State Bank of India on Wednesday said it has signed an agreement with Japan Bank for International Cooperation (JBIC) for a loan worth USD 1 billion (around Rs 7,403 crore). Of the total loan amount, USD 600 million will be financed by JBIC and USD 400 million by other participating banks - SMBC, MUFG Bank, Mizuho Bank, Shizuoka Bank, and Bank of Yokahama, SBI said in a release.
JBIC will provide a guarantee for the portion co-financed by the participating banks, it said.
“The loan is intended to promote the smooth flow of funds for the whole range of business operations of Japanese automobile manufacturers in India,” the release said.
SBI's deputy managing director (international banking group) C Venkat Nageswar said, “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 “Aatmanirbhar”.”
JBIC is a policy-based financial institution, wholly owned by the Japanese government, with the objective of contributing to the sound development of Japan, the international economy, and society.
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