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The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on May 28 a loan agreement amounting to up to USD50 million (JBIC portion) with PT. JFE Steel Galvanizing Indonesia (JSGI), an Indonesian subsidiary of JFE Steel Corporation (JFE Steel). The loan is co-financed with Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, and MUFG Bank, Ltd.
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The loan is intended to finance the funds necessary for JSGI to conduct the business of manufacturing and sales of automotive steel sheets in Indonesia.
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Indonesia is the second largest automobile producer in Southeast Asia, and Japanese automobile manufacturers account for 96% of the market in terms of the units sold. Also, the demand for high-grade steel sheets for automobiles is expected to continue to grow in the country. In order to capture growing demands in overseas growing markets, JFE intends to meet automobile manufacturers’ demand for local procurement in Indonesia through the manufacturing and sales business, with the aim of expanding its overseas business and accelerating the growth of such business. The loan will support JFE’s overseas business expansion, thereby contributing toward maintaining and improving the international competitiveness of the Japanese steel industry.
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As Japan’s policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their businesses by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
