- Region: Others
- Others
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) today reported its operational results in FY2013. For breakdown by region and financial facility, as well as chronological data for the past 5 years, please refer to Appendix.
1..Overview
■ In FY2013, JBIC made overall commitments totaling JPY2.2061 trillion in loans, equity participations and guarantees.This volume is equivalent to 52% of the previous year.
■Outstanding loans and equity participations amounted to JPY12.8819 trillion, while outstanding guarantees were JPY2.4226 trillion as of March 31, 2014. This brought the overall outstanding amount to JPY15.3046 trillion.
2..Highlights of Operations
1. Efforts to Promote Overseas Development and Acquisition of Interests in Strategically Important Resources to Japan
Demand for resources has been increasing as a trend amid global population growth and economic growth in emerging countries, among others. It is thus a significant challenge directly linked to Japanese lives to secure long and stable supplies of energy and mineral resources. By supporting efforts to obtain upstream resource interests, develop resources, and ensure their stable procurement, JBIC is contributing to securing long-term, stable supplies of energy and mineral resources as well as diversifying their supply sources. In FY2013, JBIC made a total of 24 commitments amounting to JPY659.8 billion in loans, equity participations and guarantees for the projects and transactions in the overall resource sector.
(1) Efforts in the Energy Resource Sector
In the energy resource sector, JBIC supported LNG projects participated by Japanese companies with acquisition of equity stakes, and natural gas field development in the upstream of LNG projects. JBIC also financed the fund necessary for LNG imports and the procurement of LNG tankers that transport LNG. In addition, financial support was provided for acquisition of interests in oil fields and their development project in the British North Sea, the offshore FPSO (floating production, storage, and offloading) system chartering project in Ghana, and the expansion of oil sands development project in Canada.
(2) Efforts in the Mineral Resource Sector
In the mineral resource sector, JBIC supported the Australian iron ore mine and related infrastructure development and operation project, and the additional expansion project of a zinc, lead and silver mine undertaken by a Bolivian company wholly-owned by a Japanese company. Also, financial support was provided to the interest acquisition and development project of a Chilean copper mine participated by a Japanese company, and Japanese company's operating business of a mineral resources and sulfuric acid carrier.
Apart from financing, JBIC signed memorandums of understanding (MOUs) on operational cooperation with the Department of Natural Resources of the State of Alaska, U.S.A., and Brazilian resource major Vale S.A.
2. Efforts to Maintain and Strengthen International Competitiveness of Japanese Industries
Amid increasingly intense international competition caused by economic globalization, JBIC supported Japanese companies to maintain and expand their overseas market acquisition strategy and supply chains by drawing on its various financial facilities and schemes. Thereby, JBIC contributed to maintaining and strengthening the international competitiveness of Japanese industries. In these areas, JBIC made a total of 203 commitments amounting to JPY1.477 trillion in loans, equity participations, and guarantees in FY2013.
(1) Supporting Japanese Companies' Strategic Overseas Business Deployment
(a) Supporting Overseas Investments by Japanese Companies
JBIC supported Japanese companies in manufacturing and sales of automobile parts in Indonesia, performance compound in China, as well as their overseas business deployment in a variety of areas such as automobiles, chemicals, electrical machinery and electronics, general machinery and metals. In addition, JBIC supported, in project financing, the refinery and petrochemical complex construction project in Vietnam.
Additionally, JBIC helped acquisition of a U.S. grain and fertilizer company and investment in the offshore wind power project jointly undertaken by Japanese and Danish companies, thereby providing risk money indispensable for overseas business deployment of Japanese companies.
(b) Supporting Exports by Japanese Companies
JBIC supported Japanese companies in exporting chemical production plant facilities to Turkmenistan and Russia, and a very large ore carrier to Singapore, bulk carriers to companies in Taiwan and Holland, and seabed resource exploration vessels to a company in Norway. Furthermore, JBIC supported a Japanese company for exporting of bulk carriers to Hong Kong's leading shipping group.
Also, JBIC set the credit lines for Sberbank of Russia and Petróleo Brasileiro S.A. of Brazil to support the exports by Japanese companies, in addition to the credit lines for BMCE bank in Morocco.
(2) Supporting Overseas Deployment of Infrastructure Business by Japanese Companies
In the power and water sector, JBIC supported Japanese companies by providing project financings to the gas-fired combined cycle power plant project participated by a Japanese company as an operator in Thailand, the seawater desalination project in Oman, the power generation and seawater desalination projects in Kuwait, the geothermal power plant project in Indonesia, and buyer's credits for exporting machinery and equipment related to power generation projects to Saudi Arabia, Vietnam and India.
In the transportation and telecommunication sector, JBIC supported Japanese companies by providing buyer's credit for exporting port container cranes in Turkey, and also set an export credit line with the Government of Ecuador for the purchase from Japanese companies of broadcasting equipment necessary for the digital broadcasting network building project to be implemented by the state-run broadcasting company.
In addition, JBIC signed MOUs with Vnesheconombank (VEB), an official financial institution wholly-owned by the Government of Russian Federation, and the Russian Direct Investment Fund (RDIF), managed by a wholly-owned subsidiary of VEB, and Instituto de Crédito Oficial (ICO) of Spain, to promote cooperative relationship for formulating infrastructure projects.
(3) Supporting Overseas Business Deployment of Japanese SMEs
To support overseas business expansion of Japanese small and medium-sized enterprises (SMEs), JBIC supported their processing and sales of steel products and manufacturing and sales of automobile parts in Thailand, co-financing with Japanese local financial institutions. In these financial operations, JBIC made a total of 54 commitments amounting to the equivalent of JPY18 billion (including in local currencies) in loans and equity participations. Furthermore, JBIC set investment credit lines for Japanese regional financial institutions and overseas subsidiaries of Japanese leasing companies.
(4) Supporting Japanese Companies with Local Currency Loans
JBIC supported Japanese companies by providing loans in Indonesian rupiah for manufacturing and sales of sintered alloy parts for automobiles in Indonesia, and in Thai baht for manufacturing and sales of precision machinery and components in Thailand. In addition, JBIC provided loans in local currencies such as South African rand and Chinese yuan.
(5) Supporting Issuance of Samurai Bonds
In supporting the issuance of Samurai bonds, JBIC provided guarantee for privately placed Samurai bonds issued by the Central Bank of Tunisia and Development Bank of Mongolia, and made the partial acquisition of public offering Samurai bonds issued by the Government of the United Mexican States.
3．Efforts in the Environment Sector
In the environment sector, JBIC made equity participations in fund of funds that invest mainly in renewable energy and energy efficiency projects in developing countries, and a fund that invests in renewable energy and energy efficiency projects in Mexico, in addition to setting credit lines for five local financial institutions in India, South Africa and Brazil, for renewable energy and energy efficiency projects. Under GREEN*1 operations, JBIC made loans, equity participations and guarantees for a total of JPY69.2 billion.
Apart from them, JBIC set export credit lines for Banco Centroamericano de Integración Económica (BCIE) and Banco de Costa Rica (BCR) in supporting export of Japanese machinery and equipment related to renewable energy and other sectors, and also signed an MOU with Masdar, the government-owned company based in Abu Dhabi, on cooperation in environment sector. Additionally, JBIC made a first loan in Chinese yuan for recycling polyester products and manufacturing and sales of recycled polyester fiber in China.
〔Appendix〕
1．Loans, Equity Participations, and Guarantees
2． Commitments by Region and Purpose of Financing
3． JBIC's Operations (Last 5 Years)