AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Financial assistance in foreign market
A $188 million USD loan agreement was signed into effect on March 23, 2018, for the project financing of PT Supreme Rantau Dedap (SERD), an Indonesian company invested in by Japanese Marubeni Corporation, Tohoku Electric Power Co., Ltd., and other sponsors for the Rantau Dedap Geothermal Power Project in Indonesia by the Japanese Bank of International Cooperation (JBIC). Furthermore, additional private sector banks such as Japanese Mizuho Bank, Ltd., Japanese Sumitomo Mitsui Banking Corporation, the Bank of Tokyo-Mitsubishi UFJ, Ltd., co-financed the loan bringing the total loan amount to 539 million USD. With the loan agreement, SERD will build, own and operate the geothermic power plant in South Sumatra, Indonesia. For an increment of 30 years, the Indonesian state-owned power utility called PT PLN (Persero) will purchase the electricity generated from the SERD plant.
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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