- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
November 20, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a loan agreement amounting to 81 million U.S. dollars (JBIC portion) with Jamshedpur Continuous Annealing & Processing Company Private Limited (“JCAPCPL”), which is a joint venture of Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) and Tata Steel Limited (“TSL”). The loan is cofinanced with Mizuho Corporate Bank (MHCB; lead arranger) and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU; co-arranger). The overall cofinancing amount is 135 million U.S. dollars.
- This loan is intended to finance JCAPCPL for setting up a plant for the continuous annealing & processing of cold-rolled steel sheets in Jamshedpur, the State of Jharkhand, mainly to meet the fast-growing demand for high grade steel sheets for automobiles in India.
- Amid intense global competition in the steel industry, NSSMC has put forward the globalization of its steel business operation as one of its key management policies. In line with this policy, NSSMC has formed a joint venture with TSL to implement local production of high-grade cold-rolled steel sheets for automobiles in India. The loan will thus contribute to maintaining and improving the international competitiveness of the Japanese steel industry by supporting NSSMC's overseas business deployment.
- JBIC will continue to support the business deployment of Japanese companies in such growing markets as India by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.