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August 6, 2013
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) today released operational results for the first quarter (April-June) of FY2013.
A summary of the results is given below. See Appendix for a detailed breakdown of the figures by financial instrument.
I. Loans, Guarantees and Equity Participations
1. Commitments
In the first quarter of FY2013, JBIC made 43 commitments in the overall amount of 472.8 billion yen in loans, guarantees and equity participations.
2. Disbursements, Repayments and Outstanding Amounts
Disbursements amounted to 781.2 billion yen, while repayments were 357.6 billion yen in the first quarter. As a result, outstanding loans and equity participations totaled 11,469.0 billion yen and outstanding guarantees were 2,403.9 billion yen, with the total outstanding amount reaching 13,872.9 billion yen at the end of the first quarter.
II. Operational Highlights
1. Operations in Development and Securement of Resources
In the area of energy resources, JBIC supported by funding the acquisition of interests and development of the Mariner and Kinnoull Oil Fields in the North Sea of Great Britain, and supported Japanese power and gas companies to participate in the Ichthys LNG Development Project in Australia. The Ichthys Project is the first project for a Japanese company to operate the complete process of the project: from development of the gas and condensate field to production of LNG and other petroleum products, and Japanese companies are expected to take delivery of about 70% of LNG produced. Also, in the mineral resource sector, JBIC supported the coal mine expansion project where a Japanese company operates and is developing the mine in Australia.
2. Supporting Overseas Business Deployment of Japanese Companies
(1) Overseas Business Development of Mid-Tier Enterprises and Small and Medium Sized Enterprises (collectively "SMEs")
JBIC supported SMEs' overseas business development by providing: a loan for the manufacturing and sales of Buddhist Ornaments in Indonesia; a loan for the heat-treatment processing business for automobile parts, and manufacturing and sales of automobile parts in Thailand; a loan for the plant engineering business in Vietnam; a loan for the manufacturing and sales of automobile parts in India; a loan for the manufacturing and sales project of grain processing machinery in Brazil; and a credit line for an Indonesian subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited.
Also, JBIC provided: a loan, cofinanced with The Hyakujushi Bank, Ltd., for manufacturing and sales of parts of motorcycles and construction machinery in Indonesia; a first loan in April, otherwise, based on the second credit line set in March, for The Senshu Ikeda Bank and disbursement of sub-loan to finance the manufacturing and sales of robot cables and continuous flexible cables in Thailand; and two separate memorandums of understanding (MOUs) with Seibu Shinkin Bank and Gunma Bank Ltd. for business collaboration.
In addition, JBIC signed a MOU with SPRING Singapore, an agency under the Ministry of Trade and Industry of Singapore, and Mizuho Corporate Bank Ltd., for forming the strategic partnership to support the promotion of SMEs' business cooperation in ASEAN countries.
(2) Supporting Exports of Japanese Companies and Securitization of Credit Card Receivables
As operations to support Japanese companies, JBIC extended a first export credit line for the Mongolian government to finance the purchase of Japanese machinery and equipment by Mongolian local companies. Also, JBIC offered an export credit line for Banco Centroamericano de Integración Económica, supporting the export of Japanese machinery and equipment related to renewable energy and other sectors to countries in Central America and others.
As the support for Japanese companies' securitization, JBIC supported the securitization of credit card receivables by a local affiliate invested by a Japanese company, in Thailand. This was the first credit card receivables securitization deal for JBIC.
3. Efforts in the Environmental Sector
Under GREEN (Global action for Reconciling Economic growth and ENvironmental preservation) operations, JBIC offered a credit line to the Development Bank of Southern Africa Limited (DBSA), supporting environment-related projects such as wind power, solar photovoltaic power generation and other projects harnessing renewable energy resources in the member countries of the Southern African Development Community (SADC). This was JBIC' s first loan to Africa under GREEN operations. Also, JBIC offered a credit line to the State Bank of India under GREEN operations, supporting energy efficiency and renewable energy projects in India.
In addition, JBIC signed two separate MOUs with Banco Nacional de Costa Rica (BNCR) and Banco de Costa Rica (BCR) in Costa Rica respectively to explore the future cooperation among JBIC, BNCR and BCR, for supporting the financing of Japanese exports of renewable energy-related equipment to Costa Rica, including for wind power and geothermal power generation, and to exchange information regarding potential projects under the future financing cooperation.
4. Others
JBIC signed a MOU with Vnesheconombank (VEB), an official financial institution wholly-owned by the Government of the Russian Federation and the Russian Direct Investment Fund (RDIF), which is managed by a wholly-owned subsidiary of VEB*1, on establishing the Russia-Japan Investment Platform, and another MOU with VEB on establishing a cooperative framework for extending a bank-to-bank loan to VEB. The signing took place during the visit of Prime Minister Shinzo Abe to Russia.
JBIC launched the JBIC Facility for African Investment and Trade Enhancement ("FAITH"), supporting the promotion of private sector-led growth and acceleration of infrastructure development in African countries by drawing on its financial instruments such as loans, equity participations and guarantees. Under FAITH, JBIC will actively extend loans, including loans in local currencies, make equity participations and provide guarantees in cooperation with international organizations.
Note
- *1 RDIF is an investment fund established in 2011 with the objective of developing domestic industries in Russia and activating investment. It is managed by RDIF Management Company (contracting party of this MOU), a wholly-owned subsidiary of VEB.