On March 31, 2021, the State Bank of India (SBI) has signed a loan agreement of $1 billion with the Japan Bank for International Cooperation (JBIC) to provide loans for the whole range of business operations of the Japanese automobile manufacturers in India.
- In October 2020, SBI similar $1 billion loan agreement with JBIC. After the current loan agreement, the total loan facility is now about $2 billion.
- The financing will assist the Government’s ‘Make in India’ initiative.
- SBI will provide the loan with refinancing for the funding support to the manufacturers, suppliers and dealers of Japanese automobiles in India.
- The agreement stated that from the total amount of $1 billion, $600 million will be financed by JBIC and $400 million by other participating banks (Sumitomo Mitsui Banking Corporation(SMBC), MUFG Bank, Mizuho Bank, Shizuoka Bank and Bank of Yokahama).
- The terms of the agreement such as tenure and interest charges are not disclosed by the bank.
Note – Refinancing is the process of taking out a new loan to pay off one or more outstanding loans.
Recent Related News:
On October 28, 2020, NTPC (formerly known as National Thermal Power Corporation Limited) Limited signed a foreign currency loan agreement with the Japanese Government’s financial institution, Japan Bank for International Co-operation (JBIC) for JPY (Japanese Yen) 50 billion (approx. USD 482 million or Rs. 3,582 crores) under its Global Action for Reconciling Economic growth and Environment preservation (GREEN) initiative.
Apart from NTPC, SBI also signed a loan agreement of $1 billion with JBIC
About Japan Bank for International Co-operation (JBIC):
Establishment – 1999
Governor – MAEDA Tadashi
Headquarters – Tokyo, Japan
About State Bank of India(SBI):
Establishment – 1st July 1955
Chairman – Dinesh Kumar Khara
Headquarters – Mumbai, Maharashtra
Tagline – The Banker to Every Indian