Business Performance and Activities for Q2 FY2023

The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) announced today a summary of its business performance and activities in the second quarter (Q2, July-September) 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 Q2 FY2023, JBIC made a total of 27 financial commitments, amounting to approximately JPY260.3 billion in loans, equity participation, and guarantees.

2. Disbursements, Repayments, and Outstanding Amounts
Disbursements made by JBIC during Q2 FY2023 amounted to approximately JPY242.3 billion and repayments received were approximately JPY626.8 billion. As a result, outstanding loans and equity participation totaled approximately JPY17,182.8 billion and outstanding guarantees were approximately JPY1,611.7 billion, with the total outstanding amount for those financial products reaching approximately JPY18,794.5 billion.

II. Major Business Activities in Q2 FY2023

1. Maintaining and Improving International Competitiveness of Japanese Industry

(1) Support for Enhancement of Supply Chain Resilience and Overseas M&A of Japanese Companies
JBIC provided loans for funds required for the steel distribution and processing center business in India and the manufacture and sales business of car body structure parts in the United States. JBIC also provided a loan for a Japanese company’s acquisition of a U.S. biopharmaceutical company.

(2) Support for Strengthening Competitiveness and Overseas Expansion of Japanese Companies through Investments in Fund
JBIC made an equity participation in a venture capital fund that invests in startups in Northern Europe. The objective of the fund, which was established by JBIC’s joint venture and others, is to support Japanese companies in achieving sustainability transformations through partnerships with these startups.

(3) Support for Overseas Expansion of Japanese MTEs and SMEs
JBIC made a total of 12 financial commitments, aggregating approximately JPY1.1 billion, which included a loan for welding and machine processing in Vietnam, a loan for the manufacture and sale of industrial rubber products in the Philippines, and a guarantee for loans by private financial institutions for the manufacture and sale of fishing gear in Indonesia.

2. Addressing Global Issues

JBIC granted loans for an offshore wind farm project in Taiwan that involves a Japanese company and a biomass fuel manufacturing and sales business in Vietnam. In addition, JBIC signed a Memorandum of Understanding (MOU) with the national oil company in the Emirate of Abu Dhabi in the United Arab Emirates to strengthen cooperation in the field of decarbonization, such as renewable energy and carbon capture and storage (CCS), and with the Ministry of Energy of the Republic of Chile to promote cooperation in the field of hydrogen and ammonia.

3. Support for Environmental Preservation Projects and Business Expansion of Japanese Companies in India

JBIC supported the establishment of, and made an equity participation in, a fund that invests in projects in India’s environmental preservation sector and Indian companies and projects that collaborate with Japanese companies, thereby supporting Japanese companies’ business expansion in India.

4. Support in Collaboration with Multilateral and International Institutions

JBIC signed an MOU with the U.S. International Development Finance Corporation and 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, etc.

5. Support under the Global Investment Enhancement Facility

In July 2022, JBIC established the Global Investment Enhancement Facility^*1to 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 Q2 FY2023, JBIC made a total of 26 financial commitments amounting to approximately JPY260.3 billion in loans and guarantees under the Global Investment Enhancement Facility.