Industrial Credit and Investment Corporation of India and The Export-Import Bank of the US have signed a memorandum of understanding for $250 million to work together for financing the capital goods imports of Indian corporates from the US.

The understanding is an extension on the Indian infrastructure facility of The Export-Import Bank (Ex-Im Bank). As per the understanding Ex-Im Bank will provide credit support to international banks for financing of capital goods imports by Indian corporates.

According to the banks, the memorandum of understanding (MoU) will particularly benefit companies in sectors such as power, transportation, airports, oil and gas and renewable energy.

Ray Ellis, vice president and manager of Ex-Im Bank’s strategic initiatives division, said: We have recognized that India’s infrastructure needs over the next 10 years are enormous. Ex-Im Bank’s Indian Infrastructure Facility with Industrial Credit and Investment Corporation of India (ICICI) Bank’s participation will provide key support to US companies in helping to meet these needs.