- Region: Others
- Others
June 7, 2023
The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) today announced its business results for FY2022 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 FY2022
■In FY2022, JBIC made financial commitments totaling approximately JPY2,315.2 billion in loans, equity participation and guarantees, an increase of 12.1% from the previous year.
■Outstanding loans and equity participation totaled approximately JPY15,998.6 billion and outstanding guarantees were approximately JPY1,537.6 billion as of March 31, 2023, with the total outstanding amount for those financial instruments reaching approximately JPY17,536.2 billion.
II. Business Highlights
JBIC supported Japanese companies in the contribution toward preserving the global environment, including decarbonization, the enhancement of supply chain resilience, the expansion of high-quality infrastructure, and the creation of new overseas markets, through the Global Investment Enhancement Facility*1 established in July 2022. To address global issues, JBIC strived to strengthen its relationships with overseas governments, government institutions, and others for the realization of a decarbonized society and the promotion of next-generation energy, such as hydrogen and ammonia.
1．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 124 financial commitments amounting to approximately JPY1,562.4 billion in loans, equity participation and guarantees in FY2022.
(1) Support for Strategic Overseas Business Expansion of Japanese Companies
JBIC supported M&A transactions by Japanese companies, including startups, in a wide range of industries. This support includes loans for the acquisition of an animation distributor and a semiconductor-related company in the United States, and a joint investment for a fintech startup to acquire a payment processing service company in the United States. To support the enhancement of Japanese companies' supply chains, JBIC provided loans for numerous Japanese companies, including one to manufacture and sell sputtering targets in the United States and another to manufacture and sell carboxymethyl cellulose for lithium-ion batteries in Hungary.
(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 64 financial commitments aggregating approximately JPY9.8 billion in loans and guarantees in co-financing with Japanese regional financial institutions. The support includes loans for the manufacture and sale of food processing equipment in Thailand and the manufacture and sale of recycled PET resin in Malaysia. 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.
2．Addressing Global Issues
(1) Support for Projects Contributing toward Preservation of Global Environment
Under its GREEN operations*2, JBIC provided loans for multiple projects, including an electricity interconnection project that will link Saudi Arabia and Egypt and a waste-to-energy project in India. In this business field, JBIC made a total of 12 financial commitments amounting to approximately JPY302.8 billion in loans and guarantees in FY2022.
(2) Support for Energy Transition in Asia
In line with the Asia Zero Emissions Community (AZEC) Concept of the Government of Japan, JBIC strengthened its support for decarbonization efforts in Asia through the engagement with the governments of host countries and others and through the structuring of multiple projects, including renewable energy projects in Indonesia, Vietnam, etc.
(3) Support for Project Structuring in Next-generation Energy Sector
To boost the efforts in the sector of next-generation energy, such as hydrogen and ammonia, which is the potential key to the realization of a decarbonized society, JBIC signed memorandums of understanding with overseas governments, government institutions, etc.
3．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 for the country to secure 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 the acquisition of upstream interests in resources development, diversification of supply sources and strengthening of relationships with resource-rich countries. In FY2022, JBIC made a total of six financial commitments in the resource sector, amounting to approximately JPY429.7 billion in loans.
These commitments include a loan for the acquisition of a stake in discarded household appliances and electronic devices for recycling in Canada.
4．Japan-United States-Australia Collaboration and Other Multilateral Collaboration
Based on an agreement reached by the leaders of Japan, Australia, India, and the United States (Quad Partners), JBIC provided a loan for a healthcare project in India to address the COVID-19 pandemic. JBIC also guaranteed financing for the acquisition of a telecommunications operator of an island country in the South Pacific under a partnership between Japan, the United States and Australia.
5．Other Financing Support
To support countries neighboring Ukraine, JBIC signed a memorandum of understanding with a policy-based financial institution of Poland for multiple purposes, including the enhancement of energy security, and another memorandum of understanding with an international institution with the aims of energy transformation, digital transformation, etc. in Central and Eastern Europe.
In FY2022, JBIC made a total of 25 financial commitments under the Post-COVID-19 Growth Facility*3, amounting to approximately JPY42.4 billion in loans and guarantees, and 91 financial commitments under the Global Investment Enhancement Facility, amounting to approximately JPY2,138.4 billion in loans and guarantees.
[Appendices]
1. Total Commitment in Loans, Equity Participation and Guarantees
2. Commitments by Region and Financial Instrument
3. Summary of JBIC's Business Results (over the Last Five Years)
Notes:
- *1
- *2
- *3
The Post-COVID-19 Growth Facility ended on June 30, 2022.