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: 12 Aug 2013 | Removal date: open ended
Still in force

Financial assistance in foreign market

Pursuant to the shareholders' agreement between JBIC and Japanese Marubeni Corporation and its American subsidiary Gavilon Agriculture Holdings, Co., JBIC will acquire preferred shares of the American subsidiary for an aggregate investment of JPY 60 billion (USD 617.79 million).

JBIC's equity participation in the American subsidiary will support the company's acquisition of an American "grain and fertiliser trading business (GavilonAg) of Gavilon Holdings, LLC" and further business activities in the country.

In this context, the Bank stated: "... JBIC' s equity participation will contribute to improving the international competitiveness of Marubeni' s grain and fertilizer trading business."

Equity participation financing
JBIC provides capital contributions named “equity participations” to foreign companies, overseas projects and (international) funds. Japanese companies must have equity interests in the foreign company; equity participation in the overseas project; or participate in the (international) fund and here play a significant role. More information can be found on the Bank’s website under equity participations.

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

346 Fertilizers & pesticides
3105 Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus and potassium; other fertilisers; goods of this Chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg.
310520 Mineral or chemical fertilisers containing the three fertilising elements nitrogen, phosphorus and potassium
310590 Other

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