ANNOUNCEMENT 30 May 2012
On 30 May 2012, the Japan Bank for International Cooperation (JBIC) signed an overseas investment loan agreement with Indian Synthetic Rubber Limited.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 30 March 2012, Loan for Manufacturing and Sales Project of Synthetic Rubber Used for Automobile Tires in India: http://www.jbic.go.jp/en/information/press/press-2012/0530-7413
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
The overseas investment loan agreement between JBIC and Indian Synthetic Rubber Limited has a maximum value of USD 66.6 million. The company is a joint venture between Japanese Marubeni Corporation, Indian Oil Corporation Limited and TSRC Corporation incorporated in Chinese Taipei.
The loan finances a project, in which the joint venture company will produce synthetic rubber and sell it to the Indian market.
In this context, the Bank stated: "JBIC will continue to support Japanese firms' overseas business activity in growing markets like India, by drawing on its various financial facilities and schemes for structuring projects and performing a risk-assuming function."
Overseas investment loans
JBIC provides direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank’s website under overseas investment 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.