Comments
Italian export-credit agency SACE SpA (CDP Group) has guaranteed $500 million of credit lines granted by various banks to Reliance Industries Ltd (RIL).
The loan, granted by HSBC (also acting as global co-ordinator and facility agent) and a pool of global banks including BNP Paribas, DZ Bank AG, First Abu Dhabi Bank and MUFG Bank, is to facilitate participation of Italian companies in suitable procurement opportunities offered by RIL, SACE said in a statement.
“Our enterprises are ready to approach the Indian market even more firmly,” said SACE Chief Executive Officer Alessandro Decio.
“The trade relationship between the two countries is growing fast, with a 9.3 per cent in 2017 and an increase of almost 16 per cent in the first seven months of 2018: the outlook is going to remain positive even for the next years,” he added.
Push Strategy
This is transaction closed by SACE under its ‘Push Strategy’ programme, which endeavours to facilitate and sustain the competitiveness of Italian exports among selected foreign buyers. After the selection of foreign counterparts with a remarkable investments plan, this approach will provide subsidized loans for Italian suppliers.
Reliance and SACE will organise meetings and business-matching events between Reliance and Italian companies in relevant businesses, especially Small and Medium Entterprises (SMEs), interested in starting business dealings with the Reliance Group.
The deal will be addressed to a broad range of enterprises, including Italian leading-sectors like fashion and luxury, banking on the RIL’s retail business footprint in India and SACE’s knowledge base of Italian suppliers, the statement added.
India is one of the 15 "essential" markets for Made in Italy products, and those countries contributed for € 95 billion to the total exported goods in 2017. The Italian export to India, which currently amount to 3.6 billion, is expected to grow in the next three years with rate of 6.7 per cent on annual average, according to an SACE Export Report.
This is due to the huge investments plan of RIL and ‘Make in India’, the national program aimed at making the country a global manufacturing hub. This will open up interesting opportunities for Italian exports of investment goods, particularly machinery tools, a sector involved in various industries, from automotive to food processing, from energy to telecommunications, it added.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.