ANNOUNCEMENT 30 Jun 2016

In June 2016, 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 5 July 2016: Loan for Tangguh LNG 3 Project in Indonesia: http://www.jbic.go.jp/en/information/press/press-2016/0705-49530


Inception date: 30 Jun 2016 | Removal date: open ended

Financial assistance in foreign market

On 30 June 2016, the Japan Bank for International Cooperation (JBIC) signed a USD 1.2 billion overseas investment loan agreement with Japan International Finance Management (Tangguh) Corporation. The loan will finance a LNG project undertaken among others by the shareholders of Japan International Finance Management (Tangguh) Corporation. The project will develop and produce LNG from the gas fields located in Indonesia. Additionally, the project will expand the existing gas liquefaction facilities. The Japanese companies participating in this project are Mitsubishi Corporation, INPEX CORPORATION, JX Nippon Oil & Gas Exploration Corporation, LNG JAPAN CORPORATION, MITSUI & CO., LTD., and Japan Oil, Gas and Metals National Corporation alongside a number of foreign companies. The Japanese company own a total of 46% interest in these gas fields.

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.
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.
According to UN Comtrade, no trading partner exceeded the GTA threshold of USD 1 million on the affected tariff lines in the year prior to the intervention. Thus, no affected trading partners have been identified.

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AFFECTED PRODUCTS