ANNOUNCEMENT 29 Jun 2011
On 28 June 2011, the Japan Bank for International Cooperation (JBIC) signed two overseas investment loan agreements with subsidiaries of ITOCHU Corporation and Mitsubishi Corporation respectively.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 29 June 2011, Supporting Offtake of Venezuela’s Crude Oil and Petroleum Products: http://www.jbic.go.jp/en/information/press/press-2011/0629-7330
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
The JBIC loans to ITOCHU Corporation and Mitsubishi Corporation each value of USD 337.5 million. The intention is to support the subsidiaries' business activities in connection with their already obtained rights from the Venezuelan company Petróleos de Venezuela S.A. to offtake crude oil and petroleum products for 15 years.
In this context, JBIC stated: "JBIC will continue to strengthen ties with resource companies in oil-producing countries and intends to support the securing of energy resources to Japan and the creation and expansion of business opportunities for Japanese firms in the oil and gas sector, while mitigating country risk with its capacity as an official financial institution."
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.