AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and Cutbank Dawson Gas Resources Ltd. has a maximum value of 650 million Canadian dollars (USD 654.83 million). The Canadian-based company Cutbank Dawson Gas Resources Ltd. is a subsidiary of the Japanese company Mitsubishi Corporation.
The loan finances the Canadian subsidiary's capital investments of a 40% interest in a project partnership with Canadian Encana Corporation. This project partnership owns the shale gas assets in the Montney land in British Columbia. Hereby the subsidiary buys into the ownership of shale gas resources of British Columbia.
In this context, the Bank stated: "JBIC will continue to actively support Japanese businesses that promote the development and acquisition of energy resources by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming functions."
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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