ANNOUNCEMENT 18 Dec 2012
On 18 December 2012, JBIC signed an overseas investment loan agreement with Tokyo Gas Co., Ltd.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 18 December 2012, Supporting Participation by Tokyo Gas in Ichthys LNG Project in Australia: http://www.jbic.go.jp/en/information/press/press-2012/1218-7497
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
The overseas investment loan agreement between JBIC and the Japanese company Tokyo Gas Co., Ltd has a maximum value of USD 141 million.
The company is participating in an Australian LNG project through Australian Ichthys LNG Pty Ltd. The Australian company is a joint venture company between a number of companies including Tokyo Gas Co., Ltd. This project consists of developing the Ichthys Gas and Condensate Field, to then transport and sell the produced LNG, liquefied petroleum gas and condensate. The Japanese company's share of the produced LNG and other petroleum products will be sold by its Australian subsidiary.
The loan finances Tokyo Gas Co., Ltd's acquisition of 1.575% interest in the above natural gas and condensate field and the liquefaction plant also utilised in the project.
In this context, the Bank clarified: "While participating in this project, Tokyo Gas also has a long-term offtake agreement (lasting 15 years from 2017) in which it receives a supply of 1.05 million tons of LNG per year from this project" JBIC further concluded: "JBIC will continue to actively support Japanese companies for developing and acquiring interests in natural resources, such as natural gas and crude oil."
On the 4th and 18th of December 2012, JBIC additionally signed two loan agreements to support Japanese companies to participate in the above LNG project, see related measures.
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.