AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
The overseas investment loan agreement in project financing between JBIC and the joint-venture company Ras Ghareb Wind Energy SAE has a total value of USD 192 million. Additionally, the loan is co-financed by a number of private financial institutions amounting to an approximate value of USD 128 million. The governmental agency Nippon Export and Investment Insurance will provide an insurance for the co-financed portion. The approval of the loan and insurance was announced on 4 December 2017 in a press release. The Japanese company Toyota Tsusho/Eurus Energy has a 40% stake in the joint-venture company.
The loan supports the joint-venture company's construction and operation of a wind power plant in Egypt. The electricity generated is sold to the Egyptian Electricity Transmission Company for a period of 20 years.
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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