- Region: Others
- Marine and Aerospace
- Export Loans
July 29, 2010
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on July 28 a loan (buyer’s credit)*2 agreement in the amount of up to 47.4 million US dollars with TATA NYK SHIPPING PTE. LTD. (TATA NYK), a joint venture incorporated in Singapore between Nippon Yusen Kabushiki Kaisha (NYK LINE) and TATA Steel Limited. The loan was cofinanced with Mizuho Corporate Bank, Ltd.
- The loan will finance the purchase of a 60,000-dwt bulk carrier*3 from its exporter, Sumitomo Corporation. The bulk carrier will be built by Oshima Shipbuilding Co., Ltd. in Saikai City, Nagasaki Prefecture. This loan follows a similar buyer’s credit provided to TATA NYK in March this year for the purchase of a 60,600-dwt bulk carrier.*4
- The credit squeeze in the aftermath of the financial crisis last fall has made it difficult to structure ship financing across the world. These loans will support the export of ships built by domestic shipyards and the raw materials shipping business engaged in by overseas joint venture 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 providing employment and bolstering local supporting industries, as well as Japanese firms’ international shipping business, in 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 is a direct loan from JBIC to a foreign importer to finance its import of machinery and equipment from a Japanese exporter.
- *3 A bulk carrier is a cargo ship designed to transport dry bulk cargo such as grain, coal, ore, etc.
- *4 See Press Release on March 26, 2010.