AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and Japan Canada Oil Sands Limited (JACOS) has a maximum value of USD 300 million. JACOS is a subsidiary of the Canadian company Canada Oil Sands Co. Ltd, which has been mainly invested in by the Japanese company Japan Petroleum Exploration Co., Ltd
The loan finances JACOS' "development and production of undeveloped oil sands adjacent" at the Hangingstone Mine in Canada and to extract bitumen "directly from the underground oil sands layers". The company holds a 75% interest in the mine.
In this context, the bank stated: "As Japan's policy-based financial institution, JBIC will continue to support the development and acquisition of important natural resources, by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function."
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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