The Japan Bank for International Cooperation (JBIC), a Japanese government owned policy-based financial institution, is putting together a healthcare/medical financing facility for potential Japanese companies looking to enter or expand in this space in the Indian market, Toshihiko Kurihara, chief representative at its Representative Office, said.
This financing facility is likely to be firmed up in April or May and reflects JBIC’s resolve to expand its scope of operations in India, he told BusinessLine.
Kurihara said Japanese Prime Minister Fumio Kishida’s recent announcement, during his short India visit, of an investment commitment of ₹3.2-lakh crore (5 trillion yen) over the next five years would definitely incentivise and motivate large number of Japanese companies to look outward and invest in India.
“We would like to support as much Japanese investments into India as possible,” he said.
JV financing
Since the onset of the pandemic, JBIC has extended financing support of nearly $8 billion, including $5 billion towards M&A financing for Nippon Steel’s buy (along with Arcelor Mittal) of Essar Steel and $2 billion two-step loan to SBI for financing supply chain of Maruti Suzuki and also auto loan financing. As regards the financing support through SBI, Kurihara said $1.5 billion has been already disbursed and the JBIC is open to do the remaining $500 million also.
Kurihara said the JBIC in India does both JV and PSU financing. “In India, the more promising activity for us is in JV financing. JBIC has to finance for the project where Japanese involvement is there, and we are trying to find as much Japan-related projects in India. In 2022-23, we have a good pipeline.,” Kurihara said.
“We are trying to take more Indian sovereign risks. This is our strength. Japanese mega banks rely on JBIC to share their risks,” he said, adding He that the bank’s governor, Maeda Tadashi, will visit India next month.