AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The buyer’s credit loan agreement between JBIC and NTPC Limited has a total maximum value of USD 210 million. Additionally, the loan is co-financed by a private financial institution amounting to USD 350 million. The governmental agency Nippon Export and Investment Insurance will provide a Buyer's Credit Insurance and Overseas Untied Loan Insurance for the co-financed portion.
The loan finances the purchase of steam turbine generators and boiler feed water pumps from Indian Toshiba JSW Power Systems Private Limited. Toshiba JSW Power Systems Private Limited is a subsidiary of the Japanese company Toshiba Corporation. The steam turbine generators will be produced by the Indian subsidiary and Japanese Toshiba Corporation, whilst the boiler feed water pumps will be produced by Japanese Ebara Corporation.
In this context, JBIC stated: "As Japan's policy-based financial institution, JBIC will continue to support the Japanese companies'overseas business deployment and export of Japanese infrastructure system to India as well as opportunities for Japanese companies to participate in the country's business projects by drawing on its financial facilities and schemes for structuring projects and performing its risk-assuming function."
Buyer's credit agreements
JBIC provides direct loans named buyer’s credit to overseas importers. Loans are obtained if it finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank stated that these loans are intended to “positively contribute to Japanese companies”. Further information can be found on the Bank’s website under export loans.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.
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