IndusInd Bank signs $100 million loan agreement with JBIC

19 Apr 2023 , 01:03 AM

In an exchange filing, IndusInd bank announced that its GIFT City IBU branch has entered into a $100 million long-term loan agreement with the Japan Bank for International Cooperation (JBIC). The bank will use the funds towards fostering the growth of Japanese construction equipment companies in India through need-based credit facilities to the upstream and downstream companies.

As per the reports, Mizuho Bank Ltd. Japan, the Shizuoka Bank Ltd. Singapore and the Joyo Bank Ltd. Japan will also co-finance in this facility.

Shri Injeti Srinivas, Chairperson, IFSCA, said, “We are pleased to note that IndusInd Bank GIFT City IBU has partnered with Japan Bank for International Cooperation (JBIC). The monies raised will be used for financing companies who are engaged in strengthening India’s Infrastructure. This is also in line with the IFSCA’s objective to make GIFT City as hub for raising long term finance.”

Mr. Sumant Kathpalia, Managing Director & CEO, IndusInd Bank, said, “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. The tie-up with JBIC marks an important milestone in the Bank’s activities in GIFT City and underlines the growing prominence of the Center GIFT City as an International Financial Hub of choice.”

Tapan Ray, MD & Group CEO, GIFT City, said, “The long-term loan agreement between JBIC and IndusInd Bank’s IBU in GIFT City is indeed 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. GIFT City has witnessed a 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 their international operations.”