AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreements between JBIC and Sumitomo Mitsui Finance and Leasing Company, Limited and Sumitomo Corporation has a value of USD 413 million and U.S. dollars USD 78 million, respectively.
The loan supports the funding acquisition of equity shares in connection with the acquisition of SMBC Aviation Capital Limited, prior to 8 June 2012 known as RBS Aerospace Limited (RBSAI). In the beginning of 2012, the Royal Bank of Scotland Group announced agreeing to sell the RBSAI to a Japanese consortium of companies, respectively: Sumitomo Mitsui Finance and Leasing Company, Limited; Sumitomo Mitsui Banking Corporation; and Sumitomo Corporation. Following this agreement, the acquisition of the aircraft leasing business from The Royal Bank of Scotland Group was completed on 1 June 2012 by the Japanese consortium of companies. This loan financially supports this acquisition.
In this context, JBIC stated that: "JBIC will continue to support the overseas M&A activities of Japanese companies by drawing on its various financial facilities and schemes."
Notably, JBIC signed a similar loan agreement earlier in June of this year to support this acquisition by the above Japanese companies, see related measure.
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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