Japan Bank for International Cooperation (JBIC) has signed a loan agreement totalling up to US$300mn with Alumnio Brasileiro (Albras). The loan is cofinanced with Mizuho Corporate Bank, Sumitomo-Mitsui Banking Corporation, Bank of Tokyo-Mitsubishi, and UFJ Bank.

JBIC and the private sector have joined hands in forming this loan: Mizuho Corporate Bank, the agent bank, has played a coordinating role in mobilising private funds, while JBIC provided guarantee for the portion financed by these private banks. JBIC’s guarantee covers credit risks of Albras, including Brazil’s political risk.

Established in 1978, Albrashe executing agency of the aluminium smelting project, a Japan-Brazil national project made possible under the economic and technical cooperation agreement signed by the two countries.

Albras Brazil’s largest aluminium producer produces some 440,000t of aluminium ingot annually. Relying on ALBRAS’s credit, this loan will meet the financial needs of the Japanese aluminium industry to secure imports of aluminium from Albras, thereby enabling it to produce aluminium ingot on a long-term, stable basis for the coming 12 years.

Aluminium is material that has many applications such as in automobiles, aircrafts and other transportation vehicles, beverage cans, building products, and IT products.

In Japan, nearly all demand (99%) for new aluminium ingot is met by imports. With prices of natural resources having jumped in recent years, it has become even more pressing to secure access to aluminium, with an eye on ensuring the future industrial development in Japan.

JBIC has thus decided to support the long-term, stable supply of aluminium ingot through this loan. JBIC intends to actively provide continued financial assistance which aims at securing long-term, stable supply of materials crucial for Japan.