Mumbai: IndusInd Bank today announced that its GIFT City IBU branch has entered into a USD 100 million long-term loan agreement with the Japan Bank for International Cooperation (JBIC). The funds thus raised, will be used by IndusInd Bank to foster the growth of Japanese construction equipment companies in India through need-based credit facilities to the upstream and downstream companies. Mizuho Bank Ltd. Japan, the Shizuoka Bank Ltd. Singapore and the Joyo Bank Ltd. Japan will also co-finance in this facility.

Under this initiative, IndusInd Bank will provide credit facilities to companies that comprise the supply chain of the Japanese original equipment manufacturers (OEMs) in India. 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.

Commenting on the occasion, Mr. Sumant Kathpalia, Managing Director & CEO, IndusInd Bank, said, “IndusInd Bank’s Commercial Vehicles 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 & downstream supply-chain of the OEMs.”

Commenting on the occasion, Mr. Kazushige Gobe, Director General, JBIC, stated that, “The Government of India announced PM Gati Shakti, the national infrastructure development plan for improving the country’s infrastructure connectivity. In materializing this plan, Japanese construction equipment manufacturers play an important role through the supply of construction equipment. We are convinced that the expanded local presence of Japanese high-quality construction equipment contributes to the accelerated improvement of infrastructure in India.” DeshGujarat