IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 14 Dec 2012 | Removal date: open ended
Still in force

Financial assistance in foreign market

The overseas investment loan agreement between JBIC and Canadian C2C Power Financing 3 LP has a maximum value of USD 477 million (USD 363.2 million) in project financing. The Canadian company is a subsidiary of the Japanese company Mitsui & Co., Ltd.

The loan finances the subsidiary's participation in a project with a number of other companies to construct and operate three wind power stations and two solar power stations in Canada and to then later sell the generated electricity.

In this context, the Bank clarified: "JBIC will continue to support the overseas business deployment of Japanese companies by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function."

Project finance
Project financing loans include preferential terms such as repayments being solely made from the project’s cash flow generation and secured on the basis of the project's assets alone. As such the loan agreement is tied to the project's finances and not the company in question.

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.

AFFECTED COUNTRIES

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