ANNOUNCEMENT 26 Jul 2011

On 26 July 2011, the Japan Bank for International Cooperation (JBIC) signed a loan agreement with Chilian SCM Minera Lumina Copper Chile in project financing. The governmental agency Nippon Export and Investment Insurance (NEXI) will additionally provide a guarantee for the loans provided by a number of private Japanese banks.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Japan Bank for International Cooperation, press release of 26 July 2011, Project Finance for the Caserones Copper Mine in Chile: http://www.jbic.go.jp/en/information/press/press-2011/0726-7337
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment

Nippon Export and Import Insurance, チリ/カセロネス銅・モリブデン鉱床開発プロジェクト(資源エネルギー総合保険の引受), press release of 26 July 2011: http://www.nexi.go.jp/topics/newsrelease/003973.html

Inception date: 26 Jul 2011 | Removal date: open ended

Financial assistance in foreign market

The loan agreement between JBIC and Chilian SCM Minera Lumina Copper Chile has a value of USD 1.1 billion.

Also on 26 July 2011, the governmental agency Nippon Export and Investment Insurance (NEXI) issued a USD 330 million loan guarantee for the JBIC loan to the Japnese-owned mining company CM Minera Lumina Copper Chile.

The loan finances the Caserones Copper Mine Development Project in Chile. The project is undertaken by the Pan-Pacific Copper Co., Ltd. (a joint venture between the Japanese companies JX Nippon Mining & Metals Corporation and Mitsui Mining & Smelting Co., Ltd.) and Japanese Mitsui & Co., Ltd. 

The Chilian company SCM Minera Lumina Copper Chile is owned by the Japanese entities Pan-Pacific Copper Co., Ltd. (75%) and Mitsui & Co., Ltd. (25%).

Project finance
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.

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