AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
The export loan agreements between JBIC and PB Vessels Holding Limited has a total maximum value of USD 175 million and USD 22.8 million. Additionally, the loan is co-financed by a number of private financial institutions amounting to an approximate value of USD 304.3 million and USD 45.7 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the cofinanced portion. PB Vessels Holding Limited is incorporated in the British Virgin Islands and is a subsidiary of Pacific Basin Shipping Limited in Hong Kong.
The loans finance the subsidiary's purchase of 18 bulk carriers of which 16 will be built by Japanese shipbuilders and the remaining two will be built by TSUNEISHI GROUP (ZHOUSHAN) SHIPBUILDING Inc. (TZS), a Chinese subsidiary of Japanese TSUNEISHI HOLDINGS CORPORATION.
In this context, JBIC stated: "These loans will support Japanese shipbuilders' export of new vessels from Japan and support the expansion of Tsuneishi's business internationally via its Chinese subsidiary TZS. Therefore, the loans will provide comprehensive and timely support for individual export contracts of Japanese exporters. These loans will thereby contribute to maintaining and strengthening the international competitiveness of the Japanese shipbuilding industry."
JBIC provides direct loans to overseas importers. Loans are obtained if it finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank stated that these loans are intended to “positively contribute to Japanese companies”. Further information can be found on the Bank’s website under export 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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