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The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed today a loan agreement amounting to up to USD100 million, of which JBIC's portion is USD60 million, with the Export-Import Bank of India (EXIM-India), a policy-based financial institution wholly owned by the Government of India, taking the opportunity of the Japan-Australia-India-U.S. Summit Meeting (Quad Summit) in Tokyo. The loan is co-financed with MUFG Bank, Ltd., The Hachijuni Bank, Ltd., and The Bank of Kyoto, Ltd. JBIC will also provide a guarantee for the co-financed portion by the private financial institutions.
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At the first Quad Summit, which was held in March 2021 amid the prolonged COVID-19 pandemic, the leaders of Japan, Australia, India, and the United States (Quad Partners) agreed that the Quad Partners are working collaboratively to achieve expanded manufacturing of safe and effective COVID-19 vaccines in India. Moreover, at the second Quad Summit in September 2021, the Quad Partners agreed that Japan, through JBIC, will work with India to enhance investments in the healthcare sector related to COVID-19, including vaccine and treatment drugs. As underpinned by these agreements among the Quad Partners, this loan will financially support, through EXIM-India, the Indian healthcare sector related to COVID-19 including vaccine manufacturers and pharmaceutical companies.
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The loan is a symbolic transaction, demonstrating the Quad Partners' strong unity and robust commitment to the Indo-Pacific region, while also enhancing the bilateral cooperation between Japan and India, as they celebrate the 70th anniversary of the establishment of diplomatic relations between the two countries. Likewise, India has been attracting many Japanese companies' direct investments not only as a growing market with a large population, but also as an export hub to both Asia and Africa. However, the wide-spread COVID-19 pandemic in India is hampering Japanese companies in the country from continuing their local business operations. Under such circumstances, the loan will help smoothen the flow of funds for the Indian healthcare sector related to COVID-19, thereby expanding opportunities for Japanese private financial institutions to invest in India, and contributing toward maintaining and improving the international competitiveness of the Japanese industries.
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As Japan's policy-based financial institution, JBIC will continue to support the maintenance and improvement of the international competitiveness of the Japanese industries, and will contribute toward materializing efforts under multilateral cooperation frameworks such as the Quad and deepening the economic relationship between Japan and other like-minded countries, by drawing on its various financial facilities and schemes, and by performing its risk-assuming function.
