- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
April 30, 2015
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed today a loan agreement totaling up to USD60 million (JBIC portion) with PT. JFE Steel Galvanizing Indonesia (JSGI), an Indonesian company. The loan is cofinanced with Mizuho Bank Ltd and other financial institutions.
The loan is intended to finance the manufacturing and sales business of high-end hot-dip galvanized steel sheet for automobiles by JSGI, a wholly owned subsidiary of JFE Steel Corporation (JFE Steel) in Indonesia, with a production capacity of up to 400 thousand tons per year.
JFE Steel currently operates hot-dip galvanized steel sheet manufacturing businesses in China and Thailand, aiming to build a global supply chain of galvanized steel sheet for automobiles in light of intensifying competition in the steel industry in the global market, and through this loan the company plans to respond to growing automobile production in Indonesia, Southeast Asia's second largest automobile producing country. Thereby, the loan will contribute to maintaining and strengthening the international competitiveness of Japanese steel industries through supporting the overseas business deployment of JFE Steel.
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.