- Region: Latin America and the Caribbean
- Untied Loans
July 28, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on July 25 a loan agreement for setting up a credit line (the "Credit Line") totaling up to USD100 million (of which JBIC's portion is USD50 million) with Banco Nacional de Comercio Exterior, S.N.C. (BANCOMEXT), taking an opportunity of Prime Minister of Japan H.E. Shinzo Abe's visit to Mexico . The credit line is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), with JBIC providing a partial guarantee for the cofinanced portion. Also, this was referred to in the joint press release of Japan and Mexico after the meeting on July 25 between Prime Minister of Japan H.E. Shinzo Abe and President of Mexico H.E. Enrique Peña Nieto .
BANCOMEXT is a governmental financial institution in Mexico with a mission to promote foreign trade and induce foreign capital. To date, JBIC and BANCOMEXT have built up a close relationship over the period of about thirty years through provision of JBIC loans for exports of machinery and equipment to Mexico as well as for the country's industrial investment and export promotion.
The Mexican government announced in 2009 the Greenhouse Gas (GHG) emission reduction plan and has been taking vigorous steps to implement measures to cope with climate change, which include setting the quantitative goal of reducing GHG emissions by 50 percent until 2050 from the level in 2000. Amid these developments, BANCOMEXT has been actively supporting environment-related projects with a focus on renewable energy. This credit line is thus expected to reduce GHG emissions in Mexico as well as provide opportunities to propagate internationally acclaimed Japanese advanced environmental technologies in the country. This is consistent with "ACE: Actions for Cool Earth" advocated by the Japanese government.
As Japan's policy-based financial institution, JBIC will continue to support global environment conservation efforts in cooperation with overseas governmental financial institutions, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 JBIC launched GREEN (Global action for Reconciling Economic growth and ENvironmental preservation) operations in April 2010. See Information on April 27, 2010.
- *2 See Press Release on October 11, 2011.