JBIC Finance Facilities

March 2016

JAPAN BANK FOR INTERNATIONAL COOPERATION

Representative Office in New Delhi

Agenda

JBIC Preamble

Export Loan Facility

Overseas Investment Loan Facility

JBIC Green Facility

Equity Facility

Recent Activity

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Introduction

Japan Bank for International Cooperation (JBIC), made a new start since 1st

April 2012, as independent Japan’s policy-based financing institution.

2

JBIC Mission

Maintaining and improving the international competitiveness of Japanese Industries

Promoting overseas development and acquisition of strategically important natural resources to Japan

Promoting the overseas business having the purpose of preserving the global environment, such as preventing global warming

Responding to disruptions in financial order in the international economy

I

II

III

IV

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JBIC Financing Tools

• Funding to imports from Japan as per OECD guidelines.

Export Loan

• Funding to Japanese subsidiaries & joint ventures in India.

Overseas Investment Loan

• Funding to projects improving investment climate for Japanese companies in India.

Untied Loans and Guarantees

• Capital Contribution to Infrastructure or Eco-Friendly Projects/ funds where Japanese companies participate.

Equity Investment

In order to achieve Four JBIC Mission, JBIC conducts 7 operations. The main operations are

as follows:

*The operations for Mission III on P3 are only Untied Loan and Equity Investment.

* Export loan is not used for Mission II on P3. 4

JBIC Export Loan Facility

60%

40%

Buyer’s Credit

Insurance

Export Capital

Goods

ECB Loan

(JPY/ USD)

Japanese

Exporter

Indian

Importer

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Direct Loan

JBIC Export Loan Facility

60%

40%

Buyer’s Credit

Insurance

Two Step Loan

Line of credit

(JPY / USD)

Export Capital

Goods

ECB Loan

(JPY/ USD)

Japanese

Exporter

Indian

Importer

6

Indian Local

Banks

Features

Eligible Contract / Borrower

• All Indian Borrowers importing capital goods & services from Japan.

• Indian importer expects JBIC financing at time of finalizing export contract.

Eligible Items

•Machinery (capital goods, spare parts, intermediate goods) manufactured in

and by Japan.

* Goods and services procured from a third country may be eligible to some

extent upon examination and approval by JBIC.

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Down payment : At least 15% of the Foreign portion paid to

exporter.

Features

Financial Coverage

Foreign

Portion

Local

Portion

If the contract value is 160 (Foreign Portion is 100 and Local Portion

is 60), maximum financial coverage is 115.

100

60

15

30

Financial Coverage by export loan = 115

100 X 85% = 85

100 x 30% = 30

Down payment = 15 (100 X 15%)

Borrowing Amount

• Up-to 85% of the Foreign Portion.

In case of financing to EPC Contracts, Local Portion can also be financed as

part of overall contract, not exceeding 30% of Foreign Portion.

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Features

Repayment Period &

Interest Rate

Capital Goods Renewable Energy & Water

Projects

Repayment Period Up-to 10 years

(for power projects up-to 12

years)

Up-to 18 years

(Subject to OECD Guideline)

Interest Rate (rate as on the date of

signing of export contract)

CIRR + OECD Minimum

Premium Rate+ Intermediate

Bank (for 2-Step loan) Risk

Margin

CIRR for Renewable & Water projects

notified +OECD Minimum Premium

Rate+Intermediate Bank (For 2-Step

loan) Risk Margin

*1: CIRR (Commercial Interest Reference Rate) : Interest rate applied to Officially Supported Export Credit as per OECD Guidelines, which will change on 15th of each month.

*2: OECD OECD Minimum Premium Rate: To be calculated based on the country risk and buyer risk

categories, risk horizon etc according to OECD Guidelines. *3: In principle, the facility commands fixed rate of interest for the entire tenure of loan. *4: Repayment shall begin 6 months from starting point of credit. (Starting point of credit is determined

on the basis of export contract as per OECD guidelines. Typically it is weighted mean date of physical possession or commissioning)

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10

Easing of 30% Export Rule

JBIC Local buyer’s Credit Facility

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Japanese

Affiliate

Buyer

Loan

Payment

Sales/Export

※Buyer can be located in

the third country. ［Outside Japan］

Funds to be used

indirectly for the business

outside Japan by

Japanese affiliate

Business outside

Japan

60%

40%

A Japanese affiliate is a company invested by

Japanese company.

