ANNOUNCEMENT 31 Aug 2012

On 31 August 2012, the Japan Bank for International Cooperation (JBIC) signed an overseas investment loan agreement with Toyota Tsusho Corporation.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Japan Bank for International Cooperation, press release of 31 August 2012, Loan for Acquisition of Royalty Interest and Development of CBM in Canada: http://www.jbic.go.jp/en/information/press/press-2012/0831-7443
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment

Inception date: 31 Aug 2012 | Removal date: open ended

Financial assistance in foreign market

The overseas investment loan agreement between JBIC and the Japanese company Toyota Tsusho Corporation has a maximum value of USD 159.6 million.

The loan finances the Japanese company's Canadian subsidiary Toyota Tsusho Wheatland Inc. acquisition of 32.5% royalty interest in the coal-bed methane fields located in the Horseshoe Canyon, Canada from Canadian Encana Corporation. Following this acquisition, the subsidiary will develop CBM - a type of natural gas.

In this context, the Bank stated: "JBIC will continue to actively support Japanese businesses and promote the development and acquisition of energy and mineral resources by drawing on its various financial facilities and schemes..."

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.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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