ANNOUNCEMENT 15 Aug 2012
In August 2012, the Japan Bank for International Cooperation (JBIC) signed two overseas investment loan agreements with Sumitomo Corporation and SC Sierra Gorda Finance BV. to support their activities in connection with Sierra Gorda Copper Mine Project in Chile.
Notably, JBIC has already supported this project in March 2012 through a project financing loan, see related measure.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 24 August 2012, Energy and Natural Resource Financing for the Sierra Gorda Copper Mine Project in Chile: http://www.jbic.go.jp/en/information/press/press-2012/0824-7436
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
The overseas investment loan agreement signed on 24 August 2012 between JBIC and Japanese Sumitomo Corporation has a value of USD 130 million.
The loan signed with Sumitomo Corporation will finance the company's acquisition of equity shares in the Chilian company Sierra Gorda SCM from Canadian KGHM International Ltd. In doing so the Japanese company will hold equity shares in the Sierra Gorda Copper Mine project.
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.
On 15 August 2012, the overseas investment loan agreement between JBIC and SC Sierra Gorda Finance BV. has a value of USD 84 million. SC Sierra Gorda Finance BV. is a Dutch subsidiary of the Japanese Sumitomo Corporation.
The loan will finance the Dutch subsidiary's development of the Sierra Gorda Copper Mine. These activities notably related to the Japanese company's acquisition of shares in the Sierra Gorda Copper Mine project.