ANNOUNCEMENT 13 Mar 2015In March 2015, the government of Japan announced new support for the overseas expansion of domestic firms.
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The Japan Bank for International Cooperation press release: Project Financing for Procurement of LNG Tanker. Available at: http://www.jbic.go.jp/en/information/press/press-2014/0316-35828
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
On 13 March 2015 the Japan Bank for International Cooperation (JBIC) signed a UDS 87 million overseas investment loan agreement with Panama-registered Oceanic Breeze LNG Transport S.A. in project financing. The company is jointly owned by the Japanese companies Kawasaki Kisen Kaisha, Ltd. and INPEX Shipping Co., Ltd. The loan intends to fund Oceanic Breeze LNG Transport S.A.'s purchase of a LNG tanker.
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.
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.