AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and MC Finance Australia Pty Ltd has a maximum value of AUD 1.54 billion (approx. USD 1.59 billion). The company is an Australian subsidiary of the Japanese company Mitsubishi Corporation.
The loan finances, through the Australian subsidiary, the development of the Caval Ridge Coal Mine undertaken by Mitsubishi Development Pty Ltd. The mine is expected to produce 5.5 million tonne of hard coking coal from 2016.
In this context, the Bank stated: "JBIC will actively support further development and acquisition of energy resources and 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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