February 2012Quarterly Highlights
Contributions to Acquisition of LNG Project Interest and LNG Imports
Supporting LNG Projects in Australia
On November 14, 2011, the Japan Bank for International Cooperation (JBIC) signed a loan agreement totaling up to US$400,428 thousand (JBIC portion) with an Australian subsidiary of Kyushu Electric Power Co., Inc. This loan was cofinanced with Japanese private financial institutions.
This project transports the natural gas produced in the Wheatstone lago Field and nearby fields, located northwest off Western Australia, to Ashburton North, Western Australia and produces a maximum of 8.9 million tons of LNG per year.
Through this financing, Kyushu Electric will acquire an interest in the LNG project in Australia, and plans to take delivery of LNG equivalent to approximately 20% of its annual procurement.
Financing Import of LNG
On November 22, 2011, JBIC signed a loan agreement totaling up to 60 billion yen (JBIC's portion) with Kyushu Electric Power Co., Inc. to finance the import of LNG. This financing was made in cooperation with Japanese private financial institutions.
In the aftermath of the Great East Japan Earthquake and the nuclear power station accident, natural gas has become increasingly important in ensuring the stable supply of power. This loan will contribute to the stable supply of power in Japan by financing LNG procurement.
Supporting Ship Exports and Overseas Business Expansion
Financing Purchase of Large Cruise Ships for Export through Buyer's Credit Agreements
Cruise ship (image)
On November 8, 2011, JBIC signed two buyer's credit agreements for ship exports with Carnival plc incorporated in England and Wales and Carnival Corporation incorporated in Panama ( "Carnival Corporation & plc"), a dual listed company and the world's largest cruise ship operator, to finance large cruise ships to be built by Mitsubishi Heavy Industries, Ltd.(MHI). JBIC provided these loans in cofinancing with a private financial institution, Mizuho Corporate Bank, Ltd. These loans will fund the purchase of two 125,000-ton large cruise ships for Carnival Corporation & plc. The ships will be built in MHI's Nagasaki Shipyard.
This loan will contribute to maintaining and strengthening the international competitiveness of the Japanese shipbuilding industry and support these shipyards in performing a significant role in the regional economy, including employment creation in small and medium enterprises associated with shipbuilding.
Supporting Investment in Environmental Projects on a Global Scale
Helping to Preserve the Global Environment by Equity Participation in Fund Investing in Clean Energy Sectors in South Asia
On December 6, 2011, JBIC signed an agreement for equity participation in South Asia Clean Energy Fund, L.P. that will invest principally in clean energy and environmental sectors in South Asia (India, Bangladesh, Nepal and Sri Lanka). JBIC will contribute US$20 million to the Fund.
The Fund is a private equity fund investing principally in established applied technology companies which provide products and/or services in the energy and environmental sectors in South Asia. This is the first equity investment made by JBIC under its Global action for Reconciling Economic growth and ENvironmental preservation (GREEN) operation.
By supporting these sectors through the Fund, it is expected to help reduce greenhouse gas (GHG) emissions and preserve the global environment.
Loan Agreement Contributing to Environmental Conservation with BCIE
On December 1, 2011, JBIC signed a loan agreement in an aggregate amount of up to US$100 million with Banco Centroamericano de Integración Económica (BCIE; English: The Central American Bank for Economic Integration) (JBIC's portion was US$60 million). BCIE is a multilateral regional financial institution in the Central American region consisting of 12 members that have contributed to capital. This loan is cofinanced with Mizuho Corporate Bank, Ltd. with JBIC providing a guarantee for the portion co-financed by Mizuho.
This loan will be used to finance environment-related projects in Central America such as renewable energy projects, and is also expected to help spread advanced environmental technology in Central American countries.
JBIC has built close cooperative ties with BCIE through loans financing Japanese exports to Central America and infrastructure projects. This loan will further deepen cooperative relations between the two institutions.
Policy Dialogue on Promoting Investments, Developing Infrastructure and Developing Resources
First Annual Meeting for Policy Dialogue Held in Mexico
First Annual Meeting for Policy Dialogue in Mexico
On November 29, 2011, JBIC held the First Annual Meeting for Policy Dialogue with the Mexican government in Mexico City. Based on an agreement made in February 2011 with Ministry of Finance and Public Credit (SHCP) of the United Mexican States and a Mexican trade investment promotion institution, approximately 20 participants, including Hiroshi Watanabe, President & CEO of JBIC, and Mr. José Antonio Meade, Secretary of SHCP, discussed promoting investment by Japanese companies in Mexico and providing financial support at this first annual meeting.
Second Annual Meeting for Financial Policy Dialogue Held in Indonesia
Hiroshi Watanabe, President & CEO of JBIC, gives a speech
On October 24, 2011, JBIC held the Second Annual Meeting for Financial Policy Dialogue with the Government of Indonesia (GOI) in Jakarta.
Promoting infrastructure development has become an urgent issue for Indonesia, and since the participants exchanged views at the First Annual Meeting held in August 2010, there has been concrete progress, such as Indonesia's first highly efficient coal power plant and small- and mediumsized gas field development undertaken with investments and technology from Japanese companies.
Approximately 50 people participated in this dialogue, including Hiroshi Watanabe, President & CEO of JBIC, and Indonesia's Minister of Finance, H.E. Agus Martowardojo. The discussions deepened the cooperative relationships between the participants.