- Region: Asia
- Untied Loans
March 28, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed an untied loan agreement for setting up a credit line ("this credit line") totaling up to USD90 million (of which JBIC's portion is USD45 million) with IDFC Limited (IDFC), an Indian development finance institution providing loans to infrastructure and other projects. This credit line is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (participating financial institution), with JBIC providing a partial guarantee for the cofinanced portion.
This credit line is intended to finance renewable energy and energy efficiency projects in India that are expected to help reduce greenhouse gas (GHG) emissions in operations under GREEN operations.*1 To date, JBIC has extended credit lines under GREEN operations to the country's ICICI Bank and the State Bank of India (SBI). Extending this credit line will enable JBIC to provide broader support to these projects.
The Indian government has set the numerical target of reducing GHG emissions per unit of GDP by 20-25 percent by 2020 relative to their level in 2005, and it has been making various efforts under the medium to long-term environment policy of National Action Plan on Climate Change (NAPCC). In this context, this loan is expected not only to help reduce GHG emissions in India and promote the Indian government's environmental policy, but provide opportunities to propagate in India, internationally acclaimed Japanese advanced environmental technologies. It is also compatible with the Japanese government's Actions for Cool Earth (ACE), the proactive diplomatic strategy for countering global warming.
As Japan's policy-based financial institution, JBIC will continue to support global environmental preservation efforts in cooperation with overseas financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.