Loan for Waste Treatment Project by a Swedish subsidiary of Hitachi Zosen Corporation Group
Supporting the Overseas Business Expansion of Japanese Companies through Local Currency Denominated Financing as part of Promoting Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth
- Region: Europe
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on March 28 a loan agreement totaling up to approximately 120 million Swedish krona (JBIC portion) with HZI Jönköping Biogas AB, a Swedish subsidiary of Hitachi Zosen Corporation Group (Hitachi Zosen Group). The loan is provided as part of JBIC's Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG).*1
The loan is co-financed with a private financial institution and the total co-financing amount is approximately 242 million Swedish krona. This is the first loan that JBIC has offered denominated in Swedish krona.
This loan is intended to provide the necessary funds for HZI Jönköping Biogas to construct a waste treatment plant using methane fermentation technology (annual waste treatment capacity of 40,000 tons; annual biogas production capacity of 35,000 MWh) located in the city of Jönköping, Sweden, and to sell biogas for 20 years.
Hitachi Zosen Group is a leading company which boasts a world-class track record in the number of EPC (engineering, procurement, and construction) orders for waste treatment and power generation plants. This project is the first business investment in the waste treatment field in Sweden for Hitachi Zosen Group. It is thus positioned as an important milestone in further developing the company's overseas business. The loan provides support through Swedish krona-denominated financing for this overseas infrastructure project in which the Hitachi Zosen Group engages in operation and management with its high technology over the long-term, thereby contributing to maintaining and strengthening the international competitiveness of Japanese industries. In addition, the biogas sold by HZI Jönköping Biogas is scheduled to be used as fuel for public transport in the city of Jönköping. Thus, this loan will also contribute to the preservation of the global environment.
As Japan's policy-based financial institution, JBIC will continue to support the overseas infrastructure business development of Japanese companies by drawing on its various financial facilities and schemes for structuring projects, including local currency loans, and performing its risk-assuming function.