ANNOUNCEMENT 18 Feb 2011In February 2011, the government of Japan announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation press release of 24 February 2011: Equity Participation in Fund Investing in India's Growth Companies: http://www.jbic.go.jp/en/information/press/press-2010/0224-7231
JBIC information on Equity Participations: http://www.jbic.go.jp/en/finance/capital
On 18 February 2011, the Japan Bank for International Cooperation (JBIC) signed an equity participation agreement in the Tata Capital Growth Fund L.P. alongside a USD 25 million contribution.
The Fund is a private equity fund managed by Singaporean subsidiary of Indian Tata Capital Limited and Japanese Mizuho Securities Co., through a fund management company. Its primary focus is to invest in Indian growth companies.
In this context the Bank stated: 'JBIC has a policy of actively supporting funds in which Japanese firms perform a major role in management and investment decisions, thereby supporting Japanese firms in maintaining and improving their international competitiveness in this area.'
Equity participation financing
JBIC provides capital contributions named 'equity participations' to foreign companies, overseas projects and (international) funds. Japanese companies must have equity interests in the foreign company; equity participation in the overseas project; or participate in the (international) fund and here play a significant role. More information can be found on the Bank's website under equity participations.
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.