profiles of jfc and jbic...profile of jbic profile of jfc jfc april 2012 (scheduled) (overseas...
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1
Overview
of A
ctivities in Fiscal Year 2010O
peratio
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Op
erational and
Ad
ministrative Po
liciesA
bo
ut JBICD
ata
Japan Finance Corporation 2011 JBIC > Profiles of JFC and JBIC
Profiles of JFC and JBICProfiles of JFC
and JBIC
The Japan Bank for International Cooperation (JBIC) is the international wing of the Japan Finance Corporation (JFC). The predeces-sor of the present JBIC was the International Financial Operations of the former JBIC before its merger with other government’s fi-nancial institution to form JFC. However, to maintain international trust and confidence enjoyed by the former JBIC, the international wing of JFC has continued to use the name, “Japan Bank for International Cooperation (JBIC).” In April 28, 2011, the Japan Bank for International Cooperation Act (the new JBIC Act) was enacted (and promulgated and entered into force on May 2, 2011). The new JBIC Act has enhanced the powers of the present JBIC and will separate it from JFC to become an independent institution in April 1, 2012, in order to support more effectively Japanese businesses in the infrastructure sector and other strategic overseas projects.
P Name: Japan Finance Corporation (JFC)P Establishment: October 1, 2008P Statutory Law: The Japan Finance Corporation ActP Head Office: 9-3, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-0004,
JapanP Capital, Other*: Capital ������������������������������������������������������������¥3,352�5 billion Reserve fund ��������������������������������������������������¥2,007�3 billion
P Branch Offices and Overseas Representative Offices: Branch offices in Japan ������������������������������������������������������152 Overseas representative offices** ����������������������������������� 18P Employees: 8,101 (positions sanctioned in the FY2011 budget)
P Outstanding Loans*: ��������������������������������������������������������������� ¥29,763�0 billion Micro Business and Individual Unit ��������������������������������������¥7,470�2 billion Agriculture, Forestry, Fisheries, and Food Business Unit����������������������������������������������������������¥2,632�0 billion Small and Medium Enterprise (SME) Unit �������������������������¥6,436�8 billion
(Finance Operation) Japan Bank for International Cooperation (JBIC) �������������¥8,467�0 billion
(Outstanding Loans and Equity Participations) Operations to Facilitate Crisis Response ���������������������������¥4,736�9 billion Operations to Facilitate Specific Businesses Promotion: ���¥20�0 billion
*As of March 31, 2011 **As of October 1, 2011
P Name: Japan Bank for International Cooperation (JBIC)P Head Office: 4-1 Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, JapanP Capital*: �����������������������������������������������������������������������������������������¥1,091�0 billion
P Outstanding Loans and Other Financing*: �����������������������¥8,467�0 billionP Outstanding Guarantees*: ������������������������������������������������������¥2,443�2 billion
*As of March 31, 2011
P Operations to provide a certain credit to designated financial institutions at the time of occurrence of crises certified by the competent ministers, such as domestic or international financial disorder, large-scale natural disasters, and other similar events.
P Operations to provide loans to designated financial institutions based on the Low Carbon Investment Promotion Act.P Operations to provide loans to designated financial institutions based on the Industrial Revitalization Act.
Operations to Facilitate Crisis Responses
and Specific Businesses Promotion
Small and Medium Enterprise (SME) UnitOperations aimed at SMEs
Scope of operationsP Long-term business funds for SMEs
P Support for private financial institutions utilizing securitization methods
P Acceptance of insurance on CGC guaranteed liabilities involving loans
to SMEs
Japan Bank for International Cooperation
(JBIC)
Scope of operationsP Promoting overseas development and acquisition of strategically important natural resources to Japan
P Maintaining and improving the international competitiveness of Japanese industriesP Promoting the overseas business for
preserving the global environment, such as preventing global warming
P Responding to disruptions in finan-cial order in the international
economy
Synergy EffectSupporting revitalization of local
and regional economies
Supporting growth of customers
Supporting globalization of busi-ness
Micro Business and Individual Unit
Operations aimed at micro businesses and individuals
Scope of operationsP Small loans for micro/small businesses
P Support for business start-ups and regional revitalization
P Educational Loans, and Loans Secured by Government Pensions, etc.
