JBIC to extend Rs 500-crore loan to ICICI Bank

Japan Bank for International Co-operation (JBIC), a Japanese governmental financial aid institution, will extend credit up to $100 million (about Rs 500 crore) to India’s second largest lender, ICICI Bank. The two financial institutions today signed an agreement in Hong Kong for the credit assistance.

The financing arrangement will be used by ICICI Bank to provide funds to importers in India and its neighbouring countries when they import machinery, equipment and services from Japan.

The agreement was signed by Fumio Hoshi, executive director, JBIC, and Sonjoy Chatterjee, executive director, ICICI Bank, in Hong Kong. JBIC is the international wing of Japan Finance Corporation, a policy-based financing institution fully owned by the Japanese government. “JBIC and ICICI Bank have forged a strategic partnership in recent years to finance Japanese and Indian business interests,” said Chatterjee.

 

“Through this alliance, lines of credit have been arranged for financing capital expenditure of Indian firms which are supporting investment of Japanese firms in India,” he added. Chatterjee also mentioned that ICICI Bank and JBIC have also decided to encourage the implementation of Clean Development Mechanism projects in India.

JBIC said Japanese firms have been increasing exports to India to satisfy the brisk demand for imports, and they foresee this trend continuing. The export credit line is expected to create business opportunities for Japanese firms in India and improve their international competitiveness.