ANNOUNCEMENT 27 Jan 2014

On 25 January 2014, the Japan Bank for International Cooperation (JBIC) signed a buyer's credit loan agreement with Indian NTPC Limited to finance the purchase of gas turbines and control systems from a Japanese manufacturer and exporter. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Japan Bank for International Cooperation, press release of 27 January 2014, Buyer's credit to India's National Thermal Power Company: http://www.jbic.go.jp/en/information/press/press-2013/0127-17519
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export

Inception date: 25 Jan 2014 | Removal date: open ended
Still in force

Trade finance

The buyer’s credit loan agreement between JBIC and NTPC Limited has a total maximum value of JPY 4.8 billion (USD 47 million). Additionally, the loan is co-financed by a private financial institution amounting to JPY 8 billion (USD 78 million). The governmental agency Nippon Export and Investment Insurance will provide a Buyer's Credit Insurance and Overseas Untied Loan Insurance for the co-financed portion.

The loan finances the purchase of gas turbines and control systems produced by Japanese Mitsubishi Heavy Industries Ltd. and export by the Japanese company the Marubeni Corporation.

In this context, JBIC stated: "This loan aims to contribute to maintaining and improving the international competitiveness of Japanese industries through export to India by Japanese companies. It is also expected that various cooperation between NTPC and Japanese companies in the area of power infrastructure will be further deepened by strengthening the relationship between JBIC and NTPC through this loan."

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 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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