ANNOUNCEMENT 14 Aug 2013

On 13 August 2013, the Japan Bank for International Cooperation (JBIC) signed a buyer's credit loan agreement with Berge Blanc Company S.A. in Panama to finance the purchase of a Japanese-built unimax ore carrier.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Japan Bank for International Cooperation, press release of 14 August 2013, Buyer's Credit for Export of Ship to Singapore's Leading Shipping Operator Berge Bulk Group: http://www.jbic.go.jp/en/information/press/press-2013/0814-7551
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export

Inception date: 13 Aug 2013 | Removal date: open ended

Trade finance

The buyer’s credit loan agreement between JBIC and Berge Blanc Company S.A. has an approximate value of USD 24.7 million. Additionally, the loan is cofinanced by a number of private financial institutions amounting to an approximate value of USD 49.4 million. The governmental agency Nippon Export and Investment Insurance will provide a Buyer's Credit Insurance for the cofinanced portion.

The Panamanian company is a subsidiary of the Singaporean company Berge Bulk Limited. The buyer's credit finances the purchase of a 297,000 DWT unimax ore carrier built by Japan Marine United Corporation in Japan.

In this context, the Bank stated: "Amid continued constraints to structure ship financing across the world, this loan will provide financial support for the export of a ship 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.

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