charge on its assets Political and or commercial risk cover Pledge of shares

Charge on its assets political and or commercial risk

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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
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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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