SBI signs $ 1 billion loan agreement with Japan Bank for International Cooperation
The country’s largest lender, the State Bank of India, has raised $ 1 billion from the Japan Bank for International Cooperation (JBIC) to provide loans to the Japanese auto industry’s supply chain in India.
SBI signed a loan agreement with JBIC, bringing the total facility to $ 2 billion. He signed a similar deal for $ 1 billion in October 2020, the SBI said in a statement. The Bank did not disclose the terms of the agreement, including the term and interest charged for the loan facility.
The virtual signing ceremony was attended by Dinesh Khara, Chairman of SBI, as well as senior executives of SBI, Hayashi Nobumitsu, Deputy Governor (JBIC) and Ayukawa Kenichi, CEO and Managing Director of Maruti Suzuki.
The loan takes the form of a refinancing against the financial support given to Japanese car manufacturers, suppliers and dealers in India. These companies are recovering from declining auto sales due to the COVID-19 pandemic. The funding will help the Indian government’s âMake in Indiaâ initiative.
Dinesh Khara, Chairman of the SBI, said: âThe Covid 19 crisis has caused a major shock to global trade, disrupted production chains and depressed global demand. This collaboration (between SBI and JBIC) will help the bank to extend the loan facility to the entire supply chain at a time when people prefer personal mode of transportation.
JBIC is a policy-oriented financial institution, 100% owned by the Japanese government, with the objective of contributing to the harmonious development of Japan, the international economy and society.