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Objective

The Export-Import Bank of India was established “for providing financial

assistance to exporters and importers, and for functioning as the principal
institution for co-ordinating the working of institutions engaged in financing
export and import of goods and services with a view to promoting the country's
international trade ..."

The Export-Import Bank of India Act, 1981.

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 Exim Bank’s Buyer’s Credit
Under the National Export Insurance Account
Programme: Salient Features

August 01, 2019

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Introduction
Over three decades ago, in 1982, the Government of India launched a new
institution in the form of Export-Import Bank of India (Exim Bank), with a mandate
to enhance exports and integrate India’s international trade and investment with
its economic growth.

While the mandate was demanding, what really set the Bank apart was the
strategy adopted to fulfil it, which essentially involved introduction of innovative
products and services and proactive adaptation to new challenges.

Commencing operations as a purveyor of export credit, Exim Bank today plays

an important role in partnering Indian industries in their globalisation efforts
through a comprehensive range of financing and advisory support programmes
encompassing all stages of the export business cycle.

Exim Bank has played a pioneering role in promoting project exports from India
and has been actively encouraging Indian firms to participate in overseas project
opportunities. With Exim Banks’ support many Indian companies have been
executing projects in overseas markets.

The achievements of the past three decades provide a strong foundation to Exim
Bank from where it will continue to catalyse India’s international trade and
investment. The Bank is committed to go beyond traditional financing and
facilitate exports of a variety of products and services which have the potential
to go overseas, by creating a niche for them in the international market.

This brochure is one of the principal lending programmes of Exim Bank viz.
Buyer’s Credit under the National Export Insurance Account (NEIA), and is for
dissemination of information to various Indian Project Exporters, as also
prospective overseas Borrower’s viz. Foreign Governments or their nominated
government – owned entities (Parastatal agencies).

Buyer’s Credit under NEIA is a unique financing mechanism that provides a safe
mode of non-recourse financing option to Indian exporters and serves as an
effective market entry tool to traditional as well as new markets in developing
countries, which need deferred credit on medium or long term basis.

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Background
Export-Import Bank of India (Exim Bank) is the coordinator and facilitator for the
promotion of project exports. The Bank, plays a pivotal role in supporting Indian
companies in execution of projects by offering both funded and non-funded
facilities for overseas turnkey projects, civil construction contracts, supplies as
well as technical and consultancy service contracts. Project exports from India
have been increasing steadily over the years, indicating the growing stature of
Indian expertise overseas in a wide range of activities, and upward movement in
the value chain of its export performance.

Project exports are broadly divided into four categories:

 Civil construction: Construction projects involve civil works, steel structural
work, erection of utility equipment and include projects for building dams,
bridges, airports, railway lines, roads and bridges, apartments, office
complexes, hospitals, hotels.
 Turnkey: Turnkey projects involve supply of equipment alongwith related
services and cover activities from the conception stage to the commissioning
of a project. Typical examples of turnkey projects are: supply, erection and
commissioning of boilers, power plants, transmission lines, sub-stations,
plants for manufacture of cement, sugar, textiles, chemicals and desalination
plants.
 Consultancy Services: Services contracts, involving provision of know-how,
skills, personnel and training and operations and maintenance are
categorised as consultancy projects. Typical examples of services contracts
are: project implementation services, management contracts for industrial
plants, hospitals, hotels, oil exploration, charter hire of rigs and locomotives,
supervision of erection of plants, and IT solutions and systems.
 Supplies: Supply contracts involve primarily export of capital goods and
industrial manufactures. Typical examples of supply contracts are: supply of
stainless steel slabs and ferro-chrome manufacturing equipment, diesel
generators, pumps, compressors and vehicles.

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Buyer’s Credit under NEIA
In order to provide further impetus to project exports from India, especially in the
infrastructure sector, Exim Bank, in April 2011, in conjunction with ECGC Ltd.,
introduced a new product / initiative, viz. Buyer’s Credit under Government of
India (GOI)’s National Export Insurance Account (NEIA), under which the Bank
finances and facilitates project exports from India.

Buyer’s Credit – NEIA is a unique financing mechanism that provides a safe mode
of non-recourse financing option to Indian exporters and serves as an effective
market entry tool to traditional as well as new markets in developing countries,
which need deferred credit on medium or long term basis.

NEIA is a Trust, set up by the Ministry of Commerce and Industry (MOCI),

Government of India, for providing medium to long term export credit insurance
cover for promoting project exports from India, administered by ECGC Ltd.

