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Exim Bank sees 25% growth in 04-05
Mumbai, Apr 27: Export-Import Bank of India expects to grow by 25% in 2004-05. The total market borrowing in this fiscal will be 70 billion rupees including USD800 million through external commercial borrowings, chairman and managing director T C Venkat Subramanian told reporters.
Mumbai, Apr 27: Export-Import Bank of India expects to grow by 25% in 2004-05. The total market borrowing in this fiscal will be 70 billion rupees including USD800 million through external commercial borrowings, chairman and managing director T C Venkat Subramanian told reporters.
"We will raise about 7,000 crores (70 billion rupees) and we will have
repayments this year. We will need that much money to achieve 25% growth and that is what our expectation is," Subramanian said.
Funds from the domestic market will be raised through 1-10-year maturity debt while funds from offshore markets will be through 1-5 year maturity debt. Exim Bank already has approval to raise $300 million but it is yet to decide when the funds will be raised, Subramanian said. In 2003-04, EXIM Bank raised $865 million through overseas borrowings and 31.5 billion rupees through bonds and commercial papers from the local debt market.
Subramanian said EXIM Bank will pre-pay high cost debt worth 6 billion rupees this year. For the year 2003-04, EXIM Bank posted a net profit of 2.29 billion rupees, versus 2.07 billion rupees in the previous year. Disbursals stood at 69.57 billion rupees, up from 53.20 in the previous year. In the current year, EXIM Bank will finance projects in the entertainment, healthcare, and agro-processing sectors. However, no amount has been earmarked for disbursals in any of these segments, Subramanian said. "Depending on the success we achieve in each of these new segments, we will penetrate further," Subramanian said. "We have not set aside any amount or target." Exim Bank is in talks with the Asian Development Bank to give finance to Indian companies for projects in Afghanistan and war-torn Iraq, Subramanian said.
"This year we may be directly involved in financing projects in these countries," Subramanian said. So far Exim Bank has provided either guarantees or bridge-finance to Indian companies that have undertaken projects in Iraq and Afghanistan.
Bureau Report
Funds from the domestic market will be raised through 1-10-year maturity debt while funds from offshore markets will be through 1-5 year maturity debt. Exim Bank already has approval to raise $300 million but it is yet to decide when the funds will be raised, Subramanian said. In 2003-04, EXIM Bank raised $865 million through overseas borrowings and 31.5 billion rupees through bonds and commercial papers from the local debt market.
Subramanian said EXIM Bank will pre-pay high cost debt worth 6 billion rupees this year. For the year 2003-04, EXIM Bank posted a net profit of 2.29 billion rupees, versus 2.07 billion rupees in the previous year. Disbursals stood at 69.57 billion rupees, up from 53.20 in the previous year. In the current year, EXIM Bank will finance projects in the entertainment, healthcare, and agro-processing sectors. However, no amount has been earmarked for disbursals in any of these segments, Subramanian said. "Depending on the success we achieve in each of these new segments, we will penetrate further," Subramanian said. "We have not set aside any amount or target." Exim Bank is in talks with the Asian Development Bank to give finance to Indian companies for projects in Afghanistan and war-torn Iraq, Subramanian said.
"This year we may be directly involved in financing projects in these countries," Subramanian said. So far Exim Bank has provided either guarantees or bridge-finance to Indian companies that have undertaken projects in Iraq and Afghanistan.
Bureau Report