Feature Article 2023 JBIC Act Amendment: Three Key Points (2)
Support provided through the Special Operations for high-risk loans has been expanded to include energy and natural resource development, commercialization of new technologies, and equity investments in startups. This will support economic security and expansion into growth areas such as digital transformation and decarbonization.
New support for domestic startups
Equity investments or acquisition of corporate bonds of Japanese startups, MTEs and SMEs engaged in overseas business operations is newly available
Until now, JBIC was unable to directly equity in the overseas operations of domestic startups, MTEs, and SMEs, making it necessary for these companies to establish new overseas subsidiaries. However, in response to the need for domestic funding through equity investments participation, it has now become possible for JBIC to provide such financial support to Japanese startups, MTEs, and SMEs.
Startups will play an especially large role in the digital and green sectors, and agile support for their overseas business development will promote social innovation.
Startup: A company that was established or started operation within less than 10 years (excluding a subsidiary and other entity of a large company.)
Expanded coverage of “Special Operations”
Now possible to support energy and natural resource development, new technology and business models, and equity investments in startups through Special Operations
The Special Operations program was launched in 2016 to support overseas infrastructure projects for which did not need certainty of repayment principle. Added to this were “development of energy and natural resources,” “commercialization of new technology and business models,” and “equity investments in startups.”
Amid the need for digital transformation (DX) and green transformation (GX), there is an urgent need to promote outside the box innovation, and it is increasingly important to encourage companies to take on new challenges. Making it possible for JBIC to support such efforts spurs Japanese companies to take more risks.
Development of energy and natural resources: development of resources, including energy sources and rare metals such as rare earths.
Commercialization of new technologies and business models: businesses that utilize cutting-edge digital technology, green innovation-related businesses that utilize technologies to contribute toward decarbonization, businesses that utilize FinTech to improve convenience for service users.
