State Bank of India (SBI) signed a loan agreement amounting to up to $1 billion with the Japan Bank for International Cooperation (JBIC), a company statement said here on Wednesday. The loan is intended to promote the smooth flow of funds for the whole range of business operations of Japanese automobile manufacturers in India.
As part of the agreement $600 million will be financed by JBIC and $400 million, by other participating banks. The facility will be co-financed by SMBC, MUFG Bank, Mizuho Bank, Shizuoka Bank and Bank of Yokahama.
JBIC will provide a guarantee for the portion co-financed by the participating banks.
On the occasion of signing the agreement, C Venkat Nageswar, DMD (IBG), SBI said, "The friendship between India and Japan has a long history, rooted in spiritual affinity and strong cultural and civilizational ties. It is a historic occasion for both SBI and JBIC, as for the first time we are entering into an untied loan. This will assist in achieving our Prime Minister's vision of making India Atmanirbhar."
Further, Masayuki Tanimoto, Managing Executive Officer of JBIC said, "As per one of the surveys, India is the most favoured nation for Japanese Investment and this is one more step towards a strong relationship between Japan and India."