Exim Bank also extends Buyer’s Credit, on medium term, to overseas borrower
without NEIA cover to finance export of capital goods, plant and machinery,
industrial manufactures, consumer durables and any other items eligible for
being exported under the ‘Foreign Trade Policy’ of the Government of India.

Supporting Project Exports

The Indian Project Exporter, under the Buyer’s Credit – NEIA Programme, is
backed by a tailored financing package that meets the funding needs of the
project, without impacting the balance sheet of the Indian project exporter.
Consequently, while the Indian Project Exporter remains responsible for timely
and satisfactory execution of the project, it is free from commercial and political
risks arising out of the financing.

Buyer’s Credit – NEIA is extended by Exim Bank to the overseas Sovereign

governments and their nominated government-owned entities (Parastatal
agencies) backed by sovereign guarantee. NEIA, through ECGC Ltd., provides
cover for the facility. Presently, a positive list of 91 countries has been identified
by ECGC Ltd. for which Indian exporters can avail Buyer’s Credit under NEIA. The
list could be suitable expanded/modified on receipt of credit requests for projects
from other countries/Indian Project Exporter, subject to the approval from the
competent authorities.

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Eligibility and Mechanism
The eligibility of the project for covering under the Buyer's Credit – NEIA, inter-
alia, focuses on (i) country risk perception, (ii) track record and sound financials
of the Indian project exporter and overseas borrower, and (iii) conformity with
the Reserve Bank of India’s Memorandum of Instructions on Project and Service
Exports. It is envisaged that Indian project exporters of repute with good track
record will be supported under the Programme.

The amount of the loan is generally not more than 85% of the contract value,
with the balance 15% being paid by the project authority as advance or down
payment. Higher credit amount can be considered on a case to case basis,
subject to specific request from the Borrower. The interest rate is linked to Exim
Bank’s cost of funds plus a spread. The credit period would usually be 8 to 15
years, with supply contract restricted to 8 years. Longer credit period will be
considered on merits of the proposal, on case to case basis. The security
includes a sovereign guarantee of the borrowing country where the borrower is
other than the Ministry of Finance of the borrowing country and any other
security as may be stipulated on a case-to-case basis.

The project is placed for approval of the Committee of Directions under the
Department of Commerce, MOCI for export credit insurance cover under NEIA.
Exim Bank extends the credit directly to the overseas buyer of projects from
India without recourse to the Indian exporter.

Interested Indian companies may contact the Project Exports Group

([email protected]) of Exim Bank for obtaining a letter for expression of
interest / in-principle commitment. Such a letter(s) is only an indication of
interest to assist in bid submission and should not be considered as an assurance
of credit facilities, and is without any legal binding to Exim Bank. A firm sanction
letter may be issued after award of contract and after satisfactory completion of
due diligence by the Bank. The broad terms and conditions and indicative steps
to be followed under the Programme are given overleaf.

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Broad Terms and Conditions

Programme Buyer’s Credit Programme of the Export-Import Bank of India

(Exim Bank) under Government of India (GOI)’s National Export
Insurance Account (NEIA)
Eligible Sovereign governments and their nominated government-
Borrowers owned entities (Parastatal agencies) for financing their import
of eligible goods and services from India on deferred payment
terms.
Eligible Goods Project Exports from India
Eligible Indian Indian Project Exporters with satisfactory track record and
companies sound financials.
Quantum of The Buyer’s Credit would generally not cover more than 85%
Credit of the contract value, with the balance 15% being paid by the
project authority as advance or down payment. Higher credit
amount can be considered on case to case basis and subject to
approval of the competent authority.
Rate of Interest The interest rate payable by eligible overseas borrowers under
the Programme will have a tenor linked pricing. The current
rates are as follows:
 LIBOR (6M) + 1.25% p.a. for tenor ≤ 8 years;
 LIBOR (6M) + 1.50% p.a. for tenor of >8 - 12 years; and
 LIBOR (6M) + 1.75% p.a. for tenor of >12-15 years.
These rates will be subject to review by Exim Bank on annual
basis or as may be required by the Bank.
Interest Charges and fees payable by the Indian Project Exporter
Differential and including a suitable Differential Interest, as determined by
Charges / Fees Exim Bank.
payable by the
Indian company
NEIA Guarantee NEIA’s Comprehensive Risk Cover policy, indicative guarantee
Fee fees to be borne by Indian Project Exporter/Borrower, as may
be agreed.

