ANNOUNCEMENT 01 Nov 2011
On 31 October 2011, the Japan Bank for International Cooperation (JBIC) signed two buyer's credit agreements with Danish Dampskibsselskabet NORDEN A/S to finance the purchase of two 37,000-DWT bulk carriers built by a Japanese manufacturer.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 1 November 2011, JBIC's First Buyer's Credit for Ship Export to Shipping Company in Denmark: http://www.jbic.go.jp/en/information/press/press-2011/1101-7350
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
Nippon Export and Import Insurance, シンガポール向けばら積み船輸出プロジェクト（貿易代金貸付保険の引受), press release of 1 November 2011: http://nexi.go.jp/topics/newsrelease/004101.html
The two buyer's credit agreements between Danish Dampskibsselskabet NORDEN A/S and JBIC each have a value of USD 25 million. The governmental agency Nippon Export and Import Insurance (NEXI) provides a Buyer’s Credit Insurance for the portion cofinanced by Japanese Sumitomo Mitsui Banking Corporation with a total insurance value of approximately USD 25 million.
The loan finances the Danish company's Singaporean subsidiary Norden Shipping (Singapore) Pte. Ltd.'s purchase of two 37,000-DWT bulk carriers built by the Japanese company ONOMICHI DOCKYARD CO., LTD.
In this context, JBIC stated: "Amid this situation, these loans will provide financial support for the export of ships built in a Japanese shipyard, thereby contributing to maintaining and improving the international competitiveness of the Japanese shipbuilding industry."
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 hereto 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.