HDFC Bank on Wednesday announced signing a “Master Inter Bank Credit Agreement” with Export Import Bank of Korea for a USD 300 million line of credit. The pact was signed by the two entities at GIFT City in Gandhinagar.
This agreement will help HDFC Bank raise foreign currency funds which it would extend to Korea-related businesses, said the release.
“This line of credit would be utilised by HDFC Bank towards funding requirements of companies having equity participation by Korean companies as well as companies having business relationship with Korean companies,” it said. It will also be utilised towards funding requirements of consumers for the purchase of cars manufactured by Korea-related companies, said the release.
The pact is likely to promote and increase the HDFC Bank’s business with Korean entities and products. The first drawdown under the programme would happen by May, said the release.
The Export-Import Bank of Korea (Korea Eximbank) is an official export credit agency of South Korea having a balance sheet size of close to USD 100 billion, which provides export-import and overseas investment credit to support Korean enterprises conducting business overseas, the release said.