Details of Guarantee fees for the principal payable as per

EGCG country classification is stated as under:
Country Classification Guarantee Fee Guarantee Fee
by ECGC rate for 100% rate for 150 %
coverage coverage
Countries Rated 2% 3%
A1, A2
Countries Rated 3% 4.5%
B1 , B2
Countries Rated 3.5% 5.25%
C1, C2 and D
Guarantee fee on interest component would be payable at 1%
p.a. on an annual basis.
Tenor / Credit period would usually be 8 to 15 years, with supply

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Repayment contract restricted to 8 years. Longer credit period will be
Period considered on merits of the proposal, on case to case basis.
Security  Sovereign guarantee of the borrowing country in the event
the borrower is other than the Ministry of Finance of the
borrowing country.
 Any other security as may be stipulated on a case-to-case
basis.
Nature of Projects covering sectors, where Indian companies have
Projects to be established expertise, would be covered for support under the
covered under Scheme. Such sectors may, among others, include:
the Programme  Power (generation, transmission, distribution), covering
thermal, hydro, solar and wind;
 Transportation [(i) Railways (including rail lines, bridges,
signalling, rolling stock); (ii) Roads (including flyovers and
bridges, toll plazas); (iii) Vehicles and related equipment
(including heavy commercial vehicles, passenger vehicles)];
 Capital and engineering goods;
 Housing, hospitals and related civil infrastructure; and
 Water (treatment, distribution, sanitation, irrigation).
Eligible ECGC’s positive list of countries for NEIA. The list could be
Countries suitably expanded / modified on receipt of credit requests for
projects from other countries/Indian Project Exporters.
Lender’s For large value projects, a lender’s engineer may be appointed
engineer with the role and responsibilities covering the review of the
detailed project report and design, monitoring of
implementation, evaluation of operations and maintenance,
and post-commissioning stages of a project.

A certification confirming post-commissioning annual

maintenance arrangements to be submitted by the overseas
buyer, as acceptable to Exim Bank.

The cost of the lender’s engineer will be borne by the Exporter,

Exim Bank or the Borrower, as may be applicable and mutually
agreed.
Indian Content Goods and services for minimum 75% of the value of goods
and services covered under the Scheme must be of sourced
from India. A further relaxation may be considered for
exceptional reasons, especially in case of Engineering,
Procurement and Construction (EPC) projects having civil
construction.

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Schedule of Charges (to be borne by the Indian Project Exporter) under Buyer’s
Credit under NEIA
1. Indicative Term Sheet (ITS)/Expression of Interest (EoI) Issuance/Extension
ISSUANCE
Project Size Validity of the TS / EoI Issuance Fee in
INR
≤ USD 100 mn Equivalent 5,00,000.00
>USD 100-150 mn For a maximum 6,00,000.00
>USD 150 mn period of 6 months 8,00,000.00
EXTENSION # 50,000.00
# Indian Project Exporter (IPE) should write to the Bank before the expiry
of the ITS/EoI or else the TS/EoI shall deem to be cancelled. The TS/EoI will
be further reissued at the request of the IPE after the payment of the
requisite fees for fresh Issuance.
 Fees are non-refundable

2. Addendum to the Commercial Contract and the approval thereon- INR

2,00,000/- per Addendum.
3. Document Handling Charges from the IPE- 0.20% of the value of the each
disbursement.
4. Courier Charges applicable to IPE for forwarding export documents- INR
5000 equivalent or as per actuals whichever is higher, to be charged with
each disbursement.
5. Legal fees (one time) for documentation related to IPE, if applicable- INR
5,00,000/- or as per actuals.
6. Any other charges which may be applicable from time to time.

