financial instruments - jbic · 1· financial instruments export loans financial institution, ......

JBIC Annual Report 2012

4Financial Instruments

1 Financial Instruments 60

2 Prominent Initiatives in Recent Years 68

59


Financial Instruments

1. Financial Instruments

4

Financial Instruments1·

Export Loans

Financial institution, etc., in foreign country

Importer(s) in foreign country(ies)Japanese exporter(s)

Loan(B/L)*2

Loan(B/C)*1

Exportsofplants,etc.

Loans

ExportloansareprovidedtooverseasimportersandfinancialinstitutionstosupportfinanceexportsofJapanesemachinery,equipmentandtechnologymainlytodevelopingcountries.Inparticular,productssuchasmarinevessels,powergenera-tionfacilitiesandothertypesofplantequipmentincorporatea large amount of advanced technology, and their exportcontributestoenhancethetechnologicalbaseofJapaneseindustries.Further,Japaneseshipbuildingandplantfacilitiesindustries have a broad range of supporting industries in-cludingmid-tierenterprisesandSMEsproducingpartsandcomponents.Export loans JBICprovidesarealsoexpectedto positively contribute to the business of these Japanesecompanies. Export loans are also available to developedcountriesineligiblesectors(seenote).

Terms and conditions of export loans are determinedbased on the OECD Arrangement. In principle, the loanamountshouldnotexceedthevalueofanexportcontractortechnicalservicecontract,andexcludesdownpayment.Whilelocalcostscannot,inprinciple,beappliedtotheloan,suchcostsmaybecoveredprovidedthattheamountiswithinthescopeprescribedbytheOECDArrangement.

(Note)EligibleSectorsofExportLoansinDevelopedCountries(AsofOctober31,2012)[IntegratedInfrastructureSystemProjects]

Railways(high-speed,inter-cityprojectsandprojectsinmajorcities),waterbusi-ness,biomassfuelproduction,renewableenergypowergeneration,nuclearpowergeneration,powertransformation,transmissionanddistribution,highlyefficientcoal-firedpowergeneration,coalgasification,carboncaptureandstorage(CCS),highlyefficientgas-firedpowergenerationandsmartgrid

[OtherExportTransactions]Ships,satellites,aircrafts,medicalpositronbeamtherapyequipment

*1.Loantoforeignimporters(Buyer’sCreditor“B/C”).*2.Loantoforeignfinancialinstitutions(Bank-to-BankLoanor“B/L”).

Duetotheexpansionoftheglobalrollingstockmarket,manymanufacturersinEurope,Asia,NorthAmericaandelsewherearevigorouslyengagedinbusinessactivitiestowinordersfortransportinfrastructure.InCairo,thecapitalofEgypt,chronictrafficcongestioncausedbyexcessiveconcentrationof thepopulationisposingmajorproblems.Itwasagainstthisback-drop that JBICprovided support for theexportof Japanesecompaniesbyfinancingtheprocurementofafleetofrollingstocksmainlymanufacturedby Japanesecompanies for theprojectofconstructingLine3oftheGreaterCairoMetroNet-workthatlinksthecitycenterwithCairoInternationalAirport.

Asthefast-pacedgrowthintheIndianeconomyinrecentyearshas caused chronic power shortages, JBIC provided exportcredit,throughIndia’slargestprivatesectorbank,tofinancetheexporttoIndiaofthermalpowergenerationboiler/turbinesetsthatembodysupercriticalpressurecoal-firedpowergenerationtechnologythatisexpectedtoreducetheburdenontheenvi-ronment.ThisloansupportsoverseasinfrastructurebusinessdevelopmentbyJapanesecompaniesaswellascontributingtoIndia’spowersupplycapacity.

Support for Export of Transport Infrastructure Supporting Overseas Business Development of Japanese Companies

AnimageofMetroLine3passengercars(courtesyofTheKinkiSharyoCo.,Ltd.)

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4 Import Loans

Foreign exporter(s)Japanese Importer(s)

Loan

Importsofnaturalresources

Loan

Importloanssupportimportsofstrategicallyimportantgoodsincludingnaturalresources.TheyareextendedtoJapaneseimportersorforeignexporters.AsJapanispoorlyendowedwithnatural resources,stable importsofnatural resourcesoverthelongtermareoneofthekeyfactorsunderpinningdomesticeconomicactivity.Importloansfinancethedevelop-mentandimportofenergyresources,includingoilandLNG,andmineralresources,includingironore,copperandotherrarematerials. Inadditiontonaturalresources,JBICprovidesaguaranteefacilityforgoodsandservicesessentialtothesounddevelop-mentof the Japaneseeconomy, suchas for the import ofaircraft.

