- Region: North America
- Manufacturing and Services
- Overseas Investment Loans
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on June 30 a loan agreement amounting to up to USD180 million (JBIC portion) with Toray Industries, Inc. (Toray). The loan is co-financed with private financial institutions*1, bringing the total co-financing amount to USD300 million.
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The loan is intended to finance the funds necessary for Toray Composite Materials America, Inc. (CMA), a US subsidiary of Toray, to manufacture and sell carbon fiber for high-pressure gas tanks, specifically those used in hydrogen-powered fuel cell vehicles (FCVs)*2.
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The FCV market is expected to expand due to growing efforts to reduce greenhouse gas emissions. Carbon fiber, which has the characteristics of lightness, high rigidity, and strength, contributes toward improving the safety and fuel efficiency of FCVs by enhancing the durability of high-pressure gas tanks and reducing vehicle weight. As announced in its press release dated July 13, 2023, Toray plans to expand the production capacity of CMA to meet the growing demand for carbon fiber. The loan will support Toray’s overseas business expansion, thereby contributing toward maintaining and improving the international competitiveness of Japan’s carbon fiber industry, as well as strengthening supply chain resilience.
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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 industry and assist Japanese companies in the overseas expansion of their businesses.
Note
- *1
The co-financed portion consists of a syndicated loan arranged by Mizuho Bank, Ltd., with the participation of The Akita Bank, Ltd., The Iyo Bank, Ltd., Saitama Resona Bank, Limited, THE HACHIJUNI BANK, LTD., The Yamaguchi Bank, Ltd., and other financial institutions.
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The loan follows a similar loan made to CMA in May 26, 2021.