MD Harsha Bangar – The New Indian Express

By PTI

NEW DELHI: The Export-Import Bank of India (Exim Bank) plans to raise $3.8 billion through raking in foreign currency funds in the current fiscal year under its global medium note program term (GMTN), said a senior official.

As a political bank, wholly owned by the union government, the bank also has a budgeted allocation of Rs 1,500 crore for the current financial year.

“For FY23, Exim Bank has a budgeted allocation of Rs 1,500 crore from the government. Typically, this would be required by the bank for its growth as well as to maintain the required capital adequacy ratio” , said Harsha Bangari, Managing Director of Exim Bank. .

She said that in the current 2022-23 financial year, Exim Bank will request the government to provide from budgeted capital as needed.

“As far as our requirements are concerned, we are a financial institution, so we will have a mix of equity and debt. For FY23, we have a foreign exchange resource mobilization program of approximately $3.8 billion. This $3.8 billion proposal would be spread across It’s not really long-term funding, it’s going to be short-term funding as well The bank has a GMTN program that allows them to access capital international (markets) We issue bonds such as foreign currency bonds,” Bangari said.

This will be under the bank’s $10 billion GMTN program. A medium-term note (MTN) is a bond that typically carries a maturity period of five to 10 years. This type of bond issue can be permanently offered by a company to investors to meet its constant cash needs.

The coupon rates of MTNs are higher than those of short-term notes. In addition to this, the bank also borrows money from the market. It can take the form of a syndicated loan agreement or a bilateral agreement, she added.

In addition, Exim Bank also has very strong relationships with multilateral funding agencies, Bangari said. “In the current fiscal year, we have already borrowed $50 million in funds from the Japan Bank for International Cooperation (JBIC),” the official added.

In May this year, Exim Bank signed a $100 million loan agreement with JBIC and three Japanese financial institutions.

Established in 1982, Exim Bank promotes India’s international trade and investment by providing Indian businesses with a comprehensive range of products and services to enhance their international competitiveness.

Exim Bank supports Indian exporting companies, especially medium-sized companies, in their globalization efforts through a variety of loan programs.

In 2020-21, the bank approved loans totaling Rs 36,521 crore under various lending schemes compared to Rs 40,255 crore in 2019-20.

In addition, it sanctioned unfunded facilities totaling Rs 6,422 crore from Rs 7,139 crore in FY 2019-20 comprising project guarantees, financial guarantees and letters of credit.

NEW DELHI: The Export-Import Bank of India (Exim Bank) plans to raise $3.8 billion through raking in foreign currency funds in the current fiscal year under its global medium note program term (GMTN), said a senior official. As a political bank, wholly owned by the union government, the bank also has a budgeted allocation of Rs 1,500 crore for the current financial year. “For FY23, Exim Bank has a budgeted allocation of Rs 1,500 crore from the government. Typically, this would be required by the bank for its growth as well as to maintain the required capital adequacy ratio” , said Harsha Bangari, Managing Director of Exim Bank. . She said that in the current 2022-23 financial year, Exim Bank will request the government to provide from budgeted capital as needed. “As far as our requirements are concerned, we are a financial institution, so we will have a mix of equity and debt. For FY23, we have a foreign exchange resource mobilization program of approximately $3.8 billion. This $3.8 billion proposal would be spread across It’s not really long-term funding, it’s going to be short-term funding as well The bank has a GMTN program that allows them to access capital international (markets). We issue bonds such as foreign currency bonds,” Bangari said. This will be under the bank’s $10 billion GMTN program. A medium-term note (MTN) is a bond that Typically carries a maturity period of five to 10 years.This type of bond issue can be continuously offered by a company to investors to meet its ongoing cash flow needs. MTN are higher than those of short-term notes. In addition to this, the bank also borrows money from the market. It can take the form of a syndicated loan agreement or a bilateral agreement, she added. In addition, Exim Bank also has very strong relationships with multilateral funding agencies, Bangari said. “In the current fiscal year, we have already borrowed $50 million in funds from the Japan Bank for International Cooperation (JBIC),” the official added. In May this year, Exim Bank signed a $100 million loan agreement with JBIC and three Japanese financial institutions. Established in 1982, Exim Bank promotes India’s international trade and investment by providing Indian businesses with a comprehensive range of products and services to enhance their international competitiveness. Exim Bank supports Indian exporting companies, especially medium-sized companies, in their globalization efforts through a variety of loan programs. In 2020-21, the bank approved loans totaling Rs 36,521 crore under various lending schemes compared to Rs 40,255 crore in 2019-20. In addition, it sanctioned unfunded facilities totaling Rs 6,422 crore from Rs 7,139 crore in FY 2019-20 comprising project guarantees, financial guarantees and letters of credit.