In a deal noteworthy for its expediency, the US Export Import Bank US Ex-Im has signed a memorandum of understanding with the Industrial Development Bank of India IDBI to provide $300 million of financing guarantees. What makes the deal noteworthy is that for the first time, US Ex-Im will provide rupee guarantees as well as traditional dollar guarantees.
The structure of the deal works as follows Indian borrowers will approach the IDBI for finance to import US goods or services. The IDBI will get guarantees from the US Ex-Im and the money will be lent to the IDBI through Bank of America - the arranger and facilitator of this breakthrough deal.
By taking local...
