AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
JBIC's equity participation agreement has a value of USD 50 million. The CVC Capital Partners Asia Pacific IV is a private equity fund managed by CVC Capital Partners Jersey Limited. The fund will mainly invest in large-scale infrastructure projects in European and Noth American countries. The fund will identify and invest in companies operating primarily in the Asian region.
In this context, JBIC explained that: "Collaboration with the PE (ed. private equity) fund, a seller of overseas M&A, by establishing this framework is expected to enhance Japanese companies'overseas M&A in addition to JBIC's conventional financial support for Japanese companies as buyers of M&A. ... JBIC will continue to actively support Japanese industries in their efforts to maintain and improve international competitiveness by utilizing various financial tools and schemes, including its function of equity participation in investment funds."
Equity participation financing
JBIC provides capital contributions named “equity participation” 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 participation.
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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