- Region: Latin America and the Caribbean
- Equity Investment
July 16, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on July 15 the agreements for equity participation in the Balam Fund I, L.P. (the "Fund"), a private equity fund jointly managed by The Rohatyn Group, a private investment firm, incorporated in the U.S. and BK Partners, an investment advisory and private equity firm incorporated in Spain, which will make investments in Mexico in the renewable power generation and energy efficiency industries.
- The purpose of JBIC's participation in the Fund is to provide financial support to renewable energy and energy efficiency businesses in Mexico under GREEN operations.*1 In addition to JBIC, Fondo Nacional de Infraestructura (FONADIN) and the Inter-American Development Bank also participate in the Fund by the equity investment and the senior loan respectively. The Fund will be launched with an aggregate amount of approximately 87.5 million U.S. dollars with initial commitment from JBIC of up to 20 million U.S. dollars. As the total commitment amount of the Fund increases, JBIC plans to increase commitment amount up to 40 million U.S. dollars at a maximum. Eventually the total commitment amount of the Fund is expected to increase up to 200 million U.S. dollars.
- During COP16 held in Mexico in December 2010, the Mexican government not only announced internationally its policy of reducing Greenhouse Gas (GHG) emissions in the country, indicating its intention to actively tackle climate change, but also took the lead as chair of the COP to build a consensus among the participant countries. JBIC's participation in the Fund will contribute to reduction of GHG emissions in Mexico and thus enhance such efforts of the government. It is expected that the Fund would provide any information of its portfolio investments to the Japanese companies which have broad interests in the renewable power generation and energy efficiency businesses in Mexico, which could expand business opportunities of Japanese companies in the country.
- As a public financial institution, JBIC continues to support environmental preservation in Mexico under GREEN operations by drawing on its various financial facilities and schemes, including its function of equity participation in private equity funds and thereby contributes to deepening and strengthening the economic relationship between Japan and Mexico.
- *1 See Information on April 27, 2010.