JBIC Signs Arrangement with U.S. International Development Finance Corporation and Export-Import Bank of Korea : Japan, United States, and Korea Promote Projects for Growth of[...]

• Region: Asia
• Infrastructures

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on October 25 an arrangement for cooperation to launch the Digital Infrastructure Growth Initiative for India (DiGi) with the U.S. International Development Finance Corporation (DFC) and the Export-Import Bank of Korea (KEXIM).
   
2. The DFC is a U.S.-government development finance institution that was established to mobilize and facilitate the investment of private capital in the economic and social development of developing countries by offering financing, political risk insurance, and other financial tools for developmental projects. KEXIM is a policy-based financial institution wholly owned by the government of Korea that extends financial support, such as export loans and guarantees to promote Korean companies' international trade, overseas investment, etc. Under the Memorandum of Understanding (MOU)^*1 signed by the three institutions, JBIC has been promoting trilateral cooperation in areas such as the development of quality infrastructure, energy transitions toward decarbonization, and enhancing the resilience of global supply chains, especially in the Indo-Pacific region. In March 2024, the three parties held a high-level meeting under the MOU and reaffirmed their willingness to consider and deepen cooperation to contribute to the growth of digital infrastructure in India^*2.
   
3. Digital infrastructure is a major economic driver as global internet traffic in 2030 is expected to be 30 times larger than in 2021. In India, the ICT sector contributes to more than 13 percent to its GDP, and the government of India has improved its digital infrastructure nationwide with the aim of growing the ICT sector to USD1 trillion by 2025. In addition, this year marks the 10th anniversary of the Japan-India Special Strategic and Global Partnership. DiGi will enhance the initiatives that the three institutions have built under the partnership by making full use of their various financial and non-financial tools. Through this, JBIC will support the development of digital infrastructure, such as 5G and beyond 5G networks, Open RAN, data centers, and smart cities in India, which is strategically important to Japan.
   
4. As Japan's policy-based financial institution, JBIC will continue to contribute toward the further development of economic relations with related countries to tackle global issues, such as digital transformation, by collaborating closely with such overseas governments and policy-based financial institutions.
   

Note

1. *1
   See press release on August 21, 2023.
2. *2
   See topic on March 7, 2024.