ANNOUNCEMENT 23 Feb 2016
On February 22nd, 2016, a loan agreement totaling up to $111 million USD was signed by the Japanese Bank of International Cooperation(JBIC) was provided to the Al Gharbia Pipe Company LLC (AGPC), an Abu Dhabi, United Arab Emirates (UAE) company for the purpose of purchasing Japanese made large-diameter welded steel pipes.
NUMBER OF INTERVENTIONS
Loan for Large-diameter Welded Steel Pipe Manufacturing and Sales Business of Japanese Companies in Abu Dhabi, United Arab Emirates
The $111 million USD loan agreement signed by the Japanese Bank of International Cooperation(JBIC) with Al Gharbia Pipe Company LLC (AGPC), an Abu Dhabi, United Arab Emirates (UAE) company will go to the financing, sales, and manufacturing of large-diameter welded steel pipes for oil/gas pipelines by AGPC, a Japanese joint venture company owned by JFE Steel Corporation (JFE), Marubeni-Itochu Steel Inc. Due to the investments of private Japanese banks such as Mitsui Banking Corporation, Mizuho Bank, Ltd. as well as the National Bank of Abu Dhabi PJSC; the total co-financed loan equals approximately USD 185 million.
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.