Republic of Palau / Loan insurance for undersea cable export

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Atsuo Kuroda) has decided to underwrite insurance for a loan provided by a Japanese commercial bank to the Belau Submarine Cable Corp (BSCC)¹, a telecom company of the Republic of Palau (Palau), intended to finance BSCC’s purchase of undersea communications cables delivered by a Japanese manufacturer NEC Corporation (NEC).

NEC will supply BSCC with undersea fiber optic cables. The cable will eventually be connected to an undersea cable linking South East Asia and the United States (US). This project will contribute to ensuring a better telecommunications environment in Palau.

The loan for BSCC will be co-financed by Sumitomo Mitsui Banking Corporation (SMBC) and Japan Bank for International Cooperation (JBIC). NEXI will underwrite loan insurance for the portion financed by SMBC.

This is a project undertaken in a third country under the partnership between the US, Australia, and Japan. It will be financed by the US Government and the United States Agency for International Development (USAID*1), the Australian Government and the Australian Infrastructure Financing Facility for the Pacific (AIFFP*2), and the Japanese ECA and commercial bank mentioned above.

*1 United States Agency for International Development (USAID) is a US government agency founded in 1961, engaged in providing foreign aid.

*2 The Australian Infrastructure Financing Facility for the Pacific (AIFFP) is a facility established under the Australia’s Department of Foreign Affairs and Trade (DFAT), intended to provide support for infrastructure projects in the Pacific and Timor-Leste region.

Reference:

Insured	Sumitomo Mitsui Banking Corporation
Insured value	USD 4 million
Tenor	Approx. 8 years
Covered risks	Political risk: 100％, Credit risk: 95% (with sovereign special clause)

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

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