Exim Bank of India has been granted a license to open a representative branch in Myanmar, according to Indian Media.

The move follows a Memorandum of Understanding (MOU) totaling $500 million that was signed between Exim and the Myanmar Ministry of Finance and Revenue during Indian Prime Minister Manmohan Singh’s May 2012 visit.

The banking license was presented by Thein Zaw, Deputy Director General of the Central Bank of Myanmar’s (CBM) Financial Institutions Supervision Department, according to a statement released by CBM.

EXIM has extended seven lines of credit totaling almost $250 million. According to the Times of India, it’s expected the credit will be used for projects including the Yangon to Mandalay railway, assembly line equipment for motor company Tata, upgrades and new transition lines for Thanbayakan Petrochemical Complex, and projects related to the Thanlyin refinery.

The projects still covered under the 2012 MOU include multiple irrigation schemes and infrastructure upgrades on three major Myanmar railway workshops.

Exim is credited as India’s top export finance institution, and recently posted a 10 percent increase in annual net profit as of March 31, due largely to its increase in project loans. The company’s establishment of a Yangon office is in keeping with the India’s “Look East Policy” that has seen a significant increase in Indian investment in Myanmar.

Exim will also offer a range of buyer credits, both medium and long-term, according to Hindu Business Line. The move is likely to reduce risk, securing business from Indian project exporters.