The Japan Bank for International Cooperation (JBIC, Governor: Akira Kondoh) today announced the summary of its business performance and activity in the first quarter (April-June) of FY2017 as outlined below. Details of financial commitment amounts by financial product and service can be found in the PDF files provided in this press release.
Ⅰ.Loans, Equity Participations and Guarantees
In the first quarter of FY2017, JBIC approved 17 financial commitments totaling approximately JPY275.7 billion in loans, equity participations and guarantees.
2．Disbursements, Repayments and Outstanding Amounts
Disbursements made by JBIC during the first quarter amounted to approximately JPY663.3 billion and repayments received were JPY627.0 billion. As a result, outstanding loans and equity participations totaled approximately JPY14.7077 trillion and outstanding guarantees were approximately JPY2.3551 trillion, with the total outstanding amount reaching approximately JPY17.628 trillion at the end of the first quarter.
Ⅱ.Major Business Activities in Q1 FY2017
1．Securing Stable Supply of Natural Resources to Japan
To encourage Japanese companies to participate in natural resource development, JBIC provided loans for expanding the Escondida Copper Mine Project in Chile and for acquiring interests in onshore oilfields within the Emirate of Abu Dhabi, the United Arab Emirates. These loans contribute to securing a stable supply of energy resources and base metals which are vital for Japan.
2．Financing Overseas Projects to Maintain and Improve the International Competitiveness of Japanese Industries
(1)Supporting Japanese Companies' Involvement in Overseas Infrastructure Developments
JBIC signed export loan agreements to finance exports of Japanese facilities to Indonesia's Kalselteng 2 coal-fired power plant and Vietnam's ultra-supercritical coal-fired power generation plant.
(2)Supporting Overseas Business Deployment of Mid-Tier Enterprises and Small and Medium-Sized Enterprises (SME)
JBIC approved 5 loans totaling approximately JPY1.1 billion to assist the overseas business deployment of mid-tier enterprises and SMEs. These include loans to: i) a Malaysian subsidiary of SHINWA SANGYOCO., LTD., that manufactures and sells film for absorber and ii) a Vietnamese subsidiary of Uchiyama Manufacturing Corp, engaging in the manufacturing and sales business of automobile parts. In addition, JBIC supported facility procurement, through finance leases, by mid-tier enterprises and SMEs with overseas operations, according to the investment credit lines previously established between JBIC and the following two finance leasing companies: a Thai subsidiary of Mitsubishi UFJ Lease & Finance Company Limited and an Indonesian subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited.
(3)Supporting Overseas Business Expansion through Establishment of "Special Operations"
To follow the Japanese government's initiative of the "Partnership for Quality Infrastructure," aimed at promoting "Quality Infrastructure Investment," JBIC launched Special Operations in October 2016, which enable JBIC to provide greater assistance for Japanese companies participating in infrastructure businesses outside of Japan by taking further risks in expanding the number of countries and infrastructure businesses which are entitled to its financing. Under the framework of the Special Operations, JBIC signed an export loan agreement with the government of the Argentine Republic to finance the purchase of a set of railway signal systems by State Company of Administration of Railway Infrastructure. This is the second loan agreement that JBIC has reached so far within the scope of the Special Operations.