Third Credit Line for BANCOMEXT under GREEN Operations
Supporting Renewable Energy and Energy Efficiency Projects in Mexico
- Area: Latin America and the Caribbean
- Untied Loans
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed on March 30 a loan agreement establishing a credit line totaling up to USD100 million (JBIC portion USD50 million) with Banco Nacional de Comercio Exterior, S.N.C. (BANCOMEXT). The credit line is cofinanced with Mizuho Bank, Ltd., with JBIC providing a partial guarantee for the cofinanced portion.
This credit line is intended to finance through BANCOMEXT renewable energy and energy efficiency projects in Mexico under GREEN operations.*1
This loan follows similar loans made to BANCOMEXT in October 2011*2
and July 2014.*3
BANCOMEXT is a governmental financial institution in Mexico with a mission to promote foreign trade and attract foreign capital. To date, JBIC and BANCOMEXT have built up a close relationship over a period of more than thirty years through provision of JBIC loans for exports of machinery and equipment to Mexico as well as for the country's industrial investment and export promotion.
The Mexican government announced its Greenhouse Gas (GHG) emissions reduction plan in 2009 and has been taking vigorous steps to implement measures to cope with climate change, which include setting the quantitative goal of reducing GHG emissions to 50 percent of the level in 2000 by 2050. Amid these developments, BANCOMEXT has been actively supporting environment-related projects with a focus on renewable energy. This credit line is thus expected to reduce GHG emissions in Mexico as well as provide opportunities to introduce internationally acclaimed Japanese advanced environmental technologies in the country. This is in line with an initiative announced by the Japanese government in November 2015, "Actions for Cool Earth: ACE2.0".
- As Japan's policy-based financial institution, JBIC will continue to support global environment conservation efforts in cooperation with overseas governmental financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 JBIC launched GREEN (Global action for Reconciling Economic growth and ENvironmental preservation) operations in April 2010. See Information on April 27, 2010.
- *2 See Press Release on October 11, 2011.
- *3 See Press Release on July 28, 2014.