In addition to loans and equity investments, JBIC provides support through its guarantee facility. Guarantees are provided for loans extended by private financial institutions, bonds issued by governments of developing countries or overseas Japanese companies, as well as for currency swap transactions. JBIC also issues reassurance for guarantees from export credit agencies in other countries.
Types of Guarantees
Guarantees for Imports of Manufactured Products
JBIC has a guarantee facility for borrowing by Japanese companies to finance the import of aircraft and other manufactured products that are vital to Japan.
Guarantees for Corporate Bonds Issued by Japanese Affiliates
JBIC supports Japanese affiliates operating overseas by providing guarantees for the bonds they issue in local capital markets.
Guarantees for Co-financing, Overseas Syndicated Loans, and Public Sector Bonds
Loans to developing countries involve, among others, currency conversion and transfer risks, as well as country risks. Guarantees that JBIC issues to cover such risks enable Japanese private financial institutions to provide medium- and long-term financing for developing countries, and contribute to developing countries to bringing in private capital and facilitating private companies to expand international business activities.
Guarantees for Currency Swaps
JBIC provides guarantees for swap transactions to support the local currency financing of overseas infrastructure projects and other projects undertaken by Japanese companies.
Counter Guarantees for Export Credits
In cases where Japanese companies export machinery and equipment jointly with companies of another country, JBIC provides a counter guarantee for the guarantee provided by that country's export credit agency (ECA). This function enables JBIC to flexibly support export projects by Japanese companies collaborating with foreign companies through multilateral mutual guarantee schemes.
International Organization Loan Guarantee
When international financial organizations provide financing for projects necessary for overseas reconstruction or development under international cooperation, JBIC guarantees these liabilities. Through such schemes, JBIC contributes to maintaining the international financial order.
