Exim Bank can also participate in overseas joint ventures which are wholly owned subsidiaries of Indian companies.

Exim Bank's contribution in such ventures' equity would be restricted to 25 per cent of the equity capital in the case of joint ventures and 50 per cent in the case of wholly owned subsidiaries, subject to a maximum of $5 million per venture.

The bank will seek to divest its stake by offering it to the Indian promoter company or other interested Indian companies, or privately place the shares at a predetermined price as per agreement at the time of equity investment.

Listing of shares on the stock exchange of the host country will provide another exit for the bank.

While considering equity investment, Exim Bank will give weightage to the background and track record of Indian and foreign promoters, synergy of overseasoperations with business in India, financial viability and technical feasibility, return on investment, benefits to India in terms of trade enhancement, technology transfer and foreign exchange earnings.

Spin-off benefits such as brand marketing and penetration of new markets will also be considered.

Exim Bank will now be able to offer a comprehensive financing packaging comprising equity, loans and guarantees to externally oriented Indian companies to help them globalise their business.

At present, Exim Bank offers loans to finance equity contribution of Indian promoters in joint ventures/wholly owned subsidiaries abroad as also for onlending by them to their ventures overseas.

Cumulatively, Exim Bank has extended loans aggregating Rs 775 crore to 84 Indian companies for financing their equity investment in ventures in US, the UK, Morocco, Jordan, Mauritius, Singapore, Malaysia, Zambia and other countries.