ANNOUNCEMENT 07 Jun 2013

On 7 June 2013, the Japan Bank for International Cooperation (JBIC) signed an overseas investment loan agreement with Sberbank of Russia.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Japan Bank for International Cooperation, press release of 5 June 2013, Credit Line for Sberbank in Russia: http://www.jbic.go.jp/en/information/press/press-2013/0610-7529
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment

Inception date: 07 Jun 2013 | Removal date: open ended

Financial assistance in foreign market

The overseas investment loan agreement between JBIC and Sberbank of Russia has a maximum value of USD 36 million. The loan finances the Limited Liability Company "Izhora Transformers" construction and sales of certain transformers utilised for power systems. The company is a joint venture company established by the Japanese company Toshiba Corporation and Russian Open Joint Stock Company "Power Machines"—ZTL, LMZ, Electrosila, Energomachexport. The transformers produced are expected to be sold on the Russian market and in the CIS region in general.

In this context, the Bank stated: "This loan will support Toshiba's business expansion in Russia, and thereby contribute to maintaining and improving the international competitiveness of the Japanese power machinery and equipment industry."

JBIC signed a similar loan agreement on 3 September 2012 with Limited Liability Company "Izhora Transformers". This loan also finances the above project. The loan had a total volume of EUR 28 million (USD 35.24 million).

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