- Region: Latin America and the Caribbean
- Untied Loans
December 1, 2011
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed today a loan agreement in the aggregate amount of up to 100 million U.S. dollars with the Banco Centroamericano de Integración Económica (BCIE; English: The Central American Bank for Economic Integration) in cofinancing with private financial institutions. The portion of JBIC in the cofinanced total amounts to 60 million U.S. dollars. This loan is the first loan extended to the Central American region for GREEN operations*2. The loan is cofinanced with Mizuho Corporate Bank, Ltd. (lead arranger) with JBIC providing guarantee for the portion cofinanced by the private financial institution.
- The loan will be used to finance renewable energy projects, including wind power generation, geothermal generation and hydraulic power generation in Central American countries.*3 For instance, the Republic of Costa Rica, Republic of El Salvador and Republic of Guatemala, all covered by this loan, have placed the focus of environmental policy on accelerating the harnessing of renewable energy. Therefore, this loan is expected to contribute to accelerating the harnessing of renewable energy and reducing greenhouse gas (GHG) emissions in Central American countries.
- BCIE is a multilateral regional financial institution in the Central American region constituted by 12 members that have contributed to capital.*4 Its objective is to promote the economic integration and balanced economic and social development in the region. It has a major presence in the region as a stable supplier of long-term financing and advocates “environmental sustainability” as one component of its business strategy by placing enhanced priority of financial support in the areas of renewable energy and energy efficiency. JBIC and BCIE have built up close cooperative ties since the late 1960s through loans financing Japanese exports of machinery and equipment to Central American countries and their infrastructure projects. This loan, which finances the environment sector, will further deepen cooperative relations between the two institutions.
- JBIC is committed to making efforts to promote global environmental sustainability in cooperation with multilateral regional financial institutions in order to contribute to the sound development of Japanese and international economies as well as improvement in national lives.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 See Information on April 27, 2010.
- *3 BCIE can provide loans to the following 10 countries: El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica, Belize, Argentina, Colombia, Panama and Dominican Republic.
- *4 BCIE was founded by 5 countries of El Salvador, Guatemala, Honduras, Nicaragua and Costa Rica. It also has the non-regional members of Spain, Taiwan, Mexico, Argentina, Colombia, Panama and Dominican Republic.