AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On 30 March 2015 the Japan Bank for International Cooperation (JBIC) signed a USD 375 million overseas investment loan agreement with Canadian JAPEX Montney Ltd. The company is owned by Japanese companies Japan Petroleum Exploration Co., Ltd. (45%), Japan Oil, Gas and Metals National Corporation (45%) and MGC Montney Holdings Ltd., a Canadian company owned by Japanese Mitsubishi Gas Chemical Company, Inc. (10%).
The loan will fund the company's acquisition of 10% interest of shale gas mining in British Colombia, Canada as well as the development and production of shale gas.
In this context the Bank additionally stated: 'Thus, this project is expected to contribute to the diversifying LNG supply sources into Canada that is geopolitically stable, as a new source of LNG supply to Japan.'
Overseas investment loans
JBIC provides direct loans named overseas investment loans to Japanese companies, overseas affiliates or joint ventures where Japanese companies hold equity interests and governments or financial institutions partying with such overseas affiliates. Loans support projects in specific sectors or with a specific purpose of interest to Japan. Further information can be found on the Bank's website under overseas investment loans.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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