SBI Raises $ 1 Billion Loan From JBIC To Help Japanese Auto Makers Affected By Covid In India, Auto News, ET Auto
MUMBAI: The country’s largest lender, SBI, said on Wednesday it had raised an additional $ 1 billion (about Rs.7,350 crore) loan from the Japan Bank for International Cooperation (JBIC) to help Japanese automakers affected by Covid in India.
In October 2020, SBI had signed an agreement to raise a $ 1 billion loan and the latest borrowing brings the total amount of loans raised from JBIC to $ 2 billion, SBI said in a statement.
The loan takes the form of a refinancing against financial support given to Japanese car manufacturers, suppliers and dealers in India, whose business operations are recovering from declining sales due to Covid-19, he said. .
It is intended to promote the smooth flow of funds for the overall business operations of Japanese automakers in India, the statement said.
JBIC is a policy-oriented financial institution, 100% owned by the Japanese government, with the aim of contributing to the healthy development of Japan, the international economy and society, he said.
“In an era when people prefer personal mode of transportation, this collaboration between SBI and JBIC will help the bank extend the loan facility to the entire Japanese automotive industry supply chain, including suppliers. , dealers and ultimately end users, ”SBI Chairman Dinesh Khara said.
A large number of Japanese companies dominate the Indian automotive sector, including Maruti Suzuki, Toyota Kirloskar and Honda.
A virtual signing ceremony for the agreement was held in the presence of Khara, senior SBI leaders, JBIC Deputy Governor Hayashi Nobumitsu, and Maruti Suzuki Managing Director and Managing Director Ayukawa Kenichi, a he indicated.
The funding will also contribute to the “Make in India” initiative, the statement said.