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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 third quarter (Q3, October–December) 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 Investments, and Guarantees
１．Financial Commitments
In Q3 FY2024, JBIC made a total of 26 financial commitments, amounting to approximately JPY303.2 billion in loans, equity investments, and guarantees.
２．Disbursements, Repayments, and Outstanding Amounts
Disbursements made by JBIC during Q3 FY2024 amounted to approximately JPY300.9 billion, and repayments received were approximately JPY650.9 billion. As a result, outstanding loans and equity investments totaled approximately JPY16,789.1 billion, and outstanding guarantees were approximately JPY1,319.8 billion with the total outstanding amount for those financial products reaching approximately JPY18,108.9 billion.
Ⅱ. Major Business Activities in Q3 FY2024
１． Contributing toward Realizing Both Carbon Neutrality and Economic Growth
JBIC provided the necessary funds for onshore wind farm projects in Egypt and Saudi Arabia in which Japanese companies are involved. In addition, regarding a geothermal power plant construction project in Kenya, JBIC provided, through a regional development financial institution, the necessary funds for a Kenyan company to purchase a set of power generation equipment from a Japanese company. JBIC also partially acquired yen-denominated foreign bonds (Samurai bonds), which are part of Green bonds, issued by the government of Romania through public placement in the Japanese market. The purchase aimed to help the country achieve carbon neutrality.
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 a German Internet company to establish a 5G network in the country based on Open RAN technology. The loan was to support the development of infrastructure to enable Japanese companies expanding into Germany to utilize ICT (information and communication technology) in their local business operations. The loan was provided under the function enhanced by the full enforcement of the Act for Partial Amendment of the Japan Bank for International Cooperation Act on October 1, 2023. This legal amendment made loans available to eligible foreign companies that support infrastructure necessary for Japanese companies' overseas business. Furthermore, JBIC extended a loan to a Japanese company for acquiring a U.S. food company.
（２）Support for Overseas Development and Procurement of Important Resources for Japan
JBIC provided a loan for a copper mine expansion project in Chile for the purpose of supporting the additional development of a copper mine in which Japanese companies hold interests and the securing of a long-term, stable supply of copper resources.
３． Support for Overseas Expansion of Japanese MTEs and SMEs with Global Operations
JBIC made a total of 10 financial commitments, aggregating approximately JPY3.2 billion, which included a loan for a personnel dispatch services project in India, a local currency loan for the installation and maintenance of industrial machinery in Thailand, and a loan for the acquisition of a German company by a manufacturer of marine propulsion equipment. In addition, to strengthen support for the overseas expansion of mid-tier enterprises (MTEs) and small- and medium-sized enterprises (SMEs) through co-financing with regional financial institutions, JBIC has established a framework to help these institutions with their overseas business monitoring. Through this framework, JBIC will support regional financial institutions that experience difficulties in monitoring due to constraints such as the lack of overseas offices, thereby promoting co-financing for overseas projects with them.
４．Providing Unique Solutions by Strategically Functioning as International Financial Institution
With the aim of supporting Vietnam's decarbonization by introducing renewable energy, JBIC set up a credit line with a domestic private bank to finance the necessary funds for projects related to renewable energy and electricity grids. This initiative is also in line with the Asia Zero Emissions Community (AZEC) concept, led by the government of Japan, which pursues carbon neutrality and economic growth depending on the circumstances of each country.
５．Support under the Global Investment Enhancement Facility
JBIC launched the Global Investment Enhancement Facility*1 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 Q3 FY2024, JBIC made a total of 18 financial commitments amounting to approximately JPY177.7 billion in loans and guarantees under this facility.
Note
- *1