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The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) today released operational results for the first quarter (April-June) of FY2014.
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 FY2014, JBIC made 64 commitments in the overall amount of approximately JPY479.9 billion in loans, guarantees and equity participations.
2. Disbursements,Repayments and Outstanding Amounts
Disbursements amounted to approximately JPY526.4 billion, while repayments were JPY556.4 billion in the first quarter. As a result, outstanding loans and equity participations totaled JPY12.7749 trillion and outstanding guarantees were JPY2.3958 trillion, with the total outstanding amount reaching JPY15.1707 trillion at the end of the first quarter.
II. Operational Highlights
1. Securing Stable Supply of Resources to Japan
In the area of mineral resources, JBIC supported an Australian subsidiary of Mitsui & Co., Ltd. for partially financing the expansion of West Angelas Iron Ore Mine and related infrastructure in Australia, and also supported Mitsubishi Corporation for partially financing the acquisition of part of equity shares in a Peruvian company that holds interests in the Quellaveco Copper Project in Peru.
In the area of energy, JBIC supported the acquisition of interests and development of the shale oil/gas project to be undertaken by a U.S. subsidiary of Mitsui & Co., Ltd. in the United States.
2．Supporting the Maintenance and Strengthening of International Competitiveness of Japanese Industries
(1) Supporting Strategic Overseas Business Activities of Japanese Companies
(a) Supporting Overseas Investment of Japanese Manufacturers
JBIC supported, through acquisition of preferred shares, Metito Holdings Limited, an integrated water management company headquartered in Dubai, United Arab Emirates, in which Mitsubishi Corporation and Mitsubishi Heavy Industries, Ltd. have equity stakes, and TAKSHASILA HOSPITALS OPERATING PRIVATE LIMITED, an Indian joint venture of Secom Medical System, Toyota Tsusho Corporation and an Indian company, which undertakes the first general hospital operation project in India.
(b) Supporting Japanese Exports
JBIC supported the export of machinery and equipment related to geothermal power generation by a Japanese company by using a credit line set up for Turkish bank Yapı ve Kredi Bankası A.Ş. In addition, JBIC set up an export credit line for Indian company Reliance Industries Limited to support the export of facilities related to oil refining and petrochemical plants by Japanese companies, including mid-tier enterprises and small and medium-sized enterprises (SMEs).
In supporting ship exports, JBIC signed loan agreements to finance PB Vessels Holding Limited, a wholly-owned subsidiary of the leading Hong Kong-based ship operator Pacific Basin Shipping Limited to finance the purchase of 18 bulk carriers. Also, JBIC provided two buyer's credit to two Singaporean subsidiaries of Tai Chong Cheang Steamship Group, a ship owner based in Hong Kong, for funding the purchase through Sumitomo Corporation of two bulk carriers built by Imabari Shipbuilding Co., Ltd.
In addition, JBIC provided a buyer's credit to the state-owned gas company of Turkmenistan for exporting a set of ethylene complex facilities by a Japanese company, and in project financing for the STAR oil refinery project in Turkey to finance the necessary funds partially for engineering, procurement and construction of an oil refinery plant, upon a collective order.
Additionally, JBIC set up an export credit line for JSW Steel Limited in India to support the further export expansion of machinery and equipment of Japanese companies, by responding timely and flexibly to their investment demand.
(2) Supporting Overseas Infrastructure Development Business of Japanese Companies
JBIC provided project financing to an operator of the East Coast Main Line segment of the Intercity Express Programme in the UK, for procuring the rail car, developing railway depots for maintenance, and leasing those trains to them with maintenance service by an UK subsidiary of Hitachi, Ltd., and also supported the Rajamandala Hydro Power Plant Project in Indonesia invested by The Kansai Electric Power Co., Inc.
(3) Supporting Overseas Business Deployment of Mid-Tier Enterprises and SMEs
JBIC supported SMEs'overseas business deployment by providing an equivalent of approximately JPY9.59 billion in a total of 24 loans, including loans in a local currency, to SMEs including ENKEI Corporation for manufacturing and sales business of automobile parts (aluminum wheels) and Kasai Works Co., Ltd. for manufacturing and sales business of plastic resin molded parts, including door mirror switches, by their subsidiaries in the Philippines. Also, JBIC signed an MOU on operational cooperation with The Shimizu Bank, Ltd.
(4) Supporting through Local Currency Financing
JBIC supported NISSIN MANUFACTURING CO., LTD. by providing JBIC's first financing in Mexican pesos for manufacturing and sales business of automobile engine parts in Mexico, and Sagami PCI Corp. in Thai baht for processing and sales of electric and electronic parts in Thailand. Also, JBIC signed an MOU for proceeding discussions toward Indonesian rupiah financing under the currency swap guarantee scheme between The Bank of Tokyo Mitsubishi UFJ, Ltd. and PT Bank CIMB Niaga Tbk, a local financial institution in Indonesia.
3．Efforts in the Environmental Sector
JBIC signed an MOU on cooperation in the environment sector with Abu Dhabi National Oil Company (ADNOC), the state-owned oil company of the United Arab Emirates (UAE), to support Japanese companies business by diversifying the relations with them.