- Region: Europe
- Machinery and Equipment
- Export Loans
December 25, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on December 21, a general agreement with Gazprombank (Open Joint-stock Company), one of the leading commercial banks in Russia, for offering an export credit line*1 amounting to the equivalent of 300 million U.S. dollars (JBIC portion). The credit line is cofinanced with private financial institutions, which brings the overall cofinancing amount to the equivalent of 500 million U.S. dollars.*2
- Under this agreement, an export credit line is offered to Gazprombank to extend loans to local companies in Russia and its neighboring countries for the purchase of Japanese machinery and equipment. This export credit line will thus provide medium- and long-term loans to these companies, either in yen or in U.S. dollars, through Gazprombank.
- This is the third export credit line extended by JBIC to Gazprombank since 2007.*3 This time, in addition to Russia, the target countries for the export credit line have been expanded to include Azerbaijan, Belarus, Kazakhstan, Turkmenistan and Uzbekistan, with all of which Japan is expected to further strengthen ties through trade and investment. Thereby, JBIC intends to support the expansion of exports by Japanese companies to these countries.
- Since the first export credit line was extended to Gazprombank in 2007, JBIC and Gazprombank have built close cooperative ties. JBIC will continue to support Japanese companies' expansion of business in Russia and its neighboring countries in collaboration with such foreign financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 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.
- *2 Nippon Export and Investment Insurance (NEXI) will provide Buyer's Credit Insurance for the portion cofinanced by private financial institutions.
- *3 See Press Release on June 8, 2007 and Press Release on July 3, 2007.