AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The shareholders' agreement between JBIC and the water management company Metito Holdings Limited headquartered in the United Arab Emirates as well as with the Japanese companies Mitsubishi Corporation and Mitsubishi Heavy Industries, Ltd was announced on 8 July 2014 in a press release. Under the agreement, the Japanese companies will acquire 38.4% of ordinary shares from existing shareholders of Metito Holdings Limited and JBIC will acquire classified shares of a total maximum value of USD 92 million.
In this context, the Bank stated: "The support by JBIC for this transaction will lead to the establishment of a business platform for MC and MHI (ed. the Japanese companies) within these regions, and will contribute to maintaining and strengthening the international competitiveness of these two companies in the water sector."
Equity participation financing
JBIC provides capital contributions named “equity participations” 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 participations.
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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