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About JBIC
About JBIC

This page introduces information on JBIC's role and organization.

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Infrastructure and Environment Finance Group

Photo of Executive Officer, Global Head of Infrastructure and Environment Finance Group

COVID-19 has not only affected people’s everyday lives and business environment but has created a trend in which the global economic society has strengthened efforts for climate change issues, as typified by green recovery. In addition, as Russian invasion of Ukraine is significantly affecting and threatening the world politics and economy, the importance of multilateral collaboration and cooperation with international organizations through the support for Ukraine and its neighboring countries has been growing.

Against this backdrop, JBIC has actively promoted green finance, transition finance and social impact finance under the Fourth Medium-term Business Plan (FY2021-FY2023), formulated and released in June 2021 and ESG Policy.

Also, in line with the partial amendment of the Japan Bank for International Cooperation Act in April 2023, JBIC has strengthened its function so that it can support the enhancement of the supply chain resilience in accordance with the changes in the international situation, support Japanese companies including startups to take further risks, and smoothly support the reconstruction of Ukraine.

The Infrastructure and Environment Finance Group will focus especially on supporting projects that contribute toward solving global issues such as realizing a globally decarbonized society and providing support for Ukraine and its neighboring countries as well as projects that help the enhancement of the resilience of Japanese companies’ supply chains. For realizing a decarbonized society, we believe the engagement-based approach is crucial, which encourages countries to take initiatives proactively in accordance with their own circumstances. To support this process, JBIC will leverage the strong relationships and dialogue channels it has cultivated with other countries. Also, for infrastructure projects with high project costs or risks and assistance projects for Ukraine and its neighboring countries, JBIC, as a policy-based financial institution, will support the business of Japanese companies through multilateral collaboration and cooperation with international organizations.

SEKINE Hiroki
Managing Executive Officer
Global Head of Infrastructure and Environment Finance Group

Business Environment and Key Challenges

Based on the Fourth Medium-term Business Plan (FY2021–FY2023), the Infrastructure and Environment Finance Group considers the following fields to be its key challenges. The Group will focus on projects that contribute toward addressing global issues such as realizing a decarbonized society and supporting Ukraine and its neighboring countries and projects such as those for rebuilding and strengthening the resilience of supply chains that will support Japanese companies in the era of rapid industrial and social transformation.

(1) Address Global Issues

Photo of Signing ceremony of Amunet Onshore Wind Farm ProjectSigning ceremony of Amunet Onshore Wind Farm Project

Without even having to examine specific cases, the major trend toward decarbonization is advancing.

At the G7 Cornwall Summit in June 2021, the G7 countries made the commitment to achieve net zero by 2050, and at COP27 in November 2022, countries confirmed the importance of the 1.5℃ target, which is more challenging than the Paris Agreement goal, and determined to strengthen their nationally determined contributions (NDCs) for 2030, which are consistent with the Paris Agreement goal.

There is a diverse assortment of measures and approaches for realizing this goal of decarbonization. The government of Japan has adopted a policy of deep engagement with the energy policies of developing countries to realize energy transitions together with these nations. This is based on the belief that adopting realistic measures suited to actual environments and circumstances in each individual country is instead the best means of efforts for realizing a decarbonized society. Regarding Asia, Prime Minister KISHIDA Fumio advocated the framework of Asia Zero Emission Community in his policy speech in January 2022. The purpose is that Asian nations share the philosophy of achieving a decarbonized society and cooperate to promote energy transitions. As Japan’s policy- based financial institution, JBIC will utilize the strong relationships it has cultivated with countries worldwide and support the realization of projects that contribute toward solving social issues such as decarbonization and energy transitions through engagement promoted by the government of Japan as well as waste-to-energy projects and projects for distributed power supply.

