charge on its assets, Political and/ or commercial risk cover, Pledge of shares held by the Indian promoter in the overseas venture etc. 1.3.4 Export- Oriented Units, Corporate Banking The Bank offers a number of financing programmes for Export Oriented Units (EOUs), importers and for companies making overseas investments. The financing programmes cater
to the term loan requirements of Indian exporters for financing their new project, expansion, modernization, purchase of equipment, R&D, overseas investments and also the working capital requirements. Finance for Corporates Research & Development Finance for Export Oriented Units: Exim Bank encourages Indian exporters to invest more in their R&D spending in order to develop new products/processes/ IPRs for enhancing export capabilities. Considering the need to bridge the funding gap of Indian exporters in R&D space, the Bank has a dedicated R&D Financing Programme. Under the said Programme, financing for R&D can be extended to any export oriented company/ SPV promoted by companies, irrespective of the nature of industry. The financing covers both capital and revenue expenditure including inter alia: Land and building, civil works for housing eligible R&D activities; Equipments, tools, computer hardware/ software, miscellaneous fixed assets used in eligible R&D activities; Acquisition of technology from India or overseas at the “proof of concept” or design stage, which will be used to develop new product/ process. Salaries of R&D personnel, support staff during the R&D project phase including training costs; Cost of regulatory approvals, filing and maintenance of patent registration; Product documentation and allied costs during the R&D project phase. Costs of materials, surveys, technology demonstration studies and field trial Any other costs to enhance R&D capability. Eligibility: Export oriented firms with exports (actual/projected) of at least ` 5 crores or 10% of annual turnover. R&D finance is generally extended upto 7 years. However, longer tenors with suitable interest resets would be permissible. Structured repayment can be considered to match the cash flow. Upto 80% of the total project cost can be funded. Security to include, inter alia, appropriate charge on the assets, Corporate Guarantee, charge/ assignment on the regulatory approval/ IPR, personal guarantee etc. Pre-shipment/Post-shipment Credit Programme: Exim Bank extends export credit to Indian exporters to meet a wide range of trade financing requirements for execution of an export transaction. The Bank provides working capital finance by way pre-shipment credit and post-shipment credit. Bank also extends as part of export credit assistance, non-fund based limits inter alia including issuance of Letters of Credit (both Foreign & inland) and Bank Guarantees (both Foreign & inland) for its clients.
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- Fall '19
- International Trade, Financial services, Trade finance, EXIM Banks