Products Eligible for Import Loans (Natural Resources)Oil,petroleumgas,LNG,coal,uranium,metallicore,metals,mineral phosphate, fluorite, salt, lumber, wood chip, pulp,andothermaterials



TheUnitedArabEmirates(UAE)hasbeenastablecrudeoilexporterfor Japan for more than 30 years. In addition, Abu Dhabi allows theentryofforeign-affiliatedcompaniestooperateoilfieldsonthebasisofconcessionagreements.Thus,theUAEisanimportantcountryforJapan’sresourcestrategy.JBICsignedMOUsforthefurtherstrengtheningofitscomprehensiveandstrategicpartnershipwithAbuDhabiNationalOilCompany(ADNOC)inAbuDhabi,whichisahubofoilandgasproduc-tionintheUAE.JBICfurtherprovidedimportloansforANDOC,therebycontributingtosecuringastablesupplyofenergyresourcestoJapan.

Financing to Ensure Stable Supplies of Oil from Overseas

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Government, fi nancial institution, etc., in foreign country, Japanese bank

Japanese affi liate(s)

Joint venture partner(s)

Japanese fi rm

Project(s) in foreign country(ies)

Loan

Loansand/orequityinvestment

Loan

Loans

Loans

Equityinvestment

Loan

Loans

Overseas Investment Loans

Overseasinvestmentloanssupport Japaneseforeigndirectinvestments. They are extended to Japanese companies(investors),overseasaffiliatesincludingjointventureswhereJapanesefirmshaveequityinterestsandgovernmentsorfi-nancialinstitutionsthatmakeequityinvestmentsinorextendloanstosuchoverseasaffiliates. DirectloanstoJapanesecompaniesareintendedformid-tierenterprisesandSMEs,aswellasforprojectsaimedatdevelopingorsecuringinterestsinoverseasresourcesthatare strategically important to Japan, or for projects to as-sistwithmergerandacquisition(M&A)activitiesandotheragreements(includingtolargefirms).Moreover,JBICisabletoprovidetwo-steploans(TSLs)tosupporttheoverseasbusi-nessdeploymentofJapanesecompanies,includingmid-tier

enterprisesandSMEs,aswellasTSLsintendedtosupporttheirM&Aactivities.JBICisalsoabletoprovideshort-termloans foroverseasbusinessoperationswhenbridge loansarerequiredtofillthefinancinggapbeforeitofferslong-termloans.JBICisfurtherempoweredtoextendinvestmentloansforprojectsindevelopedcountriesforeligiblesectors(seenote).

(Note)EligibleSectorsofOverseasInvestmentLoansinDevelopedCountries(AsofOctober31,2012)Railways(high-speed,inter-cityprojectsandprojectsinmajorcities),waterbusiness,renewableenergypower generation, nuclearpower generation, power transfor-mation,transmissionanddistribution,highlyefficientcoal-firedpowergeneration,coal gasification, carboncaptureand storage (CCS), smart grid, developmentoftelecommunicationsnetwork,biomassfuelproduction,highlyefficientgas-firedpowergeneration,aircraftmaintenanceandsales,M&Aactivities,etc.

Copperisanimportantminingresourceusedinawiderangeofapplications,suchaselectricalcables,automobilesandbuild-ingmaterials,thoughJapaniscurrentlywhollydependentonimportsforitssupplyofcopperconcentrates.JBICisprovidingthefinancingfortheCaseronesCopperMineprojectinChile,thefirst100%Japan-ownedlarge-scaleoverseascopperminedevelopment.ThisprojectsecuresasteadysupplyofcopperconcentratestoJapan,andisstrategicallyimportantintermsofboththeacquisitionofminedevelopmentandoperationalknow-howoverseasby Japanesecompanies,aswellas thesecuringofmineralresourcesfor Japanoverthemediumtolongterm.

