ANNOUNCEMENT 13 Dec 2013
On 12 December 2013, the Japan Bank for International Cooperation (JBIC) signed two buyer's credit agreement with Singaporean MOL Cape (Singapore) Pte. Ltd to finance the purchase of two large Japanese-built ore carriers.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 13 December 2013, Buyer's Credit for Export of Ships to MOL Cape in Singapore: http://www.jbic.go.jp/en/information/press/press-2013/1213-16866
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
The buyer's credit agreements between JBIC and Singaporean MOL Cape (Singapore) Pte. Ltd has an approximate total value of USD 60.7 million. Additionally, the loan is cofinanced by a number of private financial institution amounting to an approximate value of USD 121.5 million. The governmental agency Nippon Export and Investment Insurance will provide a Buyer's Credit Insurance for the cofinanced portion.
The Singaporean company is a subsidiary of Japanese Mitsui O.S.K. group. The loan finances the purchase of two large ore carriers built by Japanese Namura Shipbuilding Co., Ltd in Japan.
In this context, the Bank stated: "These loans will support the export of ships built in a Japanese shipyard which perform a significant role in the regional economy and associated industries, including their mid-tier enterprises and small and medium-sized enterprises (SMEs). Thus, these loans will contribute 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.