- Region: Others
- Energy and Natural Resources
- Overseas Investment Loans
October 22, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on October 19, a general agreement for offering a credit line amounting up to 75 million U.S. dollars (JBIC portion) with TEC Netherlands B.V. (TEC-NL), a wholly owned subsidiary of Toyo Engineering Corporation (TOYO). The loan is cofinanced with private financial institutions, which brings the overall cofinancing amount to 125 million U.S. dollars.
- This credit line is to support the deployment of engineering activities by local subsidiaries of TOYO in developing countries through TEC-NL, and is expected to support the expansion of the effective and stable international operations of TOYO as well as the securing of market share.
- The Japanese engineering industry expects the demand for overseas plant projects to grow mainly in developing countries, while it faces severe international competition. Under these circumstances, TOYO, in its medium-term business plan, intends to enhance its integrated global operations in order to maximize the effect of consolidated management by leveraging strength of having overseas subsidiaries capable of supplying their own EPC*1 services toward emerging economies and countries having natural resources. Thus, this credit line, supporting TOYO's global operations, will contribute to maintaining and improving the international competitiveness of the Japanese engineering industry.
- JBIC will continue to support the overseas business deployment of Japanese companies by drawing on its various financial facilities and schemes for structuring projects and performing risk-assuming functions.