WASHINGTON – The Export-Import Bank of the United States recently approved a $2.2 billion Indian infrastructure funding facility that will support U.S. exports to Indian projects in sectors such as power and renewable energy generation, oil and gas development, small aircraft, airport development and health care.

With the funding, eight Indian financial institutions will provide guarantees to expedite processing of Ex-Im Bank-backed medium- and long-term financing for Indian buyers of U.S. exports. Each financial institution has an underlying pre-approved credit line of $50 to $250 million, and one lender, Power Finance Co., has a pre-approved line of $800 million. Financing is provided in U.S. dollars.

The Indian financial institutions participating in the facility include Power Finance Co., Infrastructure Development Finance Corp., Industrial Development Bank of India, India Infrastructure Finance Co. Ltd., State Bank of India, Infrastructure Leasing & Financial Services, India Renewable Energy Development Agency and Punjab National Bank.

“There is a rising demand for U.S. goods and services in India because of their high quality and competitive prices,” said Ex-Im Bank chairman and president James H. Lambright. “This new facility will help Ex-Im Bank to work with major Indian lenders to provide dollar-denominated financing for U.S. exports to India’s current and future infrastructure projects.”

India’s Ministry of Finance has estimated that more than $500 billion will be needed to finance development of India’s infrastructure. To facilitate financing for U.S. exports for Indian projects, Ex-Im Bank has been working to establish partnerships with business, government and financial institutions in India. Last month, Ex-Im Bank staff members conducted business development meetings, focusing on small and medium-sized enterprises, with officials in Hyderabad, Pune, Mumbai and New Delhi.

Ex-Im Bank is the official export-credit agency of the United States. The independent, self-sustaining federal agency, now in its 74th year, finances the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export-credit insurance and direct loans.