AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and JX Nippon Oil & Energy Corporation has a maximum value of USD 261 million.
The loan finances the Australian company JX Nippon Oil & Energy (Australia) Pty. Ltd.'s project to purchase 25% equity of a company, among others, having equity in the Susuka and the Sukunka mining area project in Canada. Through this acquisition, the Australian company seeks to produce cooking coal. The Australian company is 100% owned by JX Nippon Oil & Energy Corporation.
In this context, the Bank stated: "JBIC will actively support further development and acquisition of energy resources and mineral resources by Japanese companies."
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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