ANNOUNCEMENT 18 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: Project Finance for Photovoltaic Power Generation Project in Hashemite Kingdom of Jordan. Available at: http://www.jbic.go.jp/en/information/press/press-2014/0119-34545
JBIC information concerning overseas investment loans: http://www.jbic.go.jp/en/finance/investment
On 18 January 2015 the Japan Bank for International Cooperation (JBIC) signed a USD 77 million overseas investment loan agreement in project financing with Jordanian Shams Ma'an Power Generation PSC. The company is jointly owned by Japanese Mitsubishi Corporation Co., Ltd.; Qatari Nebras Power Q.S.C.,; and Jordanian Kawar Investment Company LLC.
The loan finances the construction and operation of a photovoltaic power generation plant in Jordan.
In this context the Bank stated: 'Thereby, JBIC contributes to maintaining and strengthening the international competitiveness of Japanese companies.'
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.