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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on June 7 a loan agreement amounting to up to USD49 million (JBIC portion) with ATC Tires AP Private Limited (ATCAP), an Indian subsidiary of the Yokohama Rubber Co., Ltd. (Yokohama Rubber). The loan is co-financed with Mizuho Bank, Ltd., MUFG Bank, Ltd., and the Bank of Yokohama, Ltd., bringing the total co-financing amount to USD82 million.
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The loan is intended to finance the funds necessary for ATCAP to expand facilities for its passenger car tire manufacturing and sales business in India
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India, the world’s third largest automobile market in 2023 in terms of units sold, is expected to grow further. Yokohama Rubber plans to increase sales by improving the production capacity and cost competitiveness of its passenger car tire business in order to meet demand in the country. The loan will support Yokohama Rubber’s overseas business expansion, thereby contributing toward strengthening supply chain resilience and maintaining and improving the international competitiveness of the Japanese automobile industry.
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In addition, Yokohama Rubber has set a goal to reduce its operational greenhouse gas emissions to net zero and achieve a 100% usage of sustainable raw materials by 2050. In India, it aims to increase the procurement rate of renewable energy and introduce sustainable raw materials. The loan will also support these efforts by the company.
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As Japan's policy-based financial institution, JBIC will continue to provide financial support to help with efforts to enhance the supply chain resilience of Japanese industries and assist Japanese companies in the overseas expansion of their businesses.