In addition, Russian invasion of Ukraine is significantly affecting and threatening the world politics and economy. Amid this, in May 2022, the G7 development ministers’ meeting announced the policy to support Ukraine’s neighboring countries including Poland and Romania. In June 2022, the Cabinet approved Basic Policy on Economic and Fiscal Management and Reform 2022, which states that Japan will respond resolutely to Russia’s invasion as the G7 chair and strengthen its support to Ukraine and other countries. Furthermore, G7 Foreign Ministers’ Statement on Energy Security released in August 2022 confirmed the policy that aims at reinforcing the energy security and resilience. Thus, multilateral collaboration and cooperation with international organizations through the support for Ukraine and its neighboring countries have become more important. In line with the partial amendment of the Japan Bank for International Cooperation Act in April 2023, JBIC has strengthened its function so that it can smoothly support the reconstruction of Ukraine. JBIC will support Ukraine and its neighboring countries through multilateral collaboration and cooperation with international organizations.

(2) Support the Strengthening of the International Competitiveness of Japanese Companies in the Era of Industrial and Social Transformation

Worldwide economic and mobility constraints caused by COVID-19 also exerted a tremendous impact on business, one of the most notable being disruptions to supply chains. As pointed out in the Infrastructure System Overseas Promotion Strategy 2025 (June 2023 Supplemented Edition), the social transformation such as digitalization and decarbonization is expected to accelerate globally with responses to the pandemic.

Accordingly, it will be more necessary than before to flexibly addressing novel needs for infrastructure, while continuing both the infection prevention measures and the initiatives for economic development and environmental preservation. We believe that supporting Japanese companies with proprietary technologies such as cutting-edge technologies beneficial for the environment, digitalization, or telecommunication in expanding overseas and supporting the enhancement of Japanese companies’ supply chain resilience during this trend will have important implications for maintaining and improving the international competitiveness of Japanese companies in the new post-pandemic world.

Starting with a loan to support the enhancement of the resilience of supply chains of Japanese companies in India in FY2020 (a loan to the State Bank of India), JBIC moved to further support projects that contribute toward enhancing the resilience of supply chains of Japanese companies by establishing the Global Value Chain Resilience Window within the Global Investment Enhancement Facility commenced in July 2022. JBIC will utilize this window to actively support the strengthening of overseas supply chains of Japanese companies.

(3) Propel Strategic Initiatives to Promote Quality Infrastructure Projects Overseas

Photo of Signing ceremony of an MOU with the EIBSigning ceremony of an MOU with the EIBImage of Subway project in OntarioSubway project in Ontario

The Free and Open Indo-Pacific (FOIP) advocated by the government of Japan in 2016 is rooted in the concept of ensuring peace and prosperity for the entire region, and by extension for the whole world, by realizing a free and open rules-based international order. In March 2023, “multi-layered connectivity” was set forth as the fourth pillar of cooperation for FOIP and the development of “quality infrastructure” that can contribute toward improving connectivity among regions is also important from the perspective of FOIP.

These types of quality infrastructures inevitably involve a multitude of stakeholders and there is a tendency for both scale and risks to increase, which often makes it difficult for Japan and JBIC to execute these projects alone.

Deeply aware of this problem, JBIC has traditionally emphasized collaboration with multilateral and international financial institutions. Specifically, JBIC has continued its efforts to fortify collaboration with policy- based financial institutions in Japan, the U.S., and Australia and with public financial institutions, such as the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).

In the Ontario Line subway project in Canada in November 2022, JBIC supported Hitachi’s business activities in the Canadian railroad market through co-financing with Korean and Canadian public financial institutions. In order to back up the initiatives of Japanese companies, JBIC will make efforts as a policy-based financial institution to support the overseas expansion of quality infrastructure, including infrastructure in the health and medical fields, which were once again recognized as being crucial sectors during the COVID-19 pandemic.

