ICICI Bank & Korea Exim Bank sign line of credit

Mumbai, Aug 21 (UNI) With an aim to lay the foundation for strengthening commerce ties between Indian and Korean companies, ICICI Bank and Korea Eximbank today signed a 'untied two step' Loan Agreement for a Line of Credit worth Rs 200 million US dollars.

Explaining the deal, Mr K V Kamath, Managing Director and CEO of ICICI Bank told a press conference that 'untied two step loan' meant that the funds will not be specially tied to any sector. Korea Eximbank will lend the money to ICICI Bank who will in turn finance the foreign currency requirements of Indian corporates as well as those from the neighbouring countries having equity participation by Korean companies or having business relationship with Korean firms.

Korea Eximbank or the Export-Import Bank of Korea is an official export credit agency, which provides export-import and overseas investment credit to support Korean enterprises in conducting business overseas. Mr Kamath said the untied two-step loan is the first of its kind to be extended by Korea Eximbank to any bank in the world.

Earlier, Mr Kamat signed an agreement with Mr Cheon-Sik Yang, Chairman and President, Korea Eximbank.

Mr Kamat said, '' With trade and investment between the two countries growing, ICICI Bank believes that this is a suitable time to establish a Line of Credit for Indian Corporates having Korean linkages. This Line of Credit with help of fostering closer ties between Indian and Korean business communities and in promoting trade and investment activities between the two countries. The understanding with Korea Eximbank is in line with ICICI Bank's commitment to provide its customers with customized and structured corporate finance solutions.'' On the occasion, Mr Yang pointed out, '' With ICICI Bank's outstanding human resources, its commitment and the wide range of business networks, this loan facility will significantly benefit Korean companies' investment in India and ultimately contribute to the development of the Indian economy''.

Mr Kamat said sectors that will benefit from this Line of Credit include automobile, auto ancillaries, power, tranportation, plastics and consumer electronics.

UNI