- Region: Asia
- Machinery and Equipment
- Export Loans
September 13, 2013
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a buyer's credit agreement totaling up to 8.9 billion yen (JBIC portion) with the Government of Turkmenistan acting through the State Bank for Foreign Economic Affairs of Turkmenistan (TVEB). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Tokyo Branch of Deutsche Bank AG, with Nippon Export and Investment Insurance (NEXI) providing Buyer's Credit Insurance for the cofinanced portion. The total cofinancing amount reaches about 14.8 billion yen.
The loan is intended to finance the State Concern "Turkmenhimiya," Turkmenistan's state-owned chemical company, to purchase a complete plant facility from Mitsui Engineering & Shipbuilding Co., Ltd. and others, as it builds a new sulfuric acid production plant in Türkmenabat City, eastern Turkmenistan.
Turkmenistan has sustained high economic growth with brisk exports of abundant natural gas earning foreign currencies. Since the natural gas produced in the country contains a substantial amount of sulfur, this plant will make effective use of the sulfur generated as a byproduct of processing natural gas by using it as a raw material for fertilizer. The fertilizer thus produced is planned to be sold primarily in the domestic market, which is expected to contribute to developing the agricultural sector in Turkmenistan.
JBIC's support for Japanese companies'sulfuric acid production plant export with this loan will lead to creating business opportunities for Japanese companies in the oil and gas sector, thereby contributing to maintaining and improving the international competitiveness of Japanese industry.
As a public financial institution, JBIC will continue to support Japanese companies for their export of plant machinery and equipment, as well as their overseas business deployment, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.