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 Aug 2014 | Removal date: open ended
Still in force

Financial assistance in foreign market

The overseas investment loan agreement between JBIC and Laotian Nam Ngiep 1 Power Company Limited was signed on 15 August 2014. The loan agreement has a maximum value of USD 200 million in project financing. The Japanese company The Kansai Electric Power Co., Inc. has, among others, invested in the Laotian company.

The loan finances the construction and operation of a hydropower plant in Lao. The electricity generated is sold to Electricity Generating Authority of Thailand and the state-owned Laotian company Electricite du Laos for a period of 27 years.

In this context, the Bank stated: "The loan supports financially the participation of Japanese companies in overseas infrastructure projects and 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

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