Therehasbeenincreasingneedsformechanizationofagricul-ture, due to economic growth, income growth among agri-culturalhouseholdsandadecreaseinagriculturalpopulationinThailand,whichhasaboutsixtimesmorericepaddyfieldsthanJapan.Asaresult,theagriculturalmachinerymarkethasbeenrapidlygrowing.JBICextendedaloantoYANMMARCo.,Ltd.,aJapaneseagriculturalmachinerymanufacturer,forfund-ing its sales of agriculturalmachinery in Thailand. The loanisexpectedtosupportJapanesecompaniestoexpandtheirbusiness inThailand, theeconomyofwhich isonapathofsustainedgrowth.

Financing for Japanese Companies Investing in Natural Resource Development

Supporting Japanese Manufacturers’ Overseas Business Deployment



4

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Project(s) in the recipient country(ies)

Exporter(s)

Government, fi nancial institution, etc.,

in foreign country

Foreign importer(s)Importsofequipmentandtechnology

Loan

Untied Loans

Untiedloansarefinancingbasicallytodevelopingcountriesnecessary to implementprojectsand importgoods,or forsuchcountriestoleveltheirinternationalbalanceoftrade,orstabilizetheircurrency.Loansarenotconditionalonprocure-mentofequipmentandmaterialsfromJapan. Capitalprocuredfromuntiedloansisusedto:Securestablesuppliesofenergyandmineralresourcesto

Japan;PromotebusinessactivitiesofJapanesecompanies;Maintain and expand trade and direct investment from

Japan;Financeprojectshavingsignificanteffectonglobalenviron-

mentalpreservation;andFinanceprojectsmaintaininginternationalfinancialorder

Untiedloansmaybecategorizedintotwotypes:projectloans andpolicy adjustment loans. Project loans are usedtofinanceprojects fordevelopingeconomic infrastructure,includingpower,telecommunicationsandtransportationfacili-ties,andfordevelopingnaturalresources.Policyadjustmentloans support economic management, including structuraladjustmentintheoveralleconomyandinindividualsectors.AprojectloanmaytaketheformofaTSL,whichsupportsthepromotionofexportsandthedevelopmentofsupportingindustriesinadevelopingcountrythroughitsofficialfinancialinstitution. Drawingonitsstrongtieswithdevelopingcountriesfos-teredbytheprovisionofuntiedloans,JBICprovidesindirectsupportforJapanesefirms’businessactivitiesindevelopingcountriesbyhelpingsolvedisputesthatarisebetweendevel-opingcountryauthoritiesandJapanesefirms.

JBICprovidedaloanforDenizbankA.S.,oneoftheleadingcommercialbanksinTurkey,tosupportthefundingofitsenvironment-relatedprojects,suchasrenewableenergyandenergyefficiencyimprovement.ThisfinancingisprovidedaspartofJBIC’sGREEN(GlobalactionforReconcilingEconomicgrowthandENvironmentalpreservation)operations( see p. 69).TheTurkishgovernmentratifiedtheKyotoProtocolinAugust2009andhasbeenmakingactiveeffortstomitigateclimatechange.Theloanisexpectedtocontributetomitigatinggreenhousegas(GHG)emissions,aswellasdisseminatingadvancedenvironmentaltechnologiestoTurkey.

Supporting Renewable Energy and Energy Conservation Projects

4



63


Japanese fi rm(s)

Japanese fi rm(s)

Japanese fi rm(s)

Japanese fi rm(s)

Equityparticipa-

tions

Equityparticipa-

tions

Equityparticipa-

tions

Equityparticipa-

tions

Equityparticipa-

tions

Majorrole

Businessalliance

Overseas project

Foreign fi rm

Fund

Fund

Other investor(s)

Other investor(s)

Equityparticipation

Equityparticipation

Equityparticipation

Equityparticipation

consortium



4 Equity Participations

EquityparticipationsarecapitalcontributionstothecompanieswhichJapanesecompanieshaveequitystakessetupbyJapanesecompaniestoundertakeoverseasprojectsandfundswhereJapanesecompaniesperformasignificantrole.Inprinciple,equityparticipationstakethefollowingforms.

Japanese fi rms make equity investment in an overseas project

Japanese fi rms acquire equity interests in a foreign fi rm to form business alliance

Japanese fi rms participate in fund (and perform such major role as general partner in their management and investment decisions)

Japanese fi rms form a consortium and participate in an international fund

JBIChasinvestedinafundthattargetsgrowthcompaniesinVietNam.Thisprivateequity fund,managedby Japanesecompanies, invests inVietnamesecompaniesthatneedcapitalandtechnologytogrow,andprovidesthemwithsupport insuchareasasallianceswith Japanesecompanies,withtheaimofenhancingtheircorporatevalue.InadditiontosupportinggrowthofVietnamesecompanies,thefundcontributestopromotebusinessdeploymentofJapanesecompaniesinVietNam,whichishighlyexpectedasapromisingmanufacturingbaseandconsumermarketforthem.

