- Region: Asia
- Machinery and Equipment
- Export Loans
October 26, 2015
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed on October 25 an export credit line agreement totaling up to JPY41,544 million (JBIC portion) with Joint-Stock Commercial Bank ASAKA ("ASAKA" Bank), a state-owned bank of the Republic of Uzbekistan (Uzbekistan), in the presence of His Excellency Mr. Shinzo Abe, Prime Minister of Japan, and His Excellency Mr. Islam Karimov, President of Uzbekistan, taking the opportunity of Prime Minister Abe's tour of Central Asian countries. The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, and ING Bank N.V., Tokyo Branch, with Nippon Export and Investment Insurance (NEXI) providing insurance for the cofinanced portion by the private financial institutions. The overall cofinancing amount reaches JPY69,240 million.
The loan will fund NAVOIYAZOT Joint-Stock Company, an Uzbek chemical manufacturer, to purchase a whole plant facility from Mitsubishi Heavy Industries, Ltd. and Mitsubishi Corporation, as it constructs a new fertilizer plant for producing urea fertilizer using natural gas as the raw material in Navoi City, situated in the southwestern part of Uzbekistan.
The demand for new plant construction in the oil and gas industry is expected to continue in Uzbekistan, who maintains a high rate of economic growth, while diversifying its energy sector. JBIC's support for the export of the fertilizer plant by Japanese companies through this loan will help create business opportunities for Japanese companies in the oil and gas industry of Uzbekistan, thereby contributing to maintaining and strengthening the international competitiveness of Japanese industries. Furthermore, such support is expected to contribute to the development of Uzbekistan's chemical sector.
As Japan's policy-based financial institution, JBIC will continue to support the export of plant equipment by Japanese companies, as well as their overseas business deployment, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.