(Plus applicable taxes for the above charges)

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Indicative Steps to be followed
i) The Indian Project Exporter approaches Exim Bank to seek support under
Buyer’s Credit – NEIA and terms thereof.
ii) Exim Bank conducts preliminary due diligence and conveys in-principle
approval along with indicative terms. Indian exporters with satisfactory
track record and sound financials are considered for support under the BC-
NEIA facility.
iii) Once the contract is secured and signed between the Indian exporter and
the Overseas Buyer, Exim Bank conducts detailed review and obtains
necessary internal approvals.
iv) Exim Bank approaches the Committee of Directions (COD) under MOCI.
The COD, based on merits of the proposal, considers approval of the
proposal for coverage under NEIA.
v) ECGC, upon approval of the COD for export credit insurance cover under
NEIA, conveys approval and premium rate.
vi) Negotiation and finalisation of terms of the Buyer’s Credit Agreement.
vii) Exim Bank accords approval of Buyer’s Credit to the Overseas Borrower.
viii) Exim Bank may consider appointing a Lender’s Engineer for large-value
projects with the role and responsibilities covering review of the detailed
project report and design, monitoring of implementation, evaluation of
operations and maintenance, and post-commissioning stages of a project.
The cost of the lender’s engineer would be borne by the the Exporter,
Exim Bank or the Borrower, as may be applicable and mutually agreed.
ix) Exim Bank and Overseas Borrower sign the Buyer’s Credit Agreement, and
the Government of the Overseas Borrower issues the sovereign guarantee
in the event the borrower is other than Ministry of Finance of the
borrowing country.
x) Exim Bank and NEIA Trust (administered by ECGC) sign the
Comprehensive Risk Cover Policy for the Buyer’s Credit.
xi) Exim Bank makes disbursement of eligible amount under the contract to
the Indian Exporter under the Buyer’s Credit upon receipt of acceptable
shipping documents as stipulated under a Letter of Credit and / or
payment authorisation from the Overseas Borrower.
xii) On due dates and till maturity of the loan (until fully repaid), the Overseas
Borrower pays interest and principal dues and related charges under the
loan as per the terms and conditions of the loan sanctioned.

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ECGC’s Positive List of Countries for Buyer’s Credit under NEIA (as of 01.08.2019)

Sr.
Country ECGC Rating Sr. No. Country ECGC Rating
No.
1 Afghanistan C1 28 El Salvador B1

2 Algeria B1 29 Ethiopia C1

Angola B1 Equatorial B2
3 30
Guinea
4 Argentina B1 31 Gabon B1

5 Bahamas B1 32 Georgia B2

6 Bangladesh A2 33 Ghana B1

Barbados B2 Republic of B1
7 34 Guinea

8 Belarus B1 35 Guatemala B1

9 Belize B2 36 Guyana B1

10 Benin B1 37 Haiti B2

11 Bhutan A2 38 Honduras B1

12 Bolivia B1 39 Indonesia A2

13 Botswana A2 40 Iran* A2

14 Brazil B1 41 Iraq C1

15 Burkina Faso B2 42 Jordan B2

16 Cambodia B1 43 Kazakhstan C1

17 Cameroon B2 44 Kenya B1

18 Chile A1 45 Kuwait A2

19 Colombia B1 46 Lao PDR B1

Republic of B2 Latvia A2
20 47
Congo
21 Costa Rica
(Brazzaville) A2 48 Lesotho B1

22 Cote d’Ivoire C1 49 Liberia B1

23 Cuba B1 50 Libya C1

24 Djibouti B1 51 Macedonia A2

Dominican A2 Madagascar B1
25 52
Republic
26 Ecuador B1 53 Malawi B2

27 Egypt B2 54 Maldives B2

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 55 Mali B1 74 Russia A2

56 Mauritius A2 75 Rwanda B1

57 Mauritania C1 76 Senegal A2

58 Mexico A2 77 Sierra Leone B2

59 Moldova B1 78 Sri Lanka A2

60 Mongolia B2 79 Suriname B2

61 Morocco B1 80 Syria D

62 Mozambique C1 81 Tanzania B1

63 Myanmar B1 82 Togo B1

Namibia B2 Trinidad & A2

64 83
Tobago
65 Nepal A2 84 Tunisia B2

66 Nicaragua B2 85 Uganda B1

67 Nigeria B2 86 Ukraine C2

68 Panama A2 87 Uruguay A2

Papua New B2 Uzbekistan B1

69 88
Guinea
70 Paraguay A2 89 Vietnam A2

71 Peru A2 90 Zambia B1

72 Philippines A2 91 Zimbabwe D

73 Romania B1

*Credit will be denominated in Indian Rupees. Interest rates to be advised on a

case to case basis.

