JBIC supports overseas business operations of its clients by participating in their equity investments. Interested Japanese business firms should contact specific international finance departments for more information.

Advantages of Using Equity Participation

• JBIC supports overseas investment projects undertaken by Japanese firms by drawing on its knowledge and knowhow on developing country economies and their investment projects.
• The political risk of investing in developing countries will be mitigated by leveraging JBIC's long-cultivated ties with developing country governments and its position as an official financing institution. JBIC will support overseas projects by drawing on the knowledge it has acquired on developing economies and investment projects.
• The investing firms can turn to JBIC for making assessment of environmental and social considerations pertaining to their investment projects.

Utilizing Equity Participation

JBIC can participate in equity investments in the following cases.

Types of Projects

Japanese firms make equity investment in an overseas project

Japanese firms acquire equity interests in a foreign firm to form business alliance

Japanese firms participate in an investment fund (and perform such major role as general partner in their management and investment decisions)

Japanese firms form a consortium and participate in an international fund

Note: JBIC may also make equity investment in the following cases where Japanese firms do not have equity stakes.

• Capital contribution to multilateral institutions and international funds when the projects to be undertaken by them will have concrete positive effects on the overseas business development of Japanese firms.
• Exerting a favorable impact on the preservation of global environment.
• Responding to disruption in general international financing activities.

Country Eligibility

Investments have to be made, in principle, in developing countries (and in developed countries as well in natural resource development projects).

Percentage in Total Investment

In principle, 25 percent of less of the total investment and on the condition that JBIC will not become the single largest shareholder among Japanese investors.

Others

• In principle, the exit conditions should be set forth prior to making decision on equity participation.
• JBIC will basically limit its involvement in daily business operations and management to the minimum.
• A single project may be financed both by a loan and equity participation. (In that case, JBIC will only invest in preferred shares.)