AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On 24 February 2011, the Japan Bank for International Cooperation (JBIC) signed an overseas investment loan agreement totalling USD 102 million with Australian Tokyo Gas Gorgon Pty Ltd. The company is a subsidiary owned by Japanese Tokyo Gas Co., Ltd.
The loan finances the subsidiary's purchase of 1% interest of the Australian LNG project from Chevron Corporation. The project will develop a number of large-scale gas fields in Australia and transport the gas to a liquefaction plant, which is yet to be constructed. Chevron Corporation is one out of a total of six parties participating in this project.
In this context the Bank stated: 'This loan will support Japanese gas utility's participation in this energy resource development project in Australia...'
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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