ANNOUNCEMENT 31 Mar 2010In March 2010, the government of Japan announced new support for the overseas expansion of domestic firms.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation press release of 1 April 2010: JBIC Signs Loan Agreement for Sulphuric Acid Production Project in Kazakhstan: http://www.jbic.go.jp/en/information/press/press-2010/0401-7240
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
On 31 March 2010, the Japan Bank for International Cooperation (JBIC) signed an USD 133.245 million (maximum) overseas investment loan agreement with SKZ-U Limited Liability Partnership (SKZ-U) in Kazakhstan. Additionally, the Japanese Banks Sumitomo Mitsui Banking Corporation (agent bank) and Mizuho Corporate Bank, Ltd. will co-finance this loan, which JBIC partially guarantees.
SKZ-U is a joint-venture company established by the Japanese companies Marubeni Corporation; the Tokyo Electric Power Company, Incorporated; and Toshiba Corporation together with, among others, the Kazakh National Atomic Company Kazatomprom Joint Stock Company.
The proceeds of this loan will finance the construction of a sulphuric acid production plant in Kazakhstan. The sulphuric acid produced at this plant will later supply the Kharassan project that is developing uranium. The above Japanese companies alongside Kazatomprom are also participating in this latter project.
In this context JBIC stated: 'As Japan's official financing institution, JBIC will continue to help cement ties with Kazakhstan, one of the most important resource suppliers in Central Asia, and to support Japanese firms' efforts to develop and acquire interest in significant resources in the country by mobilizing a variety of financial schemes and risk-taking functions.'
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.