HDFC Bank’s Agreement For USD 300 Million Credit Line With Export Import Bank of Korea

On Wednesday, HDFC Bank said that it has signed a "Master Inter Bank Credit Agreement" for a USD 300 million line of credit with the Export Import Bank of Korea. According to a statement from the HDFC Bank, the agreement was signed by the two parties on Wednesday in GIFT City in Gujarat's capital, Gandhinagar. The credit line is anticipated to assist Korean capital goods and services importation by Indian businesses in the industrial and service sectors.

According to the press release, this deal will assist HDFC Bank in raising foreign currency capital that it will provide to Korea-related enterprises.

According to HDFC Bank, this line of credit will be used to help support the needs of businesses who have business ties to Korean businesses as well as businesses that have equity participation from Korean businesses.

According to the statement, it will also be used to meet consumer financing needs for the purchase of automobiles made by Korean-affiliated enterprises.The agreement is likely to promote and expand HDFC Bank's trade with Korean companies and goods. According to the statement, the program's initial drawdown would take place by May.

As a result of our deal with Korean Eximbank, trade and investment flows between India and Korea will be strengthened and supported, potentially leading to the creation of more jobs in the two nations. According to Arup Rakshit, Group Head of Treasury, Sales Analytics, and Foreign Business at HDFC Bank, we will seek opportunities under this arrangement and may try to expand the programme.

During the signing event was a delegation from the Export Import Bank of Korea, led by Choun-Jae Lee, Director General and Chief of Interbank Financing Department.

An official export credit agency of South Korea with a balance sheet close to USD 100 billion, the Export-Import Bank of Korea (Korea Eximbank), is said to offer export-import and overseas investment financing to aid Korean companies conducting business abroad.