Equity Participation in a Fund for Growth Companies in Emerging Nations

Medicalexambusesownedbyaportfoliocompanyofthefund

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Inadditiontoloansandequityparticipations,JBICalsoprovidessupportthroughitsguaranteefacility.Guaranteesareprovidedforloansextendedbyprivatefinancialinstitutions,bondsissuedbygovernmentsofemergingnationsoroverseasJapanesecom-panies,andcurrencyswaptransactions.JBICalsoissuesreassuranceforguaranteesfromexportcreditagenciesinothercountries.

Private fi nancial institution, etc.

Investor(s)

Investor(s)

Japanese fi rm(s)

Japanese importer(s)

Japanese affi liate (Issuer)

Government, etc., in foreign country

Overseas infrastructure projects,etc.

Foreign exporter(s)

Japanese fi rm (Parent company, private fi nancial institution, etc.)

Private fi nancial institution, etc.

Swap counterparty in overseas

Private fi nanced institution

Guarantee

Guarantee

Guarantee

Importofproducts

Guarantees

Loan

Currencyswap

contract

Loan

IssueofbondsCounterguarantee

Issuesofpublicbonds,etc.

Invest-mentOperationGuarantee

Subguarantee

LoanGuarantee

Localcurrency

loan

4



Guarantees

Guarantees for Imports of Manufactured Products

Guarantees for Corporate Bonds Issued by Japanese Affi liates

Guarantees for Co-fi nancing, Overseas Syndicated Loans and Public Sector Bonds

Guarantee for Currency Swaps

JBIChasaguaranteefacility fortheborrowingsmadebyJapanesefirmstofinancetheimportofaircraftandothermanufacturedproductsthatareimportantforJapan.

JBICsupportsJapaneseaffiliatesop-eratingoverseasbyprovidingguaran-teesforthebondstheyissueinlocalcapitalmarkets.

Loanstodevelopingcountriesinvolve,amongothers,currencyconversion,transferandcountryrisk.Guaranteesthat JBIC issues tocover such riskswillenableJapaneseprivatefinancialinstitutionstoprovidemedium-andlong-term financing for developingcountries, supporting developingcountries tobring inprivatecapitalandfacilitatingprivatefirmsexpand-inginternationalbusinessactivities.

JBIC provides guarantees for swaptransactions to support the localcurrencyfinancingofoverseasinfra-structure projects, etc., undertakenbyJapanesefirms.

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Foreign fi rm(s)

Japanese fi rm(s)

Foreign importer(s)

Foreign ECA

Private bank(s)

Export

Counterguaran-

tee

Loan

Guarantee

Loans from the IMF, World Bank, etc.

Government, fi nancial institution, etc.,

in foreign country

Import or other external transaction(s)

Loan(Condi-

tionality)



4 Counter Guarantees for Export Credits

When Japanese exporters exportmachinery and equipment withothercountry’sfirm(s),JBICprovidesa counter guarantee for the guar-antee provided by that country’sExportCreditAgecy (ECA), therebyparticipatinginamultilateralmutualguaranteescheme.

Bridge Loans

Acquisition of Loan Assets and Public and Corporate Bonds

Research and Studies

JBICprovidesshort-termfinancingforgovernmentsofdevelop-ingcountriestomeettheirforeigncurrencyneedsforexternaltransactionswhentheyfacebalance-of-paymentdifficulties.

