Japan: JBIC to offer syndicated loans to boost ship exports

The Japan Bank for International Cooperation plans to provide a total of $28.3 million in syndicated loans with French bank BNP Paribas to help a major Danish shipping operator’s unit buy cargo vessels to be built by leading Japanese shipbuilder Imabari Shipbuilding Co., Jiji Press learned.

The government-affiliated JBIC aims to revive the domestic regional economies relying on the shipbuilding industry by giving financial support for vessel exports at a time when the industry faces a global slump due to oversupply, informed sources said.

Under the export deal brokered by Japanese trading house Mitsui & Co., the Singaporean subsidiary of Ultrabulk Shipping A/S will purchase two 38,000-ton bulk ships from Imabari Shipbuilding, based in the city of Imabari, Ehime Prefecture, the sources said.

Nippon Export and Investment Insurance will provide insurance for the loans to be extended by BNP Paribas, the sources also said.

Affected adversely by the problem of overcapacity at the Chinese and South Korean industries, Japanese shipbuilders concluded in fiscal 2016 export contracts for only 95 vessels, about one-fourth of the year-before level, according to the Japan Exporters’ Association.

Against this background, commercial financial institutions are growing cautious about extending ship-related loans.

A JBIC official said that the government-affiliated lender hopes to help Japanese builders win more orders by offering loans to complement private financing.Speech
Source: Jiji Press