- Region: Asia
- Machinery and Equipment
- Export Loans
March 23, 2012
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed today a buyer's credit agreement totaling up to 6.2 billion yen (JBIC portion) with JSW Steel Limited (JSW Steel) in India (head office: Mumbai). The loan is cofinanced with Mizuho Corporate Bank, Ltd. and Nippon Export and Investment Insurance (NEXI) provides Buyer's Credit Insurance for the cofinanced portion. The total cofinancing amounts to about 10.3 billion yen.
- The loan is intended to finance the purchasing from JFE Shoji Trade Corporation the continuous annealing line, the continuous galvanizing line and technological service associated with them for the construction of the second cold rolling mill at Vijayanagar Works in Karnataka State, being undertaken by JSW Steel, one of the largest steel manufacturing companies in India. The facilities and technological service to be delivered this time are manufactured and supplied by JP Steel Plantech Co. As such, this loan will support the export of Japanese firms and contribute to maintaining and improving the international competitiveness of Japanese industries.
- The facilities to be exported this time will constitute JSW Steel's first cold rolling mill that specifically produces steel sheets for automobiles. Given the prospect of medium- and long-term economic growth, India foresees increasing demand for steel. Thus there is strong interest in high-quality Japanese steelmaking facilities. This has raised expectations on expansion of business for Japanese businesses in the coming years.
- JBIC will continue to actively support Japanese firms for their export of machinery and equipment, as well as overseas business activity, by drawing on its various financial facilities and schemes for structuring projects and performing a risk-assuming function.