Operational Results for Third Quarter of FY2010
February 10, 2011
The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe) *1 today released the operational results for the third quarter (October-December) of fiscal 2010. A summary of the results is given below. See Appendix for a detailed breakdown of the figures by financial instrument.
During the third quarter of fiscal 2010, JBIC made 28 commitments totaling 693.3 billion yen in loans, guarantees and investments.
(2) Disbursements, Repayments and Outstanding Amounts
Disbursements amounted to 774.1 billion yen, while repayments were 322.2 billion yen. As a result, outstanding loans and investments totaled 8,213.1 billion yen and outstanding guarantees stood at 2,183.5 billion yen, with the total amount of outstanding loans, investments and guarantees reaching 10,396.7 billion yen at the end of the third quarter.
II. Operational Highlights
1. Supporting Japanese Industries' Efforts to Maintain and Improve International Competitiveness
In Indonesia, JBIC provided a guarantee for a local currency loan to a Japanese financial affiliate to support its motorcycle finance business amid buoyant demand for motorcycle purchase loans in the country. JBIC thereby supported a Japanese firm capturing a share of an Indonesian volume market segment.
In Angola, JBIC signed the first buyer's credit with the Government of the Republic of Angola to support the export of a textile production facility. This will help progress post-conflict rehabilitation.
In Brazil, JBIC signed an untied loan with the Government of the State of São Paulo to finance its Metro Line 4 Extension Project. JBIC's support for this project in which Japanese firms are participating is expected to improve the international competitiveness of Japanese companies in the rail transport sector.
2. Supporting Development and Acquisition of Interests in Strategically Important Overseas Resources
JBIC signed a memorandum of understanding (MOU) with Abu Dhabi National Oil Company (ADNOC) to support the grant of new concessions to Japanese entities and the renewal of existing concessions for Japanese oil development companies in the United Arab Emirates (UAE). Additionally, both parties signed a loan agreement that ensures a stable supply of crude oil from ADNOC to Japan.
JBIC provided its first direct loan to a firm in Bolivia, a country endowed with abundant resources of valuable minerals, by signing a loan agreement for resource development finance. This loan was structured through direct dialogue between JBIC and the Bolivian government. It will help raise the profile of Japan as well as strengthen the presence of Japanese firms in Bolivia and contribute to building ties between the two countries.
JBIC also signed a loan agreement for an offshore support vessel operation project to support a Japanese shipping company expand its offshore resource development-related business and strengthen the international competitiveness of Japanese firms in this area.
3. Response to the Global Financial Crisis
With regard to the three operations*2 that the Japanese government assigned to JBIC at the end of December 2008 as part of exceptional and temporary measures to respond to the turmoil caused by the global financial crisis, as well as to maintain the international competitiveness of Japanese industries, JBIC made one loan commitment totaling 100 million yen in a developing country. Domestically, JBIC issued a public invitation offering two-step loans (TSLs), which resulted in 2 two-step loan commitments totaling 208.5 billion yen being made to domestic financial institutions. Thus, overall, three commitments totaling 208.6 billion yen were made under these three financing operations during the third quarter of FY2010.
Financial Results of Emergency Operations to Support Overseas Projects
(Cumulative figures as of the end of December, 2010; figures for the 3rd quarter are shown in parenthesis)
|Number of Project||
|For Developing Countries||61 (1)||179.4 (0.1)|
|For Developed Countries||64 (0)||1,216.8 (0)|
|Two-Step Loans to Japanese Financial Institutions*3||10 (2)||875.2 (208.5)|
|Total||135 (3)||2,271.5 (208.6)|
4. Promoting GREEN Operations
JBIC signed an MOU with Yokohama City for mutual cooperation on environmental and urban infrastructure projects.
JBIC also signed MOUs with Banco Nacional de Obras y Servicios Públicos, S.N.C., the Mexican National Infrastructure Fund and the Inter-American Development Bank (IDB) on operational cooperation for moving forward GREEN operations. Starting from an MOU with the Asian Development Bank in May 2010, JBIC has been increasing collaborative ties with multilateral institutions and government agencies in various countries on GREEN operations, including the signing of an MOU with the European Bank for Reconstruction and Development (EBRD). These efforts culminated in the first loan signed with a commercial bank in Turkey that will contribute to global environment preservation through GREEN operations.
JBIC provided a guarantee for a private placement of yen-denominated foreign bonds (Samurai bonds) issued by the Government of the United Mexican States in the Japanese bond market. This is the first samurai bond issue under the Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility.*4 In addition, JBIC guaranteed a private placement of samurai bonds issued by the Government of Indonesia under the GATE facility.
JBIC also made capital contribution to the ASEAN+3/Credit Guarantee and Investment Facility (CGIF). CGIF is expected to contribute to developing bond markets in the ASEAN+3 region as well as preventing financial disorder in the region through the development of regional bond markets.
As its first study for an infrastructure package project in a developed country, JBIC undertook a financial feasibility study of the proposed high-speed train project in Florida, USA. JBIC will continue to provide proactive support for materializing important projects for maintaining and improving the international competitiveness of Japanese industries by supporting them from the early stages of overseas infrastructure development business through such studies, as this is the area where Japanese firms have competitive advantages.
JBIC released the FY2010 Survey Report on Overseas Business Operations by Japanese Manufacturing Companies, the results of an annual survey on Japanese manufacturers' overseas business operations. The survey examined “Medium-term business prospects,” “Evaluations of overseas business performance” and “Promising countries or regions for overseas business operations,” and additionally this year, “Competition with companies in emerging market countries and countermeasures” and “Movements of domestic and overseas earnings after the Lehman shock.”
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 The three operations provide supplier's credit to finance exports to developing countries, loans to large Japanese companies for investment projects in developing countries, and loans and guarantees for investment projects undertaken by large Japanese companies in developed countries. Although they were instituted as emergency and temporary measures, their expiration date was extended to the end of March 2011 based on the public notice issued by the Ministry of Finance on February 15, 2010.
- *3 The figures in this row represent the sum of: (1) two-step loans (TSLs) extended to Japanese financial institutions that responded to the public invitations to TSLs issued on May 26, 2009, December 17, 2009 and December 2, 2010. TSLs provided based on public invitation on December 17, 2009, include loans directly extended to Japanese financial institutions' local affiliates in developing countries.
- *4 See Press Release dated April 15, 2010.