The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today loan agreements with erex Co., Ltd. (erex) for biomass manufacturing and sales business through its two subsidiaries in Vietnam, EREX SAKURA BIOMASS TUYEN QUANG CO., LTD (EREX TQ) and EREX SAKURA BIOMASS YEN BAI CO., LTD (EREX YB), each amounting to USD6 million (JBIC portion). The loans are co-financed with Sumitomo Mitsui Banking Corporation, each bringing the total co-financing amount to USD11 million.
The loans are intended to provide the funds necessary for erex to finance EREX TQ and EREX YB for the biomass fuel manufacturing and sales business in Tuyen Quang Province and Yen Bai Province, respectively*1.
erex will offtake all the wood pellets, a type of biomass fuel produced in the operations, and use approximately half of them for power generation in Japan. Biomass fuel is one of the crucial renewable energy sources, and bioenergy power generation has become more important for achieving a decarbonized society. The loan, which supports the overseas business of a Japanese renewable energy company erex, will contribute toward securing a long-term, stable supply of biomass fuel, which is an important energy resource for Japan, in preparation for the realization of a decarbonized society.
JBIC will continue to financially support the overseas business expansion of Japanese companies, thereby contributing toward securing stable energy resource supplies and addressing energy transformation for the realization of a decarbonized society.