Agriculture, Forestry, Fisheries,
and Food Business UnitOperations aimed at agriculture,
forestry, fisheries, and food business
Scope of operationsP Loans for agriculture, forestry, fisheries, and food
business that foster and support principal farmers
P Loans for food industry that support food safety and security, and close collaboration
between agriculture and food industryP Management support services such
as consulting and business matchmaking services
Major Business Operations of JFC
Profile of JBIC
Profile of JFC
JFCApril 2012 (scheduled)
(Overseas Economic Cooperation Operations)
Merged with the Japan International Cooperation Agency (JICA)
[Prior to September 30, 2008] [Present-day]
NLFCAFC
JASMEJBIC Japan Bank for International Cooperation (new JBIC)
(IFOs)
Note: The Financial Operations for Facili-tating Realignment of United States Forces in Japan are included as well.
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Message from the President & CEO, JBIC
Japan Finance Corporation 2011 JBIC > Message from the President & CEO, JBIC
Let me express first that on behalf of our bank,
I share profound sorrow with those who lost
loved ones in the Great East Japan Earthquake.
My heart is also with those who went through un-
precedented suffering in the disaster areas.
As we publish Annual Report 2011, I would like to
express my heartfelt appreciation for your continued
understanding and support for our activities.
The world economy followed a steady recovery
path in 2010, primarily sustained by robust growth
in Asian countries. The International Monetary Fund
(IMF) projected 4.25% worldwide growth in 2011,
foreseeing that the world economy will perk up, in-
cluding developed country economies. The financial
markets have also made significant recovery from
the major dysfunction caused by the global finan-
cial crisis. Despite these favorable developments,
re-emergence of fiscal problems in South European
countries, overheating emerging economies and
surging resource prices have raised concerns, as
downward risks. Turning to the Japanese economy,
we are grappling with efforts to meet a whole se-
ries of needs, such as working toward reconstruction
from the earthquake and tsunami disaster, ensuring
adequate supply of electricity, and restoring and re-
building supply chains.
Under these circumstances, I believe that as I look
forward, JBIC is called on to respond to a range of
strategic issues, including new energy, environment,
prevention of the hollowing out of domestic indus-
tries, and development of overseas markets.
According to the estimate issued by the Organisa-
tion for Economic Co-operation and Development
(OECD), the world needs $20 trillion over the next
decade for financing infrastructure development. To
meet such enormous financial needs, it is essential
to mobilize private sector investment and finance.
For pump-priming purpose, the Government of Japan
announced in March 2009 the Leading Investment to
Future Environment Initiative (LIFE Initiative), which
aims to meet the needs of long-term infrastructure,
including for environmental improvement. Under this
LIFE Initiative, for example, JBIC provided a loan to
support an Indian project for manufacturing highly
efficient thermal power generation equipment in
FY2010. Since the launch of the LIFE Initiative, aggre-
gate financing, including the amount mobilized from
the private sector, amounted to approximately $6.28
billion.
In addition, the New Growth Strategy set out that
JBIC should support overseas integrated infrastruc-
ture systems. Following this strategy, developed
countries were added as being eligible to JBIC’s over-
seas investment facility in the area of inter-city/urban
transit railway and water, etc., respectively, in April
and November 2010. Thus, JBIC has been supporting
3
Message from
the President & C
EO, JBIC
Overview
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Ad
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Japan Finance Corporation 2011 JBIC > Message from the President & CEO, JBIC
the overseas business development of Japanese in-
dustries by getting involved from the early stages of
project formulation—for example, through financial
policy dialogue with the Indonesian government, en-
hanced partnerships with host country governments,
and feasibility studies on high-speed railways.
In April this year, we expanded and further de-
veloped the JBIC Facility for Asia Cooperation and
Environment (FACE) and LIFE Initiative. Accordingly,
the Enhanced Facility for Global Cooperation in
Low Carbon Infrastructure and Equity Investment
(E-FACE) was launched. Under this framework, JBIC
intends to push forward more actively overseas proj-
ects for developing integrated infrastructure systems
and other strategic projects, while mobilizing private
funding to the maximum extent.
In projects to prevent global warming, JBIC is in
a position to perform a pump-priming function for
mobilizing private sector funds. In March 2010, fol-
lowing enforcement of the law to revise part of the
Japan Finance Corporation Act, the fourth compo-
nent was added to JBIC’s mission: the function of
“promoting the overseas business for preserving the
global environment, such as preventing global warm-
ing.” Under this revised provision, JBIC made loans
in the aggregate total of $820 million to a regional
multilateral financial institution in the Latin American
and Caribbean region as well as local banks in Tur-
key, Brazil, and India in FY2010.
