- Region: Africa
- Untied Loans
June 3, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on June 2, an untied loan agreement for offering a credit line amounting up to 50 million U.S. dollars (of which JBIC's portion is 30 million U.S. dollars) with the Development Bank of Southern Africa Limited (DBSA), a governmental financial institution wholly owned by the Government of the Republic of South Africa. The credit line is cofinanced with Sumitomo Mitsui Banking Corporation (SMBC; lead arranger), with JBIC providing a partial guarantee for the cofinanced portion by SMBC.
- This is JBIC's first loan to Africa under GREEN operations.*1 The credit line is intended to finance, through DBSA, environment-related projects such as wind power, solar photovoltaic power generation and other projects harnessing renewable energy resources in the member countries of the Southern African Development Community (SADC)*2 where DBSA conducts operations.
- DBSA is a governmental development financial institution in South Africa established to provide financial support as well as advisory and other services for advancing socioeconomic development and raising the standards of living of the peoples in Southern Africa as well as the African region. DBSA is also actively supporting renewable energy projects. In addition, the member countries of the SADC in Southern Africa have ratified the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol and energetically participated in the international framework on climate change. In this context, this loan is expected to contribute to reduction in greenhouse gas (GHG) emissions in Southern African countries.
- In response to the statement expressed by the Government of Japan during the Fifth Tokyo International Conference on African Development (TICAD V) that it would work toward expanding trade and investment in the African region in cooperation with the public and private sectors, JBIC launched the JBIC Facility for African Investment and Trade Enhancement (FAITH) for enhancing economic growth initiated by private sector and infrastructure development.*3 This credit line is provided as financial support under FAITH.
- In collaboration with such overseas governmental financial institutions, JBIC will support efforts to preserve the global environment by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
- *1 See Information on April 27, 2010.
- *2 As of May 2013, the member countries of SADC comprise the following 14 countries: the United Republic of Tanzania, the Republic of Zambia, the Republic of Botswana, the Republic of Mozambique, the Republic of Angola, the Republic of Zimbabwe, the Kingdom of Lesotho, the Kingdom of Swaziland, the Republic of Malawi, the Republic of Namibia, the Republic of South Africa, the Republic of Mauritius, the Democratic Republic of the Congo and the Republic of Seychelles.
- *3 See Information on June 3, 2013 .