Buyer's Credit for Government of the Republic of Uganda
Supporting Export of Road Construction Machinery by Japanese Company
- Region: Africa
- Machinery and Equipment
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed*1
a loan agreement in buyer's credit amounting up to JPY7.5 billion (JBIC portion) with the government of the Republic of Uganda (Uganda). The loan is cofinanced with Sumitomo Mitsui Banking Corporation (lead arranger), bringing the total cofinancing amount to JPY15.1 billion, with Nippon Export and Investment Insurance (NEXI) providing insurance on the cofinanced portion.
The loan is intended to finance Uganda's purchase of machinery for construction, and vehicles for transporting construction materials manufactured by Japanese companies such as Komatsu Ltd., Sakai Heavy Industries, Ltd., Tadano Ltd., Mitsubishi Fuso Truck and Bus Corporation, and Kyokuto Kaihatsu Kogyo Co., Ltd. from SUMITOMO CORPORATION.
Uganda, as an agriculture country, has plans for new construction and maintenance of roads in 112 areas in the country in order to facilitate the distribution of agri-products. The road construction machinery and vehicles will be used for those plans. This loan will contribute to the improvement of Uganda's transportation infrastructure as well as maintaining and strengthening the international competitiveness of Japanese industries through supporting the export of the machinery and vehicles for road construction.
JBIC launched the JBIC Facility for African Investment and Trade Enhancement ("FAITH")*2
to support the promotion of private sector-led growth and the acceleration of infrastructure development in African countries, as the Government of Japan expressed that it would work toward expanding trade and investment in African countries in tandem with the private sector at the 5th Tokyo International Conference on African Development (TICAD V), and this loan is provided as financial support under FAITH.
As Japan's policy-based financial institution, JBIC will continue to support the export of machinery and equipment related to infrastructure development and 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.
- *1 Although this loan agreement was signed on September 11, 2015, its press release is issued today due to necessary adjustments among relevant parties.
- *2 See Information on June 3, 2013.