- Region: Asia
- Machinery and Equipment
- Export Loans
September 12, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on September 11 a buyer's credit (export loan) agreement with Tata Steel Limited (Tata Steel) in India. The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. Nippon Export and Investment Insurance (NEXI) provides Buyer's Credit Insurance for the cofinanced portion.
- Tata Steel, one of the largest steel makers in India, is planning to expand crude steel production capacity in the Jamshedpur Plant, located in the State of Jharkhand, from 6.8 million tons in 2010 to 9.7 million tons by the end of 2012 in an effort to meet growing domestic demand for steel. The loan will finance part of the funds needed for the procurement and upgrade of a Picking Line-Tandem Cold Mill（manufactured by Mitsubishi-Hitachi Metals Machinery, Inc. and Hitachi, Ltd., and exported by Sojitz Corporation）to be introduced as part of this expansion plan.
- With recent solid economic growth, India foresees growing demand for steel over the medium and long term, especially to be used in infrastructure development and by the automobile industry. This has increased keen interest in sophisticated Japanese steel-making plant facilities. Thus, there are expectations to expand steel plant-related business for Japanese firms. Amid these circumstances, this loan will contribute to maintaining and improving the international competitiveness of the Japanese steel-making facilities industry.
- JBIC will continue to support Japanese firms in their export of machinery and equipment, as well as their overseas business deployment, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.