The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on June 28 a loan agreement amounting to up to INR2,400 million (JBIC portion) with YAZAKI INDIA PRIVATE LIMITED (YIPL), an Indian subsidiary of Yazaki Corporation (Yazaki). The loan is co-financed with Mizuho Bank, Ltd., bringing the total co-financing amount to INR4,000 million.
This loan is intended to provide the necessary funds for YIPL to manufacture and sell automotive parts, such as high-voltage wire harnesses for electric cars.
Yazaki manufactures and sells car components, such as wire harnesses, in India, where there is growing demand for electric and other types of vehicles due to economic growth, leading to a surge in demand for wire harnesses and other products used as automotive components.
This loan will support the overseas business deployment of Yazaki by providing necessary funds for capital investment, thereby contributing toward maintaining and improving the international competitiveness of the Japanese industry. In addition, Yazaki has been working on the reduction of greenhouse gas (GHG) emissions in order to achieve carbon neutrality by 2050, and in India, it has been addressing the decarbonization of production processes through various initiatives, such as utilizing renewable energy. The loan will support these efforts of the company.
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, by extending local currency loans.
