JBIC Finance Facilities
March 2016
JAPAN BANK FOR INTERNATIONAL COOPERATION
Representative Office in New Delhi
Agenda
JBIC
Preamble
Export Loan
Facility
Overseas
Investment
Loan Facility
JBIC Green
Facility
1
Equity
Facility
Recent
Activity
Introduction
Japan Bank for International Cooperation (JBIC), made a new start since 1st
April 2012, as independent Japan’s policy-based financing institution.
2
JBIC Mission
I
II
III
Maintaining and improving the
international competitiveness of Japanese
Industries
Promoting overseas development and
acquisition of strategically important
natural resources to Japan
Promoting the overseas business having
the purpose of preserving the global
environment, such as preventing global
warming
Responding to disruptions in financial
order in the international economy
IV
3
JBIC Financing Tools
In order to achieve Four JBIC Mission, JBIC conducts 7 operations. The main operations are
as follows:
Export Loan
• Funding to imports from Japan as per OECD guidelines.
Overseas Investment Loan
• Funding to Japanese subsidiaries & joint ventures in India.
Untied Loans and Guarantees
• Funding to projects improving investment climate for Japanese
companies in India.
Equity Investment
• Capital Contribution to Infrastructure or Eco-Friendly Projects/
funds where Japanese companies participate.
*The operations for Mission III on P3 are only Untied Loan and Equity Investment.
* Export loan is not used for Mission II on P3.
4
JBIC Export Loan Facility
60%
Buyer’s Credit
Insurance
Direct Loan
ECB Loan
(JPY/ USD)
40%
Indian
Importer
Japanese
Exporter
5
Export Capital
Goods
JBIC Export Loan Facility
Line of credit
(JPY / USD)
60%
Two Step Loan
Indian Local
Banks
ECB Loan
(JPY/ USD)
Buyer’s Credit
Insurance
40%
Indian
Importer
Japanese
Exporter
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Export Capital
Goods
Features
Eligible Contract / Borrower
• All Indian Borrowers importing capital goods & services from Japan.
• Indian importer expects JBIC financing at time of finalizing export contract.
Eligible Items
•Machinery (capital goods, spare parts, intermediate goods) manufactured in
and by Japan.
* Goods and services procured from a third country may be eligible to some
extent upon examination and approval by JBIC.
Down payment
: At least 15% of the Foreign portion paid to
exporter.
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Features
Borrowing Amount
• Up-to 85% of the Foreign Portion.
In case of financing to EPC Contracts, Local Portion can also be financed as
part of overall contract, not exceeding 30% of Foreign Portion.
Financial Coverage
If the contract value is 160 (Foreign Portion is 100 and Local Portion
is 60), maximum financial coverage is 115.
Down payment = 15 (100 X 15%)
Foreign 100
Portion
100 X 85% = 85
Local
Portion 60
100 x 30% = 30
Financial Coverage by export loan = 115
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15
30
Features
Repayment Period &
Interest Rate
Capital Goods
Renewable Energy & Water
Projects
Repayment Period
Up-to 10 years
(for power projects up-to 12
years)
Up-to 18 years
(Subject to OECD Guideline)
Interest Rate
CIRR + OECD Minimum
Premium Rate+ Intermediate
Bank (for 2-Step loan) Risk
Margin
CIRR for Renewable & Water projects
notified +OECD Minimum Premium
Rate+Intermediate Bank (For 2-Step
loan) Risk Margin
(rate as on the date of
signing of export contract)
*1: CIRR (Commercial Interest Reference Rate) : Interest rate applied to Officially Supported Export
Credit as per OECD Guidelines, which will change on 15th of each month.
*2: OECD OECD Minimum Premium Rate: To be calculated based on the country risk and buyer risk
categories, risk horizon etc according to OECD Guidelines.
*3: In principle, the facility commands fixed rate of interest for the entire tenure of loan.
*4: Repayment shall begin 6 months from starting point of credit. (Starting point of credit is determined
on the basis of export contract as per OECD guidelines. Typically it is weighted mean date of physical
possession or commissioning)
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Easing of 30% Export Rule
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JBIC Local buyer’s Credit Facility
Sales/Export
Business outside
Japan
Japanese
Affiliate
［Outside Japan］
Buyer
Payment
※Buyer can be located in
the third country.
