Horizon Net Zero Dawn – keynote slides by Ben Abraham
Presentation by Exim Bank
1. 1
Export-Import Bank of India
and Energy Poverty: How to
finance solar projects
September 20, 2017
2. 2
Set up under a Act of Parliament in 1982 by the Government of India (GoI)
Wholly Owned by Government of India
Board of Directors are appointed by GoI: Comprises top officials from key GoI ministries
(Commerce & Industry, Finance and External Affairs) and RBI
- OBJECTIVES:
“… for providing financial assistance to exporters and importers, and for functioning as the
principal financial institution for coordinating the working of institutions engaged in financing
export and import of goods and services with a view to promoting the country’s international
trade…”
“… shall act on business principles with due regard to public interest”
(Export-Import Bank of India Act, 1981)
Export-Import Bank of India - India’s Export Credit Agency
3. 33
Exim Bank of India’s Line of Business
Funded Portfolio
Non-Funded Portfolio
Note: (1) As on March 31, 2017
(2) Includes advances under Production Equipment Finance Program, Long Term Working Capital Loan and staff loans. etc.
(USD 1.9 bn(1) )
(USD 16.2 bn (1))
Export Credit
Products
Services
Supplier’s/Buyer’s Credit
Pre-Shipment Credit
Post-Shipment Credit
Lines of Credit
Guarantees & L/Cs
Buyer’s Credit under NEIA
Projects
Finance for Export Capability
Creation
Term Loans
Export Facilitation
Guarantees & L/Cs
Working Capital
Export Product Development
Overseas Investment Finance
Import Finance
Export
Finance
49.89%
Loans to
Export
Oriented
Units
24.85%
Overseas
Investment
Finance
15.31%
Import
Finance
4.98%
Export
Facilitation
4.10%
Others2
0.87%
Performance
Guarantee
30.89%
Advance Payment
Gurantee
23.76%
Letters of
Credit
9.77%
Financial
Guarantee
(Incl. SBLC)
34.12%
Retention Money
Guarantee
0.65%
Bid Bond
Guarantee
0.81%
4. 44
Exim Bank Study on ISA: reveals that for the 121 member countries of this Alliance only 23
countries had 100% percent of their population having access to electricity in 2012, while 54
countries had less than 66% of their population having access to electricity.
Analysis shows that 40 of the 50 ISA member countries in Africa have less than 66% of the
electricity, thereby reflecting chronic electricity deficit.
The problem is most acute in East Africa, where only 23% of Kenyans; 18% of Rwandans; and
15.3% of Tanzanians have access to electricity supply.
On the other hand, while access to electricity in countries like Botswana is at 53%, energy
production primarily comes from coal and oil, which remains a cause of concern from the
sustainability angle.
The International Energy Agency (IEA) estimates that about 585 million people in Sub-
Saharan Africa lack access to electricity, with the electrification rate as low as 14.2% in rural
areas
Some of the pockets in Africa have been booming, but continued growth and quality of life
are being jeopardized by lack of reliable power.
Solar Energy Potential
6. 66
The Bank has facilitated various overseas projects in the energy sector
which are being executed by Indian companies through the Government of
India supported Lines of Credit (LOC) program.
The LOCs have been utilized for solar projects by countries like
Mozambique, Suriname, Sudan as also by regional development banks
(covering multiple countries) like ECOWAS Bank for Investment and
Development (EBID).
Requests received from developing countries
Ministry of External Affairs and Ministry of Finance, Government of India
issue approvals.
LOCs operated through Exim Bank
LINES OF CREDIT
11. 1111
Ministry of External Affairs have approved
earmarking 15-20% of the US$ 10 billion LOC
for undertaking solar related projects (in
Africa).
Exim Bank with the support of the
Government of India, has in the past
extended LOCs for financing Solar Projects
in some African countries aggregating to
US$ 41.08 million where projects have been
completed, and projects of US$ 54.44
million in Niger & Nigeria are under
execution.
Africa
47.9%
Asia
49.2%
CIS
0.4%
LAC
1.8%
Oceania
0.8%
209 LOCs
63 countries
US$ 15.69 bn
(as on end-March 2017)
LINES OF CREDIT
12. 1212
Exim Bank facilitated LOCs have benefitted the recipient countries immensely. For example:
In Mozambique the extended LOC resulted in technology transfer for manufacture of Solar PV
Modules based on Solar Cells as raw material. The project has benefitted Mozambique by
enabling them to manufacture Solar PV Modules locally and consequently resulted in reduction
of import of the same from other countries.
