ANNOUNCEMENT 28 Jun 2011In June 2011, 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 29 June 2011: Project Financing for an Ultra-Deepwater FPSO Operation Project in an Offshore Presalt Oil and Gas Field in Brazil: http://www.jbic.go.jp/en/information/press/press-2011/0629-7331
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
On 28 June 2011, the Japan Bank for International Cooperation (JBIC) signed a USD 812 million overseas loan agreement with Dutch GUARA MV 23 B.V. in project financing. The Japanese companies Mitsui Ocean Development & Engineering Co.,Ltd., Mitsui & Co.,Ltd. and Mitsubishi Corporation have equity stakes in the Dutch company.
The loan will finances the Dutch company's project regarding a floating production, storage and offloading (FPSO) system chartering service. In this Project Mitsui Ocean Development & Engineering will build an ultra-deep FPSO unit.
In this context JBIC concluded in a press release that: '... this loan will lead to the strengthening the international competitiveness of Japanese firms in offshore resource development by helping them acquire and improve technologies, management practices and knowhow regarding the operation of ultra-deepwater FPSO systems...'
Project financing loans include preferential terms such as repayments being solely made from the project's cash flow generation and secured on the basis of the project's assets alone. As such the loan agreement is tied to the project's finances and not the company in question.
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.