US Export-Import Bank, the US government?s official export-credit agency, is now busy diversifying India portfolio beyond the aviation sector.
As of now, the bank has got a total exposure of $5 billion for India, which is one of nine focus countries for the international lending agency.
Interestingly, $4 billion exposure of the bank, which provides loans only for purchase of those products manufactured in US, was in the aviation sector alone.
Currently, US Exim is planning line of credit (LoC) to Spicejet to buy two Boeing aircraft. Spice is yet to formally approach the bank for the loan, said Fred P Hochberg, president of US Ex-Im Bank, while talking to FE on the sidelines of an event in Mumbai recently.
It has already provided finance to two airlines in India?Jet Airways and Air India. ?We are keen on extending our support to Indian companies,? said Hochberg.
Asked to comment on the repayment tenure for the loans provided by the bank, Hochberg said that it varied from 60 days to 18 years depending on the type of the product against which the borrower approach the bank.
?If you buy a certain equipment, you will have to repay the loan within seven years and in the case of loan against purchase of aircraft, you can repay within a period of 12 years. However, in case of loans taken for renewable energy projects, you can repay the loan within up to 18 years,? said Hochberg.
India is emerging as a large portfolio, seeking exposures in sectors like medicare, energuy, road construction and farm and transport , he said. Hochberg said that 85-90% of the bank?s exposure for the Indian companies was in the realm of smaller business.