- Region: Asia
- Marine and Aerospace
- Overseas Investment Loans
December 24, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling up to USD175 million (JBIC portion) with Dalian COSCO KHI Ship Engineering Co., Ltd. (DACKS), a company incorporated in China, in which Kawasaki Heavy Industries, Ltd. (Kawasaki) has an equity stake. The loan is cofinanced with Mizuho Bank, Ltd. and Sumitomo Mitsui Banking Corporation, with the overall cofinancing amount reaching USD291 million.
The loan is intended to provide DACKS with funds required for conducting shipbuilding business in Dalian City, Liaoning Province, in northeast China, and the funds will be used for the expansion of its shipbuilding facilities.
Kawasaki, which is building various ships, including bulk carriers, tankers and, LNG tankers, has participated in DACKS in a joint venture with COSCO Group. As the second production base of Kawasaki in China, following Nantong COSCO KHI Ship Engineering Co., Ltd. (NACKS), DACKS is building and selling ships to Chinese and overseas markets by making use of Kawasaki's designing knowhow, production management technologies, and other expertise. Given the prospect that firm future demand is expected in the new shipbuilding market on the back of increasing marine transport, Kawasaki this time intends to expand the manufacturing and sales of ships, primarily large ones, through investment in additional facilities. Thus this loan will contribute to maintaining and strengthening the international competitiveness of the Japanese shipbuilding industry through support for Kawasaki's overseas business deployment.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.