Export Credit Line for Eastern and Southern African Trade and Development Bank
Supporting Exports to 22 Countries in Sub-Saharan Africa and other regions
- Region: Africa
- Machinery and Equipment
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on May 24 a general agreement for providing an export credit line*1
, amounting up to USD210 million, with the Eastern and Southern African Trade and Development Bank (TDB), a regional development financial institution in Africa (See the attachment for the bank's outline.
) The loan is co-financed with private financial institutions, bringing the total co-financing amount to USD350 million. The co-financed portion is covered by insurance from Nippon Export and Investment Insurance (NEXI).
The credit line is intended to provide business entities in 22 countries mainly in Sub-Saharan Africa, through TDB, with funds for the import of machinery and equipment from Japanese companies and their overseas affiliates. Demand for machinery and equipment, which are needed for economic development, is expected to continue to expand in Sub-Saharan Africa. In light of this, this credit line is being set up to financially support the efforts of Japanese companies and their overseas affiliates to expand exports to this region. It is also expected to help further strengthen the economic relationship between Japan and Sub-Saharan Africa*2
The 7th Tokyo International Conference on African Development (TICAD VII) is scheduled to be held in Yokohama in August 2019. As Japan's policy-based financial institution, JBIC will continue to financially support the expansion of Africa-bound exports from Japanese companies, as well as increase opportunities to participate in projects in the region, by drawing on its various financial instruments for structuring projects and performing its risk-assuming functions.
An export credit line is a form of export credit in which JBIC makes a commitment for the maximum amount of credit to be extended to foreign banks or other entities to finance the export of machinery and equipment from Japan.
JBIC signed general agreements in February 2007 and August 2016 to set up export credit lines with TDB (formerly the PTA Bank). This is the third agreement to be extended to TDB. See press releases dated February 13, 2007
and August 29, 2016
for further details.