Global Trade Alert

On 8 June 2010, the Japan Bank for International Cooperation (JBIC) signed an equity participation agreement in the DI Asian. Industrial Fund, L.P. with JPY 1 billion (approx. USD 10.9 million) contribution equal to approximately one fifth of the fund's initial capital commitment. The fund is a is a private equity fund investing in Vietnamese growth companies. 
The fund is jointly managed by the Japanese companies Dream Incubator Inc. and ORIX Corporation.
In this context the Bank stated: 'JBIC has a policy of actively supporting funds where Japanese firms perform a major role in management and making investment decisions. Since DI and ORIX jointly manage the Fund, JBIC's equity participation in the Fund is expected to contribute to their overseas business development.'
 
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.