On Wednesday, HDFC Bank announced that it had signed a “Master Interbank Credit Agreement” with the Export-Import Bank of Korea for a $300 million credit line.

The two entities signed the agreement on Wednesday at GIFT City, Gandhinagar, the capital of Gujarat, according to a release from HDFC Bank. The press release said the agreement would help HDFC Bank raise foreign currency funds to extend to South Korea-related businesses.

“HDFC Bank will use this line of credit to meet the financing needs of companies in which the Korean company has a shareholding and companies that have business relationships with the Korean company,” it said.

The release said it would also meet consumers’ financial needs to purchase cars produced by related companies in South Korea. The agreement will likely facilitate and increase HDFC Bank’s business with Korean entities and products. The release said the first drawdown of the programme would take place in May.

“Our agreement with the Export-Import Bank of Korea will further enhance and support trade and investment flows between India and South Korea, potentially creating more jobs there. We will seek deals under the agreement and may seek to expand the program, said Arup Rakshit, head of finance, sales analysis and overseas business group at HDFC Bank.

Choun-Jae Lee, President of the Export-Import Bank of Korea and Minister of Interbank Finance, led a team that attended the signing ceremony. Arup Rakshit and GIFT City IBU head Anand Iyer represented HDFC Bank.

The release said that the Export-Import Bank of Korea (Korea Eximbank), Korea’s official export credit agency with a nearly $100 billion balance sheet, provides import, export and overseas investment credit to support Korean companies doing business overseas.