- Region: Oceania
- Energy and Natural Resources
- Marine and Aerospace
- Import Loans
- Project Finance
November 10, 2011
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on November 9 a loan agreement in the amount of up to 12.6 billion Japanese yen (JBIC's portion) with Bahamas LNG Shipping Ltd. (BLS), a company wholly owned by Nippon Yusen Kabushiki Kaisha (NYK LINE). The loan, provided in project financing,*2 is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd., and Sumitomo Mitsui Banking Corporation (SMBC).
- This loan will finance BLS for procurement of a new liquefied natural gas (LNG) tanker, which is to be used in order for The Tokyo Electric Power Company, Incorporated (TEPCO) to import LNG produced in the PNG LNG Project*3 in the Independent State of Papua New Guinea. Given the fact that natural gas has been playing an increasingly important role as fuel for generating electricity, this loan will contribute to securing a long-term supply of natural gas to Japan by utilizing the know-how of a Japanese shipping company.
- JBIC will continue to contribute to Japan's energy security by actively supporting Japanese firms in their efforts to secure stable acquisition of significant natural resources to Japan through project structuring and risk-taking functions that draw on its various financial instruments and schemes.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 Project finance is a financial scheme in which repayments are made solely from cash flows generated in a project and secured only on the local project assets.
- *3 See News Release of December 16, 2009.