AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and Cernambi Sul MV24 B.V. has a maximum value of USD 675 million. The company is Dutch in which the Japanese companies MODEC, Inc., Mitsui & Co., Ltd, Mitsui O.S.K. Lines, Ltd, and Marubeni Corporation have equity stakes.
The loan supports the Dutch company's project to provide long-term FPSO system chartering services to Tupi B.V. A FPSO is according to JBIC a "floating production, storage, and offloading system, which is "a floating vessel for the first stage processing of crude oil produced at the oil". The FPSO will be built by the Japanese company MODEC, Inc.
In this context, the Bank stated: "this loan will lead to the strengthening the international competitiveness of Japanese firms in offshore resource development by helping them acquire and improve technologies, management practices, and knowhow regarding the operation of ultra-deepwater FPSO systems..."
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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