- Region: Asia
- Marine and Aerospace
- Export Loans
November 1, 2011
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on October 31, jointly with a private financial institution, two buyer's credit agreements with Dampskibsselskabet NORDEN A/S (NORDEN), a major shipping company in the Kingdom of Denmark. The loans, in the amount of up to 25 million U.S. dollars each, are cofinanced with Sumitomo Mitsui Banking Corporation (SMBC; facility agent)*2.
- The loans are intended to finance Norden Shipping (Singapore) Pte. Ltd., a NORDEN's subsidiary incorporated in the Republic of Singapore, to purchase two 37,000-DWT bulk carriers*3 built by ONOMICHI DOCKYARD CO., LTD. at its Onomichi Dockyard (Onomichi City, Hiroshima Prefecture).
- As a result of the global financial crisis, it has been still difficult to structure ship finance. Amid this situation, these loans will provide financial support for the export of ships built in a Japanese shipyard, thereby contributing to maintaining and improving the international competitiveness of the Japanese shipbuilding industry.
- JBIC will continue to actively assist the export of ships built by domestic shipyards which are performing a major role in the regional economy, including employment in mid-tier firms, SMEs and other related 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 Import Insurance (NEXI) provides Buyer’s Credit Insurance for the portion cofinanced by SMBC.
- *3 A bulk carrier is a cargo ship designed to transport dry bulk cargo such as grain, coal, ore, etc.