JBIC EXTENDS BUYER'S CREDIT TO PEOPLE'S REPUBLIC OF BANGLADESH --LOAN TO EXPORT FERTILIZER PLANT--
1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed today with the government of the People's Republic of Bangladesh a loan agreement amounting to 7 billion yen. The loan is cofinanced with Sumitomo Bank, with JBIC taking a 60% portion of the total, or 4.2 billion yen. The proceeds of this buyer's credit will be used to purchase equipment from Japan for the construction of a Di-Ammonium Phosphate fertilizer complex implemented by Bangladesh Chemical Industries Corporation (BCIC), which is 100% owned by the Bangladeshi government, located in Dhaka, capital of Bangladesh. The financing is sub-loaned to the project executor via the government of Bangladesh. The Japanese exporters are Toyo Engineering Corp. and Mitsui & Co., Ltd.
2. Although agriculture is the leading industry in Bangladesh, the phosphate fertilizer supply that is essential for agricultural output is mainly imported. The purpose of the project is to construct a Di-Ammonium Phosphate fertilizer complex under government leadership, to shift the supply source from imports to domestic production. This will secure a stable supply of fertilizer and save on foreign currency.
3. The loan will contribute to the promotion of plant exports from Japan to Bangladesh, as well as to the steady economic growth of Bangladesh by establishing the domestic production and stable supply of the phosphate fertilizer.