Export of Komatsu Construction Machinery to United Republic of Tanzania(Insurance for Loans under Export Credit Line Set for TDB Bank)

June 29, 2017

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Kazuhiko Bando) has decided to provide insurance to support loans taken out by a Tanzanian entity Vehicle and Equipment Leasing Limited (Vaell) for the purchase of construction machinery manufactured by Komatsu Ltd.

In August 2016, NEXI announced the creation of an export credit line12 for Eastern and Southern African Trade and Development Bank (TDB Bank) at the sixth Tokyo International Conference on African Development (TICAD VI) held in Nairobi, Kenya. This is the first time that NEXI has provided insurance under this export credit line.

The loans are provided to Vaell via TDB Bank by Japan Bank for International Cooperation and a commercial bank Sumitomo Mitsui Banking Corporation (SMBC) in the form of co-financing (totaling USD 7.28 million), and NEXI’s loan insurance supports SMBC’s USD 3.64 million loan.

As a financial institution implementing Japan’s policy, NEXI will continue to make a positive contribution to Japanese exports.

Insured Sumitomo Mitsui Banking Corporation
Insurable Value USD 3.64 million
Covered Risks Political Risk 100%, Commercial Risk 100%

Contact: Infrastructure Group, Structured and Trade Finance Insurance Department

1Export credit line is a form of export finance in which a certain amount of credit limit is established to promote export of Japanese goods and equipment.

2 For the establishment of the export credit line, please see News Release dated August 29, 2016.