AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The equity participation agreement signed on 31 July 2012 between JBIC and the Japanese companies Tokyo Electric Power Company (TEPCO), Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha alongside the Pan Pacific Energy K.K. (owned by these Japanese companies as well as Japan Oil, Gas and Metals National Corporation). In this agreement, JBIC will acquire a maximum value of USD 273 million in preferred stocks without voting rights. Additionally, the overseas investment loan agreement signed on 31 July 2012 between JBIC and the Australian company PE Wheatstone Pty Ltd has a maximum value of USD 1.927 billion.
This capital contribution and loan will support PE Wheatstone Pty Ltd's participation in the Wheatstone LNG Project in Australia by financing the company's acquisition of 10% interest in the upstream natural gas fields and 8% interest in the liquefaction facilities from Chevron. PE Wheatstone Pty Ltd is owned by Pan Pacific Energy K.K. with 99.9% of the equity stakes and TEPCO owning the remaining 0.1% equity stakes. The project is jointly undertaken with a number of foreign and Japanese companies and will transport natural gas produced in among others the Wheatstone Field, Iago Field to hereafter produce liquefied natural gas (LNG).
Notably, JBIC supported another Japanese company to participate in the Wheatstone LNG Project in Australia the previous year, see related measure.
Equity participation financing
JBIC provides capital contributions named “equity participations” 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 participations.
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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