Note:

The above list could be suitably expanded / modified on receipt of credit

requests for projects from other countries/Indian Project Exporters, subject to the
approval of the competent authorities. Updates, if any, will be available at
www.eximbankindia.in

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 EXPORT-IMPORT BANK OF INDIA
HEAD OFFICE
Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005.
Phone: (91 22) 22172600 Fax: (91 22) 22182572 E-mail: [email protected]
Website: www.eximbankindia.in
LONDON BRANCH
5th Floor, 35, King Street, London - EC2V 8BB, United Kingdom.
Phone: (44) 20 77969040 Fax: (44) 20 76000936 E-mail: [email protected]
Indian Offices Overseas Offices
AHMEDABAD ABIDJAN
Sakar II, 1st Floor, 5th Floor, Azur Building,
Next to Ellisbridge Shopping Centre, 18-Docteur Crozet Road,
Ellisbridge P. O., Ahmedabad 380 006. Plateau, Abidjan, Côte d’Ivoire
Phone: (91 79) 26576852/26576843 Fax: (91 79) 26577696 Tel: (225-20) 24 29 51 Fax: (225-20) 24 29 50
E-mail: [email protected] Email: [email protected]

BANGALORE ADDIS ABABA

Ramanashree Arcade, 4th Floor, House No. 46, Jakrose Estate Compound
18, M. G. Road, Bangalore 560 001. Woreda 07, Bole Sub-City, Addis Ababa, Ethiopia.
Phone: (91 80) 25585755/25589101-04 Phone: (251 118) 222296 Fax: (251 116) 610170
Fax: (91 80) 25589107 E-mail: [email protected]
E-mail: [email protected]
DHAKA
CHANDIGARH Madhumita Plaza, 12th Floor,
C- 213, Second floor, Plot No. 11, Road No. 11, Block G,
Elante Offices, Plot No. 178-178 A Banani, Dhaka – 1213
Industrial Area, Phase –I, Phone: (088) 01 708520444
Chandigarh 160002 E-mail: [email protected]
Phone: (91 172) 4629171/ 72/73 Fax: (91 172) 4629175
E-mail : [email protected] DUBAI
Level 5, Tenancy 1B,
CHENNAI Gate Precinct Building No. 3,
Overseas Towers, 4 th and 5th Floor, Dubai International Financial Centre,
756-L, Anna Salai, Chennai 600 002. PO Box No. 506541, Dubai, UAE.
Phone: (91 44) 28522830/31 Fax: (91 44) 28522832 Phone: (971 4) 3637462 Fax: (971 4) 3637461
E-mail: [email protected] E-mail: [email protected]
GUWAHATI JOHANNESBURG
NEDFI House, 4th Floor 2nd Floor, Sandton City Twin Towers East,
GS Road, Dispur, Guwahati 781 006 Sandhurst Ext. 3, Sandton 2196, Johannesburg,
Phone: (91 361) 2237607/609 Fax: (91 361) 2237701 South Africa.
E-mail: [email protected] Phone: (27 11) 3265103/13 Fax: (27 11) 7844511
E-mail: [email protected]
HYDERABAD
Golden Edifice, 2nd Floor, SINGAPORE
6-3-639/640, Raj Bhavan Road, 20, Collyer Quay, #10-02,
Khairatabad Circle, Hyderabad 500 004. Singapore 049319.
Phone: (91 40) 23307816-21 Fax: (91 40) 23317843 Phone: (65) 65326464 Fax: (65) 65352131
E-mail: [email protected] E-mail: [email protected]
KOLKATA WASHINGTON D.C.
Vanijya Bhawan, 4th Floor, 1750 Pennsylvania Avenue NW,
(International Trade Facilitation Centre), Suite 1202, Washington D.C. 20006,
1/1 Wood Street, Kolkata 700 016. United States of America.
Phone: (91 33) 22833419/20 Fax: (91 33) 22891727 Phone: (1 202) 223 3238 Fax: (1 202) 785 8487
E-mail: [email protected] E-mail: [email protected]
NEW DELHI YANGON
Office Block, Tower 1, 7th Floor, Adjacent Ring Road, House No. 54/A, Ground Floor,
Kidwai Nagar (East), New Delhi 110 023. Boyarnyunt Street,
Phone: (91 11) 2460 7700 Dagon Township,
E-mail: [email protected] Yangon, Myanmar
Phone: (95) 1389520
PUNE Email: [email protected]
No.402 & 402(B) 4th floor Signature Building,
C.T.S.No. 853, Plot No. 195, Bhamburda,
Bhandarkar Road, Shivajinagar,
Pune, Maharashtra 411004
Phone: (91 20) 25648856 Fax: (91 20) 25648846
E-mail: [email protected]

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