JBIC Holds Second Project Finance Seminar for Regional Banks and Other Financial Entities

View of the seminar

The Japan Bank for International Cooperation (JBIC) held the second "JBIC Project Finance Seminar" (three 2-day sessions) at its Head Office (Chiyoda-ku, Tokyo), starting in April 2016, for regional banks and other financial entities. The contents of this seminar were further enhanced from those of the first seminar held last year and were presented for not only the regional banks but also insurance companies.

JBIC and regional banks have been involved in co-financing projects to support the overseas business expansion of Japanese mid-tier enterprises and small- and medium-sized enterprises (SMEs), as well as the promotion of active collaboration by holding seminars and providing information on overseas investment. In addition to such efforts, there have recently been increasing opportunities for cooperation with both the regional banks and insurance companies in the form of assuming the risk of foreign companies, and thus cooperation in project financing (PF) is expected to expand in the future. Given such anticipation, JBIC held this series of seminar sessions to meet the need for acquisition of PF knowledge by regional banks and insurance companies, and each session was attended by as many as 30 participants who are in charge of PF at their respective companies.

In the three sessions, JBIC staff in charge of PF gave lectures on the following subjects: 1. Fundamentals of PF market trends, risk analysis, and risk control techniques; 2. Practice with a focus on points of screening each PF project; and 3. Case studies of examples of JBIC's projects. Emphasis was given in particular, along with examples, to the evaluation viewpoint for overseas PF projects, which saw great interest from participants at the seminar last year.

Seminar program
Seminar 1: Fundamentals (April 14th (Thu) 14:00-17:00 and 15th (Fri) 9:30-12:30)
1. Basics of PF
2. Risk Analysis and Risk Control Techniques
Seminar 2: Practice (May 26th (Thu) 14:00-17:00 and 27th (Fri) 9:30-12:30)
1. Outline of PF Project Auditing
2. Practice of Risk Control
Seminar 3: Case Studies (June 23th (Thu) 14:00-17:00 and 24th (Fri) 9:00-12:00)
1. Examples of PF for Infrastructure Project
2. Examples of PF for Resource Project
Mining and Metals Finance Department presenting a case study of Roy Hill iron ore mining project in Australia
Committee Chair Miyake of the PF Committee giving his closing remarks

In his closing remarks after the seminar, Committee Chair Miyake of the PF Committee (Director General of the New Energy and Power Finance Department I) stated that: "The demand for long-term funds is increasing each year with the growing needs for infrastructure development in emerging countries. We must note that, in order to conduct PF, it is extremely important that we accumulate know-how through actual experiences. We hope to further enhance our cooperation with private financial institutions and respond to such needs." At the social gathering after the seminar, Managing Director Amma expressed his expectation, "We hope to enhance not only the practice and know-how, but also people-to-people exchange, for more partnerships in the future."

The following comments were received from participants: "It was lucidly presented together with the audit viewpoint, from the basic concept to specific examples"; "The presentation of case studies by the actual staff in charge was informative"; "It gave me a clear idea about what exactly to consider when dealing with PF"; and "It was a valuable experience, giving me a chance to exchange information with JBIC staff and other participants, also when socializing after the seminar."

JBIC will continue to provide a broad range of information through the holding of such seminars and lectures, to support the overseas business expansion of Japanese companies.

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