Export loans support Japanese plant, ship and technology exports.
Exports to developing countries of machinery and equipment produced in Japan, including aircraft, ships, vehicles and other capital goods, as well as their parts, components and accessories; and provision to developing countries of Japanese technical services (including consulting services for various project-related studies, designing and project implementation monitoring and supervision) and overseas construction as well as other projects incorporating advanced Japanese technologies.
- machinery and equipment for power generation and transmission
- steel mills and oil refineries
- petrochemical (including fertilizer) plants
- medical instruments
- cement plants
- telecommunications cables (including related IT hardware and software)
- oil and gas pipelines
- railway and airport facilities
- construction machines and vehicles
Types of Loans
Direct Loans to Foreign Buyers and Financial Institutions (Buyer's Credit (B/C) and Bank-to-Bank Loan (B/L))
A buyer's credit (B/C) and a bank-to-bank loan (B/L) are direct loans respectively provided to a foreign importer and a foreign financial institution for financing the import of Japanese machinery and equipment or the utilization of Japanese technical services. A direct loan to an importer is called buyer's credit and to a financial institution is called a bank-to-bank loan.
JBIC provides loans in cofinancing with other financial institutions (usually the loan applicant's bank(s)) to meet the client's financial needs.
The loan amount is usually determined based on the OECD Arrangement. In principle, the loan amount should not exceed the value of an export contract or technical service contract and excludes down payment. While export loans, in principle, do not apply to local costs, such costs may be covered, fully or partially, provided that their amount does not exceed down payment (as well as 15% of the export contract value).
Export loans cover, in principle, 50-60% of goods and services exported. A loan applicant should make an inquiry at the relevant loan department for specific loan conditions.
Interest rates are determined based on the provisions of the OECD Arrangement. In principle, Commercial Interest Reference Rates (CIRRs) at the time of commitment are applied. In the case where interest rate is to be fixed at the time of tender, CIRR+0.2% is applied.
Repayment Period and Method
Loan repayment periods and methods are determined based on the OECD Arrangement. The maximum repayment period differ depending on importing countries, goods and services and contract values. Generally, the sum of principal and interest has to be repaid, in principle, in equal, semi-annual installments.
Risk premium rates are determined based on the OECD Arrangement.
- OECD Consensus on risk premium
- Country Risk Classification for charging country risk premium
Security and Guarantee
JBIC assesses the creditworthiness of the borrower or the guarantor for each transaction and makes its own judgment on security or guarantee.