Financing Opportunity for
Japan-India Collaboration Projects
Japan Bank for International Cooperation (JBIC)
New Delhi Office
April 16, 2010
Introduction
 Japan Bank for International Cooperation (JBIC) is a
Japanese Government Financial Institution.
 JBIC conducts its operations with a mission to
contribute to the sound development of the Japanese
and international economy.
 JBIC, has made a new start since October 1, 2008, as
the international wing of Japan Finance Corporation
(JFC), Japan’s policy-based financing institution.
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Overview of Organizational Restructuring
October 1999
Export-Import Bank of
Japan (JEXIM)
JBIC
Japan Finance Corporation (JFC)*
October 2008
（Notes 1, 2）
（International Finance）
International
Finance
Operation
National Life Finance
Corporation
（Domestic Finance）
(“IFO”)
Agriculture, Forestry and
Fisheries Finance Corporation
Overseas Economic Cooperation
Fund (OECF)
Japan Finance Corporation for
Small and Medium Enterprise
ODA
Operation
（Crisis Response）
(Note 1) Established based on the “Japan Finance Corporation* Law”
(Note 2) Okinawa Development Finance Corporation will be merged into JFC* in FY2012 or later.
Japan International Cooperation Agency (New JICA)
ODA: Official Development Assistance
Technical Assistance
ODA Loan
Grant Assistance
3
New JBIC’s Mission
(1) Supporting and promoting overseas operation of
Japanese companies
(2) Supporting development and acquisition of important
natural resources to Japan
(3) Corresponding to financial turmoil in the international
economy
4
Relations: India & Japan (“JP”)
－ Japanese Company in India －
(1) Number of Japanese Companies in India
No. of companies
(2) Number of JCCII Member Companies
(JCCII: Japan Chamber of Commerce and Industry in India)
No. of Branch/Offices
242
250
210
200
174
1500
1000
838
555
100
82
94
88 91
89
88
96
105
118
66
500
627
550
438
0
147
150
1049
2008
Oct.
2009
(Source: Embassy of
Japan)
0
(Source: JCCII)
0
01
.2
ar 9
M 00
.2
ar 8
M 00
.2
ar 7
M 00
.2
ar 6
M 00
.2
ar 5
M 00
.2
ar 4
M 00
.2
ar 3
M 00
.2
ar 2
M 00
.2
ar 1
M 00
.2
ar 0
M 00
.2
ar 9
M 99
.1
ar 8
M 99
.1
ar 7
M 99
.1
Oct.
ar
M
Jan.
2008
50
(3) Existence of JP Companies by States
(4) Type of Business JP Companies
Rajasthan
22
Gujarat
31
Others
96
West Bengal
52
Karnataka
123
Others
17%
Delhi NCR
(DL/HR/UP)
337
Transport
5%
Precision
Equipment
5%
Chemical
8%
JP Companies
by Sates
（Total: 1,049 office）
Tamir Nadu
169
Auto/Component
24%
Type of Business
JP Companies
in India
Machinery
16%
Service
11%
Electric Equipment
14%
Maharashtra
219
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Relations: India & Japan (“JP”)
－ Japanese Investors’ View －
Survey: Promising Countries for overseas business of JP Companies
[ Reasons & Pending Issues ]
(Percentage shares)
100%
Reasons for India Being Viewed as
Promissing for Overseas Operations
1. Future growth potential
of local market
2. Inexpensive source of labour
3. Supply base for assemblers
4. Qualified human resources
5. Current size of local market
90%
80%
China
70%
60%
India
50%
Vietnam
40%
Russia
30%
No. of
companies
Ratio
248 90.2%
106
53
51
51
38.5%
19.3%
18.5%
18.5%
(Total number of respondent companies: 275)
20%
10%
USA
0%
China’s entry
into the WTO
03
04
05
06
07
(Source: Survey Report on Overseas Business Operations by JBIC)
08
09(Fiscal Year)
Lehman Shock
Bursting of
the IT Bubble
02
BRICs Report
01
SARS outbreak
00
6
Pending Issues
1. Underdeveloped infrastructure
2. Security/social instability
3. Intense competition with
other companies
4. Execution of legal system unclear
5. Complicated tax system
No. of
companies
Ratio
122 46.9%
78 30.0%
77 29.6%
76 29.2%
61 23.5%
Relations: India & Japan (“JP”)
－ CDM Projects in India －
(1) Number of UN Registered CDM
(2) Breakdown of Indian Registered CDM (463)
Metan Avoid; 10
Others; 11
Fuel Shift; 11
,Others
Chili, 35 335
Biogas; 13
Cement; 17
Biomass; 136
,Philippine
40
,Malaysia
66
,Mexico
119
Brasil, 164
(Source: IGES)
China, 652
;Energy Saving
53
Hydro Power; 57
India, 463
Waste Gas and
Heat; 64
7
Wind Power; 91
JBIC Financing Menu
(1) Export Loan
 Funding to imports from Japan as per OECD guidelines
(2) Overseas Investment Loan
 Funding to Japanese subsidiaries & joint ventures in India
(3) Untied Loan & Guarantees
 Funding to projects improving investment climate for
Japanese companies in India
(4) Equity Investment
 Capital Contribution to Infrastructure or Eco-Friendly
Projects where Japanese companies participate
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(1) Export Loan
- Export Loan through SBI or ICICILoan
Credit Line
(JPY or USD)
60%
40%
Co-Financiers
State Bank of India (SBI)($70mil)
ICICI Bank ($100mil)
Indian company
Indian Company imports Machinery,
Equipments, etc.Export
from Japanese
Company
Approach and
arrange the
finance
Export
Japanese Company
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Export Insurance
Features
- Export Loan 