Funds to be used
indirectly for the business
outside Japan by
Japanese affiliate
Loan
 A Japanese affiliate is a company invested by
Japanese company.
 Interest rate would be based upon ratio of
equity investment of Japanese company in
Japanese Affiliate.
60%
40%
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Overseas Investment Loan Facility
Japanese
Company
Indian Company
Equity
60%
Japan-India Joint
Venture Company
ECB Loan
(JPY/ USD)
12
40%
Features
Eligible Borrower
: Japanese Indian subsidiary or Japanese
Joint Venture company
Borrowing Amount
: Up-to the size of the project. The currency
can be JPY or USD or INR.
Repayment Period
: Disbursement period and repayment period
depends on the cash flows from the project.
Interest Rate
: USD 6 month LIBOR + JBIC Margin
JPY Fixed + JBIC Margin
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JBIC GREEN facility
(Global action for Reconciling Economic growth & Environment preservation)
Objective
To support projects having favorable impact on preservation of the global
environment, such as significantly reducing GHG emissions.
For this instrument, JBIC also established Guidelines for Measurement, Reporting
and Verification of greenhouse gas (GHG) Emission Reductions
in JBIC's GREEN (the "J-MRV Guidelines").
Please refer following link for detailed J-MRV guidelines:
http://www.jbic.go.jp/en/efforts/j-mrv
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Eligible Projects
Approach Sector
Sub Sector
Type of Investment
Energy
Efficiency
Industry
-Iron & Steel,
-Cement
-Chemicals &
Petrochemicals
-Non-ferrous metals
-Pulp & Paper
-Other Industries
-Highly efficient equipment & technology ,
-Waste heat and gas recovery, -Rehabilitation,/Efficiency improvement in existing g plant,
-Energy efficiency through recycle of untapped material,
-New plant incorporating factors above.
Power &
Water
-Power Generation
-Transmission &
Distribution
-Water Treatment
-Highly efficient coal-fired power, Gas fired generation, Cogeneration, Fuel switching, Fuel Cells, waste to energy,
rehabilitation/efficiency improvement in existing plant
-Smart grid, Highly efficient transformer, Grid Management
systems, Highly efficient rechargeable battery
-Water recycle system
Transport
Urban Transport
Urban Mass Transport
Community/ Building utilities and
appliances
Highly efficient community utility, Highly efficient office building
utility (including ESCO), Energy saving appliances
Renewable
Solar energy, Wind energy, Hydro energy, Geothermal energy,
Biomass energy & other renewables
Others
Methane emission reduction, Chlorofluorocarbon emission
reduction, dinitrogen monoxide decomposition, Carbon
Capture and Storage
Note: the list is subject to change due to changes in the development and dissemination of technologies
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JBIC 2-Step Untied GREEN facility
Japanese
company
Eligible Projects
Loan (JPY/ USD)
60%
Indian Local
Banks
Credit Line
40%
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Guidelines
Follow J-MRV
Equity Investment
(1) Japanese Firms make investment in an Indian project
Japanese
company
Equity
Project in
India
Equity
Investment Amount
:Not more than the contribution by the largest
Japanese investor.
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Equity Investment
(2) Japanese Firms acquire equity interest in an Indian firm to
form business alliance
Business Partnership
Japanese
company
Equity
Indian
Company
Equity
Investment Amount
:Not more than the contribution by the largest
Japanese investor.
