IndusInd Bank’s GIFT City IBU (IFSC Banking Unit) branch has entered into a $100 million long-term loan agreement with the Japan Bank for International Cooperation (JBIC) to foster the growth of Japanese construction equipment companies in India.
The funds raised will be used to provide need-based credit facilities to upstream and downstream companies that comprise the supply chain of Japanese original equipment manufacturers (OEMs) in India, the lender said in a release, adding that this is the first of its kind lending by JBIC through any IFSC Banking unit at GIFT City.
“It will act as a catalyst in securing funding for the component suppliers and dealers of the Japanese construction equipment companies in India, thereby boosting bilateral ties between India and Japan,” said Tapan Ray, MD and Group CEO, GIFT City.
Currently, the program will cover the component suppliers and dealers of the selected Japanese OEMs, as well as the final buyers of the construction machinery manufactured by those companies.
Japan-based Mizuho Bank and Joyo Bank, and Singapore-based Shizuoka Bank will also co-finance this facility.
“IndusInd Bank’s Commercial Vehicle (CV) Finance division is one of the largest financiers of Japanese OEMs in India and the bank plans to build on the synergies by increasing our business share from the component suppliers and dealers who form the upstream and downstream supply-chain of the OEMs,” said IndusInd Bank MD and CEO Sumant Kathpalia.