JBIC’s Activities

Business opportunities are growing in the field of carbon neutrality such as promoting investment in decarbonized and low-carbon industries (green recovery) as the economy recovers from the COVID-19 pandemic, and it is important to contribute to global decarbonization and sustainable economic growth by utilizing Japan’s exceptional technologies. JBIC provides support for projects that contribute to low-carbonization and environmental preservation in each country toward the realization of a global decarbonized society. JBIC is also supporting projects that contribute toward rebuilding and strengthening the resilience of Japan’s supply chains and assisting Ukraine and its neighboring countries. The main achievements of the Group in FY2022 are as follows.

Initiatives for Low-carbonization and Global Environmental Preservation

Financing for Onshore Wind Farm Project by Toyota Tsusho Corporation and Eurus Energy Holdings Corporation

Supporting Renewable Energy Project toward Realizing Decarbonized Society
Photo of Signing ceremony of Ras Ghareb 2 Onshore Wind Farm ProjectSigning ceremony of Ras Ghareb 2 Onshore Wind Farm Project

JBIC concluded a loan agreement with RED SEA WIND ENERGY S.A.E. (RED SEA), invested in by, inter alia, Toyota Tsusho Corporation and Eurus Energy Holdings Corporation, which operates onshore wind farm power generation business in Egypt. The Government of Egypt aims to increase renewable energy in the energy mix to 35% by 2030 and 42% by 2035 in order to reduce its dependence on thermal power.

In this project, RED SEA will build, own, and operate a 500 MW onshore wind farm in Ras Ghareb within the Red Sea Governorate along the shore of the Gulf of Suez, and sell the electricity generated to Egyptian Electricity Transmission Company. JBIC will support overseas business expansion of Japanese companies, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.

Loans to Indonesia, Vietnam, India, and others under GREEN Operations

Financially contributing toward global environmental preservation through utilization of financing tools under GREEN Operations
Photo of Signing ceremony of the GREEN to PertaminaSigning ceremony of the GREEN to Pertamina

Global action for Reconciling Economic growth and ENvironmental preservation (GREEN) refers to loans, guarantees, and investments in projects that are expected to contribute to both the environment and economy on a global scale through global environmental preservation operations. As part of GREEN Operations, JBIC provided PT Pertamina (Persero) (Pertamina) with the necessary funds for renewable energy projects in Indonesia.

In Vietnam, JBIC set up a credit line for Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) to support renewable energy projects in Vietnam under the Vietnam Climate Finance Framework (VCFF), which was announced under the Australia-Japan-United States Trilateral Infrastructure Partnership (TIP) in January 2023.

These projects align with the Just Energy Transition Partnership (JETP), which was agreed on in December 2022 by the governments of Vietnam and Indonesia respectively and their partner countries, including Japan and the United States, as well as the Asia Zero Emissions Community (AZEC) concept.

Also in India, JBIC provided SJVN Limited (SJVN), India’s state-owned company with the necessary funds for solar power generation projects.

As Japan’s policy-based financial institution, JBIC will financially contribute toward global environmental preservation by considering each country’s energy policy and environmental policy and utilizing financial tools under GREEN Operations.

Initiatives for Building and Restructuring Japanese Companies’ Supply Chains

Loan for Industrial Park Expansion Project by Vietnamese Subsidiary of Sumitomo Corporation

Supporting Overseas Business Expansion of Japanese Company
Photo of Expansion project of Thang Long Industrial Park IIExpansion project of Thang Long Industrial Park II

JBIC supported Thang Long Industrial Park II Corporation (TLIP2), a Vietnamese subsidiary of Sumitomo Corporation, through overseas investment loan. The finance is intended to provide the necessary funds for the expansion project of Thang Long Industrial Park II to be conducted by TLIP2 in the Hung Yen province in the north of Vietnam. The government of Vietnam has set forth a goal of attracting new foreign investment of $30 billion to $40 billion per year by 2025. With this goal and the trend of supply chain reorganization due to the COVID-19 pandemic, Japanese companies’ appetite for entering the Vietnamese market is growing.

Through the finance, JBIC will assist Japanese companies in entering overseas markets and will also facilitate the strengthening of supply chains.

