ANNOUNCEMENT 24 Oct 2012

In October, JBIC signed two overseas investment loan agreements with Japanese companies to finance their equity participation in the Brazilian Niobium Production Company.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Japan Bank for International Cooperation, press release of 24 October 2012, Loans for Equity Participation in Niobium Production Company in Brazil: http://www.jbic.go.jp/en/information/press/press-2012/1024-7466
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment

Inception date: 24 Oct 2012 | Removal date: open ended

Financial assistance in foreign market

On 24 October 2012, the Japan Bank for International Cooperation (JBIC) signed an overseas investment loan agreement with the Japanese company Nippon Steel & Sumitomo Metal Corporation (NSSMC). The overseas investment loan agreement between JBIC and Nippon Steel & Sumitomo Metal Corporation has a maximum value of USD 135 million.

The loan finances acquisition of 10% of the equity shares of Brazilian Companhia Brasileira de Metalurgia de Mineração through the consortium formed by NSSMC and the Japanese-owned companies JFE Steel Corporation; Sojitz Corporation; and Japan Oil, Gas and Metals National Corporation.

The Brazilian company is a mining producer owning the largest share of niobium in the world. Notably, Niobium is an important material in the production of high-grade and special steel products produced by among others NSSMC. Through this acquisition, NSSMC will secure a long-term supply of niobium, which will facilitate their steel manufacturing business. 

In this context, JBIC stated: "... it is extremely important for Japanese steel makers to secure a stable and continuous supply of niobium, and to maintain and improve the international competitiveness of Japan’s steel industry. ... JBIC will actively support the further development and acquisition of mineral resources, including rare metals, and energy resources by Japanese companies."

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

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 10 Oct 2012 | Removal date: open ended

Financial assistance in foreign market

On 10 October 2012, the Japan Bank for International Cooperation (JBIC) signed an overseas investment loan agreement with the Japanese company JFE Holdings, Inc. (JFEHD). The overseas investment loan agreement between JBIC and JFE Holdings, Inc. has a maximum value of USD 135 million.

The loan finances acquisition of 10% of the equity shares of Brazilian Companhia Brasileira de Metalurgia de Mineração through the consortium formed by the Japanese companies Nippon Steel & Sumitomo Metal Corporation, JFE Steel Corporation (a subsidiary of JFEHD); Sojitz Corporation; and Japan Oil, Gas and Metals National Corporation.

The Brazilian company is a mining producer owning the largest share of niobium in the world. Notably, Niobium is an important material in the production of high-grade and special steel products produced by among others JFEHD. Through this acquisition, JFEHD will secure a long-term supply of niobium, which will facilitate their steel manufacturing business. 

In this context, JBIC stated: "... it is extremely important for Japanese steel makers to secure a stable and continuous supply of niobium, and to maintain and improve the international competitiveness of Japan’s steel industry. ... JBIC will actively support the further development and acquisition of mineral resources, including rare metals, and energy resources by Japanese companies."

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.