IndusInd signs $100 mn loan deal with JBIC

IndusInd Bank and the Japan Bank for International Cooperation (JBIC) have signed a $100 million long-term loan agreement to foster the growth of Japanese construction equipment companies in India, through need-based credit facilities to upstream and downstream companies. The loans will be further co-financed by Mizuho Bank, Japan, the Shizuoka Bank, Singapore, and Joyo Bank, Japan.

Under this initiative, IndusInd Bank will offer credit to companies that make up the supply chain of Japanese original equipment manufacturers (OEMs) in India. The programme will initially cover component suppliers and dealers of select Japanese OEMs, and final buyers of the construction machinery made by those companies.

The agreement was signed by the Gujarat International Finance Tec-City (GIFT City) branch of IndusInd bank, which is an IFSC Banking Unit (IBU). An IFSC caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products, and services across borders.

GIFT City has posed significant growth across a spectrum of financial services, including banking and has emerged as a preferred destination for global and national banking entities to carry out international operations, according to Tapan Ray, MD & Group CEO, GIFT City. “The long-term loan agreement between JBIC and IndusInd Bank’s IBU in GIFT City is a positive move. It will act as a catalyst in securing funding for the component suppliers and dealers of the Japanese construction equipment companies in India, thereby boosting bilateral ties between India and Japan,” he said.