ANNOUNCEMENT 17 Jul 2014
On 17 July 2014, the Japan Bank for International Cooperation (JBIC) signed a buyer's credit agreement with Vietnam Electricity to promote Japanese exports of steam turbines and related equipment.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 17 July 2014, Buyer's Credit for Vietnam Electricity: http://www.jbic.go.jp/en/information/press/press-2014/0717-25305
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export
The buyer's credit agreement between JBIC and Vietnam Electricity was signed on 17 July 2014 and has a maximum value of USD 202 million. Additionally, the loan is co-financed by a Japanese private financial institution amounting to an approximate value of USD 338 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion.
The loan finances Vietnam Electricity's procurement of a set of steam turbines and related equipment from a consortium of companies including Japanese Mitsubishi Corporation and Doosan Heavy Industries. The subject goods are produced by Japanse Toshiba Corporation.
In this context, JBIC stated: "Supporting the export of a set of steam turbines and related equipment with this loan is expected to contribute to maintaining and strengthening the international competitiveness of Japanese industries..."
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.