Japan Bank for International Cooperation (JBIC)
The Japan Bank for International Cooperation (JBIC, Governor: Tadashi Maeda) announced the launch of its new Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG)*1, starting on July 1, 2018.
Japanese Deputy Prime Minister and Minister of Finance Taro Aso announced the launch of QI-ESG at the Annual Meeting of Asian Development Bank held in May 2018 in Manila, the Philippines. Amid increasing global trend for environmental, social and governance (ESG) investment across the world, JBIC's new facility, QI-ESG aims to provide a wide range of financing support for infrastructure development which is expected to help to preserve the global environment.
An overview of QI-ESG is outlined below.
Financing conditions of QI-ESG
- Eligible projects: Projects that are expected to reduce greenhouse gases or contribute to protecting the global environment, including those related to renewable energy, energy savings, green mobility solutions (such as a modal shift in transportation and electric vehicles), air pollution prevention, water supply, water pollution prevention and waste disposal, etc.
- Available currencies: Japanese yen, U.S. dollar, and the Euro (other currencies to be decided separately)
- Financing amount available from JBIC: Up to 60% of the total co-financing amount
- Deadline for signing a financing agreement: Until the end of June 2021
- Other conditions: to be considered on a project-to-project basis (terms under QI-ESG will be applied for overseas investment loans or untied loans to the eligible projects)
Major Features of QI-ESG
- Expanded scope of eligible projects
The new facility will provide various financial assistance to infrastructure development projects that are expected to contribute to global environmental protection, including those connected with air pollution prevention, water supply, water pollution prevention and waste disposal, in addition to the sectors that JBIC has supported under its GREEN Operations*2, such as renewable energy, energy savings and green mobility, which involves converting conventional petrol-fueled vehicles into electric vehicles for sustainable transportation.
- More diversified financial support tools
Previously, JBIC provided financing support only in the form of untied loans and equity participation under its GREEN Operations. Under QI-ESG, to enhance the support for environmental projects through various financial tools, JBIC will offer overseas investment loans under its GREEN Operations, in addition to the above-mentioned financial instruments, for infrastructure projects that are expected to help protect the global environment. The new facility will enable JBIC to consider providing overseas investment loans to projects involving Japanese companies from the perspective of not only maintaining and increasing the international competitiveness of Japanese industries, but also of contributing to global environmental protection.
JBIC will promote QI-ESG in collaboration with multilateral development banks and other financial institutions.
- More streamlined and efficient operation procedures
Projects approved under the GREEN Operations have been required to quantify greenhouse gas (GHG) emission reductions under the Guidelines for Measurement, Reporting and Verification (MRV) of GHG Emission Reductions in JBIC's GREEN Operations. Under QI-ESG, to further promote the implementation of projects, the quantitative measurement process of GHG emission reductions applied to GREEN projects will be simplified by only evaluating an estimate of emission reductions made through projects when JBIC determines commitment of a loan, equity participation, or guarantee. Furthermore, if it is obvious that a project will help to protect the global environment based on a qualitative evaluation, the evaluation process of calculated emission reductions can be omitted for the purpose of implementing more simplified and efficient operation procedures. This will ease the burden of clients applying for JBIC's financing supports.
For details about QI-ESG, please contact below.
Natural Resources Finance Group
|○Oil and Gas Finance Department
(Tel: +81-(0) 3-5218-3513)
(Tel: +81-(0) 3-5218-3514)
Environment Finance Group
|○New Energy and Power Finance Department I
(Tel: +81-(0) 3-5218-3813)
(Tel: +81-(0) 3-5218-3412)
(Tel: +81-(0) 3-5218-3058)
|Industry Finance Group||○Corporate Finance Department
(Tel: +81-(0) 3-5218-3574)
(Tel: +81-(0) 3-5218-3577)
- *1QI-ESG is an abbreviation of called "JBIC Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth."
- *2For details, please refer to the announcement issued on April 27, 2010