Date:23/11/2005 URL: http://www.thehindubusinessline.com/2005/11/23/stories/2005112303150600.htm

Back BoB, Exim Bank agree to co-finance projects

Our Bureau

Dr Anil K. Khandelwal (left), CMD, Bank of Baroda, and Mr T.C. Venkat Subramanian, CMD, Exim Bank, at a press conference in Mumbai on Tuesday. - - Shashi Ashiwal

Mumbai , Nov. 22

BANK of Baroda's follow-on public issue is likely to hit the market before January 27, which is the end of the 90-day limit for answering queries by the Securities and Exchange Board of India (SEBI), said Dr A K Khandelwal, Chairman and Managing Director of the bank. He, however, refused to comment on the size and price of the issue.

He was speaking at a press conference to sign the memorandum of co-operation with Exim Bank. As per the alliance, BoB and Exim Bank will co-finance projects in India and abroad.

For BoB, the venture would open up new business opportunities in financing overseas banks, foreign governments and infrastructure projects, while Exim Bank would have the advantage of having an Indian bank as partner for providing retail working capital to the companies overseas. The two would also offer advisory services and organise workshops to their customers. Through this tie-up, BoB can also participate in financing overseas acquisitions by Indian companies.

BoB has 59 overseas offices in 20 countries. It has got the RBI approval for opening branches in Sri Lanka, Male, Bangladesh, New Zealand and Canada.

Exim Bank of India will soon be setting up 37 lines of credit to 30 countries amounting to around $1 billion. The bank has set up 55 lines of credit of $1.3 billion to 73 countries. This will take the bank's total credit line to $2.5 billion, this year, said Mr Venkat Subramanian, Chairman and Managing Director, Exim Bank of India.

Exim Bank also has proposals from three medium firms for acquisition finance. These include an IT firm and a BPO firm for acquisition in the US and a chemical firm which is eying acquisition in South East Asia.