IMPLEMENTATION LEVEL

NFI

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: 05 Jun 2017 | Removal date: open ended
Still in force

Financial assistance in foreign market

The overseas investment loan agreement in project financing between JBIC and the Vietnamese company Petrochemical Limited Liability Company has a maximum value of USD 1.65 billion. The Vietnamese company is established by the Japanese companies  Idemitsu Kosan Co., Ltd. and Mitsui Chemicals, Inc. alongside the foreign companies Kuwait Petroleum Europe B.V.2 and Vietnam Oil and Gas Group (PVN). Besides the overseas investment loan agreement issues by JBIC, the governmental agency Nippon Export and Investment Insurance (NEXI) issued a USD 5 billion loan guarantee or insurance for a portion of the USD 5 billion co-financing amount approved by a number of private financial institutions. According to NEXI the amount covers USD 1.3 billion and issued as an Overseas Untied Loan Insurance.

The loan and guarantee finances a project to construct and operate an oil refinery and petrochemical complex in Viet Nam to hereafter produce various petroleum products including gasoline, paraxylene and polypropylene.

In this context, the Bank stated: "JBIC will continue to support the overseas infrastructure business activities of Japanese companies, as a public official financial institution, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function, and contribute to maintaining and improving the international competitiveness of Japanese industries".

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.

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.

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

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

333 Petroleum oils & oils of bituminous materials, other than crude
2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic con
271012 Light oils and preparations
271019 Other
341 Basic organic chemicals
2902 Cyclic hydrocarbons.
290243 pXylene
347 Plastics in primary forms
3902 Polymers of propylene or of other olefins, in primary forms.
390210 Polypropylene
399 Other wastes & scraps
2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic con
271099 Other

Please report this page in case you detect an inaccuracy in its content.