Approval of Individual Loan Based on Export Credit Line for Eastern and Southern African Trade and Development Bank
Supporting Exports of Construction Machinery by Japanese Company to Tanzania
- Region: Africa
- Machinery and Equipment
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) approved an individual loan amounting up to approximately USD3.6 million (JBIC portion) based on an export credit line*1
extended to the Eastern and Southern African Trade and Development Bank (TDB) in August 2016. This loan is cofinanced with Sumitomo Mitsui Banking Corporation, bringing the total cofinancing amount to approximately USD7.3 million. The cofinanced portion is insured by Nippon Export and Investment Insurance (NEXI).
The loan is intended to provide, through TDB, the necessary funds for Vehicle and Equipment Leasing (Tanzania) Limited, a Tanzanian company, to purchase construction machinery from Komatsu Ltd. This is the first loan approved under the credit line extended to TDB which was set on the occasion of the 6th Tokyo International Conference on African Development (TICAD VI) held in Nairobi, Kenya.
As Japan's policy-based financial institution, JBIC will continue to financially support the exports of machinery and equipment and the overseas business deployment of Japanese companies in the Sub-Saharan African countries which are under the coverage of TDB's finance.
- *1 See press release on August 29, 2016 for further details.