- Region: Others
- Marine and Aerospace
- Export Loans
March 9, 2011
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed a general agreement on March 4 for arranging an export credit line*2 for ships in the amount of up to 22 billion yen with Turkiye Is Bankasi A.S. (Isbank), the largest private bank in Turkey.*3
- JBIC signed contract loan agreements with Isbank on March 8 for the export of two 55,800-dwt bulk carriers (exporter: Marubeni Corporation) to Mardas, a Turkish shipping company, under the framework of this export credit line (cofinanced with the Bank of Tokyo-Mitsubishi UFJ, Ltd.).
- The credit squeeze following the financial crisis since the fall of 2008 has made it difficult to structure ship financing across the world. This loan provided through Isbank will help finance the export of ships built in Japanese shipyards, thereby helping Japanese shipbuilders to maintain and improve their international competitiveness. JBIC offered a 10 billion yen credit line to Isbank for the first time in December 2009 to be used for financing the export of ships to Turkey.*4 This credit line supported the export of three bulk carriers*5 built by Mitsui Engineering & Shipbuilding Co., Ltd. and IHI Marine United Inc. JBIC also extended a bank-to-bank loan to Yapi ve Kredi Bankasi A.S. (Yapi Kredi), a Turkish commercial bank, on September 15, 2010, to help export a bulk carrier built by Imabari Shipbuilding Co., Ltd.*6 This loan follows these previous loans for facilitating Japanese ship exports.
- JBIC will continue to actively support the export of ships built in Japanese shipyards that perform a significant role in the regional economy, including employment creation and business dealings with associated industries, by drawing on its existing network of local banks and others in developing countries.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 An export credit line is a form of export credit in which JBIC makes a commitment of a certain amount of money as a loan to a foreign bank or other entities to finance exports of machinery, equipment and services from Japan.
- *3 Isbank is a commercial bank established in 1924 and the largest private bank in terms of total assets in Turkey.
- *4 See Press Release on December 4, 2009.
- *5 A bulk carrier is a cargo ship designed to transport dry bulk cargo such as grains, coals, ores, etc.
- *6 See Press Release on September 16, 2010.