National Export Insurance Account (NEIA)

BROAD TERMS AND CONDITIONS OF
EXIM BANK’S FOR BUYER'S CREDIT (UNDER NEIA) PROGRAMME

1. Programme Buyer's Credit Programme of the Export-Import Bank of India (Exim Bank) under Government of India (GOI)'s National Export Insurance Account (NEIA)
2. Eligible Borrowers Sovereign governments and their nominated government-owned entities for financing their import of eligible goods and services from India on deferred payment terms.
3. Eligible Goods Project Exports from India
4. Eligible Indian companies Indian exporters with satisfactory track record and sound financials.
5. Quantum of Credit The Buyer's Credit would not normally cover more than 85% of the contract value, with the balance 15% being paid by the project authority as advance or down payment. Higher credit amount can be considered on case to case basis.
6. Rate of Interest payable by the overseas borrower The interest rate payable by eligible overseas borrowers under the Programme have a tenor linked pricing.
Total Yield
Payable by Borrower
To be borne by the Exporter
LIBOR + 2.25% p.a.
LIBOR + 1.00% p.a.
1.25% p.a.
LIBOR + 2.75% p.a.
LIBOR + 1.25% p.a.
1.50% p.a.
LIBOR + 3.00% p.a.
LIBOR + 1.50% p.a.
1.50% p.a.
These rates will be subject to review by Exim Bank on a half-yearly basis (or more frequently if there are upheavals in the external environment).
7. Interest Differential and Charges/ Fees payable by the Indian company Charges and fees payable by the Indian company including a suitable interest differential, as determined by Exim Bank.
8. NEIA Guarantee Fee NEIA's Comprehensive Risk Cover policy, indicative guarantee fees to be borne by seller / buyer, as may be agreed, at approx. 6% (lump sum, payable up-front) for the principal and interest components. Guarantee fee on interest component would be payable at 1% p.a. if the interest is covered on an annual basis.   [Usually the cover is obtained for 100% of principal and interest portion plus cover for exchange rate fluctuation till repayment of the credit, as the insurance cover is denominated in Indian Rupees at the start of the cover.]
9. Tenor / Repayment Period Credit period would usually be 8 to 12 years, and longer credit period will be considered on merits of the proposal.
10. Security
  • Sovereign guarantee where the borrower is other than the foreign government
  • Any other security as may be stipulated on a case-to-case basis by the Committee of Directions
11. Nature of Projects to be covered under the Programme Projects covering sectors, where Indian companies have established expertise, could initially be covered for support under the Scheme. Projects in other sectors may be considered for inclusion upon subsequent review. Such sectors may, among others, include:
  • Power (generation, transmission, distribution), covering thermal, hydro, solar and wind;
  • Transportation [(i) Railways (including rail lines, bridges, signalling, rolling stock); (ii) Roads (including flyovers and bridges, toll plazas); (iii) Vehicles and related equipment (including heavy commercial vehicles, passenger vehicles)]
  • Capital and engineering goods
  • Housing, hospitals and related civil infrastructure
  • Water (treatment, distribution, sanitation, irrigation)
12. Eligible Countries ECGC's positive list of countries for NEIA. The list could be suitably expanded / modified on receipt of credit requests for projects from other countries.
13. Lender's engineer For large value projects, a lender's engineer may be appointed with the role and responsibilities covering the review of the detailed project report and design, monitoring of implementation, evaluation of operations and maintenance, and post-commissioning stages of a project.  A certification confirming post-commissioning annual maintenance arrangements to be submitted by the overseas buyer, as acceptable to Exim Bank.  The cost of the lender's engineer, would be covered in the overall cost of the project.
14. Indian Content Goods and services for minimum 75% of the value of goods and services covered under the Scheme must be of sourced from India. A suitable relaxation, not exceeding 10%, may be considered for exceptional reasons, especially in case of projects having civil construction.