ANNOUNCEMENT 29 Mar 2013
On 29 March 2013, the Japan Bank for International Cooperation (JBIC) signed an overseas investment loan agreement with Cernambi Norte MV26 B.V. in project financing.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 29 March 2013, Project Financing for an Ultra-Deepwater FPSO Operation Project in the Iracema Norte Area of a Pre-Salt Oil Field in Brazil: http://www.jbic.go.jp/en/information/press/press-2012/0329-7400
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
The overseas investment loan agreement in project financing between JBIC and Dutch Cernambi Norte MV26 B.V. has a maximum value of USD 702 million. The Japanese companies MODEC, Inc., Mitsui & Co., Ltd, Mitsui O.S.K. Lines, Ltd, and Marubeni Corporation have all equity stakes in the Dutch company.
The loan supports the long-term floating production, storage, and offloading (FPSO) system chartering service project undertaken by Cernambi Norte MV26 B.V. In this project the Dutch company will provide such FPSO chartering services to the consortium compant Tupi B.V. in the Iracema Norte area of the coast of Brazil.
In this context, JBIC stated: "JBIC will support the development and acquisition of strategically important resources to Japan, as well as the maintenance and improvement of the international competitiveness of Japanese marine industries."
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.
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.