- Region: Asia
- Marine and Aerospace
- Export Loans
February 29, 2012
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed today buyer's credit agreements totaling up to about 27 million U.S. dollars (JBIC portion) with TeraSea Pte. Ltd., a company incorporated in the Republic of Singapore which owns and operates vessels to support offshore oil and gas field development. The loans, cofinanced with Sumitomo Mitsui Banking Corporation (lead arranger)*2, is intended to help export two ocean towing /salvage tugs built by Universal Shipbuilding Corporation at its Keihin Shipyard (Yokohama City, Kanagawa Prefecture). The overall cofinancing amounts to about 53 million U.S. dollars.
- Ocean towing/salvage tugs (generally called offshore vessels) play a vital role in the development of offshore oil/gas fields by transporting, maneuvering and installing large-size offshore structures including floating production, storage and offloading (FPSO) units and drilling rigs. This is the first case where JBIC's buyer's credit supports the export of offshore vessels.
- As a result of the global impact caused by the financial crisis, it has remained difficult to structure ship finance. Amid this situation, these loans will provide financial support for the export of ships built in Japanese shipyards, thereby contributing to maintaining and improving the international competitiveness of the Japanese shipbuilding industry. JBIC is now empowered to extend financing for ship exports to developed countries, as in this case, pursuant to the Japan Bank for International Cooperation Act promulgated and entered into force on May 2, 2011, and related government orders.
- JBIC will continue to assist the export of ships built by Japanese shipyards, which performs a major role in the regional economy through employment, including in associated industries, in collaboration with the Shipbuilders' Association of Japan, and in cofinancing with private financial institutions.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 Nippon Export and Investment Insurance (NEXI) provides buyer's credit insurance for the portion cofinanced by Sumitomo Mitsui Banking Corporation.