IndusInd Bank on Wednesday announced that it has signed a long-term loan agreement with the Japan Bank for International Cooperation (JBIC) to provide credit facilities to companies that comprise the supply chain of the Japanese original equipment manufacturers (OEMs) in India.

Share Market Live

NSE

This is the first of its kind lending by JBIC through any IFSC Banking unit at GIFT City. Mizuho Bank Ltd. Japan, the Shizuoka Bank Ltd. Singapore and the Joyo Bank Ltd. Japan will also co-finance in this facility.

The private sector lender in a regulatory filing at brokerages said, “Its GIFT City IBU branch has entered into a USD 100 million long-term loan agreement with the Japan Bank for International Cooperation (JBIC).”

The lender has said that the raised funds will be used by the bank to foster the growth of Japanese construction equipment companies in India by providing need-based credit facilities to the upstream and downstream companies. Currently, the program will cover the component suppliers and dealers of the selected Japanese Original Equipment Manufacturers (OEMs), as well as the final buyers of the construction machinery manufactured by those companies.

Earlier on April 11, 2023, the private sector lender IndusInd Bank signed a co-financing loan agreement with Citi & JICA for $125 million funding. The funding programme includes a $30 million loan from Citi and 13 billion Yen (approx. $97.45 million) loan from JICA.

Shares of IndusInd Bank closed the day 2.3 percent lower at Rs 1,119 per share on April 19, 2023.

(Edited by : Vahishta Unwalla)