- Region: Asia
- Untied Loans
February 3, 2012
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed today, jointly with private financial institutions, an untied loan agreement in the aggregate cofinancing amount of up to 300 million U.S. dollars (JBIC portion: 180 million U.S. dollars) with ICICI Bank Limited (ICICI Bank), the largest private bank incorporated in India. The loan is cofinanced with Sumitomo Mitsui Banking Corporation (SMBC; lead arranger) and The Bank of Tokyo-Mitsubishi UFJ, Ltd., with JBIC providing a guarantee for their cofinanced portion.
- The loan is extended under GREEN operations*2 to finance environment-related loans focusing on renewable energy and energy efficiency projects in India, and is thus expected to contribute to the promotion of greenhouse gas (GHG) emission reduction. This follows up the similar JBIC loan*3 signed in March 2011 with ICICI Bank in support of its financing of environment-related projects.
- The government of India has pledged to reduce CO2 emissions by 20~25% per unit of GDP below its 2005 level by the year 2020. Further, under the medium and long-term environment policy, National Action Plan on Climate Change (NAPCC), the government is carrying out a variety of activities. Under these circumstances, JBIC's loan is expected not only to help reduce GHG emission in India, but also to promote the Indian government's environmental policy. It will also contribute to providing opportunities for disseminating Japan's internationally acclaimed advanced environmental technology across India.
- To this day, JBIC and ICICI Bank have built up close cooperation ties through loan commitments that were designed to support: the development of the local supporting industry, which is significant for the Japanese firms operating business in India as well; trade finance during the financial crisis; renewable energy and energy efficiency projects; and export of thermal power plant facilities. By supporting the environmental sector, the latest loan will further strengthen relations between the two institutions.
- JBIC will continue to support, in cooperation with local financial institutions, global environmental sustainability by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming functions.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 See Information dated April 27, 2010.
- *3 See Press Release dated April 1, 2011