- Region: The Middle East
- Manufacturing and Services
- Overseas Investment Loans
March 2, 2015
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The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on February 26 two loan agreements respectively totaling up to USD87 million (JBIC portion) with Tosyali Toyo Celik Anonim Sirketi (Tosyali Toyo Steel Co. Inc. (Tosyali Toyo)), a joint venture established by Toyo Kohan Co., Ltd. (Toyo Kohan) and Tosyali Holding A.S., a Turkish company; and totaling up to USD91 million (JBIC portion) with Yapi ve Kredi Bankasi A.S., a commercial bank in Turkey. Each of these loans is cofinanced with Sumitomo Mitsui Banking Corporation (SMBC), and Nippon Export and Investment Insurance (NEXI) is providing insurance for part of the loan portion of SMBC. The overall cofinancing amount is about USD297 million.
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These loans are intended to finance the manufacturing and sales business of cold rolled steel sheets and surface treated steel sheets conducted by Tosyali Toyo in Turkey.
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Toyo Kohan plans in its medium-term business plan to secure a medium-and long-term revenue base by developing overseas business and promoting overseas deployment in growing markets related to steel sheets, taking advantage of the technology of rolling and surface treatment, etc. which Toyo Kohan has developed over the years as a member of Toyo Seikan Group Holdings, Ltd. Under such circumstances, the company established a production base in Turkey where the demand for cold rolled steel sheets and surface treated steel sheets is expected to grow, and plans to actively promote overseas businesses through the global deployment of the steel sheets business. Thus, this loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries through support for such overseas business deployment by Toyo Kohan.
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As Japan's policy-based financial institution, JBIC will continue to support the business deployment of Japanese companies in such growing markets as Turkey by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function.