ANNOUNCEMENT 16 Jul 2020
July 16th, 2020 - A Japanese national financial institution announced it was providing insurance for investments abroad.
NUMBER OF INTERVENTIONS
NEXI, July 16th, 2020. (モザンビーク共和国／モザンビークLNG(ロブマ・オフショア・エリア1鉱区)プロジェクト(融資保険の引受))
Nippon Export Insurance Co., Ltd. (NEXI) announced on July 16th, 2020 that it was providing loan insurance for USD 2bn of loans provided for the construction of the Rovuma Offshore Area 1 LNG field, in the ocean off the coast of Mozambique.
The project itself is a joint venture between several organisations, including the Japan Oil, Gas and Metals National Corporation (JOGMEC). The agreement was signed with the provision that 30% of the produced natural gas would be taken by Japanese utility companies, because the '[...] Japanese government recognized[sic] that one of its most crucial policy agendas is to secure the stable supply of natural gas to Japan', according to the JBIC's press release concerning the signing.
The liability period of the loan is 18 years.
The loans themselves are provided by a selection of both Japanese and foreign banking institutions:
NEXI stated that the insurance was provided as part of its 'Comprehensive Resource and Energy Insurance' policy, which intends 'to fund projects that contribute to securing a stable supply of resources from overseas with a lower premium rate and a wider range of risk coverage'.