ANNOUNCEMENT 30 May 2014
On 29 May 2014, the Japan Bank for International Cooperation (JBIC) signed two buyer's credit agreements with Singaporean Best Ocean Navigation Pte. Ltd. and Nice Ocean Navigation Pte. Ltd to finance the purchase of bulk carriers from Japanese exporter and manufacturer.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 30 May 2014, Buyer's Credit for Ship Export to TCC Group, Ship Owner in Hong Kong: http://www.jbic.go.jp/en/information/press/press-2014/0530-21911
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
The buyer's credit agreements between JBIC and the Singaporean companies Best Ocean Navigation Pte. Ltd and Nice Ocean Navigation Pte. Ltd has a total maximum value of USD 12 million and USD 11.8 million respectively. Additionally, the loan is co-financed by a number of private financial institutions amounting to an approximate value of USD 24.0 million and USD 23.7 million respectively. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion. The two Singaporean companies are subsidiaries of the Hong Kong-based company Tai Chong Cheang Steamship Group.
The agreements finance the purchase of two bulk carriers from Japanese Sumitomo Corporation and built by Japanese Imabari Shipbuilding Co., Ltd in Japan.
In this context, JBIC stated: "These loans are intended to support the export of ships built by Japanese shipbuilders ... Thus, these loans will contribute to maintaining and strengthening 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.