WhenJBICprovidesexportloans,importloans,overseasin-vestmentloansanduntiedloans,JBICcanalsoprovidecredits,inadditiontoprovidingloansandguarantees,bypurchasingloanassetsandacquiringpublicandcorporatebonds1issuedbyborrowersforfunding.Theobjectiveofsuchoperationsis

JBICconductsresearchandstudiesonindividualprojectsdur-ingtheirinitialstage,aswellasresearchandstudiesfocusedonspecificregionsorindustrysectorsthatmayhaveabearingonspecificprojectsoccasionally.Thisisaneffectivemeansofuncoveringpotentiallyfavorableprojects,andsupportstoincreaseexportsofmaterialsandservicesfromJapanforthatproject,aswellastoexpandopportunitiesforparticipationbyJapanesecompanies.Researchandstudiesareconductedateachstagenecessaryforrealizationoftheproject,includingcreationofamasterplanforanindividualproject,conductingofprefeasibilityandfeasibilitystudies(Pre-F/S,F/S),frontendengineeringdesign(FEED),andstudiesofregionsandindustry

topromoteprivatefinancialinstitutions’loansininternationalfinanceand Japanesefirms’ funding in internationalcapitalmarkets.

sectors linked to specific projects. After the research andstudiesarecompleted,follow-upreviewsareconductedatleastonceeachyeartoconfirmtheprogressoftheproject.Researchandstudiesareconductedinthefollowingorder.1.Selectionofaresearchandstudysubject2.Selectionofthecontractortoconductresearchandstudies3.Conductoftheresearchandstudies4.Completionoftheresearchandstudyreport5.Follow-up

1. Thescopeofassetsandsecuritiesacquired includespublicbonds,corporatebonds,debtsecuritiesandtrustbeneficiaryrights.

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Special purpose company

Overseas Local companies

Originator

Private fi nancial institutions, etc.

Overseas Japanese affi liates

Obligor

Overseas Japanese affi liates

Private fi nancial institutions

Investors (in Japan and overseas)

Investors

Transferofloans

Accountsreceivable,etc.

Guarantee

GuaranteeGuarantee

Loans

Assignmentofaccountreceivable

Purchaseofasset-backedsecurity

Issueofasset-backedsecurity

SPC or Trust

Proceeds

Asset-backedsecurities

Proceeds

4



JBICprovidessupportforsecuritization,etc.inordertosupplementandencouragetheactivitiesofprivatefinancialinstitutions.

Securitization, etc.

1. Securitization (Guarantees)

3. Securitization of Receivables, etc.

2. Securitization (Acquisition of Securities)

Incaseswherespecialpurposecompaniesortrustcompaniesissueasset-backedsecuritiesorotherfinancialproductswithloansorotherassetsascollateral,JBICguaranteesthepay-mentofsuchasset-backedsecuritiestoreducethecountryandstructurerisks,therebysupportingtheissuanceofbondsintheemergingcapitalmarkets.

JBICprovidesguaranteesforthereceivablesandothermon-etaryclaimsheldbyoverseassubsidiariesofJapanesecom-panies,inordertofacilitatethepurchaseofsuchreceivablesbybanks.JBICisalsoabletoprovideguaranteesforsecurities

JBICsupportsbondissuesbyacquiringaportionoftheasset-backedsecurities issuedbyspecialpurposecompaniesortrustcompanieswithloansorotherassetsascollateral.JBIC’sacquisitionwillcontributetothesmoothissuanceofbonds,aswellasstimulatesthemarketbycirculatingtheacquiredbondsbackintothemarketwhenmarketconditionsallowit.

issuedbyspecialpurposecompanies (SPCs)or trustcom-paniestosecuremonetaryclaimstheyhaveacquiredfromoverseasJapanesesubsidiaries.

Theabovediagramsdepicttheschemeswherespecialpurposecompanies(SPCs)areused,buttheclientscanalsouseschemeswheretrustsareusedorJBICacquiresorprovidesguaranteesforassetsbackedbysecuritization.

TheautomobilemarketintheUnitedArabEmirates(UAE)isexpectedtocontinuetogrowand,withJapaneseautomobilesaccountingfora60%shareofthemarket, it isconsideredapromisingmarketfor Japaneseautomakers.JBICacquiredandprovidedguaranteesforsecuritizednotesbackedbyauto loansoriginated*byEmiratesNBDPJSC (ENBD), thelargestbankintheUAEintermsofassets.ThiswasthefirstautoloansecuritizationintheUAE.Withthepaymentguaranteesforthesecuritiessold to investors, JBICminimized thecountryandstructure risks, andprovidednewinvestmentopportunitiestothemarket.Thisdealsupportssmoothprovisionofautoloansbylocalbanks,therebycontributingpro-motesteadygrowthintheUAEautomobilemarketandservingtoupholdandexpandanimportantmarketforJapaneseautomobilemanufacturers.

Securitization of Automobile Financing Receivables

(Note)TheOriginatoristheinitialownerofthesecuritizedassets.

