Exim Bank encourages Indian companies to invest abroad for, inter alia, setting up manufacturing units and for acquiring overseas companies to get access to the foreign market, technology, raw materal, brand, IPR etc. For financing such overseas investments, Exim Bank provides:
Exim Bank's funded/ non-funded assistance is generally with recourse to the Indian promoter Company. Exim Bank financing is available in Indian Rupees (to the Indian borrower) and in foreign currency [as per extant RBI guidelines]. Commercial interest rates are charged on the term finance. The tenor range is usually 5-7 years with a suitable moratorium, and repayments in suitable monthly / quarterly installments. Promoter margin is minimum 20% and security will include inter alia appropriate charge on the assets of the overseas entity, Corporate Guarantee of the Indian promoter backed by appropriate charge on its assets, Political and / or commercial risk cover, Pledge of shares held by the Indian promoter in the overseas venture etc.