1. The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)^*1 signed a loan agreement totaling up to 15.6 billion yen with the Korea Development Bank (KDB), Korea's official financial institution, and the ceremony to mark the signing was held in Seoul on January 26. The loan, provided under the Leading Investment for Future Environment (LIFE) Initiative,^*2 was cofinanced with Mizuho Corporate Bank, Ltd. and the Bank of Tokyo-Mitsubishi UFJ, Ltd.
    
2. The loan will support the export of key power generation equipment by Mitsubishi Heavy Industries, Ltd. and Mitsubishi Corporation for a by-product gas^*3 combined-cycle power plant project. The plant will be constructed by POSCO Power, Co. Ltd., ^*4 the largest independent power producer (IPP) in Korea, at Gwangyang Works, owned and operated by POSCO, its parent company and the largest steel maker in Korea.
    
3. JBIC signed a loan agreement for providing a trade finance facility with KDB in September 2009 to stabilize trade between Japan and Korea amid global financial turmoil.^*5  JBIC expressed its intention to support the projects for which Japanese and Korean firms can build win-win relationships.
    
4. JBIC will continue to support Japanese firms for maintaining and improving their international competitiveness by drawing on its various financial instruments.

Note

1. *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
2. *2 See Information on March 23, 2009: “Establishing Leading Investment to Future Environment (LIFE) Initiative”.
3. *3 By-product gas refers to blast furnace gas or coke-oven gas produced in the steel production process in a steel mill.
4. *4 POSCO Power Co. Ltd. is the first independent power producer in Korea. It is established in 1969 and is wholly owned by POSCO Power.
5. *5 See News Release on September 11, 2009, on Trade Finance Facility.
6.