Exim Bank has also funded a solar electrification system (implemented by Central Electronics
Ltd) for Khadarab village in Sudan, bringing post-daytime light for the first time into the lives of
some 1,500 villagers. The project has been replicated in several other villages.
LINES OF CREDIT
13. 1313
Buyer’s Credit Under National Export Insurance
Account (BC-NEIA)
Under the Programme, the Bank extends credit facility to
overseas sovereign governments and government owned
entities for import of goods and services from India on
deferred credit terms.
Facility to cover 85% of contract value. Higher Credit
amount may be considered on case to case basis.
Credit period between 8 to 15 years.
14. 1414
Buyer’s Credit Commercial Financing
Direct assistance by Exim Bank to overseas buyers of Indian goods & services.
Provides non-recourse finance to Indian Exporter by converting the deferred
credit contract into cash contract.
Indian supplier do not carry any credit or country risk.
Buyer’s credit finance can be a transaction specific financing or it could be a
renewable limit, thereby financing the working capital requirement of
overseas company.
As on May 31, 2017, around USD 220 mn is outstanding under the commercial
Buyer’s Credit Portfolio.
15. 15
Equity investment: INR/ FC funding to Indian parent company for its equity/
capital investment in its overseas JV/ WOS;
Indian parent/ promoter loan: INR/ FC loan extended to Indian parent/
promoter to overseas venture
Funding to Overseas Indian Ventures: Foreign currency loans directly
extended to the overseas venture of the Indian company for capex,
working capital, acquisition etc.
Direct Equity Investment: Direct equity participation in Indian ventures
abroad.
As on March 31, 2017, Exim Bank so far provided finance to 587 ventures set
up by over 451 companies in 78 countries. Aggregate assistance for
overseas investment: `52,913.07 crore
Overseas Investment Finance
Promoting Overseas Investments/ Acquisition from India – funding options available
16. 1616
Way Forward in Furthering ISA Initiatives
Continue extension of financial assistance to solar projects in ISA member
countries
Assist in implementation of ISA program
Facilitate preparation of Detailed Project Report
Structuring of project
Facilitate interactions amongst stakeholders
Organizing information dissemination programs in select ISA member
countries
Designing of training program for personnel
Knowledge management – technology, sharing of information relating to
technology, O&M of projects.
17. 1717
About 55% of the Bank’s gross loan assets are located outside India
71% of Bank’s Gross Loan Assets are Foreign Currency (Non-rupee) assets
Branch in London & Representative Offices in 7 countries
Lines of Credit Project Exports Buyer’s Credit Marketing Advisory Servi
Overseas Investment Finance Working Capital Direct Equity Investment Overseas Office
Geographic Presence
Modalities for setting up the centre are being worked out by the implementing agencies i.e. International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), Hyderabad and National Agricultural Research Laboratories, Kawanda.
As per MEA bilateral relation doc March 2017
Wet bulk
Lightering for tankers typically occurs generally between 20 nautical miles (40 km) and 60 nautical miles (110 km) from the shore, and can be performed while the ships are at anchor, drifting, or underway. The product is typically transferred using specialized hoses which offload cargo from the larger vessel to the smaller. Fenders are used to separate the two ships moored to each other and prevent damage while the cargo is being transferred.
Dry bulk
In many developing nations, such as China and especially India, dry bulk vessels still often lighter in order to meet draft restrictions at ports that either do not have natural deep water access or whose channels have yet to be dredged to sufficient depth to allow some of the larger-size bulk carriers to safely transit.
In dry bulk, lightering can be undertaken one of two ways. If the vessel to be lightered is geared, then it can discharge cargo to smaller, ungeared vessels (typically barges). If the vessel to be lightered is gearless, then floating cranes are often used to transfer cargo to another vessel or barge. A roll-on/roll-off discharge facility in the form of a floating platform, can also be used to connect the vessels.
Also, although not very common, vessels will sometimes lighter before (or even between) berthings, shifting to shallower berths in order to discharge more quickly and also free up space for larger vessels.
Wet bulk
Lightering for tankers typically occurs generally between 20 nautical miles (40 km) and 60 nautical miles (110 km) from the shore, and can be performed while the ships are at anchor, drifting, or underway. The product is typically transferred using specialized hoses which offload cargo from the larger vessel to the smaller. Fenders are used to separate the two ships moored to each other and prevent damage while the cargo is being transferred.
