ANNOUNCEMENT 15 May 2015
On 15 May 2015, the Japan Bank for International Cooperation (JBIC) signed an agreement for equity participation in the CMH Growth Fund, L.P.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 15 May 2015, Equity Participation in Fund that Invests in China's Growth Companies: http://www.jbic.go.jp/en/information/press/press-2015/0515-38132
JBIC information on Equity Participations: http://www.jbic.go.jp/en/finance/capital
Pursuant to the agreement for equity participation in the CMH Growth Fund, L.P., JBIC contributes with a maximum value of USD 20 million. The CMH Growth Fund, L.P. is jointly managed by Japanese Mizuho Securities Co., Ltd. and a Chinese state-owned enterprise. The fund invests in "unlisted growth companies" in China as well as Japanese owned companies located in China.
In this context, the Bank stated: "The Fund's investment will promote the collaboration between Japanese companies and Chinese companies invested in by the Fund and thereby will support Japanese companies aiming to develop their business in China to build their local networks. In particular, it is expected that business and capital alliance between Japanese and Chinese companies will allow Japanese companies to access local supply-chains owned by Chinese investee companies. JBIC supports the business deployment of Japanese companies in China through participation in the Fund."
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.