AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The loan agreement between JBIC and the companies Corredor Logístico Integrado De Nacala SA and Corredor De Desenvolvimento Do Norte SA in Mozambique and Vale Logistics Limited and The Central East African Railways Company PLC in the Malawi was signed on 27 November 2017. The loan has a maximum value of USD USD 1,030 million in project financing. The Japanese Mitsui & Co., Ltd. and Brazilian Vale S.A. hold an equity stake in these companies.
According to JBIC, the loan is co-financed by a number of private financial institutions and the African Development Bank. The total co-financing amount is approximately USD 2.73 billion. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion issued by the private financial institutions.
The loan finances the construction of the railway and port infrastructure for the transportation and exportation of coal produced from the Moatize coal mine in Mozambique.
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 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.
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