AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On 23 May 2011, the Japan Bank for International Cooperation (JBIC) signed an overseas loan agreement totalling a maximum USD 144.71 million with Australian Sojitz Coal Resources Pty Ltd.(SCR). The company is a subsidiary of Japanese Sojitz Corporation.
The loan finances the Australian company's acquisition of 51% interest in the Minerva coal mine located in Queensland, Australia. Additionally, the loan will support the here following mining operations and sales of coal. Notably, through this acquisition, SCR will have a 96% stake in this mine.
In this context JBIC stated: 'The loan is intended to support a project by a Japanese firm for selling coal to Japanese utilities and industry in general by acquiring an interest in an overseas coal mine and conducting its operations as an operator.'
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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