AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and Japanese Sojitz Corporation has a maximum value of USD 94 million.
The loan finances the Japanese company's acquisition, through two of its Brazilian subsidiaries, of shares in CANTAGALO GENERAL GRAINS S.A. and CGG TRADING S.A. Both companies are engaged in "agriculture, grain collection, and agricultural produce exports". The Japanese company intends, through the acquisition of these shares, to strengthen its "agricultural business base by obtaining the right of preferential purchase of grains, including soybeans, corn and wheat, and business resources such as global procurement and sales networks."
In this context, the bank stated: "Thus this loan supports the overseas business deployment of a Japanese company by providing necessary long-term funds for its overseas M&As, thereby upholding its business expansion as well as new business development and contributing to maintaining and strengthening 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.
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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