IndusInd Bank on Wednesday said it has entered into a long-term loan agreement of $100 million with Japan Bank for International Cooperation (JBIC) through its Gujarat-based GIFT City branch to fund Japanese construction equipment companies in India.
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Mizuho Bank and Joyo Bank of Japan will co-finance in this loan facility along with Singapore-based Shizuoka Bank, a statement issued by the lender said.
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IndusInd will provide credit to companies which are the part of the supply chain of Japanese original equipment manufacturers (OEMs) in India. Currently, the programme will cover component suppliers and dealers of selected Japanese OEMs, as well as final buyers of construction machinery manufactured by those companies, the release said.
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“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 component suppliers and dealers who form the upstream and downstream supply chain of the OEMs,” said Sumant Kathpalia, managing director and chief executive officer at IndusInd Bank.
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As on December 31, IndusInd Bank’s total loans stood at Rs 2.72 trillion, up 19% year-on-year. Of the total, equipment financing loans accounted for Rs 9,269 crore.
“The tie-up with JBIC marks an important milestone in the bank’s activities in GIFT City and underlines the growing prominence of the GIFT City as an international financial hub of choice,” the MD said.
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In February, State Bank of India had raised $1 billion through its first-ever syndicated ESG loan from foreign banks.