Eligible Borrower: All Indian companies that are importing
capital goods & services from Japanese
companies
Borrowing Amount: Up to 85% of Foreign Export Portion

Local expenditure can also be financed as part of overall contract, not exceeding
30% of export portion.
Financial Coverage
If the contract value is 160 (foreign portion is 100 and local cost is 60), maximum
financial coverage is 115.
Down payment = 15 (100 X 15%)
Foreign 100
Portion
Local
Cost
60
15
100 X 85% = 85
30
100 x 30% = 30
Financial Coverage by export loan = 115
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Features
- Export Loan 
Down Payment: 15% of Foreign Portion
Repayment Period: up to 10 years

Currency: Japanese Yen or US Dollar

Interest Rate :

CIRR + OECD Risk Premium + SBI/ICICI Margin
*1: CIRR (Commercial Interest Reference Rate):
Interest rate applied to Officially Supported Export Credit as per OECD Guidelines, which will change
on 15th of each month
*2: OECD Risk Premium:
To be calculated based on repayment terms, CIRR rate etc. according to OECD Guidelines
*3: SBI/ICICI Margin:
Only applied to Global Bank Loan (SBI/ICICI two step loan)

Environment: JBIC Environmental Guidelines
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(2) Overseas Investment Loan
Indian Company
Japanese
Company
Operation
Equity
Equity/Subsidiary
Joint Venture Company
Co-Financiers
CAPEX
Loan ($/\/€)
JBIC
Factory
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Features
- Overseas Investment Loan 
Eligible Borrower: JV company between Indian company &
Japanese company, or
Subsidiary of Japanese company

