What changed
Exim Bank signed a Line of Credit agreement with the Government of Cote d'Ivoire on December 30, 2009, effective from November 26, 2010, for USD 30 million. The credit is earmarked for an electricity interconnection project between Cote d'Ivoire and Mali, covering eligible goods, services, and consultancy from India. Last dates for LC opening and disbursement vary: 48 months from scheduled completion for project exports, and 72 months (up to December 29, 2015) from agreement execution for supply contracts.
What it means for you
Indian exporters can now tap this LOC to supply machinery, equipment, and consultancy for the Cote d'Ivoire-Mali power grid link, with at least 85% local content mandatory. AD Category-I banks must facilitate remittances and ensure compliance with FEMA and RBI guidelines on GR/SDF forms and agency commission rules. This opens a structured, government-backed export financing channel for Indian firms in West Africa.
What you must do
- Inform exporter clients about the LOC and direct them to Exim Bank for full details.
- Ensure all shipments under this LOC are declared on GR/SDF forms as per RBI instructions.
- Allow agency commission remittances only after full contract value realization, using exporter's own resources or EEFC balances.
- Verify that at least 85% of contract value is sourced from India for eligible goods and services.
Who it affects
AD Category-I banks handling export transactions, Indian exporters of goods, services, and consultancy to Cote d'Ivoire, Exim Bank and its financing operations
What is the purpose of this USD 30 million LOC?
It finances an electricity interconnection project between Cote d'Ivoire and Mali, covering eligible Indian goods, machinery, equipment, and consultancy services.
What are the key compliance requirements for exporters under this LOC?
At least 85% of contract value must be from India; shipments must be declared on GR/SDF forms; no agency commission is payable under the LOC, but if needed, it can be paid from exporter's own resources or EEFC after full payment realization.
What are the timelines for using this credit?
For project exports, LCs must be opened and disbursed within 48 months from scheduled completion; for supply contracts, within 72 months from the agreement execution date (i.e., by December 29, 2015).