- Region: Asia
- Machinery and Equipment
- Export Loans
February 8, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a buyer's credit (export loan) agreement totaling up to the equivalent of 2.97 billion yen (JBIC portion)*1 with JSW Steel Limited (JSW Steel) in India. The loan is cofinanced with Mizuho Corporate Bank, Ltd., with Nippon Export and Investment Insurance (NEXI) providing Buyer's Credit Insurance for its cofinancing portion. The overall cofinancing amount is the equivalent of 4.95 billion yen.
- The loan is intended to finance the purchase of the continuous annealing line and associated technological services from JFE SHOJI TRADE CORPORATION for constructing the second cold rolling mill at Vijayanagar Works in Karnataka State being undertaken by JSW Steel, the major private steel manufacturing companies in India. The facility and technological services to be delivered this time are manufactured and supplied by JP Steel Plantech Co. As such, this loan will support the export of Japanese companies, and thereby contribute to maintaining and improving the international competitiveness of Japanese industries.
- The facility to be exported this time will constitute JSW Steel's cold rolling mill that specifically produces steel sheets for automobiles. JBIC signed a similar buyer's credit agreement with JSW Steel in March 2012.*2 The present loan supports the additional purchase of the facility for the continuous annealing line with a view to expanding the production capacity of JSW Steel. Given the prospect of medium- and long-term economic growth, India foresees increasing demand for steel, primarily in the automobile sector. Therefore, there is strong interest in high-quality Japanese steelmaking facilities. Japanese companies also have expectations on expanding their business in the coming years.
- JBIC will continue to actively support exports of machinery and equipment by Japanese companies as well as their overseas business deployment, by drawing on its various financial facilities and schemes for structuring projects and performing a risk-assuming function.
- *1 The breakdown of the portion financed by JBIC is up to about 1,089 million yen and up to about 20 million U.S. dollars. (TTM rate at the end of January 2013: one dollar = 91.03 yen)
- *2 See Press Release on March 23, 2012.