EXIM Bank extends two Lines of Credit Of USD 34.50 Million and USD 109.942 Million to The Government of the Democratic Republic of Congo

Export-Import Bank of India (Exim Bank) has, at the behest of the Government of India, extended two additional Lines of Credit (LOCs) to the Government of the Democratic Republic of Congo, viz. (a) USD 34.50million for financing development of Power Distribution Project in Bandundu Province of Democratic Republic of Congo and (b) USD 109.942 million for transmission and distribution project in Kasai province of Democratic Republic of the Congo for evacuation of electricity from Ketende Hydroelectric Power Project in Democratic Republic of Congo. The LOC Agreements to this effect were signed in Abidjan, Cote d'Ivoire during the 50th Annual Meeting of the African Development Bank on Thursday, May 28, 2015, by Mr. Yaduvendra Mathur, Chairman and Managing Director on behalf of Exim Bank and H.E. Mr. YAV MULANG, Minister of Finance, on behalf of the Government of the Democratic Republic of Congo in the presence of H.E. Mr. François BALUMUENE NKUNA, Ambassador of the Democratic Republic of Congo in India, Mr. Dinesh Sharma, Additional Secretary, Ministry of Finance, Government of India and Mr. Ajay Singh, Director, Ministry of Finance, Government of India.

Exim Bank had earlier extended five LOCs aggregating to USD 350.50 million to Government of the Democratic Republic of Congo. The first LOC of USD 33.50 million was extended in August 2005 for financing supply of buses, spare parts, cement project, hydraulic excavators in Democratic Republic of Congo. The second LOC of USD 25 million was extended in August 2009 for financing supply of hand pumps, drilling rigs, submersible pumps, DG sets and spare parts and equipment for workshops for execution of rural water supply project. The third LOC of USD 42 million was extended in August 2010 for financing Kakobola Hydroelectric Power Project. The fourth LOC of USD 168 million was extended in July 2011 for financing Ketende Hydroelectric Power Project. The fifth LOC of USD 82 million was extended in June 2014 for financing completion of the Ketende Hydroelectric Project Power Project. Democratic Republic of Congo is a central African country and is surrounded by the Republic of Congo and the Atlantic Ocean to the west, Angola and Zambia to the southeast, Tanzania, Burundi, Rwanda and Uganda to the east, South Sudan to the northeast and the Central African Republic to the north and northeast.

With the signing of these LOC Agreements, Exim Bank has now in place 196 Lines of Credit, covering 63 countries in Africa, Asia, Latin America, Europe, Oceania and the CIS, with credit commitments of over USD 12.02 billion, available for financing exports from India. Under the LOCs, Exim Bank will reimburse 100% of contract value to the Indian exporters, upfront upon the shipment of equipment and goods / provision of services.Exim Bank's LOCs afford a risk-free, non-recourse export financing option to Indian exporters. Besides promoting India's exports, Exim Bank's LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets.

Source : Equity Bulls

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