As per the deal inked, the Exim Bank will provide approximately $100m credit lines to ICICI Bank and Yes Bank to assist them in importing goods from the South-East Asian nation.
Yes Bank said that it has entered into a $100m master facility agreement in order to facilitate ongoing trade and finance transactions between Yes Bank and its importing customers.
"This facility will play an active role towards further augmenting trade flows in the Indo-Malaysia corridor by arranging overseas trade credit for Indian importers," Yes Bank stated.
Exim Bank, wholly-owned by Malaysia’s Ministry of Finance said, it will provide the fund as credit refinancing, buyers credit financing, import collection and/or open account transaction financing for Malaysia based trade transactions.
Yes Bank managing director and CEO Rana Kapoor said. "This alliance will further strengthen our commitment towards the Indo-Malaysia business corridor."
The collaboration between Yes Bank and Exim Bank will open up new avenues of trade finance opportunities for their respective clients.
Despite the economic slowdown last year, India was regarded as one of the top five fastest growing export destinations for Malaysia with export touched at $7.5bn in 2011, up by 33% increase from 2010.
Exim Bank managing director Dato Adissadikin Ali said that Exim Bank can partake in increasing the movement of goods and services between the two countries.
"Malaysian and Indian companies can collaborate in several areas, particularly in value-added palm derivatives such as oleochemicals, pharmaceuticals, processed foods, speciality products and consumer brands," Ali added.
