Mumbai: 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.
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.
According to Sumant Kathpalia, Managing Director & CEO, IndusInd Bank, “IndusInd Bank’s Commercial Vehicles Finance Division is one of the largest financiers of Japanese OEMs in India and the Bank plans to build on the synergies by increasing our business share from the component suppliers and dealers who form the upstream & downstream supply-chain of the OEMs.”
According to Kazushige Gobe, Director General, JBIC, Japanese construction equipment companies play a key role in materialising the PM Gati Shakti plan through the supply of construction equipment. “We’re convinced that the expanded local presence of Japanese high-quality construction equipment contributes to the accelerated improvement of infrastructure in India,” he said.
