- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
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The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed today two loan agreements: one with JSW MI STEEL SERVICE CENTER PRIVATE LIMITED (JSW MI)*1 in India invested in by Marubeni-Itochu Steel Inc. (MISI), amounting to up to approximately INR686 million (JBIC portion), and the other with JSW MI CHENNAI STEEL SERVICE CENTER PRIVATE LIMITED (JSW MI Chennai)*2, amounting to up to INR300 million (JBIC portion). The loans are co-financed with Mizuho Bank, Ltd., bringing the total co-financing amount to approximately INR1,186 million and INR515 million respectively.
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The loans are intended to finance the funds necessary for JSW MI and JSW MI Chennai to operate steel distribution and processing centers in the states of Gujarat, Maharashtra, and Tamil Nadu.
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As MISI’s main clients, namely Japanese automotive manufacturers and electric appliance manufacturers, are accelerating their business expansion in India, the need to locally procure high-quality steel is rising. MISI aims to provide a stable supply of high-quality iron and steel products and increase its production capacity in India, where the demand for iron and steel is expected to grow. The loans will support MISI’s overseas business expansion, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.
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As Japan’s policy-based financial institution, JBIC will continue to support the overseas business expansion of Japanese companies into growing markets such as India by drawing on its various financial facilities and schemes, including local currency loans, and performing its risk-assuming function.
Note
- *1
- *2