Bank Of India
IFSC BANKING UNIT, GIFT CITY, INDIA

1. We are market makers for syndicated loan. We have expertise of 75 years in this market. We are undertaking, underwriter and distributing syndicated loans by way of arranging through primary market. We are also active in secondary sale/purchase of syndicated assets.
2. Financing under syndication of loan is a common way of extending funding to corporates/bodies/entities etc. in International market.

1. Syndication of Loan is covered under External Commercial Borrowing framework of Reserve Bank of India, when the particular borrower is incorporated in India

1. We cater to the Medium/Long Term requirements of Corporates through matching bilateral Term Loans. Term Loans are normally arranged for funding of various requirements.
2. We can structure the term loans on various parameters such as tenor, repayment, pricing, security etc. depending on the specific requirement of the corporate.

1. Working capital requirements of units established in overseas jurisdiction engaged in trade, manufacture and services are considered on merit by our IBU.
2. For Indian entities the working capital requirement can be met through RBI’s trade credit framework and guidelines issued by RBI from time to time.

We are also proividing loan/OD against term deposit of our bank (Other than INR) at very competitive pricing.

In International trade finance, Reimbursement Authorisation (RA) Finance which is named as ULRS in our bank is a common practice under documentary credit transactions.

1. Buyers Credit – a type of Trade Credit – is a popular means to finance imports into India.
2. As per AP (Dir) Circular No. 23 dated 13.03.2019 of RBI, Bank Guarantee can be issued by the Banks favouring overseas lenders for availing buyers’ credit.
3. The product is devised to encourage the IBU to extend trade credit for import transactions.

BOI IBU extends competitive rate financing to the importer that also allows extended credit period for better management the cash flows.

Benefits of supplier’s credit

1. Beneficiary is paid on sight. There’s price integrity of the underlying goods and services, which enables the importer to avail a credit period at nominal rates.
2. The exporter gets paid on sight/due date, wehereas the importer gets as extended date for making an important payment as per the cash flow.

A Stand by Letter of Credit (SBLC) is written obligations of an issuin.g Bank to pay a sum of money to a beneficiary on behalf of their customer in the event of the customer does not pay the beneficiary. SBLCs are governed by Uniform Customs and Practice for Documentary Credits.

"Bank-to-Bank trade loans" are characterized as Bank to bank , short-term transactions on uncommitted basis by a 'Lender bank' to 'Borrower bank' to fund clearly defined trade transactions undertaken by borrower bank for their clients/customers.

1. The borrowing bank generally refinance amounts which it has already lent to their customers/clients on short term basis under trade financing.
2. Typically the 'Lender bank' in a "Bank-to-Bank Trade Loan" has neither any proprietary interest in the underlying transactions nor it directly or immediately involved in the underlying trade transactions.
3. The 'Lending bank' is assured by the 'Borrowing bank' that the proceeds of the "Bank-to-Bank Trade Loan" is the sole financing and no double financing) for the underlying trade transaction and repayment is assured irrespective of whether 'Borrowing bank' receives payment in the said transactions or not for whatsoever reason
4. Bank-to-Bank trade loans may be provided to facilitate either a single trade transaction or a bundle of underlying trade transaction(s).

We also purchase/sale trade finance assets in secondary market through risk participate by entering into Master Risk Participating Agreement (MRPA)

As per the direction from International Financial Services Authority (IFSCA),

1. IBUs are permitted to negotiate letters of credit of its constituents.
2. IBUs shall not undertake negotiation of unrestricted letter of credits (LCs) of non-constituents
3. For this purpose, the term constituent shall be defined as one who has been sanctioned regular credit facility by the IBU or any Indian and/or Foreign bank (or its branch) of the bank/bank group to which the IBU belongs. This is subject to the condition that the said bank (or its branch) is in a Financial Action Task Force (FATF) compliant jurisdiction.
4. For the above purpose, a FATF compliant jurisdiction would be one whose name does not appear in the following publications of FATF