- Region: Others
- Others
The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) today announced its business results for FY2023 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 FY2023
- In FY2023, JBIC made financial commitments totaling approximately JPY2,037.9 billion in loans, equity participation, and guarantees, a decrease of 12.0% from the previous year.
- Outstanding loans and equity participation totaled approximately JPY16,828.7 billion, and outstanding guarantees were approximately JPY1,526.4 billion as of March 31, 2024, with the total outstanding amount for those financial instruments reaching approximately JPY18,355.1 billion.
Ⅱ． Business Highlights
JBIC supported Japanese companies in their contributions toward preserving the global environment, including decarbonization, and it structured and realized projects for the enhancement of supply chain resilience and the assurance of energy security through the Global Investment Enhancement Facility *1 established in July 2022 as well as the amended JBIC Act to bolster JBIC’s functions, as described later. By performing its risk-assuming functions, such as the Special Operations Account, and offering its own solutions, JBIC will continue to address these challenges while contributing toward developing and realizing Japan’s foreign economic policies.
1． Maintaining and Increasing International Competitiveness of Japanese Industries
JBIC supports Japanese companies, through its various financial instruments, in implementing their overseas businesses 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 120 financial commitments amounting to approximately JPY923.6 billion in loans, equity participation, and guarantees in FY2023.
(1) Support for Strategic Overseas Business Expansion of Japanese Companies
JBIC supported M&A transactions by Japanese companies in a wide range of industries. This support includes loans for the acquisition of a biopharmaceutical company in the United States and a tire manufacturer in Sweden. Moreover, to support the enhancement of Japanese companies' supply chain resilience, JBIC provided the necessary funds for a Japanese company to transport and store chemicals required for semiconductor manufacturing in the United States, and it financed the funds necessary for the manufacturing and sale businesses of local suppliers and dealers of Japanese agricultural machinery manufacturers and also for local sales finance businesses to sell Japanese farm equipment in India.
(2) Support for Digital Transformation
JBIC provided the funds necessary for a Japanese company to operate a data center in India. In addition, in order to support Japanese companies in achieving Digital Transformation through alliances with startups in central and eastern Europe, JBIC made an equity investment in a venture capital fund that invests in startups in the region.
(3) 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 70 financial commitments, aggregating approximately JPY14.7 billion in loans and guarantees in co-financing with Japanese regional financial institutions. The support includes loans for the manufacture and sale of automotive interior parts in Thailand and the manufacture and sale of shipping containers 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.
2．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 its financial support for the acquisition of upstream interests in resources development, diversification of supply sources, and the strengthening of relationships with resource-rich countries. In FY2023, JBIC made a total of 10 financial commitments in the resource sector, amounting to approximately JPY481.3 billion in loans.
These commitments include the necessary funds for Japanese steelmakers to consistently import steel raw materials from a major mineral resource supplier in Brazil to achieve low-carbon steelmaking in Japan and overseas as well as for a Japanese company to acquire a participation interest in and develop a gas field in Australia.
3．Addressing Sustainability
(1) Support for Renewable Energy Projects
JBIC supported a Taiwanese offshore wind farm project involving a Japanese company due to its importance in Taiwan’s decarbonization policy. JBIC provided loans, equity investments, and guarantees in coordination with seven development finance institutions and export credit agencies from six willing countries. JBIC also provides the necessary funds for projects and businesses in which Japanese companies participate, including an electricity transmission project for an offshore wind farm in the United Kingdom and a biomass manufacturing and sales business in Vietnam.
(2) Support for Energy Transition in Asia
In Asia, JBIC has promoted energy transition initiatives, especially with Vietnam, Indonesia, and the Philippines, to align with the Asia Zero Emission Community (AZEC) concept advocated by the government of Japan. For Vietnam, JBIC agreed to launch AZEC/GX Promotion Working Team, a public-private bilateral framework for discussion, and it signed a Memorandum of Understanding (MOU) with a major state-owned bank to support decarbonization and energy transition in the country. For Indonesia, JBIC agreed to establish AZEC Japan Indonesia Joint Task Force (JTF), a public-private bilateral discussion framework. For the Philippines, JBIC signed MOUs to promote collaboration in such areas as decarbonization with three leading companies in the country’s highly privatized infrastructure sector.
(3) Addressing Social Issues
JBIC provided the funds necessary for an electrified lantern project for elementary schools in unelectrified areas in Benin and for a Japanese manufacturer’s sale of small-sized distributed water circulation systems in Antigua and Barbuda. Additionally, JBIC partially acquired yen-denominated foreign bonds issued by the government of Indonesia, which are blue bonds to be used only for the protection of marine environments.
4． Support for “Global South” Countries
JBIC has strategically accelerated its efforts for enhancing collaboration with “Global South” countries by recognizing the importance of the following: (1) providing financial solutions that connect the needs for solving social issues in a host country with the business development strategy and technology of Japanese companies, (2) building multi-layered relationships by financing major players in host countries, and (3) improving bankability and strengthening risk control abilities to structure projects through enhanced collaboration with international organizations, development and export finance institutions, and local public sector organizations of willing countries. In one of these efforts in FY2023, JBIC made an equity investment in a fund that was founded to support Japanese companies’ business expansions in India. The fund invests in India’s environmental preservation sector and supports Indian companies and projects that may collaborate with Japanese companies. In addition, JBIC provided a credit line to the Industrial Development Bank of Türkiye to support its environmental preservation projects, which contribute to the recovery from the earthquake that occurred in the country in February 2023, and another credit line to a policy-based financial institution in Türkiye for its environmental preservation projects.
5. Support for Ukraine and Its Neighboring Countries
JBIC agreed to establish a platform in which the European Bank for Reconstruction and Development (EBRD) and development finance institutions in G7 and European countries work together to provide assistance to Ukraine and its neighboring countries. JBIC also provided guarantees for Samurai bonds issued by Poland’s policy-based financial institution to raise funds to support refugees from Ukraine. In addition, JBIC signed MOUs with a regional development finance institution for structuring projects to facilitate business activities that contribute toward the reconstruction of Ukraine and with an international financial institution for supporting Ukraine and its neighboring countries. In order to assist the recovery of Ukraine and to support its neighbors, JBIC has created the new position of Chief Representative for Supporting Ukraine Recovery and Neighbouring Countries.
6． Other Financing Support
(1) Amendment to the JBIC Act
In response to the changing international situation surrounding the Japanese economy, the Act for Partial Amendment of the Japan Bank for International Cooperation Act was enacted in April 2023, and it came into effect in October that year. The amendment focused on: (1) enhancement of supply chain resilience to contribute toward maintaining and improving the international competitiveness of Japanese industries, (2) assistance to Japanese companies, including startups, in further taking risks amid growing expectations for such sectors as digitalization and green initiatives, and (3) participation in international support for the recovery of Ukraine. In line with the amendment, JBIC has been engaged in active project formation and has already realized several projects.
(2) Initiatives under Global Investment Enhancement Facility
JBIC launched the Global Investment Enhancement Facility in July 2022. The facility is intended to support Japanese companies in contributing toward preserving the global environment, including decarbonization, as well as enhancing supply chain resilience, expanding high-quality infrastructure, and creating new overseas markets. In FY2023, JBIC made a total of 135 financial commitments under the Global Investment Enhancement Facility, amounting to approximately JPY1,868.2 billion in loans and guarantees.
[Appendices]