Dry bulk
In many developing nations, such as China and especially India, dry bulk vessels still often lighter in order to meet draft restrictions at ports that either do not have natural deep water access or whose channels have yet to be dredged to sufficient depth to allow some of the larger-size bulk carriers to safely transit.
In dry bulk, lightering can be undertaken one of two ways. If the vessel to be lightered is geared, then it can discharge cargo to smaller, ungeared vessels (typically barges). If the vessel to be lightered is gearless, then floating cranes are often used to transfer cargo to another vessel or barge. A roll-on/roll-off discharge facility in the form of a floating platform, can also be used to connect the vessels.
Also, although not very common, vessels will sometimes lighter before (or even between) berthings, shifting to shallower berths in order to discharge more quickly and also free up space for larger vessels.
Wet bulk
Lightering for tankers typically occurs generally between 20 nautical miles (40 km) and 60 nautical miles (110 km) from the shore, and can be performed while the ships are at anchor, drifting, or underway. The product is typically transferred using specialized hoses which offload cargo from the larger vessel to the smaller. Fenders are used to separate the two ships moored to each other and prevent damage while the cargo is being transferred.
Dry bulk
In many developing nations, such as China and especially India, dry bulk vessels still often lighter in order to meet draft restrictions at ports that either do not have natural deep water access or whose channels have yet to be dredged to sufficient depth to allow some of the larger-size bulk carriers to safely transit.
In dry bulk, lightering can be undertaken one of two ways. If the vessel to be lightered is geared, then it can discharge cargo to smaller, ungeared vessels (typically barges). If the vessel to be lightered is gearless, then floating cranes are often used to transfer cargo to another vessel or barge. A roll-on/roll-off discharge facility in the form of a floating platform, can also be used to connect the vessels.
Also, although not very common, vessels will sometimes lighter before (or even between) berthings, shifting to shallower berths in order to discharge more quickly and also free up space for larger vessels.
Wet bulk
Lightering for tankers typically occurs generally between 20 nautical miles (40 km) and 60 nautical miles (110 km) from the shore, and can be performed while the ships are at anchor, drifting, or underway. The product is typically transferred using specialized hoses which offload cargo from the larger vessel to the smaller. Fenders are used to separate the two ships moored to each other and prevent damage while the cargo is being transferred.
Dry bulk
In many developing nations, such as China and especially India, dry bulk vessels still often lighter in order to meet draft restrictions at ports that either do not have natural deep water access or whose channels have yet to be dredged to sufficient depth to allow some of the larger-size bulk carriers to safely transit.
In dry bulk, lightering can be undertaken one of two ways. If the vessel to be lightered is geared, then it can discharge cargo to smaller, ungeared vessels (typically barges). If the vessel to be lightered is gearless, then floating cranes are often used to transfer cargo to another vessel or barge. A roll-on/roll-off discharge facility in the form of a floating platform, can also be used to connect the vessels.
Also, although not very common, vessels will sometimes lighter before (or even between) berthings, shifting to shallower berths in order to discharge more quickly and also free up space for larger vessels.
Wet bulk
Lightering for tankers typically occurs generally between 20 nautical miles (40 km) and 60 nautical miles (110 km) from the shore, and can be performed while the ships are at anchor, drifting, or underway. The product is typically transferred using specialized hoses which offload cargo from the larger vessel to the smaller. Fenders are used to separate the two ships moored to each other and prevent damage while the cargo is being transferred.
Dry bulk
In many developing nations, such as China and especially India, dry bulk vessels still often lighter in order to meet draft restrictions at ports that either do not have natural deep water access or whose channels have yet to be dredged to sufficient depth to allow some of the larger-size bulk carriers to safely transit.
In dry bulk, lightering can be undertaken one of two ways. If the vessel to be lightered is geared, then it can discharge cargo to smaller, ungeared vessels (typically barges). If the vessel to be lightered is gearless, then floating cranes are often used to transfer cargo to another vessel or barge. A roll-on/roll-off discharge facility in the form of a floating platform, can also be used to connect the vessels.
Also, although not very common, vessels will sometimes lighter before (or even between) berthings, shifting to shallower berths in order to discharge more quickly and also free up space for larger vessels.