Developing strategically important overseas re-
sources and securing their long-term supply will
become all the more important policy agenda in
preparing a new energy policy in the wake of the
unprecedented impact inflicted on us by the earth-
quake. Continued growth in emerging economies
and the creation of a variety of financial products
have caused to continue to raise the prices of crude
oil, copper and other commodities. JBIC is active in
supporting Japanese firms for acquiring interests in
resources in order to ensure their long-term, stable
supply. In FY2010, JBIC supported a project for ac-
quisition of interests in and development of shale
gas, which is non-traditional natural gas being rapidly
developed in the United States; a copper mine de-
velopment project in Canada; acquisition of interests
in a zinc and lead mine in Bolivia, among others. JBIC
also provided a loan to the Abu Dhabi National Oil
Company with a view to ensuring a stable supply of
crude oil. In these and other operations, JBIC was
striving to build and strengthen multi-faceted rela-
tions with resource-endowed countries.
In May this year, as the Japan Bank for Internation-
al Cooperation Act entered into force, our functions
were strengthened, and the newly incorporated
JBIC will take over them from April 1, 2012. In fact,
some of the new functions set forth in this Act, in-
cluding export finance for developed countries, are
performed from this fiscal year as JBIC conducts op-
erations under the Japan Finance Corporation. By
utilizing these strengthened functions, we will make
efforts to help create more export opportunities for
Japanese industries and strengthen their internation-
al competitiveness.
We will devote our efforts toward fulfilling our mis-
sion, while keeping our sights set on the establish-
ment of an independent, incorporated financial
institution on April 1, 2012. We look forward to your
enduring support and understanding of what we do
to support Japanese industries.
July 2011
Hiroshi Watanabe
President & CEO, JBIC
JBIC
201
1
1 5
Overview of Activities in Fiscal Year 2010
1 JBIC’s Mission, Operational Principles and Operational Results in FY2010 6
2 Financial Overview 8
3 Overview of Operations 11
4 Creating Value Added and Disseminating Information 21
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010
Overview of Activities in Fiscal Year 2010
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1 JBIC’s Mission, Operational Principles and Operational Results in FY2010
JBIC is the international wing of the Japan Finance Corpora-
tion (JFC). JBIC conducts its operations to advance Japan’s ex-
ternal economic policy for contributing to the sound develop-
ment of the Japanese economy and performs a positive role
for the sound development of an increasingly interdependent
international economy. To this end, JBIC implements financial
operations to perform its functions, guided by the
following mission and operational principles,
while complementing and catalyzing the activi-
ties of private financial institutions.
(Note) In addition to the above functions, JBIC is responsible for making equity invest-ments, loans and other operations necessary for the projects (the public–private partnerships of family housing and infrastructure projects associated with the relocation of U.S. Marine personnel and their dependents to Guam) to facilitate the realignment of U.S. Forces Japan (USFJ), the operations authorized to JBIC under “the USFJ Realignment Special Measures Act.” There is no equity and loan provision for FY2010.
(1) Loans, Equity Participations and GuaranteesIn FY2010 (April 1, 2010–March 31, 2011), loan, equity partici-
pation and guarantee commitments decreased 47.5% from
FY2009, to ¥1,765.9 billion.
Outstanding loans and equity participations decreased 4%,
to ¥8,467.0 billion, while outstanding guarantees increased
23.6%, to ¥2,443.2 billion, at the end of March 31, 2011.
M Operational Highlights (see p. 11 and the following
pages for detailed descriptions)
R Promoting overseas development and acquisition of strategically important natural resources to Japan
R Maintaining and improving the international competitiveness of Japanese industries
R Promoting the overseas business for preserving the global environ-ment, such as preventing global warming
R Responding to disruptions in financial order in the international economy
R Supporting globalization efforts of mid-tier enterprises and SMEsR Addressing climate change and supporting environmental businessR International networking efforts to support JBIC operations
(2) Operations Other than Loans, Equity Partici-pations and Guarantees
M Activities in the Environment SectorFollowing entry into force of the act to revise part of the Ja-
pan Finance Corporation Act (the Revised JFC Act) on March
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > JBIC’s Mission, Operational Principles and Operational Results in FY2010
Operational Results in FY2010
Promoting the overseas business for preserving the
global environment, such as preventing
global warming
1
5
2
43
Well-focused, policy-based
financing
Complementing private sector
financial institutions
Ensuring financial soundness
Maintaining and improving interna-tional trust and
confidence
Conducting business operations
by drawing on its expertise and
initiatives
MissionTo fulfill its mission to contribute to the sound development of the Japanese and international econo-mies and to improvement in the living standards of the Japanese people, JBIC will perform its func-tions in the areas indicated in the right circles by conducting financ-ing operations, while also comple-menting the activities of private financial institutions.
