- Region: Africa
- Machinery and Equipment
- Export Loans
October 9, 2013
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on October 8, a general agreement with Banque Marocaine du Commerce Extérieur (BMCE Bank), a commercial bank in the Kingdom of Morocco, for offering a credit line amounting up to 60 million U.S. dollars (JBIC portion) in total. This credit line is cofinanced with private financial institutions, which bring the total cofinanced amounts to 100 million U.S. dollars in total. Nippon Export and Investment Insurance (NEXI) will provide insurance for the portion cofinanced by private financial institutions.
This credit line is offered to finance local companies in the African countries, including Morocco, for purchasing general machinery and equipment from Japanese companies. This credit line will enable, through BMCE Bank, the provision of medium- and long-term U.S. dollar financing and thereby support the expansion of trade transactions between Japanese companies and African companies.
BMCE Bank was initially established by the Government of Morocco as a financial institution for promoting external trade, and it now has a broad network of operational bases primarily in the Western and Eastern parts of Africa where BMCE Bank group is financing various projects. The African region has countries endowed with abundant natural resources, and demand for infrastructure development increased in recent years by economic growth. Japanese companies have strong interest in the sales of machinery and equipment to the region, and there are significant expectations for this credit line.
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") to support the promotion of private sector-led growth and the acceleration of infrastructure development in African countries.*1This credit line is provided as financial support under FAITH.
As a public financial institution, JBIC will continue to support Japanese industries, in cooperation with such overseas local financial institutions, by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
- *1 See information on June 3, 2013.