This LOC Is Great News: SBI Signs Unitied Line of Credit With Korea' s EXIM Bank
This LOC Is Great News: SBI Signs Unitied Line of Credit With Korea' s EXIM Bank
Indian's biggest bank, SBI or State Bank of India has just signed an United Line of Credit (LOC) with Korea's Export Import Bank. The announcement was made by an official export credit agency in Korea .The Loan Agreement for the United 2 ste Line of Credit for USD 500 million has been signed by the 2 nations. This is an addition to the existing LOC between the 2 countries of USD 200 million which was signed on January 16th this year. The earlier Line of Credit is to support companies from India which are importing goods as well as services form Korea.
The current United Line of Credit can be utilised for the purpose of financing SBI clients in India as well as neighbouring countries with business relationship either through equity participation or consistent trade with Korean companies on a global scale. Also included are the JVs or subsidiaries of the Korean firms. The agreement in question was sined between Mr. Young Whan Sul who is the Senior Executive Director, Member of Board of Directors, at Korean Exim Bank and Mr. C. Venkat Nageswar who is currently the Regional Head for East Asia at SBI.
The venue where the agreement was signed was Seoul. Mr. Rajnish Kumar, the MD & CEO of the SBI Capital Markets Ltd also attended the occasion. He was quoted as having said, “This signing is a step towards further strengthening of Korea-India strategic partnership and will help foreign currency financing for corporates in India and neighbouring countries partnering with Korean conglomerates.”
Mr Lee Duk-Hoon Ch, Chairman and President of Korea Exim Bank said that: “This partnership with SBI will significantly benefit Korean companies’ ambition to investment in India and ultimately help to increase much required foreign investments in India.”
SBI is the country's largest lender currently. This entire fresh LOC's process was managed by the SBI Capital Markets. On this occasion, Mr. Pradeep Kumar said that, “Against the backdrop of India's growing demand for capital goods to support growing infrastructure and capital expenditure requirement there is continuous increase in import of equipment and services from Korea. This Line of Credit will help SBI to arrange long term foreign currency funds to support financing needs of Indian corporates importing equipment and technical services from Korea. This strategic alliance among the two institutions is a significant step towards synergizing their strengths and supporting growing Korea-India bilateral trade relationship.”
The other signatory to the agreement, Mr. Kim also said, “The Interbank Export Loan Agreement with State Bank of India will pave the way for Korean companies to actively interchange and cooperate with Indian companies for India's medium- and long-term national projects. We will provide the fullest possible financial support to Korean and Indian companies for the successful cooperative partnership.”
