AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreements between JBIC and Moroccan Safi Energy Company S.A. were signed on 18 September 2014. The loans have a maximum value of USD 718 million and EUR 147 million (USD 189.83 million) respectively in project financing. Additionally, the loan is co-financed by a number of private financial institution amounting to an approximate total value of USD 2.107 billion. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion. The Japanese company Mitsui & Co., Ltd. has, among others, invested in the Moroccan company.
The loan finances the Moroccan company's construction and operation of an Ultra Super Critical Coal-fired Power Plant in Morrocco. The electricity generated by the power plant will be sold to the Office National de l'Electricité et de l'Eau Potable for a period of 30 years
In this context, JBIC stated: "JBIC's support for this project through these loans, 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 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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