ANNOUNCEMENT 15 Dec 2014
On 15 December 2014, the Japan Bank for International Cooperation (JBIC) announced signing an overseas investment loan agreement with TRANS PACIFIC SHIPPING 4 S.A. in project financing
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 15 December 2014, Project Financing for Procurement of LNG Tanker: https://www.jbic.go.jp/en/information/press/press-2014/1215-33354.html
JBIC information on overseas investment loans: http://www.jbic.go.jp/en/finance/investment
The overseas investment loan agreement between JBIC and Panamanian RANS PACIFIC SHIPPING 4 S.A. was signed on 12 December 2014. The loan has a maximum value of JPY 10.752 billion (USD 90.91 million) in project financing. The Panamanian company is a subsidiary of Japanese Kawasaki Kisen Kaisha, Ltd.
The loan finances the Panamanian subsidiary's purchase of a liquefied natural gas (LNG) tanker, which will be used for the transportation of LNG for a project in North America implemented by Japanese CHUBU Electric Power Co., Inc.
In this context, JBIC stated: "This loan supports the effort toward strengthening of energy value-chain by such Japanese companies from participating in LNG projects to transporting LNG..."
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.