IDBI Bank secures $100 mn import credit from Europe

IDBI Bank secures $100 mn import credit from Europe

Mumbai: Public sector lender IDBI Bank has secured a $100 million ECA (export credit agency) line of credit from Germany’s DZ Bank.

“The $100-million fund, raised through the bank’s Dubai International Finance Centre branch on 6 December, can be used to fund project imports from 24 Western European nations," bank’s executive director and head of international banking Melwyn Rego told PTI here on Friday.

Being meant for project imports, the repayment period is 10 years, or on earlier completion of the project. The money attracts Libor plus 100 basis points and an ECA premium depending upon the country from which the import originates, Rego said, adding this is the first line of export credit raised this year by a domestic bank from Europe.

Earlier last month, the youngest state-run lender had raised $125 million foreign currency syndicated loan from Singapore to fund the overseas financing needs of domestic corporates. This was part of its $1.5-billion medium term note programme, taking its bond raising to $475 million so far this fiscal.