ANNOUNCEMENT 07 Dec 2010In December 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 8 December 2010: Loans for the Offshore Support Vessel Business of Japanese Shipping Company: http://www.jbic.go.jp/en/information/press/press-2010/1208-7287
'K' LINE OFFSHORE AS: Company: http://www.klineoffshore.no/company
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
On 7 December 2010, the Japan Bank for International Cooperation (JBIC) signed two loan agreements with Norwegian K LINE OFFSHORE AS. The loans amount to EUR 96 million (approx. USD 128 million) and JPY 4.3 billion (approx. USD 52 million).The Japanese company Kawasaki Kisen Kaisha, Ltd. holds a 95% equity interest in the Norwegian company.
The loans finance the company's acquisition and later operation of a number of anchor-handling tug supply vessels and large platform vessels. Such vessels are mainly used for towing and anchoring oil production rigs and transporting goods to drilling rigs, respectively. Notably, K LINE OFFSHORE's provides offshore support services to oil and gas fields.
In this context the Bank stated: 'This loan is expected to maintain and strengthen the international competitiveness of Japanese marine resource industries through acquiring and improving technologies, management practices and know-how on the operation and management of offshore support vessels.'
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.