- Region: Africa
- Machinery and Equipment
- Export Loans
August 27, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on August 24 two buyer's credit agreements amounting to the equivalent of 18.5 billion yen*1 and 18.1 billion yen*2 (JBIC portion) respectively with the Government of the Republic of Angola. The loans are cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd., with Nippon Export and Investment Insurance (NEXI) providing Buyer's Credit Insurance for the cofinancing portion. The total cofinancing amount for each loan is equivalent to 30.8 billion yen and 30.2 billion yen, respectively.
- The loan will fund the purchase of textile manufacturing machinery (made by Toyota Industries Corporation and Murata Machinery, Ltd., etc.) from Marubeni Corporation by the Angolan Ministry of Geology, Mines and Industry, as it is necessary for rebuilding the state-run textile manufacturing plants in Benguela and Dondo in Angola.
- The Angolan government is advancing the reconstruction of the country, which was devastated by the 27-year civil war that came to an end in 2002, and gives policy priority in the rehabilitation of the textile industry, which now relies mostly on imported textile goods. This loan follows the provision for export loan*3 on the export of a textile production facility to the Angolan government in November 2010, and it contributes to maintaining and improving the international competitiveness of the Japanese machinery industry.
- The Government of Japan pledged in its statement during the Fourth Tokyo International Conference on African Development (TICAD IV) held in May 2008 that JBIC would provide financial support totaling up to 2.5 billion U.S. dollars to Africa over a 5-year period. This loan serves this pledge by supporting the export of Japanese companies. With this loan, the pledged amount has been reached.*4
- Keeping its sights on the Fifth Tokyo International Conference on African Development (TICAD V) that is to be held next year, JBIC will continue to support the expansion of Japanese businesses in African countries by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
- *1 The breakdown of the loan is up to approximately 7.7 billion yen and 138 million U.S. dollars. (The exchange rate used in this document is 1 U.S. dollar = 78.05 yen, and all figures are described in Yen.)
- *2 The breakdown of the loan is up to approximately 4.6 billion yen and 173 million U.S. dollars. (The exchange rate used in this document is 1 U.S. dollar = 78.05 yen, and all figures are described in Yen.)
- *3 See Press Release on November 25, 2010.
- *4 See the attached document for the actual results of financial support to Africa by JBIC (commitment amounts) after TICAD IV.