JBIC Announced FY2019 Business Results

• Region: Others
• Others

The Japan Bank for International Cooperation (JBIC, Governor: MAEDA Tadashi) today announced its business results for FY2019 as outlined below. Details of the business results by region and financial instrument as well as changes in the results over the last five years are shown in the appendices attached to this press release.

I. Overview of Business Results for FY2019

■In FY2019, JBIC made financial commitments totaling approximately JPY1,678.7 billion in loans, equity participation and guarantees, a decrease of 2.2% from the previous year.

■Outstanding loans and equity participation totaled approximately JPY13,537.0 billion and outstanding guarantees were approximately JPY2,120.9 billion as of March 31, 2020, with the total outstanding amount for those financial instruments reaching approximately JPY15,657.9 billion.

II. Business Highlights

1．Promoting Overseas Development and Acquisition of Important Resources for Japan

As Japan depends on imports from overseas for most of its resources, it is an important challenge that the country secures a stable supply of energy and mineral resources in the medium to long term by increasing its self-development ratio of those resources. JBIC contributes to securing a long-term stable supply of resources through financial support for acquisition of upstream interests in resources development, diversification of supply sources and strengthening of relationships with resource-rich countries. In FY2019, JBIC made a total of seven financial commitments in the resource sector, amounting to approximately JPY263.3 billion in loans and guarantees.
 JBIC supported, in the form of project financing,^*1 a copper mining development project in the Republic of Chile in which Japanese companies are participating. In addition, JBIC provided a loan for Japanese companies to acquire an interest in a liquified natural gas (LNG) production project in Russia.

2．Maintaining and Increasing International Competitiveness of Japanese Industries

Amid a growing move by Japanese industries to seek earnings opportunities outside Japan due to declining domestic demand, JBIC supports Japanese companies, through its various financial instruments, in implementing their overseas business strategies as well as maintaining and strengthening their global supply chains, thereby contributing to maintaining and increasing the international competitiveness of Japanese industries. In this business field, JBIC made a total of 128 financial commitments amounting to approximately JPY1,372.4 billion in loans, equity participation and guarantees in FY2019.

(1) Support for Strategic Overseas Business Expansion of Japanese Companies
 (1)Financing Overseas Investments by Japanese Companies
JBIC supported M&A transactions by Japanese companies through providing loans for the acquisition of an Indian steel manufacturer and an Italian automobile parts manufacturer, as well as a joint investment in an engineering and construction company in Singapore. Furthermore, JBIC provided loans to infrastructure projects involving Japanese companies, such as a natural gas-fired power generation and desalination project in Qatar, a freight railway project in Brazil and a car logistics terminal operation project in Turkey. Other financing support from JBIC includes a loan to a real estate complex development project in Myanmar.

(2)Financing Exports by Japanese Companies
JBIC supported Japanese companies in exporting facilities and equipment for an integrated refinery and petrochemical complex in Malaysia and a fertilizer plant in Bangladesh. JBIC signed general agreements with two regional development financial institutions to set up export credit lines to further encourage Japanese companies to export to Africa.

(2) Support for Overseas Expansion of Japanese MTEs and SMEs
To assist Japanese mid-tier enterprises (MTEs) and small- and medium-sized enterprises (SMEs) in expanding overseas, JBIC made a total of 82 financial commitments, aggregating approximately JPY16.2 billion, in co-financing with Japanese regional financial institutions and others. The support included loans for the restaurant and meat processing business in Thailand and the manufacturing and sales of packaged rice in the Philippines. JBIC has set up credit lines in Chinese yuan with Japanese regional financial institutions to encourage Japanese MTEs and SMEs to conduct business in China. In addition, JBIC, in cooperation with Japanese regional financial institutions, hosted various seminars and events to provide information that might help Japanese companies expand overseas as well as opportunities for business matching.  

3．Supporting for Projects in Environmental Sector

Under its GREEN Operations,^*2 JBIC signed loan agreements to set up credit lines with local financial institutions to finance environment-related projects in Latin America and renewable energy projects in Vietnam. JBIC made a total of four financial commitments amounting to approximately JPY42.9 billion in FY2019 under this framework.
In January 2020, JBIC established the "Growth Investment Facility"^*3 (comprising two facility windows), to provide wide-ranging support for overseas expansion by Japanese companies, including overseas M&A transactions and global value chain restructuring, as well as for the development of quality infrastructure. Under this facility, the "Window for the Development of Quality Infrastructure for Environmental Preservation and Sustainable Growth (QI-ESG Window)" maintains the framework of the "Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG)"^*4 launched in July 2018. The purpose of the QI-ESG Window is to offer support to infrastructure development projects that contribute to protecting the global environment, including those related to renewable energy. Under such financing facilities, JBIC provided project financing for an onshore wind power generation project in Morocco and supported the manufacturing and sales of solar panel sheet glasses.

4．Other Financing Support

JBIC provided 19 local currency denominated loans^*5 totaling the equivalent of approximately JPY9.6 billion. The loans included a Chinese yuan loan to fund the manufacturing and sales of plastic compounds in China, and a Thai baht loan to promote the installation of solar power generation systems in Thailand through the ESCO^*6 business.

[Appendices]
1. Total Commitment in Loans, Equity Participation and Guarantees
2. JBIC Announced FY2019 Business Results
3. Summary of JBIC's Business Results (over the Last Five Years)

Notes:

1. *1 
   Project finance is a financing scheme in which repayments for a loan are made solely from the cash flows generated by the project.
2. *2 
   See Announcement on April 1, 2010.
3. *3 
   See Announcement on January 31, 2020.
4. *4 
   See Announcement on June 28, 2018.
5. *5 
   Currencies other than JPY, USD and EUR.
6. *6 
   ESCO: Energy Service Company. A business model in which comprehensive service related to energy saving is provided to the customer, and a portion of the energy saving effect is received as remuneration.