Interest rate would be based upon ratio of

equity investment of Japanese company in

Japanese Affiliate.

Overseas Investment Loan Facility

60%

40%

Indian Company Japanese

Company

Equity

Japan-India Joint

Venture Company ECB Loan

(JPY/ USD)

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Features

Eligible Borrower : Japanese Indian subsidiary or Japanese

Joint Venture company

Borrowing Amount : Up-to the size of the project. The currency

can be JPY or USD or INR.

Repayment Period : Disbursement period and repayment period

depends on the cash flows from the project.

Interest Rate : USD 6 month LIBOR + JBIC Margin

JPY Fixed + JBIC Margin

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JBIC GREEN facility

Objective

To support projects having favorable impact on preservation of the global

environment, such as significantly reducing GHG emissions.

For this instrument, JBIC also established Guidelines for Measurement, Reporting

and Verification of greenhouse gas (GHG) Emission Reductions

in JBIC's GREEN (the "J-MRV Guidelines").

Please refer following link for detailed J-MRV guidelines:

http://www.jbic.go.jp/en/efforts/j-mrv

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(Global action for Reconciling Economic growth & Environment preservation)

Eligible Projects

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Approach Sector Sub Sector Type of Investment

Energy

Efficiency

Industry -Iron & Steel,

-Cement

-Chemicals &

Petrochemicals

-Non-ferrous metals

-Pulp & Paper

-Other Industries

-Highly efficient equipment & technology ,

-Waste heat and gas recovery, -

-Rehabilitation,/Efficiency improvement in existing g plant,

-Energy efficiency through recycle of untapped material,

-New plant incorporating factors above.

Power &

Water

-Power Generation

-Transmission &

Distribution

-Water Treatment

-Highly efficient coal-fired power, Gas fired generation, Co-

generation, Fuel switching, Fuel Cells, waste to energy,

rehabilitation/efficiency improvement in existing plant

-Smart grid, Highly efficient transformer, Grid Management

systems, Highly efficient rechargeable battery

-Water recycle system

Transport Urban Transport Urban Mass Transport

Community/ Building utilities and

appliances

Highly efficient community utility, Highly efficient office building

utility (including ESCO), Energy saving appliances

Renewable Solar energy, Wind energy, Hydro energy, Geothermal energy,

Biomass energy & other renewables

Others Methane emission reduction, Chlorofluorocarbon emission

reduction, dinitrogen monoxide decomposition, Carbon

Capture and Storage

Note: the list is subject to change due to changes in the development and dissemination of technologies

JBIC 2-Step Untied GREEN facility

Credit Line

Loan (JPY/ USD) 60%

40%

Japanese

company

Eligible Projects Follow J-MRV

Gu

idelin

es

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Indian Local

Banks

Equity Investment

(1) Japanese Firms make investment in an Indian project

Japanese

company Project in

India

Equity

Equity

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Investment Amount :Not more than the contribution by the largest

Japanese investor.

Equity Investment

(2) Japanese Firms acquire equity interest in an Indian firm to

form business alliance

Japanese

company

Indian

Company

Business Partnership

Equity

Equity

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Investment Amount :Not more than the contribution by the largest

Japanese investor.

