Operational Results for the Second Quarter of FY2016

The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) today released its operational results for the second quarter (July to September) of FY2016. A summary of the results is given below. See the Appendix for a detailed breakdown of the figures by financial instrument.

Ⅰ. Loans, Guarantees, and Equity Participations

1．Commitments (PDF)
In the second quarter of FY2016, JBIC made 57 commitments amounting to approximately JPY158.1 billion in loans, guarantees, and equity participations.

2．Disbursements, Repayments and Outstanding Amounts (PDF)
Disbursements amounted to approximately JPY980.8 billion, while repayments were JPY327.0 billion in the second quarter. Consequently, outstanding loans and equity participations totaled JPY13.4873 trillion and outstanding guarantees were JPY2.3894 trillion, with the total outstanding amount reaching JPY15.8767 trillion at the end of the second quarter.

Ⅱ. Operational Highlights

1．Securing Stable Supply of Resources to Japan

As support related to natural resource development, JBIC provided a loan for the Abu Dhabi Hail Offshore Oilfield Development Project. The loan is intended to support development and production at an oilfield, where Abu Dhabi Oil Co., Ltd. owns 100% of the concession rights. The loan contributes to securing a supply of crude oil for Japan.

2．Supporting Maintenance and Strengthening of the International Competitiveness of Japanese Industries

(1) Supporting Strategic Overseas Business Activities of Japanese Companies
JBIC provided funds through project financing to San Isidro LNG I B.V. of the Netherlands to finance the purchase of an LNG carrier from IMABARI SHIPBUILDING CO., LTD.; contributed equity to a fund which invests in and offer loans to micro financing institutions in ASEAN countries; and provided funds required for the steel coil center business conducted by an Indian subsidiary of Marubeni-Itochu Steel Inc.

(2) Supporting the Overseas Business Deployment of Mid-Tier Enterprises and Small and Medium-Sized Enterprises
JBIC approved 46 loans totaling approximately JPY7.3 billion to support the overseas business deployment of mid-tier enterprises and small and medium-sized enterprises (SMEs). These included loans required for the stainless bottle manufacturing and sales business of a Vietnamese subsidiary of Tiger Corporation and the aluminum secondary alloy ingot production and sales business of DAIKI Aluminium Industry Co., Ltd. JBIC also supported facility procurement through finance leases by mid-tier enterprises and SMEs operating overseas, on the basis of investment credit lines previously established with a Singaporean subsidiary of Sumitomo Mitsui Trust Panasonic Finance Co., Ltd., an Indonesian subsidiary of IBJ Leasing Company, Limited, a Thai subsidiary of Sumitomo Mitsui Finance and Leasing Comapany, Ltd., and an Indonesian and a Thai subsidiary of Mitsubishi UFJ Lease & Finance Company Limited, respectively.
In addition, Japanese financial institutions (67 in total as of September 1, 2016) decided to participate in a framework of assistance based on the memorandum concluded between a state government of Mexico and local financial institutions in Mexico. The framework is intended to step up local support, including the provision of information, to mid-tier enterprises and SMEs considering locating in Mexico, a potential destination for business expansion especially the automobile sector.

(3) Supporting with Local Currency^*1 Loans
JBIC approved 8 local currency loans totaling the equivalent of approximately JPY9.1 billion. They included Thai baht loans required for the fishhooks manufacturing and sales business of a Thai subsidiary of Bankoku Needle Mfg. Co., Ltd., the metal heat treatment processing business of a Thai subsidiary of RKC INSTRUMENT INC., and the seals and labels manufacturing and sales business of a Thai subsidiary of OSP Holdings Co., Ltd.

3．Supporting Samurai Bond Issuance

JBIC agreed to provide a guarantee for Samurai bonds (private placement Japanese-yen denominated foreign bonds) issued by Petroleos Mexicanos (PEMEX). The agreement is expected to further strengthen relations with PEMEX and Mexico, a supplier of natural resources, and to offer indirect support to Japanese companies pursuing business opportunities in Mexico’s resource and energy markets.

4．Efforts in the Environment-related Sector

JBIC established a credit line with BDO Unibank, Inc. in the Philippines for renewable energy business under the Global action for Reconciling Economic growth and ENvironment preservation (GREEN) operations.

5．Other

Taking the opportunity of the Sixth Tokyo International Conference on African Development (TICAD VI) held in Nairobi, Kenya, JBIC launched “FAITH 2” to develop and reinforce JBIC’s Facility for African Investment and Trade Enhancement (FAITH) created in June 2013 to support the promotion of economic structural reform through economic diversification and industrialization in Africa (providing financial support equivalent to USD7.0 billion by 2018). Under FAITH 2, JBIC established an export credit line with the Eastern and Southern African Trade and Development Bank (PTA Bank), a regional development financial institution in Africa, to support Japanese companies expand their exports to the Sub-Saharan and African regions. In addition, JBIC signed a memorandum of understanding for business cooperation with Islamic Development Bank Group and Attijariwafa Bank of Morocco, respectively.