The Japan Bank for International Cooperation (JBIC) has signed loan agreements totalling US$39 million with Companhia Siderurgica de Tubarao (CST), which operates steel mills in Brazil.

JBIC supports Brazil's steel industry The Japan Bank forInternational Cooperation (JBIC) has signed loan agreementstotalling US$39 million with Companhia Siderurgica de Tubarao(CST), which operates steel mills in the Federative Republic ofBrazil. This loan is cofinanced with BNP Paribas, Tokyo Branch.JBIC will provide direct loans (buyer's credits) to CST,which is located in the Espirito Santo State, to financiallysupport exports from Japan, including exporting the completeequipment for a steam power plant and a LD gas recovery system toCST. The Japanese exporter is Marubeni Corporation and thedomestic manufacturers are Mitsubishi Heavy Industries Ltd andKawasaki Heavy Industries.

Most direct loans made by JBIC toBrazilian borrowers have the benefit of guarantees from thegovernment of Brazil.

However, recently JBIC has begun toactively engage in loan commitments by examining thecreditworthiness of the individual companies, and assessing theircorporate risk.

This loan is the first extended to a Braziliansteel company based on a corporate risk-taking basis, in view ofCST's position as the dominant steel exporter in Brazil.