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 US exports, said a bank statement. Each financial institution has an underlying pre-approved credit line of 50 to 250 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 US 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 US exports to India's current and future infrastructure projects.'' India's Ministry of Finance has estimated that more than 500 billion dollars will be needed to finance development of India's infrastructure. To facilitate financing for US 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 US Treasury Secretary Henry Paulson in the US-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.
In fiscal year 2007, Ex-Im Bank authorized 12.6 billion dollars in financing to support an estimated 16 billion dollars of US exports worldwide. The Bank approved more than 1.4 billion dollars in financing for US exports to India, including 500 million dollars for US equipment and services to the Reliance petroleum refinery project.