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India / Steel-Manufacturing Facilities Introduction Project
(NEXI Underwrites Loan Insurance through Export Credit Line for JSW Steel Limited)


January 10, 2020

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI: Chairman and CEO: Atsuo Kuroda) has decided to provide insurance for loans to finance Steel-Manufacturing Facilities Introduction Project, undertaken by JSW Steel Limited (JSW Steel), a major steel manufacturing company in India.

Under the export credit line1 set up on March 26, 2018 between the Japan Bank for International Cooperation (JBIC) and JSW Steel, the loan is co-financed by Mizuho Bank, Ltd. (Mizuho Bank) and JBIC. NEXI will underwrite loan insurances for the portions financed by Mizuho Bank.

JSW Steel is a company in which JFE Steel Corporation holds a 15% stake and plans to expand the Vijayanagar Works in Karnataka State in southwestern India. This loan is intended to provide the necessary funds for JSW Steel to purchase a complete set of facilities for a wire rod mill, used in processing of steel, from Primetals Technologies USA LLC and Primetals Technologies India Private Limited, both subsidiaries of Primetals Technologies Ltd., a joint venture of Siemens AG, Mitsubishi Heavy Industries and Partners.

In India, Japanese high-quality steel manufacturing plants receives considerable interest to meet the growing demand for steel products driven by continued economic growth. This loan supports Japanese companies to further expand export of machinery and equipment by meeting the investment needs of JSW Steel.

As Japan’s export credit agency, NEXI will continue to actively support Japanese companies’ international business.


【Reference】
Project Name Steel-Manufacturing Facilities Introduction Project
Insured Mizuho Bank, Ltd.
Insured values Approx. USD 20 million
Tenors Approx. 4 years
Covered risks Political Risk 100% and Commercial Risk 100%

Contract:
Infrastructure Group, Structured and Trade Finance Insurance Dept.
Tel: #81-(0)3-3512-7674


1 Export credit line is a form of export financing in which a certain amount of credit limit is set up to promote the export of Japanese goods and equipment.

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