- Region: Asia
- Machinery and Equipment
- Export Loans
May 30, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on May 29, two buyer's credit (export loan) *1agreements with JSW Steel Limited (JSW Steel) in India, each totaling up to JPY3 billion and USD30 million (JBIC portions), respectively. The loans are cofinanced with a private financial institution, with Nippon Export and Investment Insurance (NEXI) providing Buyer's Credit Insurance for the cofinanced portions. The overall cofinancing amounts are JPY5 billion and USD50 million, respectively.
The loan is intended to set up the credit line for JSW Steel, the major private steel manufacturing company in India, to finance its purchase of steel manufacturing-related facilities and technological services from Japanese companies.
In India, backed with its steady economic growth, the medium- and long-term demand for steel products, primarily in the construction and automobile sectors, is expected to expand, and there is strong interest in high-quality Japanese steelmaking facilities. As such, these loans will support the further export expansion of machinery and equipment of Japanese companies, by responding timely and flexibly to JSW Steel's investment demand, and thereby contribute to maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment and export of machinery and equipment to India of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 An export credit line is a form of export credit in which JBIC makes a commitment of the maximum amount of credit to be extended to foreign banks or other entities to finance exports of machinery, equipment and services from Japan.