Overseas Investment Finance

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:

  • Term loans to Indian companies’ upto 80% of their equity investment in overseas JV/ WOS
  • Term loans to Indian companies towards upto 80% of loan extended by them to the overseas JV/ WOS
  • Term loans to overseas JV/ WOS towards part financing
    • capital expenditure towards acquisition of assets
    • working capital
    • equity investment in another company
    • acquisition of brands/ patents/ rights/ other IPR
    • acquisition of another company
    • any other activity that would otherwise be eligible for finance from Exim Bank had it been an Indian entity
    • Guarantee facility to the overseas JV/ WOS for (i) raising term loan/ working capital

Eligibility to Avail Finance or Services

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.

For further information, you may write to us: cbg@eximbankindia.in

 

Overseas Investments

  • Exim Bank facilitated a term loan to a subsidiary of an Indian pharmaceutical company in Switzerland
  • Exim Bank assisted an Indian University for establishing universities outside India in Antigua in the field of medical and allied education.
  • Exim Bank sanctioned a Rupee Term Loan to a manufacturer of brass bearing cages towards part financing the acquisition of 100% equity stake of a company in Romania