Republic of Uzbekistan / Additional Insurance for Navoiyazot Fertilizer Plant Construction Project
- First Insurance Undertaken to Cover Loan for NEXI’s Insurance Premium Payment -
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Kazuhiko Bando) has decided to provide insurance to support a loan extended by Japanese commercial banks regarding the Navoiyazot Fertilizer Plant Construction Project planned by Uzkimyosanoat, a state chemical sector holding company in the Republic of Uzbekistan. The additional loan covers the insurance premium to be paid to NEXI.
The purpose of the project is to build a large-scale fertilizer plant in Navoiy, a city located in the central region of Uzbekistan, to produce ammonia and urea from the country's natural gas. Navoiyazot Joint-Stock Company owned by Uzkimyosanoat has already awarded a plant construction contract to Mitsubishi Corporation and Mitsubishi Heavy Industries, Ltd.
As for the funds to purchase the plant facilities, a loan agreement was signed in 2015 between Joint-Stock Commercial Bank ASAKA of Uzbekistan, Japanese commercial banks and Japan Bank for International Cooperation (JBIC), and NEXI agreed to provide a loan insurance to support the Japanese commercial lenders’ portion (JPY 27.7 billion).
In addition to the loan agreement in 2015, another loan agreement was signed on July 26, 2017, between Joint-Stock Commercial Bank ASAKA and the Japanese commercial banks to cover NEXI insurance premium. The Japanese lenders are the Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and ING Bank NV Tokyo Branch.
To strengthen NEXI’s functions based on the “Follow-up of the Partnership for Quality Infrastructure” announced in November 2015 by Prime Minister Shinzo Abe, NEXI has worked to improve its loan insurance (Buyer’s Credit Insurance) so that it can also be provided for a loan used to pay NEXI insurance premium. This is the first project in which NEXI has underwritten insurance for a loan used to cover NEXI insurance premium.
As Japan’s export credit agency, NEXI will continue to make a positive contribution to Japanese exports.
| Insured | The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and ING Bank NV Tokyo Branch |
| Covered Risks | Political Risks 100%, Commercial Risks 95% (with Sovereign Special Clause) |
Contact
Infrastructure Group
Structured and Trade Finance Insurance Department
Tel: +81-3-3512-7674