- Region: Asia
- Marine and Aerospace
- Export Loans
December 13, 2013
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on December 12 two buyer's credit agreements totaling up to about 60.7 million U.S. dollars (JBIC portion) for funding the purchase of two very large ore carriers with MOL Cape (Singapore) Pte. Ltd. (MOL Cape) incorporated in Singapore, which is a wholly-owned subsidiary of Mitsui O.S.K. Lines, Ltd. (Mitsui O.S.K.). These loans are cofinanced with Mizuho Bank, Ltd. (lead arranger), with the overall cofinancing amount reaching about 121.5 million U.S. dollars for two vessels. Nippon Export and Investment Insurance (NEXI) will provide Buyer's Credit Insurance for the portion cofinanced by private financial institutions.
MOL Cape, the purchaser of these vessels, is headquartered in Singapore and is an exclusive large bulk carrier operator of the Mitsui O.S.K. group. These loans are intended to finance MOL Cape to purchase two 250,000 DWT*1 type ore carriers built by Namura Shipbuilding Co., Ltd. in their domestic shipyard.
These loans will support the export of ships built in a Japanese shipyard which perform a significant role in the regional economy and associated industries, including their mid-tier enterprises and small and medium-sized enterprises (SMEs). Thus, these loans will contribute to maintaining and improving the international competitiveness of the Japanese shipbuilding industry.
As Japan's policy-based financial institution, JBIC will continue to support the export of ships built in Japanese shipyards in partnership with the Shipbuilders'Association of Japan by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
- *1 DWT is an abbreviation for Dead Weight Tonnage which refers to the total carrying capacity of a vessel, including freight, fuel, food, drink, water, ship crew and their personal effects.