AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and Osaka Gas Gorgon Pty Ltd has a value of USD 211.4 million. The company is an Australia-based subsidiary of Osaka Gas Co., Ltd.
The loan finances the subsidiary's participation in a liquefied natural gas (LNG) project with five other companies. In this project, the companies will jointly develop Gorgon, Jansz and other large-scale gas fields to then produce and an expected annual 15 million tonnes LNG annually from 2014.
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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