ANNOUNCEMENT 31 May 2011In May 2011, the government of Japan announced new support for the overseas expansion of domestic firms.
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The Japan Bank for International Cooperation press release of 31 May 2011: Energy and Natural Resources Financing for Shark Bay Salt Field Port Refurbishment Project: http://www.jbic.go.jp/en/information/press/press-2011/0531-7324
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
On 31 May 2011, the Japan Bank for International Cooperation (JBIC) signed an overseas loan agreement with Australian Shark Bay Resources Pty Ltd. (SBR) totalling approximately AUD 50 million (approx. USD 53 million). The company is a subsidiary of Japanese Mitsui & Co., Ltd.
The loan finances the refurbishment of Shark Bay salt field's port facilities to facilitate the further production of solar salt. Notably, the salt field is 100% Japanese owned.
In this context the Bank stated: 'JBIC provides this long-term, Australian dollar-denominated loan with the aim of reducing the exchange risk borne by SBR.'
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.