ANNOUNCEMENT 12 Aug 2013
On 12 August 2013, the Japan Bank for International Cooperation (JBIC) signed a shareholders' agreement with Japanese Marubeni Corporation and its American subsidiary Gavilon Agriculture Holdings, Co. (GAH).
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 12 August 2013, Equity Participation in Gavilon Agriculture Holdings: http://www.jbic.go.jp/en/information/press/press-2013/0812-13921
JBIC information on Equity Participations: http://www.jbic.go.jp/en/finance/capital
Pursuant to the shareholders' agreement between JBIC and Japanese Marubeni Corporation and its American subsidiary Gavilon Agriculture Holdings, Co., JBIC will acquire preferred shares of the American subsidiary for an aggregate investment of JPY 60 billion (USD 617.79 million).
JBIC's equity participation in the American subsidiary will support the company's acquisition of an American "grain and fertiliser trading business (GavilonAg) of Gavilon Holdings, LLC" and further business activities in the country.
In this context, the Bank stated: "... JBIC' s equity participation will contribute to improving the international competitiveness of Marubeni' s grain and fertilizer trading business."
Equity participation financing
JBIC provides capital contributions named “equity participations” to foreign companies, overseas projects and (international) funds. Japanese companies must have equity interests in the foreign company; equity participation in the overseas project; or participate in the (international) fund and here play a significant role. More information can be found on the Bank’s website under equity participations.
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.