ANNOUNCEMENT 27 Mar 2013
On 27 March 2013, the Japan Bank of International Corporation (JBIC) signed an overseas investment loan agreement with Chubu Electric Power Co., Inc.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 27 March 2013, Supporting Participation by Chubu Electric Power in Ichthys LNG Project in Australia: http://www.jbic.go.jp/en/information/press/press-2013/0527-7517
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 Chubu Electric Power Co., Inc. has a maximum value of JPY 7.5 billion (USD 79.59 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 Chubu Electric Power Co., Inc. 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 Chubu Electric Power Co., Inc. acquisition of 0.735% interest in the above natural gas and condensate field and the liquefaction plant also utilised in the project.
In this context, the Bank stated: "JBIC will continue to actively support Japanese companies for developing and acquiring interests in natural resources, such as natural gas and crude oil."
Notably, JBIC has signed loan agreements with other Japanese companies also participating in this 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.