- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
May 30, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on May 29 a loan agreement totaling up to 66.6 million U.S. dollars (JBIC portion) with Indian Synthetic Rubber Limited (ISRL), a joint venture established by Marubeni Corporation (Marubeni), Indian Oil Corporation Limited (IOC), a government-affiliated company in the Republic of India (India), and TSRC Corporation (TSRC), a leading synthetic rubber manufacturer in Taiwan. The loan is cofinanced with Mizuho Corporate Bank, Ltd. The overall cofinancing amounts to 111 million U.S. dollars.
- In this project, ISRL will produce synthetic rubber, widely used for automobile tires, in the State of Haryana, northeastern India and sell primarily in the Indian market. The proceeds of the loan will be used for the construction of manufacturing facilities for this project.
- The number of automobile sales has continued to grow in India, creating growing needs for local procurement of their parts and components. There has also been ever-growing demand for automobile tires. However the industry in India is currently dependent on imports from overseas for emulsion styrene-butadiene rubbers (E-SBR) used as main raw material for automobile tires. This business project is the first E-SBR manufacturing and sales project in India and this loan is intended to support Marubeni's chemical product and automobile-related business in India as well.
- JBIC will continue to support Japanese firms' overseas business activity in growing markets like India, by drawing on its various financial facilities and schemes for structuring projects and performing a risk-assuming function.