AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement between JBIC and American Cameron LNG, LLC was signed on 6 August 2014. The loan agreement has a maximum value of USD 2.5 billion in project financing. Additionally, the loan is co-financed by 11 private financial institutions. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion.
The Japanese companies Mitsui & Co., Ltd, Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha have invested in the American company.
The loan finances Cameron's construction of a liquefaction plant and production of LNG. The Japanese companies Mitsui & Co., Ltd and Mitsubishi Corporation will, following the completion of the project, sell a portion of the LNG produced.
In this context, JBIC stated: "As Japan's policy-based financial institution, JBIC will continue to financially support the acquisition of interests and development of energy resources by Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function."
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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