Recent Activity in India

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April 2006

USD 350 million

UNTIED LOAN

For loans to supporting industries of Japanese

companies

May 2006

For promotion and facilitation of direct

investment from Japan

to India

MOU

May 2006

Mutual Cooperation for CDM and Infrastructure

Projects

MOU

September 2006

for Indian companies importing capital goods

from Japan

EXPORT CREDIT

USD 70 million

November 2006

JPY 20 billion

UNTIED LOAN

For Indian companies imports from Japanese

companies outside Japan

August 2007

USD 200 million

UNTIED LOAN

For CDM projects

December 2007

USD 380 million

UNTIED GUARANTEE

For syndicated loans to Barh (phase-I) Super

critical Thermal Power projects

September 2008

To mobilize private sector investments in

Japan and India for climate change

MOU

July2009

USD 154 million

for setting up for manufacturing facility of super critical boiler

& turbines

INVESTMENT LOANS

October 2009

USD 90 million

for setting up for manufacturing facility of super critical boiler

& turbines

INVESTMENT LOANS

March 2010

USD 100 million

Trade Finance facility to promote trade

between Indian and Asian countries

UNTIED LOAN

February 2011

USD 25 million

Investing in Indian growth companies

TATA CAPITAL GROWTH FUND

EQUITY

March 2011

JPY 15.3 billion

Jai Prakash Power Ventures Limited

for imports from L&T-MHI JV

EXPORT CREDIT

March 2011

JPY 20 billion

UNTIED GUARANTEE

For Samurai Bond Issuance

Cont…

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March 2011

USD 200 million

GREEN facility to support renewable energy and energy efficiency projects

UNTIED LOAN

February 2012

USD 300 million

GREEN facility to support renewable energy and energy efficiency projects

UNTIED LOAN

April 2011

To support participation of Japanese companies in Tata Steel projects

MOU

August 2012

For development framework to support

Japanese SMEs through Japanese regional FIs.

MOU

December 2011

USD 20 million

Investing in Clean energy and environment

sectors in South Asia

SOUTH ASIA CLEAN ENERGY FUND

EQUITY

November 2012

USD 81 million

for set up of cold-rolled steel plant

INVESTMENT LOANS

Jamshedpur Continuous Annealing & Processing

October 2011

JPY 570 million

for import of tugboats from Kanagawa

Dockyard Co. Ltd

EXPORT CREDIT

December 2011

JPY 10.46 billion

Nabha Power Limited

for imports from L&T-MHI JV

EXPORT CREDIT

July 2012

USD 50.0 million

for import of renewable energy equipments from

Japan

EXPORT CREDIT

September 2012

JPY 5.4 billion

for import of plant related equipments

from Japan companies

EXPORT CREDIT

September 2012

for import of plant related equipments

from Japan companies

EXPORT CREDIT

December 2012

USD 100.0 million

for import of equipments from Japan

Jamshedpur Continuous Annealing & Processing

INVESTMENT LOANS

March 2012

JPY 10.3 billion

for import from JFE Shoji Trade Corporation

/ JP Steel Plantech Co

EXPORT CREDIT

December 2012

To part finance acquisition of 100% stake in Orix Auto

Infrastructure Services Limited (OAIS)

INVESTMENT LOANS

February 2013

JPY 4.95 billion

for import from JFE Shoji Trade Corporation

/ JP Steel Plantech Co

EXPORT CREDIT

Cont…

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March 2013

USD 90 million

GREEN facility to support renewable energy and energy efficiency projects

UNTIED LOAN

March 2013

USD 22 million

Investing in Infrastructure sector

CORE INFRASTRUCTURE

INDIA FUND

EQUITY

March 2013

INR 260 million

Development of DMIC region

DELHI MUMBAI INDUSTRIAL CORRIDOR

DEVELOPMENT

CORPORATION (DMICDC)

EQUITY

May 2013

USD 90 million

GREEN facility to support renewable energy and energy efficiency projects

UNTIED LOAN

Cont…

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Contact Us

All Borrowers of JBIC are required to adhere to

JBIC Environment and Social Guidelines

(please refer to following link for detail d guidelines and references for checklists, screening forms etc:

http://www.jbic.go.jp/en/efforts/environment/confirm

Mr. Ichiro Hayashidani, Chief Representative i-hayashidani@jbic.go.jp

Mr. Yasukazu Oono, Representative ya-ono@jbic.go.jp

Ms. Deepa Salvan, d-salvan@jbic.go.jp

International Finance Specialist & Researcher

Tel : +91-11-4352 2900, Fax: +91-11-4352 2950

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