- Region: Latin America and the Caribbean
- Machinery and Equipment
- Export Loans
December 28, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on December 27 (U.S. EST) a buyer's credit (export loan) agreement amounting to about 10.2 billion yen (JBIC portion) with the Government of the Bolivarian Republic of Venezuela (Venezuela). The loan is cofinanced with Mizuho Corporate Bank, Ltd. with the overall cofinancing amount totaling about 17.0 billion yen.*1
- The loan is intended to finance Instituto de Ferrocarriles del Estado (IFE), the national railway company in Venezuela wholly owned by the Government of Venezuela, to purchase railway cars, built by Japanese Companies (NIPPON SHARYO, LTD. and TOSHIBA CORPORATION), from Marubeni Corporation (Marubeni). The railway cars will be provided for about a 45 kilometer railway operation between Caracas, the capital city, and Tuy Medio, a neighboring city. This loan follows earlier buyer's credit loans, when an international consortium that includes Marubeni was awarded a contract by IFE for railway-related equipment, including railway cars, rail tracks, and signal and communications equipment in 1992, and for a set of railway car maintenance depot facilities, control equipment, and signal and communications equipment in 2005.*2 JBIC will support the transport infrastructure deployment of Japanese companies in Venezuela in this current additional purchase.
- The Caracas metropolitan area, the economic center of the Venezuelan economy, is facing a major problem of chronic traffic congestion caused by the excessive concentration of population and industries. This project is also expected by the Venezuelan government to be part of the public work of constructing a mass transit system linking the city of Caracas and suburban cities to alleviate serious traffic in the city and to develop the neighboring cities to lessen overpopulation in Caracas.
- JBIC will continue to support the deployment of the overseas infrastructure business of Japanese companies, as well as the maintenance and improvement of the international competitiveness of Japanese industries, by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function.
- *1 Nippon Export and Investment Insurance (NEXI) will provide Buyer's Credit Insurance for the portion financed by Mizuho Corporate Bank, Ltd.
- *2 See Press Release on October 28, 2005.