Export Credit Line for Aluminium Bahrain B.S.C. in Kingdom of Bahrain
Providing Support for Export of Aluminium Smelting Equipment from Japan

• Region: The Middle East
• Energy and Natural Resources
• Export Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed a general agreement^*1 offering an export credit line^*2 with Aluminium Bahrain B.S.C. (Alba) of the Kingdom of Bahrain amounting up to EUR45 million (JBIC's portion). The loan is co-financed with BNP Paribas S.A. - Tokyo Branch (the lead bank) bringing the total co-financing amount to EUR90 million. The co-financed portion will be covered by insurance from Nippon Export and Investment Insurance (NEXI).   
     
2. Alba is one of the largest aluminium smelters in the Middle East. The loan is extended to the Company to finance the purchase of a full set of equipment necessary for its brownfield Line 6 Expansion Project. In this project, Fuji Electric Co., Ltd. will supply the world's largest rectifiers and ancillary equipment while Sumitomo Corporation will deliver carbon cathodes manufactured by SEC Carbon Limited, which are used in the electrolysis of alumina to produce aluminium.   
     
3. In pursuit of the vision of building a nation that does not depend on oil resources, Bahrain is aiming to grow its economy by developing non-petroleum sectors through industrial diversification. In 2008, the country announced its mid- and long-term objective to promote the manufacturing sector under the policy plan "Economic Vision 2030." Moreover, the Bahrain government's Economic Development Board indicated its intention to focus on the downstream segments of the aluminium industry as part of the economic growth initiatives. This loan, therefore, is in line with the policies of the Bahrain government and will contribute to the Japanese industry in maintaining and enhancing its international competitiveness by further facilitating machinery and equipment exports from Japan.  
     
4. As Japan's policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in exporting equipment and services and expanding their businesses in overseas markets by drawing on its various financial instruments for structuring projects and expanding its risk-taking ability.
     

Note

1. *1 
   The general agreement was signed on October 31, 2018.
2. *2 
   An export credit line is a form of export credit in which JBIC offers credit lines up to a certain amount for foreign banks or corporations which plan to purchase equipment and associated services from Japan.