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: 15 Apr 2015 | Removal date: open ended
Still in force

Financial assistance in foreign market

The overseas investment loan agreement in project financing between JBIC and British Agility Trains East Limited has a maximum value of GBP 860 million (USD 1,438.52 million). Japanese Hitachi Ltd holds an equity stake in the British company.

Additionally, the loan is co-financed by a number of private financial institutions as well as the European Investment Bank amounting to an approximate value of GBP 2 billion (USD 3.35 billion). The governmental agency Nippon Export and Investment Insurance will provide an Overseas Untied Loan Insurance for the portion co-financed by private financial institutions.

The loan finances the British company's East Coast Main Line project, which is part of the Intercity Express Programme. In this project, Agility Trains East Limited will purchase a rail car, develop railway depots for maintenance and lease trains to the train operator of the East Coast Main Line with a 30-year maintenance service period. 

In this context, the bank stated: "This loan is intended to support with long-term funding in pound sterling a railway project of Hitachi in the UK, which has been actively developing social capital by making use of private sector funds. Thus it will contribute 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.

Project finance
Project financing loans include preferential terms such as repayments being solely made from the project’s cash flow generation and secured on the basis of the project's assets alone. As such the loan agreement is tied to the project's finances and not the company in question.

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

492 Motor vehicle bodies; trailers & parts thereof
8609 Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes of transport.
860900 Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes of transport.
495 Railway & tramway locomotives & rolling stock; parts
8602 Other rail locomotives; locomotive tenders.
860210 Dieselelectric locomotives
8603 Selfpropelled railway or tramway coaches, vans and trucks, other than those of heading 86.04.
860310 Powered from an external source of electricity
860390 Other
8607 Parts of railway or tramway locomotives or rollingstock.
860711 Driving bogies and bisselbogies
860712 Other bogies and bisselbogies
860719 Other, including parts
860721 Air brakes and parts thereof
860730 Hooks and other coupling devices, buffers, and parts thereof
860791 Of locomotives
860799 Other
8608 Railway or tramway track fixtures and fittings; mechanical (including electromechanical) signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the fo
860800 Railway or tramway track fixtures and fittings; mechanical (including electromechanical) signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the fo
673 Supporting services for railway transport

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