- Region: Asia
- Machinery and Equipment
- Export Loans
December 17, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed a general agreement*1 with Hon Hai Precision Industry Co., Ltd., a company incorporated in Taiwan, for offering an export credit line*2 amounting up to 4,250 million yen (JBIC portion), and signed the first sub-loan agreement amounting up to about 2,059 million yen (JBIC portion) under this credit line. The credit line is cofinanced with private financial institutions,*3 which brings the overall cofinancing amount to 8,500 million yen. The first sub-loan agreement is cofinanced with ING Bank N.V. Tokyo branch*4 and its total amounts to 4,117 million yen.
- Under this agreement, an export credit line is offered to Hon Hai Precision Industry Co., Ltd., the world's largest company in electronic manufacturing service provider, for the purchase of Japanese machine tools.
- Hon Hai Precision Industry Co., Ltd. has been purchasing Japanese machine tools as its high precision manufacturing services to customers who are major global players in computer, communications and consumer electronics industries. Because it will meet HHP's needs for facility investment promptly and flexibly, establishment of the credit line will support the expansion of the export of Japanese machine tools, thus contribute to maintaining and improving the international competitiveness of Japanese industries.
- JBIC will continue to actively support Japanese companies in the export of machinery and equipment, as well as overseas business deployment, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
- *1 Although a general agreement for the export credit line was already concluded on December 7, 2012, the press release was issued today after concluding the first sub-loan agreement on December 14, 2012 under this credit line.
- *2 An export credit line is a form of export credit in which JBIC makes a commitment of the maximum amount of credit to be extended to foreign banks or other entities to finance the export of machinery and equipment from Japan.
- *3 Nippon Export and Investment Insurance (NEXI) will provide Buyer's Credit Insurance for the portion cofinanced by private financial institutions.
- *4 Nippon Export and Investment Insurance (NEXI) provides Buyer's Credit Insurance for the portion cofinanced by ING Bank N.V. , Tokyo Branch.