HDFC Bank raises $300 million credit line from a Korean bank

13 Apr 2023 , 05:31 AM

On Wednesday, HDFC Bank revealed that it had partnered with Export-Import Bank of Korea on a ‘Master Inter Bank Credit Agreement’ for a USD 300 million line of credit. The agreement was signed by the two parties on Wednesday in GIFT City in Gujarat’s capital, Gandhinagar.

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

The statement read, ‘This line of credit would be used by HDFC Bank towards funding requirements of companies having equity participation by Korean corporations as well as companies having business relationships with Korean companies.

The statement stated that it will also be used to meet consumer financing needs for the purchase of cars made by Korean-affiliated enterprises.

‘Our deal with Korean Eximbank would strengthen and encourage trade and investment flows between India and Korea, potentially leading to the creation of more employment in the nation. Arup Rakshit, Group Head of HDFC Bank’s Treasury, Sales Analytics, and Overseas Business, stated to ET that we would continue to pursue business under this agreement and perhaps even consider expanding the scheme.

The delegation from the Export-Import Bank of Korea, led by Choun-Jae Lee, Director General, Head of the Interbank Finance Department, was present at the signing ceremony. Arup Rakshit and Anand Iyer, Head, GIFT City IBU, among others, represented HDFC Bank.

According to a press release, the Export-Import Bank of Korea (Korea Eximbank), an official export credit agency of South Korea with a balance sheet close to USD 100 billion, offers export-import and overseas investment financing to help Korean businesses doing business abroad.

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