AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On 16 March 2015 the Japan Bank for International Cooperation signed an overseas investment loan agreement with Saudi Arabian Rabigh Refining & Petrochemical Company for USD 1.998 billion in project financing.
The project intends to expand the Rabigh Integrated Oil Refinery and Petrochemical Plant. The Saudi Arabian company's main shareholders include Japanese Sumitomo Chemical Company, Limited.
In this context the Bank stated: 'Thus JBIC's support for this project through this loan will contribute to maintaining and strengthening the international competitiveness of Japanese petrochemical industries.
Project financing loans include preferential terms such as repayments being solely made from the project's cash flow generation and secured on the basis of the project's assets alone. As such the loan agreement is tied to the project's finances and not the company in question.
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.
According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified.
⚑ Please report this page in case you detect an inaccuracy in its content.