- Region: Asia
- Machinery and Equipment
- Export Loans
March 19, 2010
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed today a loan agreement totaling up to approximately 45 billion yen with the government of Turkmenistan. The loan is cofinanced with Mizuho Corporate Bank, Ltd., the Bank of Tokyo-Mitsubishi UFJ, Ltd., and Sumitomo Mitsui Banking Corporation.
- This loan will finance the State Concern "Turkmenhimiya," Turkmenistan's state-owned petrochemical company, to purchase machinery and equipment from Sojitz Corporation and Kawasaki Plant Systems, Ltd. as it constructs country's largest ammonia and urea fertilizer production plant in Mary City, eastern Turkmenistan.
- Turkmenistan has sustained high economic growth against the backdrop of brisk exports of abundant natural resources including natural gas. In recent years, the country faces an increasing demand for fertilizer needed to grow cotton, one of the major export items. To meet such demand, the government of Turkmenistan is active in constructing fertilizer plants harnessing domestically-produced natural gas. Such projects are expected to contribute to the development of the country's agriculture sector, while at the same time providing Japanese exporters of fertilizer production facilities with business opportunities.
- JBIC is committed, through efforts similar to this finance, to supporting the expansion of Japanese firms' business operations in Turkmenistan and Central Asia.