JBIC and ICICI Bank sign loan agreement

22 August 2007

Japan Bank for International Cooperation (JBIC) and ICICI Bank, Ltd. today signed an untied loan agreement of the yen equivalent of $200 million.

The loan is co-financed by private financial institutions, Sumitomo Mitsui Banking Corporation (agent bank), The Bank of Tokyo-Mitsubishi UFJ Ltd., Mizuho Corporate Bank Ltd., and the Tokyo branches of The Hongkong and Shanghai Banking Corporation and Société Générale, with JBIC providing a guarantee for their co-financing portions.

This loan is aimed at providing finance through ICICI Bank to prospective ''clean development mechanism'' CDM projects in which Japanese companies show an interest with regard to purchasing emissions-reduction credits and obtain a preferred negotiation status from such credits.

The loan is expected to increase the opportunities for Japanese companies to purchase emissions reduction credits and thereby help Japan achieve its ''green house gas'' (GHG) emissions reduction target under the Kyoto Protocol.

This would also lead to restraining GHG emissions in a rapidly growing India, which would contribute toward the prevention of global warming.

JBIC and ICICI Bank signed a memorandum of understanding for cooperation on CDM in May 2006, which brought about close coordination and discussion between the two banks that culminated in the signing of this loan agreement today.