ANNOUNCEMENT 31 Mar 2015

In March 2015, the government of Japan announced new support for the overseas expansion of domestic firms.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



The Japan Bank for International Cooperation press release: Loans to Manufacturing and Sales Business of Methyl Methacrylate Monomer and Poly Methyl Methacrylate Molding Materials Conducted by The Saudi Methacrylates Company in Saudi Arabia. Available at: http://www.jbic.go.jp/en/information/press/press-2015/0401-36471
JBIC information concerning overseas investment loans: http://www.jbic.go.jp/en/finance/investment


Inception date: 31 Mar 2015 | Removal date: open ended

Financial assistance in foreign market

On 31 March 2015 the Japan Bank for International Cooperation (JBIC) signed two overseas investment loan agreements totalling USD 490 million with Saudi Methacrylates Company. The loans fund the company's manufacturing and sales business of methyl methacrylate monomer (MMA) and poly methyl methacrylate molding (PMA) materials. The loan is intended to support Japanese Mitsubishi Rayon Co., Ltd. activities in Saudi Arabia focused on their investment in Saudi Methacrylates Company.
In this context the Bank stated that the loan is aimed at 'improving the international competitiveness of Japanese industries through financial support for the competitive MMA and PMA manufacturing and sales business, with Mitsubishi Rayon making most use of strongly cost competitive Saudi Arabian gas as raw material, utilities and infrastructure.'
 
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.
 
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.
 
According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified.

AFFECTED SECTORS