Loan for Share Acquisition of Philippine Company Aboitiz Power Corporation by JERA Co., Inc.
Contributing toward Promotion of Decarbonization in Philippines through Support for Overseas M&A by Japanese Company
- Region: Asia
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed today a loan agreement amounting to USD630 million (JBIC portion) with JERA Co., Inc. (JERA). The loan is co-financed with private financial institutions, bringing the total co-financing amount to approximately USD1,063 million.
The loan is intended to finance the funds necessary for acquiring part of the issued shares in the Philippine company Aboitiz Power Corporation (Aboitiz Power) through JERA Asia Pte. Ltd., a Singapore subsidiary of JERA.
Aboitiz Power is a subsidiary of Aboitiz Equity Ventures Inc., a leading conglomerate in the Philippines. It is a major power company owning and operating power plants with an approximate total net capacity of 4.6GW, including those under construction. JERA aims to achieve zero CO2 emissions from JERA's operations in Japan and overseas by 2050 under its initiative titled "JERA Zero CO2 Emissions 2050." By investing in Aboitiz Power, JERA intends to support a stable supply of energy in the Philippines and contribute toward decarbonization in the country. This loan supports JERA's initiative by providing necessary long-term foreign currency funds for M&A by the Japanese company. It will thereby back up its overseas expansion of existing business as well as new business deployment, and contribute toward maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to support overseas M&A activities of Japanese companies and their overseas business expansion in collaboration with private financial institutions.