Initiatives for Supporting Ukraine and Its Neighboring Countries

Guarantee for Samurai Bonds Issued by Bank Gospodarstwa Krajowego of Poland

Supporting Humanitarian Aid for Refugees from Ukraine amid Russia’s Aggression
Photo of Japan-Ukraine Summit MeetingJapan-Ukraine Summit Meeting
(photo provided by Prime Minister’s Office of Japan.)

JBIC provided a guarantee for yen-denominated foreign bonds in the Japanese bond market (Samurai bonds) issued by Bank Gospodarstwa Krajowego (BGK) of Poland. In the wake of Russia’s aggression against Ukraine, the Government of Japan has endeavored to enhance its relationship with Ukraine and Poland. Prime Minister KISHIDA Fumio conveying Japan’s solidarity and unwavering support for Ukraine during his visit to these two countries in March 2023 is a case in point. Poland has been one of the main destinations for refugees from Ukraine since the Russia’s aggression had started. In order to raise and channel funds for assistance to Ukraine and its citizens affected by the war, including for medical care, education, and housing for refugees, the Aid Fund was established in BGK. The Samurai bonds are intended to contribute to the Aid Fund to support its tasks in connection with the armed conflict on the territory of Ukraine.

Collaboration with Other Countries and Institutions

JBIC is working to reduce risks for seeking investments and realizing and accelerating infrastructure projects by building relationships with governments of other countries and collaborating with other institutions. In addition, with various discussions more frequently taking place worldwide toward decarbonization and carbon neutrality, JBIC will utilize the relationships it has built to the present with each country and get close to the actual circumstances and policies of each country and value its efforts for engagement to pursue a correct path while engaging in dialogue.

Regarding cooperation with other countries, JBIC signed memorandums of understanding (MOUs) with National Power Company of Indonesia (PLN), National Oil Company of Indonesia, Pertamina, and PT Sarana Multi Infrastruktur (Persero), to enhance cooperation for the promotion of energy transition in Indonesia. In addition, JBIC signed an MOU with the National Investment and Infrastructure Fund Limited (NIIFL) of India for the establishment and promotion of the India- Japan Clean and Growth Platform. This MOU intends to promote environmental preservation and growth of the Indian economy and enhance the cooperative relationship between Indian and Japanese companies.

JBIC will consider establishing a fund with NIIFL and providing debt financing to investee companies of funds managed by NIIFL by utilizing JBIC’s loan functions.

Regarding cooperation with other institutions, JBIC has been working on cooperation among the three countries of Japan, the U.S., and Australia, which are strengthening relations toward the realization of a “Free and Open Indo-Pacific” promoted by the government of Japan. Also, in May 2022, JBIC signed an MOU with the U.S. Trade and Development Agency (USTDA). This MOU is intended to strengthen the cooperation between JBIC and USTDA, and to support projects in certain sectors including but not limited to infrastructure, renewable energy, telecommunication, and digital connectivity, mainly in the Indo-Pacific, together with the Middle East, Africa, Latin America, the Caribbean, and Eastern Europe.

Additionally, in October 2022, JBIC signed an MOU with the U.S. International Development Finance Corporation (DFC), the Department of Foreign Affairs and Trade (DFAT), and Export Finance Australia (EFA). The MOU is intended to further strengthen the cooperation that Japan, the U.S., and Australia have developed under the previous MOU to further cooperate on telecommunications, digital and ICT, ports, airports, banking and financial services, critical minerals, resilient supply chains, and pandemic response as well as the sectors they mutually determined in the previous MOU, including infrastructure, energy, and natural resources. In May 2023, JBIC, together with DFC, provided a guarantee for part of EFA’s financing, which was provided to the Telstra group to support the acquisition of Digicel Pacific Limited (Digicel Pacific) by the Telstra group, Australia’s leading telecommunications company. Digicel Pacific is a telecommunications operator in the Pacific.

Map of Recent Major Overseas Infrastructure Projects
Introduction of the Finance Groups