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Export-Import Bank of India (Exim Bank) will finance 27 solar power projects worth $1.4 billion spread across 15 countries, said David Rasquinha, Managing Director, Exim Bank here on Monday. “As an agent of Government of India, we are trying to promote solar power projects across the world,” said Rasquinha.
He was addressing the press on the sidelines of 'Financing Solar Projects under Government of India's Lines of Credit (LOCs)', a business outreach program held in the city.
The solar projects predominantly located in Africa and South America are identified by International Solar Alliance and will include grid projects to generate solar power and off-grid projects like rooftop solar and irrigation pumps powered by solar panels. “Exim Bank has already provided LOCs worth $226 million to finance 16 solar projects in various developing countries,” Rasquinha added.
On the capital infusion announced by the government, Rasquinha said, “of the total infusion of ₹6,000 crore, the first tranche of ₹4,500 crore is expected in the current fiscal while the remaining ₹1,500 crore will come in the next year. The first tranche will be through issuance of recapitalisation bonds (recap bonds) and on the second tranche, ₹900 crore will be in the form of cash and balance through recap bonds,” Rasquinha added.
On the bank’s Non-performing assets (NPAs), Rasquinha said, the bank has adequate capital and has an excellent provision coverage ratio at 75 per cent. “We made a huge provisioning towards Bhushan power and we now see a significant recovery once the insolvency process is completed by National Company Law Tribunal (NCLT),” Rasquinha added.
Lauding the government for introducing Insolvency and Bankcruptcy Code (IBC), Rasquinha said, besides Bhushan power, the bank expects to make recovery from Essar Steel and various other strained assets. He also said that the bank is in the process of setting up a consultant to relook its business strategy and submit a report by April 2019. “We started business in 1981 and we are now in a completely different economic scenario hence we are setting up a consultant to relook everything we do,” Rasquinha said.
Rasquinha also said that the bank is looking to raise $2 billion through bond issuance during the current calendar year. “In 2018 we have raised $1 billion through bond issuance, for the current calendar year we will see the bond market post March 2019 when our results are out,” Rasquinha added.
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