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Clean energy projects

(renewable energy, etc.)

Water projects

Rail projects (inter-city,

metropolitan transit)

Smart grid-related

projectsM&A projects

Large-scale resource interest

acquisition projects

Energy effi ciency/Alternative

energy projects

Projects in Asia

Supporting Environment Sector and Asian Projects, etc.

Promoting Investment in M&A Projects

Supporting for the Overseas Deployment of Integrated Infrastructure Systems Implemented by Japanese Companies

Project Eligible for Support under the E-FACE Initiative

Private Sector

Equityparticipations

Equityparticipations

EquityparticipationsLoans Loans

LoansEquitypartici-pations

Equityparticipations/Loans Equityparticipations/Loans

Guarantees


2. Prom

inent Initiatives in Recent Years

4

Prominent Initiatives in Recent Years2·

E-FACE Initiative to Finance Strategic Projects

JBICestablishedE-FACE(EnhancedFacilityforGlobalCoop-erationinLowCarbonInfrastructureandEquityInvestment)1inApril2011,inordertoofferproactivesupportfortheoverseasdeploymentof integrated infrastructuresystemsandotherstrategicprojects,whilealsomobilizingprivatesectorfundingto thegreatestextentpossible.This facility is intended tofinancetheoverseasdeploymentofintegratedinfrastructuresystems,topromoteinvestmentinsuchprojectsasM&Adeals

andlarge-scaleacquisitionsofnaturalresourceinterests,andtoprovideriskcapitalforenergyconservationandnewenergyprojects,aswellasprojectsinAsia.

1. ThisFacilitywaslaunchedtodevelopandexpandtheJBICFacilityforAsiaCo-operationandEnvironment (FACE),whichsupportedAsianprojects,primarilyinthesectorsthatwouldcontributetomitigatingclimatechange,infrastructuredevelopmentprojects,andtheLeadingInvestmenttoFutureEnvironmentInitiative(LIFEInitiative),whichaimedtosupportenvironmentalinvestmentsundertakenbygovernmentsandprivatesectorcompanies inAsianandotherdevelopingcountries.

JBIC Enhanced Facility for Global Cooperation in Low Carbon Infrastructure and Equity Investment (E-FACE)

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Promoting the overseas business having the purpose of preserving the global environment, such as preventing global warming

Private Flows

Guarantees

Equityparticipations/Loans

Eligible Entity:

Eligible Projects:

4


2. Prom


GREEN Operations

JBIClaunchedGREEN(GlobalactionforReconcilingEconomicgrowthandENvironmentalpreservation)operationsinApril2010. Previously, JBIC’s financing operations had centeredmainlyonprojectsdirectlyaimingtomaintainandimproveinternationalcompetitivenessofJapaneseindustries,suchasprojectsinvolvingJapanesefirms’investmentandmachinery/equipmentexports.Accordingly,projectsdedicatedsolelytopreservationoftheglobalenvironmentweresofarnoteligibleforJBICsupport.LaunchingGREENoperationsenabledJBICtofocusitsfinancingonprojectsseekingtopreservetheglobalenvironment,suchasthosethatmateriallyreducegreenhousegas(GHG)emissions,whilepropagatingadvancedJapaneseenvironmentaltechnologiesacrosstheworld. TohelpimplementGREENoperations,JBICalsoestablishedtheGuidelinesforMeasurement,ReportingandVerificationofGHGEmissionReductionsinJBICGREENoperations(J-MRVGuidelines),whichsetoutthebasicconceptsandproceduresfortheJ-MRVGuidelines.

Foreigngovernment,governmentalagenciesorlocalgovernments,publicenterprisessuchasutilitiesoperatingcloselywithgovernment,

ForeignFinancialInstitution,multilateralInstitution.

1.Favorableimpactonpreservationoftheglobalenviron-ment,suchassignificantlyreducingGHGemissions.

2.AcceptingJBIC-MRV*processontheeffectoftheenviron-mentalpreservation.

(e.g.Energyefficiency improvement,Renewableenergy,etc.)

*JBICoriginalmethodologyforMeasurement,ReportingandVerification.

