- Region: Others
The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) announced today a summary of its business performance and activities in the first quarter (Q1, April-June) of FY2023 as outlined below. Details of financial commitment amounts by financial product can be found in the PDF files provided in this press release.
I. Loans, Equity Participation, and Guarantees
1. Financial Commitments
In Q1 FY2023, JBIC made a total of 25 financial commitments, amounting to approximately JPY640.2 billion in loans, equity participation, and guarantees.
2. Disbursements, Repayments, and Outstanding Amounts
Disbursements made by JBIC during Q1 FY2023 amounted to approximately JPY444.5 billion and repayments received were approximately JPY564 billion. As a result, outstanding loans and equity participation totaled approximately JPY16,883 billion and outstanding guarantees were approximately JPY1,636.7 billion, with the total outstanding amount for those financial products reaching approximately JPY18,519.8 billion.
II. Major Business Activities in Q1 FY2023
1. Maintaining and Improving International Competitiveness of Japanese Industry
(1) Support for Enhancement of Supply Chain Resilience of Japanese Companies
For the purpose of supporting the decarbonization of the copper supply chain, JBIC provided a loan for the funds required for the installation of a wind-assisted propulsion system on a copper concentrates and sulphuric acid carrier owned and operated by a Japanese company. JBIC also provided a loan for a Japanese company's acquisition of a Swedish tire maker that manufactures and sells off-highway tires.
(2) Support for Collaboration between Japanese Companies and Foreign Startups through Investments in Venture Capital Fund
JBIC made equity participation in a venture capital fund that invests in startups in Central and Eastern Europe with a view to supporting Japanese companies in achieving digital transformation through partnerships with these startups.
(3) Support for Overseas Expansion of Japanese MTEs and SMEs
JBIC made a total of eight financial commitments, aggregating approximately JPY500 million, which included a loan for manufacturing and sales of carrier tape in the Philippines, a loan for processing and sales of iron and stainless-steel sheets and plates in Vietnam, and a guarantee for loans by private financial institutions for processing and sales of cold drawn steel bars in Indonesia.
2. Addressing Global Issues
(1) Support for Renewable Energy Projects
JBIC granted loans for offshore wind farm projects in France that involve a Japanese company, and a solar power generation project in Benin.
(2) Support for Sustainability Initiatives
JBIC provided a loan for an electrified lantern project for elementary schools in unelectrified areas in Benin. JBIC also supported the issuance of yen-denominated foreign bonds (Samurai bonds) by the Government of Indonesia through public placement in the Japanese market, by partially acquiring its Blue bonds, whose use of proceeds is limited to activities to preserve the marine environment.
3. Support in Collaboration with Multilateral and International Institutions
JBIC agreed to establish a platform to provide assistance to Ukraine and its neighboring countries in collaboration with the European Bank for Reconstruction and Development (EBRD) and development finance institutions of the European and North American countries. JBIC also provided a guarantee for Samurai bonds, which were issued by a policy-based financial institution in Poland with the aim of raising funds to support refugees from Ukraine. In addition, JBIC signed a memorandum of understanding (MOU) with the Export-Import Bank of Korea. The MOU aims to strengthen cooperation in the areas of infrastructure development in third countries, especially in the Indo-Pacific region, supply chain resilience, and decarbonization, among others.
4. Other Financing Support
(1) Amendment of the Japan Bank for International Cooperation Act
Given multiple factors including changes in the international situation surrounding Japan’s economy, the Act for Partial Amendment of the Japan Bank for International Cooperation Act was enacted on April 7, 2023, with three pillars: (1) enhancement of supply chain resilience to contribute toward maintaining and improving the international competitiveness of Japanese industries, (2) assistance for Japanese companies, including startups, in further taking risks with expectations of such sectors as digitalization and green initiatives growing, and (3) participation in the international support for the recovery of Ukraine.
(2) Support under the Global Investment Enhancement Facility
In July 2022, JBIC established the Global Investment Enhancement Facility*1 to support Japanese companies with: (i) the contribution toward preserving the global environment, including decarbonization and (ii) the enhancement of supply chain resilience, the expansion of high-quality infrastructure, and the creation of new overseas markets. In Q1 FY2023, JBIC made a total of 20 financial commitments amounting to approximately JPY537.3 billion in loans and guarantees under the Global Investment Enhancement Facility.