ANNOUNCEMENT 05 Oct 2012
On 5 October 2012, the Japan Bank for International Cooperation (JBIC) signed two overseas investment loan agreements with Trans Pacific Shipping 1 Ltd and Trans Pacific Shipping 2 Ltd in project financing.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 5 October 2012, Project Financing for Procurement of LNG Tankers to transport LNG: http://www.jbic.go.jp/en/information/press/press-2012/1005-7454
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
The overseas investment loan agreements in project financing between JBIC and the two companies Trans Pacific Shipping 1 Ltd and Trans Pacific Shipping 2 Ltd. have a maximum value of 11.2 billion (approx. USD 143.34 million) each. Both companies are established in The Bahamas.
Trans Pacific Shipping 1 Ltd is jointly owned by the Japanese companies Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha. Trans Pacific Shipping 2 Ltd is jointly owned by the Japanese companies Mitsubishi Corporation and Mitsui O.S.K. Lines, Ltd.
Both loans finance the Bahamian companies procurement of LNG tankers from the Japanese company Mitsubishi Heavy Industries, Ltd. The tankers will transport LNG for Japanese Chubu Electric Power Co., Inc. in connection with its participation in an LNG project where it holds upstream interests. As such, the loans both support Japanese companies overseas business activities as well as Japanese exports of LNG tankers.
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.
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.
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.