Maintaining and improving the international com-
petitiveness of Japanese industries
Promoting overseas develop-
ment and acquisition of strategically
important natural resources to
Japan
Responding to disruptions in
financial order in the international
economy
JBIC’s Mission and Operational Principles in FY2010
Operatio
nal Princip
les
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Profile o
f JFC and
JBIC,
Message fro
m the Presid
ent & C
EO, JBIC
Overview
of Activities in Fiscal Year 2010
Op
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nO
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inistrative Policies
Ab
out JBIC
Data
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > JBIC’s Mission, Operational Principles and Operational Results in FY2010
31, 2010, JBIC has begun supporting overseas projects for
preserving the global environment, including those coping
with global warming under the Global action for Reconciling
Economic growth and ENvironmental preservation (GREEN)
operations.
In 2010, JBIC signed memorandum of understandings
(MOUs) on operational cooperation for GREEN operations
respectively with the Asian Development Bank (ADB); PT
Sarana Multi Infrastruktur (Persero) in Indonesia; the Euro-
pean Bank for Reconstruction and Development (EBRD);
the Inter-American Development Bank (IDB); and Banco
Nacional de Obras y Servicios Públicos, S.N.C., the Mexican
National Infrastructure Fund and the IDB. JBIC also drew up
the Guidelines for Measurement, Reporting and Verification
of the Greenhouse Gas (GHG) Emission Reductions in JBIC’s
GREEN (J-MRV Guidelines), which set out the basic concepts
and procedures for measurement, reporting and verification
of reductions in GHG emissions in the projects financed by
GREEN operations.
A network of domestic and foreign partnerships was ex-
panded by signing MOUs with the Ministry of Industry,
Tourism and Trade of Spain for operational cooperation on
environmental infrastructure projects in third-country markets
and with Yokohama City for cooperation on environmental
and urban infrastructure projects.
M Project Formulation with Enhanced Dialogue with Recipient Countries
In August 2010, JBIC held the first annual meeting on financial
dialogue with the Indonesian government. Discussions in the
meeting covered comprehensive cooperation for environmen-
tally sustainable economic growth with a focus on power
development and macroeconomic analysis. JBIC engages in
in-depth discussions with relevant ministries and agencies,
centered on the topics discussed in the meeting, with a view
to effective implementation of concrete projects designed
for economic growth and environmental preservation in In-
donesia, while fully utilizing Japanese firms’ technologies and
know-how.
M Signing of more MOUs on Operational CooperationJBIC signed MOUs on operational cooperation with the Na-
tional Bank for Foreign Economic Activity of the Republic of
Uzbekistan, the Ministry of Mineral Resources and Energy
in Mongolia, other foreign governments, multilateral institu-
tions and governmental financial institutions to expand and
consolidate support for overseas business development of
Japanese firms. In addition, as part of its efforts to strengthen
cooperative ties with foreign governments and government
agencies, JBIC signed MOUs with the Egyptian and Moroccan
governments on strategic partnership in which both parties
cooperate to strengthen economic relations.
M Promoting Investment in AfricaFollowing the Japanese government’s pledge of $2.5 billion
in financial support for Africa over the next five years during
the Fourth Tokyo International Conference on African Devel-
opment (TICAD IV) in May 2008, JBIC established the JBIC
Facility for African Investment (FAI) in April 2009 to support
Japanese business projects undertaken in Africa by drawing
on JBIC’s equity participation, guarantee facility and advisory
service. In May 2010, JBIC signed an MOU with the African
Export-Import Bank (Afreximbank) on financial coopera-
tion for facilitating the projects in which Japanese firms get
involved in African countries and trade between Japan and
African countries.
M Partnership with Educational InstitutionIn October 2010, JBIC signed a cooperation agreement with
the Graduate School of Management (GSM), Kyoto University,
to make it serve as a center for increasing the understanding
of project finance management practices and conducting re-
search on project finance. For this purpose, the International
Project Management Course was instituted in the GSM. In
partnership with the GSM, JBIC will collect and develop a
systematic knowledge regarding the know-how and experi-
ence of the practice of project finance. Thereby, JBIC intends
to provide support for integrated infrastructure system and
resource development projects in which Japanese firms get
involved.
