ANNOUNCEMENT 27 Sep 2013
On 27 September 2013, the Japan Bank for International Cooperation (JBIC) signed an overseas investment loan agreement in project financing with T.E.N Ghana MV25 B.V.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 27 September 2013, Project Financing for Deepwater FPSO Chartering Project for T.E.N Offshore Oil Fields in Ghana: http://www.jbic.go.jp/en/information/press/press-2013/0927-15300
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
The overseas investment loan agreement between JBIC and Dutch T.E.N Ghana MV25 B.V. has a maximum volume of USD 508.2 million in project financing. The Japanese companies MODEC, Inc., Mitsui & Co., Ltd, Marubeni Corporation and Mitsui O.S.K. Lines Ltd have equity stakes in the Dutch company.
The loan finances a project in which T.E.N Ghana MV25 B.V. will offer a long-term floating production, storage, and offloading (FPSO) system chartering service to Tullow Ghana Limited for a period of ten years. Such services entail leasing and operation and maintenance services of the FPSO, which will be deployed for developing T.E.N (Tweneboa, Enyenra, Ntomme) Oil Field.
In this context, the JBIC stated: "As marine resource development has been increasingly moving toward sophistication such as through further ultra-deep water activities, this loan will lead to the strengthening of the international competitiveness of Japanese companies in offshore resource development by helping them acquire and improve technologies, management practices, and knowhow regarding the operation of ultra-deepwater FPSO systems."
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.
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.
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.