Equity Participation in AGP International Holdings Pte. Ltd. in Singapore
Supporting Japanese Companies’ Overseas Business Expansion
- Region: Asia
- Equity Participations
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on July 20 a shareholders' agreement together with Osaka Gas Co., Ltd. (Osaka Gas)*1
for a joint investment in AGP International Holdings Pte. Ltd. (AG&P) in Singapore.
As an engineering and construction company founded in 1900, AG&P has globally expanded its modular construction business for the petrochemicals, mining, power, oil & gas and LNG sectors. Since 2015, the company has been making equity investments into small- and medium-scale LNG terminals as well as in city gas distribution projects, predominantly in India, thereby making a foray into midstream and downstream businesses related to LNG, including LNG import terminals, floating LNG infrastructure (FRU, FSU and FSRU), bunkering vessels LNG applications and logistics.
To strengthen the foundation for profits, Osaka Gas aims to raise the ratio of consolidated ordinary income from overseas business against domestic business from 1 to 20 in FY 2017 to 1 to 2 by FY 2030. Osaka Gas intends to gain a foothold and further expand its overseas business by participating in new LNG terminal and city gas projects in South Asia and other regions, where the company does not have a presence, and by utilizing its knowledge and experience cultivated through domestic business to promote cooperation with AG&P. The investment by JBIC supports overseas business deployment of Osaka Gas and contributes to Japanese industry in maintaining and enhancing its international competitiveness.
In addition, based on the Japanese government's policies, including the Strategic Energy Plan (released in July 2018), it is considered that expansion of the LNG market in Asia contributes not only to the expansion of overseas business foundation of Japanese energy industry, but also to the securement of stable supply of LNG to Japan. The investment from Osaka Gas and JBIC to increase capital in this project will be used for midstream and downstream businesses related to LNG in South Asia and other regions, which AG&P plans to expand. JBIC's support for this project as Japan's policy-based financial institution is thus in line with the policies of the Japanese government.
- As Japan's policy-based financial institution, JBIC will continue to support the overseas business expansion of Japanese companies by drawing on its various financial facilities for structuring projects including its equity participation function and performing its risk-assuming function.
Osaka Gas will invest through its subsidiary.