Global Trade Alert

On 29 January 2016, the Japan Bank for International Cooperation (JBIC) signed an equity participation agreement in the Advantage Partners Asia Fund, L.P. (AP) with a maximum contribution of USD 50 million. AP is a private equity fund investing in, among others, retailing, manufacturing and services in a number of Asian countries. The Fund is jointly managed by American Advantage Partners, Inc. and Japanese Mitsui & Co., Ltd.
 
The Fund aims to explore and promote business partnerships between Japanese and other Asian companies. In this context the Bank stated: 'The Fund's investment in the Asian companies will give more opportunities for Japanese companies to enter into the overseas business market or to form a capital tie-up with the portfolio companies, as well as boost the business deployment of Japanese companies to Asia.'
 
Equity participation financing
JBIC provides capital contributions named 'equity participations' to foreign companies, overseas projects and (international) funds. Japanese companies must have equity interests in the foreign company; equity participation in the overseas project; or participate in the (international) fund and here play a significant role. More information can be found on the Bank's website under equity participations.
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.