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The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on January 9 a shareholders agreement with Toyota Tsusho Corporation (Toyota Tsusho) and TechnoTrends AutoPark Private Limited (TTAP), an Indian company. The agreement is intended for the acquisition of TTAP's preferred shares, amounting up to INR488 million.
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The objective of this investment is to support the operation of an industrial park in the state of Gujarat in western India through TTAP, which was established by Toyota Tsusho through its Indian subsidiary.
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TTAP will secure a site within the Mandal Japanese Industrial Zone, which has been developed by the State Government of Gujarat and supported by the Japanese Ministry of Economy, Trade and Industry (METI) and Japan External Trade Organization (JETRO). It provides rental factories and various infrastructure services to Japanese companies, including Japanese mid-tier enterprises and small and medium-sized enterprises (SMEs). Toyota Tsusho has been engaged in operations of industrial parks in four countries, including India, as a key area of focus in its infrastructure business, and intends to support Japanese companies expanding to Gujarat by using acquired know-how. The supply of local currency-denominated risk money by JBIC, through its investment functions, will support the business expansion of Toyota Tsusho and Japanese companies in the region, thereby contributing to maintaining and strengthening the international competitiveness of Japanese industries.
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Furthermore, on January 10, JBIC signed a memorandum of understanding (MOU) with the State Government of Gujarat, Gujarat Industrial Development Corporation (GIDC), which manages the Mandal Japanese Industrial Zone where the project is located, Toyota Tsusho, and Toyota Tsusho India Private Limited (TTIPL), Toyota Tsusho's country headquarters for India. The purpose of this MOU is to promote steady operation of the project, while confirming the cooperative relationship between the parties concerned.
- As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function, including financing to meet the needs of local currency funding, as well as the investment function.