AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
On 13 June 2016, the Japan Bank for International Cooperation (JBIC) signed a USD 700 million overseas investment loan agreement with Sumitomo Metal Mining America Inc. The company is a US subsidiary of the Japanese company Sumitomo Metal Mining Co., Ltd. The loan finances the US subsidiary's purchase of 13% interest in Morenci Copper Mine in the United States.
In this context JBIC stated: 'This acquisition of interest will enable SMM to receive 62 thousand tons of copper which account for 13% of copper produced by Morenci Copper Mine (annual average of pure copper over the next five years). The loan will thereby contribute to the long-term steady supply of copper, one of vital metal resources for 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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