- Region: Others
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) today reported its operational results for FY2015.
A summary of the results is given below. See the Appendix for a detailed breakdown of the figures by regions and financial instruments and for trends of the past five years.
■ In FY2015, JBIC made overall commitments totaling JPY2.3974 trillion in loans, equity participations and guarantees, a decrease of 26.2% from the previous year.
■ Outstanding loans and equity participations amounted to JPY13.8439 trillion, while outstanding guarantees were JPY2.4647 trillion as of March 31, 2016. This brought the overall outstanding amount to JPY16.3086 trillion.
II. Operational Highlights
1. Efforts to Promote Overseas Development and Acquisition of Interests and Important Resources to Japan
Securing stable long-term supplies of energy and mineral resources is a vital task that directly affects people’s lives in Japan, as a country heavily dependent on imports from overseas for most of its resources. Through the acquisition of upstream resource interests, diversification of supply sources, enhancement of fuel value chain, and strengthening of relationships with resource-rich countries, JBIC contributes to securing a stable long-term supply of resources. In FY2015, JBIC made a total of 12 commitments amounting to JPY489.2 billion in loans, equity participations and guarantees for projects and transactions in the resource sector as a whole.
As examples, JBIC provided necessary support to Abu Dhabi National Oil Company (ADNOC) in order for Japanese companies to secure steady imports of crude oil. JBIC also supported the Sakhalin-I Odoptu Field Stage-2 Development Project in Russia, as well as the offshore FPSO*1 project in Brazil, and financed shipping businesses of LNG tankers. Furthermore, JBIC financed a methanol and dimethyl ether production project in the Republic of Trinidad and Tobago, and a titanium sponge production and sales business in Saudi Arabia, both of which are conducted by Japanese companies.
2. Efforts to Maintain and Strengthen International Competitiveness of Japanese Industries
Amid increasingly intense international competition caused by economic globalization, JBIC supports Japanese companies to maintain and expand their overseas market acquisition strategies and supply chains by drawing on its various financial facilities and schemes. In such way, JBIC contributes to maintaining and strengthening the international competitiveness of Japanese industries. In these areas, JBIC made a total of 282 commitments amounting to JPY1.8858 trillion in loans, equity participations, and guarantees in FY2015.
(1) Supporting Overseas Infrastructure Business Deployment by Japanese Companies
In the power sector, JBIC provided loans for natural gas-fired power generation and desalination project in Qatar, as well as for an offshore wind power generation project in the Netherlands, both of which are invested in by Japanese companies. JBIC also supported Japanese companies to export thermal power generation facilities to the Bangladesh Power Development Board and PT PLN (Persero), a state-owned power company in Indonesia, and geothermal power generation equipment to an Icelandic national power company and a Turkish company.
In the telecommunication sector, JBIC supported the export of a complete system needed for the optical submarine cable systems construction project, through providing an export loan for Banco de Desenvolvimento de Angola (BDA), the development bank of Angola.
There was also a shareholders agreement signed by JBIC for equity participation in Dawei Special Economic Zone Development Company Limited in Myanmar.
(2) Supporting Strategic Overseas Business Activities of Japanese Companies
(a) Supporting Overseas Investments by Japanese Companies
JBIC provided loans for the manufacturing and sales business of large-diameter welded steel pipes for oil/gas pipelines in Abu Dhabi, UAE, by a Japanese company, and an overseas satellite communications project participated in by a Japanese company. JBIC also supported automobile-related businesses in Mexico conducted by Japanese companies.
Furthermore, JBIC contributed to a private equity fund that invests in companies in Asian countries, as well as rapidly growing Chinese firms which are not yet listed, and signed a shareholders’ agreement on the subscription of preferred shares with a Taiwanese petrochemical company.
(b) Supporting Export by Japanese Companies
JBIC used an export credit line to provide necessary funds for exporting mining machinery to Mongolia, and also arranged an export credit line for a Turkish company that imports and sells construction equipment. JBIC also supported, in buyers' credit, the export of ships built by Japanese shipbuilding companies.
(3) Supporting Overseas Business Deployment of Mid-tier Enterprises and SMEs
To support the overseas business expansion of mid-tier enterprises and small and medium-sized enterprises (SMEs), JBIC made a total of 133 commitments, in cofinance with regional financial institutions and Shinkin banks. The support included loans for rice products manufacturing and sales business in Thailand and the automotive parts manufacturing and sales businesses in Mexico by Japanese companies.
Furthermore, JBIC signed MOUs with four Mexican state governments and a Mexican financial institution, respectively, to support Japanese mid-tier enterprises and SMEs, who are clients of Japanese regional financial institutions, expand their businesses to Mexico by actively utilizing Japan desks established in the country. These MOUs enhance the ''Development and Strengthening of Support System by Financial Institutions for Small and Medium Enterprises’ Entry into Asia through Coordination among Japanese Regional Financial Institutions, Japan Bank for International Cooperation (JBIC) and Japan External Trade Organization (JETRO),'' a joint press release issued by the Financial Services Agency, the Ministry of Finance, and the Ministry of Economy, Trade and Industry in December 2010, and contribute to the Japanese government's ''drastic measures to enhance the comprehensive support system for the overseas development of mid-tier enterprises and SMEs'' as part of the ''Comprehensive TPP-related Policy Framework.''
In addition, JBIC established investment credit lines with Japanese regional financial institutions, as well as overseas subsidiaries of Japanese leasing companies, to support the overseas business deployment of mid-tier enterprises and SMEs.
(4) Other Support
JBIC provided 18 local currency loans*2 totaling the equivalent of approximately JPY7.4 billion. They included JBIC’s first Indian rupee loan to fund the automotive, appliance, commercial, and industrial motors manufacturing and sales business in India by Japanese companies; and a Thai baht loan to fund the hygienic products manufacturing and sales business in Thailand.
JBIC also signed a guarantee agreement with private financial institutions for loans necessary for the import of aircrafts.
3. Efforts in the Environment-related Sector
JBIC established credit lines with Banco Nacional de Desenvolvimento Econômico e Social (BNDES) of Brazil under GREEN operations, and also provided loans for a national power company of Iceland, as well as a Turkish company, to purchase machinery and equipment related to geothermal power generation from Japanese companies.
4. Supporting Samurai Bond Issuance
JBIC agreed to provide a guarantee for and to acquire a part of the Samurai bonds (Japanese yen-denominated foreign bonds) issued by the Indonesian government.
1. Loans, Equity Participations, and Guarantees
2. Commitments by Region and Purpose of Financing
3. JBIC's Operations (Last 5 Years)