April 24, 2023
IndusInd Bank’s International Banking Unit (IBU) branch in GIFT City, Gujarat has recently entered into a long-term loan agreement worth USD 100 million with the Japan Bank for International Cooperation (JBIC). The loan amount will be used to support the growth of Japanese construction equipment companies in India through need-based credit facilities to the upstream and downstream companies. Co-financing will be provided by Mizuho Bank Ltd., Japan, the Shizuoka Bank Ltd., Singapore, and Joyo Bank Ltd., Japan.
As part of the initiative, IndusInd Bank will provide credit facilities to companies that form the supply chain of Japanese original equipment manufacturers (OEMs) in India. Currently, the program will cover component suppliers and dealers of selected Japanese OEMs, as well as the final buyers of the construction machinery manufactured by those companies.
IndusInd Bank’s Commercial Vehicles Finance Division is already one of the largest financiers of Japanese OEMs in India, and the bank plans to increase its business share by financing component suppliers and dealers who form the upstream and downstream supply chain of the OEMs.
The Director General of JBIC, Mr. Kazushige Gobe, expressed his confidence in the plan, stating that Japanese construction equipment manufacturers play an important role in the supply of construction equipment for India’s national infrastructure development plan, PM Gati Shakti. He also added that the expanded local presence of Japanese high-quality construction equipment will contribute to the accelerated improvement of infrastructure in India.
This agreement marks a significant milestone in the relationship between IndusInd Bank and JBIC, and highlights their shared commitment to fostering economic growth in India. The funds raised from this agreement will go a long way in supporting the development of the construction equipment industry in India.
