Exim Bank looks to raise $2 billion this fiscal

The Export-Import Bank of India is looking to raise nearly $2 billion through bonds this fiscal.

According to Yaduvendra Mathur, Chairman and Managing Director, EXIM Bank, the specialised institution has raised some $700 million (through bonds) so far this fiscal.

Around $500 million was raised through sale of green bonds to international investors.

“Some part of the money has also been raised in yuan; but that is before the currency was devalued,” he told reporters on the sidelines of the FICCI Banking Conclave.

About ₹1,300 crore is expected to be the Centre's equity infusion in Exim Bank this fiscal. The specialised institution expects a 10-1 5 per cent growth in credit disbursals this fiscal. Meanwhile, it has stopped short-term loan disbursals. “Commercial banks are also providing short-term loans. And so we decided to discontinue with these,” Mathur added.

It is “still too early” to judge the impact of yuan devaluation on the Indian exports sector, Mathur said.

However, there is no immediate cause for concern as the Indian economy has strong fundamentals and the choppiness in the Indian market is a temporary phenomenon.

“The rupee is very stable and very fine. The Indian macro-economic fundamentals, in my sense, are strong. People should not worry,” the CMD said adding that importers and exporters are trying to earn by currency movements. This has to be discouraged.

The Chinese are attacking the US dollar to flood yuan in international trade, he maintained.

“The dominance of the US dollar is something which the Chinese are probably trying to attack. They somehow feel if the yuan also internationalises; more people will use it; and then, they can export away their inflation,” Mathur said. The Americans, he pointed out, are able to pass on the domestic inflation to other parts of the world since the US dollar has the largest acceptability in international transactions.

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