Catalyzing International Finance
Addressing Turmoil in Global Financial Markets: Promotion of Economic Stability in Asia, and Support for Africa

Follow-up on Announcement of the Market Access Support Facility: JBIC Guarantees for Samurai Bonds, Up to a Total of 500 Billion Yen

Following the statement made during the 12th ASEAN Plus Three Finance Ministers' Meeting on May 3 in Bali, Indonesia, by the Japanese government, JBIC will encourage efforts to regain access to international markets by Asian developing countries that have regularly raised funds through sovereign bond issuance in international financial markets but are temporarily unable to do so due to the current financial turmoil. Specifically, JBIC will provide guarantees totaling up to 500 billion yen for Samurai bonds issued in the Japanese bond market by Asian developing countries. It is planned that, following a request from one of these countries, a guarantee commitment will be made to a qualified country. The deadline for submitting a request is set at the end of Japan's fiscal 2009.

The guarantees are expected to facilitate market fundraising by Asian developing countries. They will also foster the Samurai bond market, while serving to bring stability to Asian economies as well as global financial markets.

JBIC Signs MOU with African Development Bank to Strengthen Cooperation

JBIC signed a Memorandum of Understanding (MOU) with the African Development Bank (AfDB) on May 14 during the Annual Meeting of AfDB held in Dakar, Senegal. The MOU aims to strengthen cooperation between the two banks in supporting economic development in Africa.

By enhancing collaboration between JBIC and AfDB, the signing of the MOU is expected to not only help boost Japan's trade and investment to Africa but also contribute to Africa's sustainable development through promoting the region's infrastructure development.

Support for Samurai Bond Issues of Asian Countries (Yen-denominated Sovereign Bonds)

International Business Development
Supporting Improvement of the Financial Environment for Japanese Affiliates in Malaysia

In May 2009, JBIC signed an untied loan agreement with RHB Bank Berhad and the Malayan Banking Berhad (Maybank), Malaysian commercial banks, to provide financing for the business development projects of both banks. Specifically, the loan will enable the two banks to provide long-term financing to Japanese companies in Malaysia, where more than 1,400 Japanese firms are in operation, mainly in the manufacturing sector, as well as to local companies within those firms' supply chains in Malaysia. The loan aims to support corporate financing activities amid the pervasive impact of the global financial crisis.

Energy and Natural Resources
Chile's Esperanza Copper Mining Project, Financed by JBIC: Japanese Plans To Buy Some of the Copper

JBIC signed a loan agreement in May 2009 with the Chilean corporation Minera Esperanza to provide financing for the Esperanza copper mining development project. The UK company Antofagasta PLC and Japan's Marubeni Corporation have equity stakes in Minera Esperanza, and the financing will provide these companies with capital to promote the development and production of the mine, which is located in Chile's II Antofagasta Region. Plans call for some of the copper concentrates produced by the mining project to be purchased by Japanese companies.

Japan depends on imports for all of its copper concentrate, the material used to make copper. In 2007, Japan imported about 5,050,000 tons of copper concentrate, and about 43% of this amount comes from Chile. JBIC has already been supporting copper mining projects in Chile, particularly the Escondida and Los Pelambres copper mines.

Environment
JBIC To Promote Carbon Capture and Storage as a Founding Member of GCCSI

Australian Prime Minister Kevin Rudd announcing establishment of the GCCSI

The Global Carbon Capture and Storage Institute (GCCSI) was established in April 2009 at a meeting of founding members in Canberra, Australia. Australian Prime Minister Kevin Rudd formally launched the Institute, which will act as an international organization promoting carbon capture and storage (CCS) projects.

JBIC has entered into an agreement with the government of Australia to participate in the GCCSI as a founding member. JBIC will cooperate with the Institute by promoting the worldwide spread of CCS projects.

In pursuit of this goal, JBIC plans to offer advice in financial matters, taking advantage of its experience financing development projects for crude oil, natural gas and other resources, its expertise in emission trading projects, and its wealth of information gained through supporting CCS projects. A number of Japanese companies are participating in the Institute, and JBIC intends to contribute to the achievement of its goals by promoting the CCS project development efforts of Japanese companies and their use of Japanese technologies.

Knowledge Assistance
Trade Finance Facilitation Program Seminar

In April 2009, JBIC and the Asian Development Bank (ADB) held a seminar in Tokyo to promote the Trade Finance Facilitation Program. (ADB supports banks in member developing countries in Asia and the Pacific region in their efforts to provide trade finance products to importers and exporters.) During the seminar, information on the program was provided to financial institutions, and participants exchanged views on such subjects as trade finance in Asia and tie-up projects involving both JBIC and ADB.