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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 FY2024 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 Investment, and Guarantees
１． Financial Commitments
In Q1 FY2024, JBIC made a total of 16 financial commitments, amounting to approximately JPY378.0 billion in loans, equity investment, and guarantees.
２．Disbursements, Repayments, and Outstanding Amounts
Disbursements made by JBIC during Q1 FY2024 amounted to approximately JPY305.5 billion, and repayments received were approximately JPY797.5 billion. As a result, outstanding loans and equity investment totaled approximately JPY17,125.3 billion, and outstanding guarantees were approximately JPY1,523.8 billion with the total outstanding amount for those financial products reaching approximately JPY18,649.2 billion.
Ⅱ. Major Business Activities in Q1 FY2024
１．Contributing toward Realizing Both Carbon Neutrality and Economic Growth
(1) Support for Hydrogen and Ammonia Sector
JBIC provided a loan for the ammonia production and sales business conducted by a Japanese company in the United Arab Emirates. The company will offtake part of the ammonia produced in the operations and use it as a fuel source and raw material for chemical and fertilizer production in Japan. The loan is expected to contribute toward establishing a supply chain of hydrogen and its derivatives and securing a long-term, stable supply of ammonia as a zero-emission fuel.
(2) Support for Renewable Energy Initiative Using Innovative Technologies
JBIC provided a loan for a geothermal power generation and district heat supply project in Germany in which a Japanese company is involved. Unlike conventional technologies, the closed loop geothermal technology used in this project can be applied to a wide range of areas as it enables the extraction of heat efficiently even in areas where sufficient hot water or steam is not available. Therefore, it is considered a potential game changer in the industry.
２． Support for Securing Japan’s Energy Security, Enhancing Resilience of Supply Chains, and Developing Frontier Industries
(1) Support for Enhancement of Supply Chain Resilience and Overseas M&As of Japanese Companies
JBIC provided the necessary funds for projects and businesses implemented by Japanese companies, including a project to expand production facilities of chemicals for semiconductors in the United States, a manufacturing and sales business of carbon fiber reinforced plastic parts for automobiles, including battery electric vehicles, in Italy, and a project to build and operate data centers in India. In addition, it extended loans to Japanese companies for acquiring a logistic company in Australia and a shipping company in Singapore, respectively.
(2) Support for Overseas Development and Procurement of Important Resources for Japan
To secure a long-term, stable supply of copper concentrate, JBIC provided a loan for a copper mine development project in Chile in which a Japanese company is participating. As for LNG, another important energy resource for Japan, JBIC provided necessary funds for a gas field development project in Australia that involves a Japanese company with the aim of ensuring long and stable supplies and diversifying supply sources. Moreover, JBIC signed memoranda of understanding with leading mineral suppliers in Brazil and Chile with a view to strengthening Japan’s supply chain resilience for low-carbon raw materials for steel production.
3．Support for Overseas Expansion of Japanese MTEs and SMEs with Global Operations
JBIC made a total of five financial commitments, aggregating approximately JPY200 million, which included a loan for the manufacture and sale of precision machinery components in Vietnam, a loan for acquiring an Indonesian company to enter into the agricultural drone business in Indonesia, and a guarantee for the portion co-financed by a private financial institution for the manufacture and sale of press dies for auto parts in Indonesia.
4．Providing Unique Solutions by Strategically Functioning as International Financial Institution
JBIC announced a statement of intent on strengthening comprehensive cooperation with the development financial institutions of G7 countries. By strengthening collaboration with them and mobilizing private capital, the statement aims to contribute to sustainable development of countries in the Global South, including in Africa.
5．Other Financing Support
(1) Developing Fifth Medium-Term Business Plan
In June 2024, JBIC developed the Fifth Medium-Term Business Plan (FY2024–2026) considering the international situation, which is becoming even more uncertain, and urgent issues, such as climate change. Under this plan, JBIC will realize a sustainable future through achieving carbon neutrality, a global common challenge, and solving the social issues of host countries in cooperation with various stakeholders. In addition, through the amendment to the JBIC Act in April 2023 and its full enforcement from October 2023 bolstering its functions, JBIC will encourage creative innovation of Japanese industry by proactively supporting efforts to ensure energy security, strengthening resilient supply chains, and developing innovative technologies and new businesses, including startups. Furthermore, JBIC will offer its own unique solutions by promoting multilateral cooperation and performing its risk-assuming functions, such as its Special Operations, thereby contributing toward the development and implementation of Japan’s foreign economic policies. As Japan’s policy-based financial institution, which connects Japan and the world as well as public and private sectors, JBIC will serve as a navigator to solve global issues and create futures with stakeholders by mobilizing private capital and using its risk-taking functions, such as its Special Operations, and its expertise in international finance.
(2) Support under the Global Investment Enhancement Facility
In July 2022, JBIC established the Global Investment Enhancement Facility*1 to support Japanese companies with the following: (i) contributions toward preserving the global environment, including decarbonization, (ii) the enhancement of supply chain resilience, the expansion of high-quality infrastructure, and the creation of new overseas markets. In Q1 FY2024, JBIC made a total of 15 financial commitments, amounting to approximately JPY371.2 billion in loans and guarantees under the Global Investment Enhancement Facility.
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- *1