ANNOUNCEMENT 27 Apr 2011

In April 2011, the government of Japan announced new support for the overseas expansion of domestic firms.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



The Japan Bank for International Cooperation press release of 9 May 2011: Energy and Natural Resources Financing for the Acquisition of Interests and Development of Shale Gas in Canada: http://www.jbic.go.jp/en/information/press/press-2011/0509-7318

JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment


Inception date: 27 Apr 2011 | Removal date: open ended

Financial assistance in foreign market

On 27 April 2011, the Japan Bank for International Cooperation (JBIC) signed an overseas loan agreement totalling a maximum CAD 250 million (approx. USD 257 million) with Canadian Cordova Gas Resources Ltd. The company is established by the Japanese companies Mitsubishi Corporation; Tokyo Gas Co., Ltd.; Chubu Electric Power Co., Inc.; and Osaka Gas Co., Ltd.

The loan finances the Canadian company's acquisition of 50% interest in Cordova Embayment located in British Columbia, Canada as well as the development and production of shale gas.

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.

AFFECTED SECTORS