Export-Import Bank of India (Exim Bank) plans to set up a project development company (PDC) in Africa, with the participation of State Bank of India (SBI), IL&FS and African Development Bank.
The new company will essentially look to bring infrastructure projects in Africa to a bankable stage and facilitate exports from India to Africa. This is the first time Exim Bank is looking to set up a PDC and also the first time in Africa.
“We are setting up a joint venture company with equity participation from the African Development Bank, SBI and IL&FS which will work on a consultancy basis,” said Yaduvendra Mathur, Chairman and Managing Director of Exim Bank, while addressing a press conference, here.
The PDC will look at large projects that will be built across two to three countries in Africa, said Mr. Mathur, adding, African Development Bank (a multilateral institution for 55 African countries) will be a partner with Exim Bank in this. “We are having a meeting with them mid-May in Rwanda.”
“We are ready to kick-start the company. A few clearances are pending from the African Development Bank side.... It could be based at Kenya, South-Africa or Mauritius,” said David Rasquinha, Executive Director, Exim Bank.
Meanwhile, the bank announced a net profit of Rs. 710 crore during the financial year 2013-14. The bank restructured assets worth Rs. 1,400 crore in 2013-14 and it said that it has assets worth Rs. 400 crore in the restructuring pipeline.
Lines of credit
The bank said that lines of credit (LOCs) aggregating $ 1,771.75 million (24 new LOCs during the year) were extended to support export of projects, goods and services from India.
189 LOCs, covering 75 countries in Africa, Asia, CIS, Europe and Latin America, with credit commitments aggregating $ 10.33 billion are currently available for utilisation, while a number of prospective LOCs are at various stages of negotiation.
Project export contracts supported by Exim Bank in 2013-14, amounted to Rs. 34,131 crore, which were secured by 40 companies in 35 countries.
As on March 31, 2014, 319 project export contracts valued at Rs. 1,40,326 crore ($ 23.42 billion) supported by the bank, were under execution, in 74 countries across Asia, Africa and CIS by 99 Indian companies.
Will look to bring infrastructure projects to a bankable stage and also facilitate exports from India to Africa