Guarantee and Acquisition toward Tokyo market Enhancement (GATE) Facility

JBIC launchedthenew“GuaranteeandAcquisitiontowardTokyomarketEnhancement (GATE)” facility for supportingsamuraibond1 issuance inApril2010.Thisenables JBICtoacquiresamuraibondswhereappropriateinadditiontopro-vidingpartialguaranteesforsamuraibondissues.TheGATEfacilitytherebyhelpedforeigngovernmentsandgovernmentagenciestoconsistentlyraisefundsintheTokyomarket. SinceMay2009, JBIChasstoodbehindtheself-helpef-fortsofAsiancountriestoregainaccesstointernationalmar-ketswiththeMarketAccessSupportFacility(MASF),whichprovides guarantees to samurai bonds. Under this facility,JBICprovidedguaranteesforsamuraibondsissuedbythesecountriesthataretemporarilyunabletoraisefundsthroughsovereignbondissuanceininternationalfinancialmarketsdueto themarket turmoilcausedby theglobalfinancialcrisis.UnderMASF,JBICguaranteessupportedsamuraibondsissued

bytheIndonesianandPhilippinegovernments.“Respondingtodisruptionsinfinancialorderintheinternationaleconomy,”JBICalsosupportedsamuraibondsissuedbytheColombianandMexicangovernments. TheGATEfacility,whichextendedandenhancedthefunc-tionsoftheMASF,backsupbondissuesbyforeigngovern-mentsandgovernmentagencies intheTokyomarket. It istherebyexpectedtohelpattractforeignbondissuerstotheTokyomarket;inducethemtobecomeregularparticipantsin the Tokyo market; and expand and diversify the rangeofinvestmentopportunitiesavailabletoJapaneseinvestors,whichleadstoanincreaseinactivitiesintheTokyosamuraibondmarket.

1. Samuraibondsareyen-denominatedbondsissuedintheJapanesefinancialmarketbyforeignissuingbodies,suchasgovernmentsandcompanies.TheinvestorspayinJapaneseyentopurchasethesebondswhentheyareissued.

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2. Prom


4 Promoting Efforts for Africa

Expanding Local Currency Loans

FollowingtheJapanesegovernment’spledgeof$2.5billioninfinancialsupportforAfricaoverthenextfiveyearsduringtheFourthTokyoInternationalConferenceonAfricanDevelop-ment(TICADIV)inMay2008,JBIChasbeenmakingvigorouseffortstosupportbusinessinvestmentsinAfrica.InApril2009,theJBICFacilityforAfricanInvestment(FAI)wasestablishedtosupportprojectsundertakenbyJapanesecompaniesfordevelopingandexpandingtheirbusinessinAfricabydrawingonJBIC’sequityparticipation,guaranteefacility,etc.FAIallowsJBIC tomakeequityparticipations in Japanesecompanies’individualprojectsinAfricancountriesandprovideguaranteesfortheloanstotheseprojectsconductedbyprivatefinan-cialinstitutions.JBICcontinuestobecommittedtoactivelysupportingJapanesecompaniesforexpandingbusinessop-erationsintoAfricabydrawingonthisfacilityorotherJBICfinancingfacilitiesandschemes.

Todate,JBIChasrespondedtolocalcurrencyfundingneedsofJapanesecompaniesindevelopingcountriesbyproviding:(1)loansthroughobtainingfundsinswaptransactions(e.g.South African rand and Thai baht); (2) loans by obtainingfundingthroughlocalcurrencybondissues(e.g.Thaibaht);(3)guaranteesforlocalcurrencycorporatesecuritiesissuedbylocalJapanesesubsidiariesoraffiliates:(4)two-steploanstothebanksindevelopingcountries(loansprovidedbyJBICinhardcurrencytobanksindevelopingcountriesareon-lentinlocalcurrencies).FollowingthepromulgationandcomingintoeffectoftheJBICActinMay2011,JBICisempoweredto

provideguarantees for swap transactionsbetweenprivatefinancialinstitutionstomeetfundingneedsassociatedwithbusinessoperationsandprojectsofJapanesesubsidiariesandaffiliates. UndertheJapaneseoverseasdeploymentofintegratedin-frastructuresystemsprojectoperated/advancedbypublicandprivatesector,needsoflocalcurrencyfundingisincreasingindevelopingcountries.JBICwillcontinuetoprovidesupportbydrawingonappropriatefinancialfacilitiesandschemesbasedonspecificneedsofJapanesecompanies.

SupportingExportofTextileManufacturingMachinerytoAngolabyJapaneseCompanies

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financial instruments - jbic · 1· financial instruments export loans financial institution, ......

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