- Region: Others
The Japan Bank for International Cooperation (JBIC, Governor: MAEDA Tadashi) today announced its business results for FY2021 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 FY2021
■In FY2021, JBIC made financial commitments totaling approximately JPY2,065.5 billion in loans, equity participation and guarantees, a decrease of 20.5% from the previous year.
■Outstanding loans and equity participation totaled approximately JPY15,146.4 billion and outstanding guarantees were approximately JPY1,724.8 billion as of March 31, 2022, with the total outstanding amount for those financial instruments reaching approximately JPY16,871.3 billion.
II. Business Highlights
Until December 31, 2021, JBIC supported Japanese companies affected by COVID-19 in their overseas business through the Emergency Window for Overcoming the COVID-19 Crisis (COVID-19 Emergency Window)*1, which was established under the Growth Investment Facility in April 2020 in order to address COVID-19.
Also, with the purpose of transforming the economic structure and realizing a virtuous circle for the post-COVID-19 era, JBIC supported Japanese companies in the overseas expansion of high-quality infrastructure toward a decarbonized society and the enhancement of supply chain resilience, through the Post-COVID-19 Growth Facility*2 established in January 2021.
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 toward 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 FY2021, JBIC made a total of nine financial commitments in the resource sector, amounting to approximately JPY653.5 billion in loans.
These commitments include a loan for a zirconium oxychloride manufacturing and sales business in Vietnam in which a Japanese company participates.
2．Maintaining and Increasing International Competitiveness of Japanese Industries
JBIC supports Japanese companies, through its various financial instruments, in implementing their overseas business as well as maintaining and strengthening their global supply chains, thereby contributing toward maintaining and increasing the international competitiveness of Japanese industries. In this business field, JBIC made a total of 144 financial commitments amounting to approximately JPY849.5 billion in loans, equity participation and guarantees in FY2021.
(1) Support for Strategic Overseas Business Expansion of Japanese Companies
JBIC supported M&A transactions by Japanese companies through providing loans for the acquisition of an analog semiconductor company in the United Kingdom and a convenience store business in the United States. JBIC also provided loans for businesses in which Japanese companies participate, including a medical device manufacturing and sales business in Vietnam and a synthetic structural protein material manufacturing business in the United States. In addition, JBIC made a joint investment with Japanese companies in a fund that invests in advanced technology companies mainly in Silicon Valley, the United States.
(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 116 financial commitments, aggregating approximately JPY16.6 billion in loans and guarantees in co-financing with Japanese regional financial institutions. The support includes loans for an automotive parts manufacturing and sales business in Mexico and a recycled asphalt mixture manufacturing and sales business in Indonesia. 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.
3．Supporting Projects in the Environmental Sector
Under its GREEN Operations*3, JBIC provided a loan to support low-carbonization in the electricity transmission and distribution sector of Saudi Arabia and invested in a fund that invests in climate infrastructure in developing countries and another fund that invests in clean hydrogen-related projects around the world. JBIC made a total of six financial commitments amounting to approximately JPY95.4 billion in loans, equity participation and guarantees in FY2021 under this framework.
To support the overseas expansion of high-quality infrastructure and overseas business activities toward a decarbonized society, JBIC provided loans for multiple businesses including a hydrogen station construction and operation business in the United States invested in by a Japanese company.
4．Other Financing Support
JBIC made 47 local currency*4 financial commitments totaling to the equivalent of approximately JPY109.9 billion in loans and equity participation. The loans include an Indian rupee loan for a steel distribution and processing center operation business and a Thai baht loan for a dry warehouse business, both invested in by Japanese companies.
In FY2021, JBIC made a total of 174 financial commitments under the Growth Investment Facility, amounting to approximately JPY1,365.1 billion in loans and guarantees, and 22 financial commitments under the Post-COVID-19 Growth Facility, amounting to approximately JPY563.4 billion in loans, equity participation and guarantees.