AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and Thai Gulf JP NS Co., Ltd. has a value of USD 270 million. The company is a Thai subsidiary of the Japanese company Electric Power Development Co, Ltd. The loan finances the subsidiary company's Nong Saeng Natural Gas-Fired Combined Cycle Power Plant Project. Through this project, the subsidiary will sell generated electricity to the Electricity Generating Authority of Thailand for a period of 25 years following the construction and later operation of a natural gas-fired combined cycle power plant in the Nong Saeng district.
In this context, the bank stated: "JBIC will support overseas infrastructure business activities of Japanese firms through project structuring risk taking, by drawing on its range of financial instruments and schemes and, through these operations, will contribute to maintaining and improving the international competitiveness of Japanese industries."
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.
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.
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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