AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and Mexican company Nippon Steel Pipe Mexico, S.A de C.V. (NPM) has a maximum value of USD 13.2 million. The Mexican company is a jointly established by the following Japanese companies: Nippon Steel Corporation; SPT and SC Investment Co., Ltd. (which is a joint venture between the Japanese companies Sumitomo Pipe and Tube Co., Ltd. and Sumitomo Corporation) and Metal One Corporation.
The loan finances the Mexican company's manufacturing and sales activities of high-grade steel pipes for automobiles in Mexico.
In this context, the JBIC stated: "This loan will support each company investing in NPM for its overseas business deployment, thereby contributing to maintaining and improving the international competitiveness of the Japanese steel industry."
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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