ANNOUNCEMENT 01 Apr 2014
On 31 March 2014, the Japan Bank for International Cooperation (JBIC) signed a shareholders' agreement with Japanese Mitsubishi Heavy Industries, Ltd. (MHI) and its Danish subsidiary MHI Holding Denmark ApS.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 1 April 2014, Equity Participation in MHI Holding Denmark ApS: http://www.jbic.go.jp/en/information/press/press-2014/0401-19637
MHI Vestas Offshore Wind, Products: http://www.mhivestasoffshore.com/innovations/
JBIC information on Equity Participations: http://www.jbic.go.jp/en/finance/capital
Pursuant to the shareholders' agreement between JBIC, Japanese Mitsubishi Heavy Industries, Ltd. (MHI) and its Danish subsidiary MHI Holding Denmark ApS., JBIC will acquire preferred shares of the Danish subsidiary for a planned value of EUR 132 million (USD 181.84 million).
JBIC's equity participation in the Danish subsidiary will support the company undertaking an offshore wind turbine business through a joint venture company with Danish Vestas Wind Systems A/S. The company produces certain wind turbines.
In this context, the Bank stated: "JBIC will support MHI's (ed. MHI Holding Denmark ApS) business deployment ... by utilizing the equity participation function and will contribute to maintaining and improving the international competitiveness of Japanese industries."
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.