- Region: Latin America and the Caribbean
- Environment
- Untied Loans
- Guarantees
October 11, 2011
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe) *1 signed on October 10 (Mexico City time) a loan agreement in the aggregate cofinancing amount of up to 100 million U.S. dollars with Banco Nacional de Comercio Exterior, S.N.C. (BANCOMEXT). This is the first loan extended to Mexico under GREEN operations.*2 The loan is cofinanced with Mizuho Corporate Bank, Ltd. (lead arranger) and Sumitomo Mitsui Banking Corporation (SMBC), with JBIC providing a guarantee for their cofinanced portion.
- The loan will provide funding for environment-related loans focusing on renewable energy projects, including solar and wind power projects. The loan is thus expected to contribute to promoting the adoption of renewable energy and greenhouse gas (GHG) emission reduction in Mexico. The Mexican government has ratified the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol. It also served as chair of COP16 held in 2010, thereby helping reach its accord. In addition, Mexico has set a quantitative goal of reducing GHG emissions by 50 percent by 2050 from the base year of 2000, and its government is taking vigorous steps to implement measures to cope with climate change in its efforts to achieve this goal through greater harnessing of renewable energy.
- BANCOMEXT is an official financial institution in Mexico with a mission to promote external trade and implement the national development plan. In recent years, it has been strengthening support for environmental conservation measures taken by the private sector and environmental projects. Since the 1980s, JBIC has built a close relationship with BANCOMEXT by providing loans for exports of machinery and equipment to Mexico as well as for the country's industrial investments and export promotion. This loan, which finances the environment sector, will lead to even closer mutual cooperative ties between the two institutions.
- JBIC is committed to global environmental sustainability in cooperation with official financial institutions in other countries in order to contribute to the sound development of the Japanese and international economies.
Note
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 See Information dated April 27, 2010.