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The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) today released the operational results for the second quarter (July-September) 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 second quarter of FY2014, JBIC made 63 commitments in the overall amount of approximately JPY995.6 billion in loans, guarantees, and equity participations.
2.Disbursements,Repayments and Outstanding Amounts
Disbursements amounted to JPY785.8 billion, while repayments were JPY441.3 billion in the second quarter. As a result, outstanding loans and equity participations totaled JPY13,824.3 billion and outstanding guarantees were JPY2,503.4 billion, with the total outstanding amounts reaching JPY16,327.8 billion at the end of the second quarter.
Ⅱ.Operational Highlights
1．Securing Stable Supply of Resources to Japan
In supporting natural resource development projects, JBIC provided loans in project financing to the Cameron LNG Project in the U.S.; the FPSO operation project in off-shore Brazil; and the post-combustion carbon capture-enhanced oil recovery (CO2-EOR) project in the U.S.
In addition, JBIC signed MOUs on operational cooperation respectively with Petróleos Mexicanos (PEMEX), a Mexican state-owned petroleum company; Vale S.A. (VALE), a Brazilian natural resource major; and the Ministry of Mineral Resources of the Government of Mozambique.
2．Supporting Maintenance and Strengthening of the International Competitiveness of Japanese Industries
(1) Supporting Strategic Overseas Business Activities of Japanese Companies
(i) Overseas Investment of Japanese Companies
JBIC supported Suntory Holdings Limited for the acquisition of Beam Inc. (now called Beam Suntory Inc.), a U.S. company engaged in producing and selling spirits, through hybrid financing; and a Thai subsidiary of BOT Lease Co., Ltd., that conducts the leasing and hire-purchasing business of construction machineries, forklifts and transportation equipment, by providing a loan in Thai Baht.
(ii) Export of Japanese Companies
JBIC provided loans to the Berge Bulk Group, a leading shipping operator managed in Singapore, for funding the purchase of two bulk carriers to be built by IMABARI SHIPBUILDING CO., LTD.
(2) Supporting Overseas Infrastructure Development Business of Japanese Companies
JBIC supported the offshore wind power generation project in U.K., in which Marubeni Corporation participated, in project financing denominated in pound sterling. In addition, JBIC provided a loan in project financing to Africa's first ultra-super-critical coal-fired power plant project in Morocco in which Mitsui & Co., Ltd. participated; and another loan in project financing to the hydropower plant project in Laos in which The Kansai Electric Power Company, Incorporated, participated. Aside from them, JBIC provided export loans to Vietnamese and Indian electric power companies respectively, for purchasing a set of steam turbine facilities and related equipment.
Furthermore, JBIC signed MOUs on the exchange of information and opinions in the infrastructure sector respectively with Banco Nacional de Obras y Servicios Públicos S.N.C. (BANOBRAS), the National Works and Public Services Bank in Mexico, the Export-Import Bank of India, and GMR Infrastructure Limited in India.
(3) Supporting Overseas Business Deployment of Mid-tier Enterprises and Small and Medium-Sized Enterprises
JBIC approved 34 loans totaling about JPY11.6 billion (including local currency loans*1) to support overseas business deployment of mid-tier enterprises and small and medium-sized enterprises (SMEs). They included loans for funding the manufacturing and sales business of denim fabric by a Thai subsidiary of KAIHARA CORPORATION; manufacturing and sales business of residential metal parts by a Vietnamese subsidiary of KATZDEN ARCHITEC Co. Ltd.; and manufacturing and sales business of automobile parts by a Philippine subsidiary of DAIWA SEIKO CO., LTD. JBIC also signed MOUs on operational cooperation with The SHIGA BANK, Ltd. and Banco Nacional de Desenvolvimento Econômico e Social (BNDES; the Brazilian Development Bank).
(4)Supporting with Local Currency Loans
JBIC provided 9 local currency loans totaling the equivalent of about JPY34.4 billion. They included a loan in Indonesian Rupiah for the manufacturing and sales business of automatic machine and inspection machine by an Indonesian subsidiary of KYOTOSEIKO CO., LTD.; and a loan in Thai Baht for the brewing and sales business of Japanese soy sauce by a Thai subsidiary of Yamamori Inc.
(5)Supporting Samurai Bond Issuance
JBIC approved guarantees for Samurai bonds (privately placed yen-denominated bonds) issued by the Turkish government, and thereby supported the maintenance and strengthening of the international competitiveness of the Japanese capital market as well as the diversification of funding sources for the Turkish government.
3．Efforts in the Environment-related Sector
Under the "GREEN" (Global action for Reconciling Economic growth and ENvironmental preservation) operations, JBIC set up a credit line with Banco Nacional de Comercio Exterior, S.N.C. (the National Exterior Commerce Bank of Mexico) focusing on renewable energy and energy efficiency projects. JBIC also signed MOUs on the exchange of information and opinions regarding renewable energy and other projects with Nacional Financiera, S.N.C., I.B.D. of Mexico and the Ministry of New and Renewable Energy of India, respectively.