Seven JBIC “Global South” Projects
A financing project to boost India’s health care sector during the COVID-19 pandemic was significant in terms of both international cooperation and the overseas advancement of Japan’s regional banks. MIKITA Satoshi, who led this project, shares the story.
Memories of the outbreak of the COVID-19 pandemic are still fresh in India as well.
Protecting the health of people around the world through JBIC’s first vaccine production-related loan
To realize a “Free and Open Indo-Pacific,” the Quad (officially the Indo-Pacific Quadrilateral Dialogue) partners—Japan, Australia, India, and the U.S.—are committed to cooperating in a wide range of areas to contribute to the region. At the first Quad Leaders’ Summit, held in March 2021, response to the COVID-19 pandemic was identified as “the most urgent of global challenges.” Against this background, they agreed to work together to strengthen India’s vaccine manufacturing capacity and to utilize their financial institutions, including JBIC.
India is a major country of the Global South, and a manufacturing center for vaccines, exporting to countries across Southeast Asia and Africa. Enhancing its vaccine production capacity will therefore benefit the health of people not only in India but also far beyond its borders.
In May 2022, a loan agreement was concluded with the Export-Import Bank of India (India EXIM Bank), India's policy-based financial institution, for up to USD100 million (including a USD60 million JBIC loan). JBIC provides guarantees for the portion of the loans from private financial institutions.
Through India EXIM Bank, financial support is provided to local companies manufacturing vaccines and therapeutic drugs. This loan for a broad range of areas to boost India’s production of COVID-19 vaccines was also a first for JBIC.
including regional banks
MIKITA Satoshi, who was the Deputy Director General of the Social Infrastructure Finance Department, speaks of the significance of this project as follows:
“This financing not only covers vaccine manufacturing companies, but also areas such as the expansion of medical equipment production and the development of medical facilities. Against the backdrop of the COVID-19 pandemic, we are not only supporting India's economic development by enhancing its healthcare sector through financial support, but also improving the business environment for Japanese companies operating in India.”
The loan was co-financed by JBIC, MUFG Bank, The Hachijuni Bank, and The Bank of Kyoto. Using the loan guarantee provided by JBIC as the first step, private financial institutions, including regional banks, can open a path to expanding business overseas. This project led to various accomplishments such as strengthening the Quad partnership and facilitating the overseas expansion of regional banks.
Deputy Director General
Social Infrastructure Finance Department
Infrastructure and Environment Finance Group (at that time)
MIKITA Satoshi
Joined the bank in 1997. He was involved in railway and other projects in the Social Infrastructure Finance Department as well as assignments in the U.S. and other countries. Currently serves as the Director General of the Equity Investment Department. Graduated from Hitotsubashi University, Faculty of Law.
