ANNOUNCEMENT 18 Dec 2013

On 18 December 2013, the Japan Bank for International Cooperation (JBIC) signed buyer's credit loan agreement with the state-owned Saudi Electricity Company to finance the purchase of machinery and equipment for power generation from Japanese manufacturer.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The Japan Bank for International Cooperation, press release of 18 December 2013, Buyer's Credit for Saudi Electricity Company: http://www.jbic.go.jp/en/information/press/press-2013/1218-16353
JBIC information on export loans: http://www.jbic.go.jp/en/finance/export

Inception date: 18 Dec 2013 | Removal date: open ended
Still in force

Trade finance

The buyer’s credit loan agreement between JBIC and the state-owned Saudi Electricity Company (SEC) has a maximum value of USD 183 million. Additionally, the loan is co-financed by a number of private financial institutions amounting to USD 366 million. The governmental agency Nippon Export and Investment Insurance will provide an Export Credit Insurance for the co-financed portion. The loan finances the Saudi company's purchase of machinery and equipment for power generation from Japanese Mitsubishi Heavy Industries, Ltd, including steam turbines and boilers.

In this context, the JBIC stated that: "... support of the export of machinery and equipment for power generation by a Japanese company will thus increase business opportunities for other Japanese companies having high technological capabilities in this sector and contribute to the maintenance and improvement of the international competitiveness of Japanese industries."

Buyer's credit agreements
JBIC provides direct loans named buyer’s credit to overseas importers. Loans are obtained if it finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank stated that these loans are intended to “positively contribute to Japanese companies”. Further information can be found on the Bank’s website under export 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