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Recent Activity in India
UNTIED LOAN
MOU
MOU
EXPORT CREDIT
USD 350 million
USD 70 million
UNTIED LOAN
JPY 20 billion
For loans to supporting
industries of Japanese
companies
For promotion and
facilitation of direct
investment from Japan
to India
Mutual Cooperation for
CDM and Infrastructure
Projects
for Indian companies
importing capital goods
from Japan
For Indian companies
imports from Japanese
companies outside
Japan
April 2006
May 2006
May 2006
September 2006
November 2006
UNTIED LOAN
UNTIED GUARANTEE
MOU
USD 200 million
USD 380 million
For CDM projects
For syndicated loans to
Barh (phase-I) Super
critical Thermal Power
projects
To mobilize private
sector investments in
Japan and India for
climate change
for setting up for
manufacturing facility
of super critical boiler
& turbines
August 2007
December 2007
September 2008
July2009
INVESTMENT LOANS
UNTIED LOAN
EQUITY
INVESTMENT LOANS
USD 154 million
EXPORT CREDIT
UNTIED GUARANTEE
TATA CAPITAL
GROWTH FUND
USD 90 million
USD 100 million
USD 25 million
JPY 15.3 billion
Jai Prakash Power
Ventures Limited
for setting up for
manufacturing facility
of super critical boiler
& turbines
Trade Finance facility
to promote trade
between Indian and
Asian countries
Investing in Indian
growth companies
October 2009
March 2010
February 2011
for imports from
L&T-MHI JV
March 2011
JPY 20 billion
For Samurai Bond
Issuance
March 2011
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Cont…
UNTIED LOAN
MOU
EXPORT CREDIT
JPY 570 million
To support participation
of Japanese companies
in Tata Steel projects
Investing in Clean
energy and environment
sectors in South Asia
October 2011
December 2011
December 2011
MOU
EXPORT CREDIT
UNTIED LOAN
EXPORT CREDIT
EXPORT CREDIT
JPY 10.3 billion
USD 50.0 million
GREEN facility to
support renewable
energy and energy
efficiency projects
for import from JFE
Shoji Trade Corporation
/ JP Steel Plantech Co
February 2012
March 2012
INVESTMENT LOANS
USD 20 million
Nabha Power
Limited
for imports from
L&T-MHI JV
April 2011
EXPORT CREDIT
SOUTH ASIA CLEAN
ENERGY FUND
for import of tugboats
from Kanagawa
Dockyard Co. Ltd
March 2011
USD 300 million
EQUITY
JPY 10.46 billion
USD 200 million
GREEN facility to
support renewable
energy and energy
efficiency projects
EXPORT CREDIT
JPY 5.4 billion
for import of renewable
energy equipments from
Japan
For development
framework to support
Japanese SMEs through
Japanese regional FIs.
for import of plant
related equipments
from Japan companies
July 2012
August 2012
September 2012
INVESTMENT LOANS
INVESTMENT LOANS
EXPORT CREDIT
USD 100.0 million
Jamshedpur Continuous
Annealing & Processing
Jamshedpur Continuous
Annealing & Processing
for import of plant
related equipments
from Japan companies
USD 81 million
for set up of cold-rolled
steel plant
for import of
equipments from Japan
September 2012
November 2012
December 2012
JPY 4.95 billion
To part finance
acquisition of 100%
stake in Orix Auto
Infrastructure Services
Limited (OAIS)
for import from JFE
Shoji Trade Corporation
/ JP Steel Plantech Co
December 2012
February 2013
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Cont…
UNTIED LOAN
USD 90 million
EQUITY
CORE
INFRASTRUCTURE
INDIA FUND
USD 22 million
EQUITY
DELHI MUMBAI
INDUSTRIAL CORRIDOR
DEVELOPMENT
CORPORATION
(DMICDC)
UNTIED LOAN
USD 90 million
GREEN facility to
support renewable
energy and energy
efficiency projects
Investing in
Infrastructure sector
Development of DMIC
region
GREEN facility to
support renewable
energy and energy
efficiency projects
March 2013
March 2013
March 2013
May 2013
INR 260 million
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Cont…
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Contact Us
All Borrowers of JBIC are required to adhere to
JBIC Environment and Social Guidelines
(please refer to following link for detail d guidelines and references for checklists, screening forms etc:
http://www.jbic.go.jp/en/efforts/environment/confirm
Mr. Ichiro Hayashidani, Chief Representative
[email protected]
Mr. Yasukazu Oono, Representative
[email protected]
Ms. Deepa Salvan,
International Finance Specialist & Researcher
[email protected]
Tel : +91-11-4352 2900, Fax: +91-11-4352 2950
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