ANNOUNCEMENT 25 Nov 2010In November 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 26 November 2010: Natural Resource Financing for Acquisition of an Additional Interest in a Bolivian Mine Producing Zinc, Lead and Silver: http://www.jbic.go.jp/en/information/press/press-2010/1126-7285
Bolivian Minera San Crist?bal S.A.: About Us: http://www.minerasancristobal.com/en/about-us
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
On 25 November 2010, the Japan Bank for International Cooperation (JBIC) signed an USD 253 million (maximum) overseas investment loan agreement with Bolivian Minera San Cristóbal S.A. The Bolivian company is wholly owned by the Japanese company Sumitomo Corporation. Additionally, the Japanese Sumitomo-Mitsui Banking Corporation will co-finance this loan, with JBIC providing a political risk guarantee for the co-financed portion.
The loan finances the company's acquisition of an additional 65% interest in the Bolivian located San Cristóbal mine. The mine is one of the world's largest in terms of zinc (6th largest), lead (5th largest) and silver (3rd largest).
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.
According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified.