AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and TENIGAL has a value of USD 120 million. The company is a Mexican joint venture between the Japanese Nippon Steel Corporation (NSC) and TERNIUM S.A., incorporated in Luxembourg. Additionally, a number of Japanese banks signed loan agreements with TENIGAL at a total value of USD 200 million. JBIC here additionally provided a loan guarantee for this co-financed portion.
The loan finances the joint venture's project of manufacturing and selling hot-dip galvanised and galvannealed steel sheets. In this context, JBIC stated: "This loan will support NSC’s overseas business strategy and ultimately serve to maintain and improve the international competitiveness of the Japanese steel industry."
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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