ANNOUNCEMENT 19 Mar 2013
On 5 March 2013, the Japan Bank for International Cooperation (JBIC) signed an overseas investment loan agreement with PT. JTEKT Indonesia.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 19 March 2013, Loan for Manufacturing and Sales Project of Automobile and Motorcycle Parts in Indonesia: http://www.jbic.go.jp/en/information/press/press-2012/0319-7386
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
The overseas investment loan agreement between JBIC and PT. JTEKT Indonesia has a maximum value of 230 billion Indonesia Rupiah (USD 23.77 million). The company is an Indonesian subsidiary of the Japanese company JTEKT CORPORATION.
The loan finances the Indonesian subsidiary's expansion of its manufacturing and sales business of certain motorcycle and automobile parts including electric power steering, bearings and starter clutches.
In this context, the Bank stated: "JBIC will continue to support the overseas business deployment of Japanese companies by meeting local currency-based fund needs and drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming functions."
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.