Feb 2: The Export and Import Bank of the United States (US Exim) has approved a $300 million facility to the Industrial Development Bank of India (IDBI) for financing imports by Indian companies from the US.The rupee denominated facility would have two tranches of $150 million each - a Master Credit facility (MCF) and a Credit Guarantee Facility (CGF), IDBI said in a release on Friday.
IDBI is the first institution to get an extended rupee denominated facility by an international export credit agency, it added.
Under MCF, US Exim would guarantee loans/bonds issued by IDBI in the domestic or international markets of maturities upto 10 years. The proceeds of the borrowings, expected to be finely priced, can be used by IDBI to finance its clients' imports from the US, it added.
In case of CGF, US Exim would directly guarantee loans granted by IDBI to its clients having imports from the US. These financing structures would help Indian companies to avail of rupee denominated loans for funding imports from US.
(PTI)
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