Export-Import Bank of India (Exim Bank) has committed loans worth $100 million for domestic manufacturers of Covid-19 vaccines or related products.
“These loans are being extended to about half a dozen drug makers in the country during the present financial year,” N Ramesh, Deputy Managing Director, Exim Bank told newspersons here on Friday.
The loans for vaccines are also being extended to other countries. “Our vaccine portfolio in Africa is a significant one with a size of $250 million,” Ramesh said.
This will be an advantage for Indian firms as the financing mandates Africa to source vaccines and related products only from India.
The national export credit agency has already borrowed $2.25 billion through International bonds in 144A - Reg S format.
When asked on the possible size of borrowings for FY22, Ramesh said: “We will be calibrating our borrowings with international economic factors and domestic developments.”
The bank had earlier indicated borrowings to the tune of $3 billion in the current fiscal.
Exim Bank is targeting to achieve financing of $7 billion of project exports over next five years through funds received from Government of India, he said.
Earlier in September this year, the Centre had approved a corpus infusion of ₹1,650 crore National Export Insurance Account.
The bank expects a credit growth of 10 per cent this year, according to Ramesh. This will be driven by ‘good’ demand from EPC, textiles, pharma and petroleum sectors, among others, he added.
Its loan portfolio increased 4.43 per cent year-on-year to ₹1,03,851 crore as on March-end 2021.