ANNOUNCEMENT 28 Jul 2009In July 2009, 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: Loans for the Manufacturing and Sales of Thermal Power Generation Facilities in India
Available at: http://www.jbic.go.jp/en/information/press/press-2009/0728-7189
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
On 28 July 2009, the Japan Bank for International Cooperation (JBIC) signed two overseas investment loan agreements with L&T-MHI Boilers Private Limited (LTMB) and L&T-MHI Turbine Generators Private Limited (LTMT) amounting to a total USD 153.7 million. Both companies are joint ventures primarily established by Japanese Mitsubishi Heavy Industries and Indian Larsen & Toubro Limited.
The loan finances LTMB's and LTMT's manufacturing of boilers and steam turbines for power generation. Mitsubishi Heavy Industries will additionally be involved in this business project by providing pressure technology used to increase the efficiency in power generation.
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.