HDFC Bank signs pact with Export Import Bank of Korea for $300M credit line

HDFC Bank on Wednesday said it has signed a "Master Inter Bank Credit Agreement" with Export Import Bank of Korea for a $300 million line of credit.

The pact was signed by the two entities at GIFT City in Gujarat's capital Gandhinagar on Wednesday, said a release by the HDFC Bank.

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 HDFC Bank's business with Korean entities and products. The first drawdown under the programme would happen by May, said the release.

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"Our agreement with Korean Eximbank will further strengthen and support trade and investment flows between India and Korea, which can potentially create more jobs in the country. We will pursue deals under this agreement and may look to expand the programme," said Arup Rakshit, Group Head, Treasury, Sales Analytics and Overseas Business of HDFC Bank.

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

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 $100 billion, which provides export-import and overseas investment credit to support Korean enterprises conducting business overseas, the release said.