AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On the 6 August 2014 the Japan Bank for International Cooperation (JBIC) signed a USD 2.5 billion overseas investment loan agreement in project financing with Cameron LNG, LLC. American Cameron LNG is jointly owned by the Japanese companies Mitsui & Co., Ltd., Mitsubishi Corporation, Nippon Yusen Kabushiki Kaisha as well as American Sempra Energy and French ENGIE (formerly GDF SUEZ S.A.). The loan is provided as part of JBIC's overseas investment loan scheme. An additional loan is co-financed by a number of private banks, which the government agency Nippon Export and Investment Insurance is insuring.
The loan is intended to finance the company's LNG project, which consists of constructing a plant used to produce LNG and sell this to Japan, among others. Notably, JBIC has provided similar loans connected to this project, see related measures.
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.
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