Loan Amount: Depends on the Project & Cash flow

Tenor: Long Term (more than 1 year), depends on Cash flow

Repayment Period: Determined by taking account of Cash flow

Currency: Japanese JPY, USD or Euro
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(3)Untied Loan
- DMIC / Project Development Fund (PDF) JBIC
Loan（$75Million）
Guarantee
Govt. of India
Fund PDF
Account （$75million）
IIFCL *2
Transfer the Loan to
PDF Account
DMIC DC *1
Project Development Fund (PDF)
INDIA ACCOUNT
($75million)
Utilize funds to
conduct
Feasibility
Study (F/S) for
prospective
projects
JAPAN ACCOUNT
($75million)
Submit F/S
Report
Consultant
Sell out SPVs
＜Project Outline＞
-Establish SPVs to take all
necessary permissions for
DMIC Project Developments.
-Sell out SPVs to Project
Developers.
Payment for
sales of SPVs
Project Developers
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＊１: Delhi Mumbai Industrial Corridor Devlpt. Corp.
＊２：IIFCL： India Infrastructure Finance Company Ltd.
(3)Untied Loan (Guarantee)
- NTPC / Power Generation Project -
（$380million）
NTPC
Syndicated Loan
Barh (Stage-I) Super Thermal
Power Project in Bihar
Guarantee
Supply Electricity to Japanese
Company Complexes
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Private Banks
JBIC
(3)Untied Loan
- ICICI Bank / Supporting Industry Loan -
Local JP Company
Japanese
Company
Components
Supply
Local JP
Company
JV Co.
Indian Company
（Supporting Industry）
CAPEX
Co-Financiers
Loan($/\)
Factory
ICICI Bank
Credit Line
$350million
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(Equivalent amount JPY)
JBIC
(3)Untied Loan
- ICICI Bank / CDM Loan -
ICICI Bank
Loan ($/\)
Credit Line ($/\)
Co-Financiers
$200 million
(Equivalent amount JPY)
JBIC
CDM Project Company
Sales of
CER
CAPEX
CDM Project
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JP Company
(3)Untied Loan
(Corresponding to International Financial Turmoil)
- ICICI Bank / Trade Finance Support LoanThird Country
Company
（Importer）
Third Country
Company
（Exporter）
Trade
Trade
Indian or Local JP
Company
(Exporter)
Indian or Local JP
Company
(Importer)
Trade
Finance
Trade
Finance
Supporting India’s
Trade Transactions
Trade
Finance
Loan($)
ICICI Bank
（$100million）
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JBIC
(4) Equity Invest. / FACE Scheme
（Facility for Asia Cooperation and Environment）
Equity
Private
Banks
Equity/Loan
Equity
Project A,B,C
・・・
Energy Efficiency Fund ２
Equity
Equity
Asia Infra. Fund１
JBIC
Project A,B,C
・・・
Equity
Guarantee
Private
Banks
Project A,B,C
・・・
Energy Efficiency Fund １
Asia Infra. Fund 2
Energy Conservation Project
Loan
Projects in Asia
（Infrastructure & Energy）
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Project A,B,C
・・・
(4) Equity Invest. / FACE Scheme
（Outline of FACE）
Objectives
Period
Funding
- To mobilize private capital by using JBIC’s equity participation
and guarantee functions.
- To support the projects politically important to Japan in view of
the G8 Hokkaido Toyako Summit : (1) projects contributing to
mitigating climate change (including for energy efficiency,
renewable energy, etc.); and (2) projects in Asia.
FY2008-2012 (April 2008-March 2013)
To fund this facility, JBIC is to receive 20 billion yen to its
International Financial Operation account from the Japanese
government’s Fiscal Loan Fund Special Account (investment
account).
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(4) Equity Invest. / FACE Scheme
（FACE Applicable Condition）
Japanese
Company’s
Participation
Country
JBIC’s Equity
Participation
- Japanese Company’s Equity Participation in the Project, or
- Japanese Company’s Equity Participation in Foreign Companies
for Business Alliance, or
- Japanese Company’s Equity Participation in Funds (Operation &
Investment Policy should be lead by Japanese General Partner in
the Funds), or
- Japanese consortium’s Equity Participation in International Funds
