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The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today an untied loan agreement for setting up a credit line totaling up to USD90 million (of which JBIC's portion is USD45 million) with ICICI Bank Limited (ICICI Bank), India's largest private bank in terms of asset . This credit line is cofinanced with Sumitomo Mitsui Banking Corporation (lead-arranger), with JBIC providing a partial guarantee for the cofinanced portion.
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This credit line is extended under GREEN operations
*1 to finance environment-related projects focusing on renewable energy and energy efficiency projects in India that are expected to help reduce greenhouse gas (GHG) emissions. Since 2011, JBIC has extended three similar credit lines to ICICI Bank to support projects in the environment-related sector.
*2
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The Indian government has set the numerical target of reducing GHG emissions per unit of GDP by 20-25 percent in 2020 relative to their 2005 level, and it has been making various efforts under the medium to long-term environment policy of the 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 also 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.
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JBIC and ICICI Bank have built up close cooperative ties over the years through loan commitments in support of development of local industries important for Japanese companies expanding their operations in India, trade finance, renewable energy and energy efficiency projects, and exports of machinery and equipment for thermal power generating facilities from Japan to India. This credit line will further strengthen relations between the two institutions.
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As Japan's policy-based financial institution, JBIC will continue to support global environmental preservation efforts in cooperation with such overseas local financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
