State Bank of India (SBI), India's largest Bank and The Export- Import Bank of Korea (Korea Eximbank) an official export credit agency of Korea, today signed a loan agreement for an Untied Two-Step Line of Credit for a USD 500 million. This line will be in addition to Line of Credit of USD 200 million signed between two institutions on Jan. 16, 2014 to support Indian companies importing Goods and Services from Korea.
This Untied Line of Credit can be utilised to finance SBI's clients in India and its neighbouring countries having business relationships either by way of equity participation or regular trade with Korean companies globally, as well as joint ventures or subsidiaries of Korean companies.
On this occasion, Rajnish Kumar, MD & CEO, SBI Capital Markets, said, ''This signing is a step towards further strengthening of Korea-India strategic partnership and will help foreign currency financing for corporates in India and neighbouring countries partnering with Korean conglomerates.''
Shares of the bank declined Rs 15.9, or 0.67%, to trade at Rs 2,362.45. The total volume of shares traded was 159,623 at the BSE (11.35 a.m., Friday).