Developing Country only
(In case of Natural Resource Finance, Developed Country is covered)
- Less Capital Contribution Ration than Japanese Biggest
Shareholder, and
- Less than 25%
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New Finance Initiative -GREEN(Global action for Reconciling Economic growth & Environment conservation)
 JBIC supports environmental investments in Solar Power, Energy-Efficient Power
Plant, Energy-Saving Equipment, etc. for global environment conservation, utilizing
advanced environment technology in developing countries
 Supports through Loans or Equity Investments.
JBIC
Loans /
Equity Investment
Private Financial
Institutions
Loan, etc
MDBs
（ADB, World Bank Group, etc）
Catalytic
Role
Co-operation
(Co-finance, Information Sharing, etc)
Loan, etc
 Applicable Business (Applicable Conditions)
(1) Projects for Global Environment Conservation (e.g. Projects contributing
to significant reduction of Greenhouse Gas Emissions)
(2) Projects agree to “MEASURE” the effect, “REPORT” the effect to JBIC and
accept the “VERIFICATION” of the effect by JBIC.
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New Finance Initiative -GREEN(Global action for Reconciling Economic growth & Environment conservation)
 Main Targeted Sectors
(1) Renewable Energy
Solar, Wind, Hydro, Geothermal, Biomass Energy, etc
(2) Energy Conservation
 Industrial Sector; Modernization and Heat Recovery in Steel, Cement,
Chemical, Nonferrous Metal and Paper & Pulp sectors, etc
 Power Sector; Clean Coal / Gas-Fired / Biomass Power, Rehabilitation
of Power Plant, Cogeneration, Fuel Battery, Smart Grid, etc
 Transport Sector; Urban Transportation
 Civilian Sector; ESCO (Energy Service Co.), Introduction of Energy
Saving Appliance, etc
 Water Treatment; Water Purification and Supply, etc
(3) Other Greenhouse Gas Emission Reduction Projects
Methane/CFC Emission Reduction, Nitrous Oxide Degradation, etc
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Recent Activity in India
1. Export Loan (Export Credit Line)
Borrower
Loan Amont Signing Date
State Bank of India (Tokyo)
USD70mil Sep. 2006
Two Step Loan for Export Finance
USD100mil Mar. 2009
Two Step Loan for Export Finance
ICICI Bank (Hong Kong)
Memo
2.Overseas Investment Loan
Borrower
MHI-L&T JV Company
Toshiba-JSW JV Company
Loan Amont Signing Date
USD154mil
Jul. 2009
USD90mil Oct. 2009
Memo
Loan for manufacturing Turbaine, Generator and
Boilar
Loan for manufacturing Turbaine and Generator
3.Untied Loan/Gurantee
Borrower
Loan Amont Signing Date
Memo
ICICI Bank (Hong Kong)
USD350mil Apr. 2006
Two Step Loan for Supporting Industry
EXIM Bank of India
USD100mil Nov. 2006
Two Step Loan for Indian Co. to import goods
from Japanese Co./JV in other　Countries.
ICICI Bank (Hong Kong)
USD200mil Aug. 2007
Two Step Loan for CDM Projects
NTPC Limited
USD380mil Dec. 2007
JBIC Guarantees syndicated loan to NTPC
IIFCL
ICICI Bank (Hong Kong)
USD75mil Dec. 2009
USD100mil Mar. 2010
Two Step Loan to DMICDC for using Project
Development Fund
Two Step Loan for supporting Trade Finance in
India
4. Mutual Cooperation Agreement
Cooperation Partner
ICICI Bank
Signing Place Signing Date
Hyderabad May, 2006
Government of India
Tokyo
Dec. 2006
TERI
Tokyo
Sep. 2008
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Purpose
Mutual Cooperation for CDM、Infrastructure
Projects
Promotion and facilitation of Direct Investment
from Japan to India
Cooperate to Mobilize Private Sector Investment
in Japan & India for Clomate Change
Financing Opportunity for
Japan-India Collaboration Projects
Thank you very much
Mr. Hiromichi Miyamoto, Representative,
Ms. Deepa Salvan, Int’l Financial Specialist
Japan Bank for International Cooperation,
New Delhi Office
1st Floor, Metropolitan Hotel New Delhi, Bangla Sahib Road,
New Delhi-110 001
Tel : +91-11-4352 2900, Fax: +91-11-4352 2950
Email: h-miyamoto@jbic.go.jp
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