SBI on Wednesday said it has secured a $500 million loan from Korean EXIM Bank to help fund companies from the East Asian nation setting up units in India. “The State Bank of India (SBI) and The Export-Import Bank of Korea (K-EXIM) on Wednesday concluded a $500 million (Rs3,300 crore) line of Credit,” SBI said in a statement. This line of Credit will help State Bank of India arrange long term foreign currency funds to finance Korean Companies setting up manufacturing unit here.
It will also be utilised by Indian corporates sourcing goods from joint ventures or subsidiaries of Korean companies having manufacturing set up in India which will be a push to the Government's 'Make in India' mission, SBI chairperson Arundhati Bhattacharya said in the statement. “There is huge opportunity for Korean Companies to take part in Prime Minister's mission of 'Make in India”, she said. The loan agreement was signed by Bhattacharya and Duk Hoon, lee, Chairman and President, K-EXIM.
lee said: “We will provide the fullest possible financial support to Korean and Indian companies for the successful cooperative partnership.”
The line of credit can be utilised for financing corporates in India or neighbouring countries to purchase goods which are of Korean origin or manufacture and/or services rendered by Korean person. This line of credit can also be utilised to finance clients of SBI having business relationships either by way of equity participation or regular trade with Korean companies globally.