AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and Chilian Minera Escondida Limitada has a maximum value of USD 420 million. The Japanese companies Mitsubishi Corporation, JX Nippon Mining & Metals Corporation and Mitsubishi Materials Corporation have invested in the company.
The loan finances the Chilian company's project to expand the Escondida Copper Mine in Región de Antofagasta, Chile. Additionally, the terms of the loan require the Chilian company to supply Japanese companies with copper over the long term. This loan will thus facilitate Japanese companies' overseas business activities as well as securing the supply to Japanese companies in Japan.
In this context, the Bank stated: "JBIC will continue to actively support further development and acquisition of 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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