Launching JBIC Enhanced Facility for Global Cooperation in Low Carbon Infrastructure and Equity Investment (E-FACE) Mobilizing Private Funding for Supporting the New Growth Strategy
Environment , International Business Development NR/2011-2
April 1, 2011
April 1, 2011
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 launched the JBIC Enhanced Facility for Global Cooperation in Low Carbon Infrastructure and Equity Investment (E-FACE) today.*2 The objective of E-FACE is to actively support Japanese direct investment in the systematically integrated infrastructure business overseas based on the New Growth Strategy, while mobilizing private sector funding.
- E-FACE is intended to meet new needs, including those of integrated infrastructure systems, pursuant to the New Growth Strategy (Cabinet decision on June 18, 2010), Comprehensive Emergency Economic Measures in Response to the Yen’s Appreciation and Deflation (Cabinet decision on October 8, 2010) and decisions made by the Council for the Deployment of Integrated Infrastructure Systems (December 10, 2010). This Facility was launched to develop and expand the current JBIC Facility for Asia Cooperation and Environment (FACE),*3 which is supporting Asian projects, primarily in the sectors that will contribute to mitigating climate change, infrastructure development projects, and the Leading Investment to Future Environment Initiative (LIFE Initiative),*4 which aims to support environmental investment undertaken by the governments of developing countries, as well as private sector firms in Asian and other developing countries.
- Under this Facility, (1) JBIC will provide loans or participate in equity stakes in renewable energy (and other clean energy projects); (inter-city and metropolitan transit) rail projects; water projects; smart-grid related projects and other projects to support Japanese direct investment in the systematically integrated infrastructure business overseas. Guarantees will also be provided for loans made by private sector financial institutions. (2) JBIC will provide loans, participate in equity stakes and provide guarantees for loans made by private financial institutions for merger and acquisition (M&A) projects in developing countries and large-scale resource interest acquisition projects. (3) JBIC will also participate in equity stakes or provide guarantees for loans made by private financial institutions for energy efficiency and alternative energy projects, and projects in Asian countries. JBIC will actively support those projects by mobilizing private sector funding.
Appendix: Schematic diagram of E-FACE Facility
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 A facility is not a newly-established fund or account, but a program with specific objectives and procedures for managing － in this case with the use of traditional loan and equity participation instruments.
- *3 See Press Release on April 1, 2008.
- *4 See Information on March 23, 2009.