ANNOUNCEMENT 22 Aug 2017
On August 22, 2017, The Development Bank of Japan (DBJ) financed an investment project in Pennsylvania, USA with Japanese subsidiaries in the US.
NUMBER OF INTERVENTIONS
DBJ to Finance Hickory Run Natural Gas-fired Thermal Power Generation Project in Pennsylvania
On August 22, 2017, The Development Bank of Japan invested 530 million USD into a thermal power plant in Pennsylvania which 50% owned by the Japanese subsidiary Tyr Energy, Inc., and 30% owned by Japanese company Kansai Electric. The Development Bank of Japan seeks to use this investment to support Japanese business overseas as well as to study the more free-market nature of the American electric sector. The plant is planned to start operation in 2020.
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.