- Region: Europe
- Manufacturing and Services
- Overseas Investment Loans
June 10, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on June 7 a loan agreement amounting up to 36 million U.S. dollars with the Sberbank of Russia (Sberbank), the country's largest commercial bank. The loan is cofinanced with Mizuho Corporate Bank, Ltd., with the overall cofinancing amount totaling 60 million U.S. dollars.*1
- The loan is intended to fund, through Sberbank, to factory construction for the manufacturing and sales of transformers used for power systems in Saint Petersburg by Limited Liability Company "Izhora Transformers" (IZT), a joint venture established by Toshiba Corporation (Toshiba) and Open Joint Stock Company "Power Machines"—ZTL, LMZ, Electrosila, Energomachexport ("Power Machines"). The power transformers manufactured by IZT are planned to be sold in the Russian and the CIS region. JBIC signed a separate loan agreement with IZT for this project in September 2012.*2
- In Russia, increasing demand for electricity is projected with expanding corporate activities to be brought about by future economic growth, in addition to increasing replacement demand for aging transformers. Toshiba intends to actively scale up business in the area of power transmission, transformation and distribution equipment in the Russian and CIS region through IZT. This loan will support Toshiba's business expansion in Russia, and thereby contribute to maintaining and improving the international competitiveness of the Japanese power machinery and equipment industry.
- JBIC will continue to support, in cooperation with overseas local financial institutions, the overseas business development of Japanese companies by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming functions.
- *1 Nippon Export and Investment Insurance (NEXI) provides Overseas Investment Insurance for the portion cofinanced by Mizuho Corporate Bank, Ltd.
- *2 On September 3, 2012, JBIC singed a loan agreement amounting up to 28 million euros (JBIC portion) with IZT.