ANNOUNCEMENT 29 Jan 2015In January 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: Energy and Natural Resource Financing for Donggi-Senoro LNG Project in Indonesia. Available at: http://www.jbic.go.jp/en/information/press/press-2014/0129-34704
JBIC information concerning overseas investment loans: http://www.jbic.go.jp/en/finance/investment
On 29 January 2015 the Japan Bank for International Cooperation (JBIC) announced signing two overseas investment loan agreements totalling up to USD 58.8 million and USD 254.9 million with Japanese Mitsubishi Corporation. The loans fund the company's development of upstream natural gas fields and the construction of an LNG plant in Indonesia.
The LNG project is a joint project with Korea Gas Corporation; the state oil company of Indonesia PT. Pertamina; and PT. Medco Energi Internasional Tbk. JBIC supported this project with an overseas investment loan in project financing the 12 November 2014 (see related measure).
In this context the Bank additionally stated: 'Thus JBIC's support for this project will contribute to diversify the supply sources of LNG and securing its stable supply for Japan.'
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.