Russian Federation / Export Credit Line for SUEK LTD
- Support for export of mining machinery by Japanese companies -
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Atsuo Kuroda) has approved an export credit line for SUEK LTD, a wholly owned subsidiary of the Russian joint stock company Siberian Coal Energy Company1 (hereinafter referred to as SUEK).
NEXI will provide loan insurance for the portion financed by commercial banks (USD 25 million), which is a part of the co-financing (USD 50 million) offered by commercial banks including Citibank, N.A., Tokyo Branch, serving as the lead bank, and the Japan Bank for International Cooperation (JBIC). This is the first effort made under the memorandum of understanding between NEXI and SUEK, which was signed on June 6 in the presence of Japan’s State Minister of the Ministry of Economy, Trade and Industry Yoshihiko Seki.
SUEK, the largest coal production and export company in the Russian Federation (Russia), has been purchasing mining machinery produced by a Japanese company Komatsu Ltd. and its affiliated companies (Komatsu group). With expectation of the continued purchase from Komatsu group, the credit line aims at providing SUEK with funds needed for this purpose. It will enable NEXI to underwrite insurance even for relatively small amount of transactions in a prompt and flexible manner, which will facilitate smooth transactions. This is the first credit line that NEXI has provided to a Russian private company.
With the aim of contributing to projects for Russia undertaken by Japanese companies, NEXI has been actively working on efforts, such as the conclusion of a reinsurance cooperation agreement with the Russian Agency for Export Credit and Investment Insurance (EXIAR) in 2016 and the provision of the facility based on the 8-point Economic Cooperation Plan to a joint stock company Alpha Bank2, a leading commercial bank in Russia. Through the established credit line, NEXI intends to further strengthen the economic relationship between two countries, as well as to support Japanese companies to gain business opportunities in Russia.
As Japan’s export credit agency, NEXI will actively support international business expansion by Japanese companies.
Contact: Natural Resources Group II, Structured and Trade Finance Insurance Dept.
Tel: +81-(0)3-3512-7744
1 Export credit line is a form of export financing in which a certain amount of credit limit is set up to promote export of Japanese goods and equipment.
2 Regarding the provision of the facility, please refer to the press release in Japanese issued on September 20, 2017.