- Region: Asia
- Marine and Aerospace
- Export Loans
March 26, 2010
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed today a loan agreement (buyer's credit)*2 in the amount of up to 4,290 million yen with TATA NYK SHIPPING PTE. LTD. (Managing Director: Rajiv Mukerji), a Singapore incorporated joint venture between Nippon Yusen Kabushiki Kaisha and TATA Steel Limited. The loans is cofinanced with Mizuho Corporate Bank, Ltd.
- The loan will finance the purchase of a 60,600-dwt bulk carrier*3 from Sumitomo Corporation. The bulk carriers will be built by Oshima Shipbuilding Co., Ltd. in Saikai City, Nagasaki Prefecture.
- The credit squeeze in the aftermath of the financial crisis since autumn 2008 has made it difficult to structure ship financing across the world. These loans will support the export of ships built by domestic shipyards and also the global bulk cargo business engaged in by an overseas joint company of a Japanese shipping company, thereby helping maintain and improve the international competitiveness of Japanese shipbuilders and the Japanese marine transportation industry.
- JBIC will actively support the export of ships built by domestic shipyards, as they play a major role in the regional economy by creating employment and bolstering the local supporting industries, as well as Japanese firms' global shipping business, through cofinancing with private financial institutions.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 A buyer's credit JBIC offers is a direct loan to a foreign importer to finance its import of machinery and equipment from a domestic exporter.
- *3 A bulk carrier is a cargo ship designed to transport dry bulk cargo such as grains, coals, ores, etc.