The Japan Bank for International Cooperation (JBIC) has signed an untied loan agreement for up to the yen equivalent of US$100mn with India Exim Bank. The loan is co-financed with Bank of Tokyo-Mitsubishi UFJ (agent bank), Sumitomo Mitsui Banking Corporation, Mizuho Corporate Bank, and Sumitomo Trust and Banking, for which JBIC is providing guarantees.


The aim of this agreement is to provide financing via India Exim to affiliates and subsidiaries of Japanese companies operating in India, Japanese joint ventures in India and Indian companies with business relations with Japanese firms (including their overseas affiliates). The loan will provide the financial backing for their exports, imports and overseas investment projects in third-party countries.


India is regarded as a promising investment country for medium-term business development by Japanese companies; more then 350 Japanese firms have already set up operations there.


The Indian government has also been promoting economic partnerships (such as free trade agreements – FTAs) with Thailand, Singapore, and other Asian countries. Under such circumstances, this loan expected to benefit Japanese companies operating across Asia. It will develop international business networks in Asia and expand the business opportunities for Japanese companies operating there.


This is JBIC’s first loan to India Exim Bank, following then Prime Minister Koizumi’s signing of the Eight-fold Initiative for Strengthening Japan-India Global Partnership with Prime Minister Manmohan Singh of India in April 2005.