AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
JBIC's equity participation agreement has a value of USD 528 million. The Japan Infrastructure Investment Partners L.P. will be managed by a subsidiary of Mitsubishi Corporation and was formed by Mitsubishi Corporation, Mizuho Corporate Bank and JBIC. The fund will mainly invest in large-scale infrastructure projects in European and Noth American countries.
In this context JBIC specified that: "Japanese companies and institutional investors have had limited access to investment opportunities of large-scale infrastructure projects in North American and European countries. ... by collaborating with OMERS (ed. Ontario Municipal Employees Retirement System (OMERS), a public pension fund in the province of Ontario in Canada), infrastructure investment by the Fund, managed by Mitsubishi Corp. through its subsidiary is expected to bring in expanding investment opportunities in this area for companies and institutional investors in Japan." and further added, "JBIC is committed to actively supporting Japanese companies in their efforts to maintain and develop international competitiveness by utilizing various financial tools."
Equity participation financing
JBIC provides capital contributions named “equity participation” to foreign companies, overseas projects and (international) funds. Japanese companies must have equity interests in the foreign company; equity participation in the overseas project; or participate in the (international) fund and here play a significant role. More information can be found on the Bank’s website under equity participation.
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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