AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and Dutch TEC Netherlands B.V. consists of a USD 75 million credit line. The Dutch company is a subsidiary of Japanese Toyo Engineering Corporation. The credit line supports the Japanese company's engineering activities through TEC Netherlands B.V.
In this context, the Bank explained: "... TOYO, in its medium-term business plan, intends to enhance its integrated global operations in order to maximize the effect of consolidated management by leveraging strength of having overseas subsidiaries capable of supplying their own [Engineering, Procurement and Construction] services toward emerging economies and countries having natural resources. Thus, this credit line , supporting TOYO's global operations, will contribute to maintaining and improving the international competitiveness of the Japanese engineering industry."
As such, this credit line will finance Toyo Engineering Corporation's international operation and global market share of Engineering, Procurement and Construction services.
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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