Amount¥1,765.9
billion
Amount¥1,765.9
billion
Asia 221.5 (13%) Oceania
8.3 (0%)
Europe 62.4 (4%)
Guarantees638.1(36%)
Export Loans 151.2 (9%)
Import Loans 169.5 (10%)
Overseas Investment Loans 710.3 (40%)
Untied Loans76.8(4%)
Equity Participations19.8(1%) Others
423.0(24%)
The Middle East 409.3 (23%)
Africa 66.3 (4%)
The Americas574.7(33%)
Commitments by Purpose of Financing(FY2010)
Commitments by Region (FY2010)
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2 Financial Overview
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Financial Overview
In FY2010 (April 1, 2010–March 31, 2011), disbursements for lending, equity participations and securitization totaled ¥1,318.8
billion.
M Planned and Actual Lending and Investments (Unit: billions of yen)
FY2007 FY2008 FY2009 FY2010
Plan Actual Plan Actual Plan Actual Plan Actual
Export Loans 197.0 70.2 118.0 54.4 108.0 43.8 113.0 73.6
Import Loans and Overseas Investment Loans 688.0 865.3 735.0 1,649.8 1,010.0 2,382.8 1,080.0 1,113.9
Untied Loans 116.0 66.4 109.0 80.7 82.0 186.7 207.0 85.4
Equity Participations 6.0 0.2 15.0 30.2 20.0 13.6 45.5 26.8
Securitization — — 30.0 — 30.0 — 30.0 19.0
Total 1,007.0 1,002.1 1,007.0 1,815.3 1,250.0 2,627.0 1,475.5 1,318.8
M Principles of Accounting(1) Separation of AccountPursuant to Article 41 of the Japan Finance Corporation Act
(the JFC Act), the operations of JBIC and the Financial Opera-
tions for Facilitating Realignment of United States Forces in
Japan conduct their operations on separate accounts.
(2) Preparation of Financial StatementsJBIC prepares financial statements pursuant to the Compa-
nies Act and Article 40 of the JFC Act and submits them to
the Minister of Finance. The report on the final settlement of
accounts is submitted to the Government of Japan, together
with the financial statements, and, after examination by the
Board of Auditors, to the Diet.
M Account for JBIC Operations(1) Statement of OperationsIn FY2010, the overall earnings on financing activities, includ-
ing loan interest, amounted to ¥178.6 billion, with ordinary
income reaching ¥197.2 billion. These figures are largely
attributable to Emergency Operations to Support Japanese
Overseas Business Activities and financial support for over-
seas development and acquisition of strategically important
resources. Funding costs, including interest payment for debt,
amounted to ¥118.7 billion, with ordinary expenses register-
ing ¥147.5 billion. As a result, ordinary profits stood at ¥49.6
billion. After taking account of extraordinary profits and ex-
penses, net earnings for FY2010 amounted to ¥58.7 billion.
(2) Balance SheetOn the assets side, outstanding loans decreased ¥394.5
billion from FY2009. This was largely attributable to the ef-
fect of yen appreciation, which reduced the value of foreign
currency-denominated assets. Customers’ liabilities for ac-
ceptances and guarantees rose ¥466.1 billion from the end
of FY2009. On the liabilities side, there was a ¥235.2 billion
increase in debt from the end of FY2009. Total net assets
reached ¥2,048.5 billion, which included ¥58.7 billion in net
earnings.
M Financial Account Related to the Financial Opera-tions for Facilitating Realignment of United States Forces in Japan
(1) Statement of OperationsIn this account, there is no loan or funds for loan raised during
FY2010, while receiving government grants. Thus, ordinary in-
come on this account amounted to ¥400 million. Subtracting
business operation and service expenses, ordinary expenses
cost ¥100 million. As a result, net ordinary income amounted
to ¥200 million, and taking account of extraordinary profits
and losses, net income reached ¥200 million.
(2) Balance SheetAssets amounted to ¥300 million, with the receipt of govern-
ment grants. Liabilities amounted to ¥100 million, with the
provision for retirement benefits. As a result, net income in-
cluding extraordinary profits and losses totaled ¥200 million.
Operational Results
Financial Results
9
Profile o
f JFC and
JBIC,
Message fro
m the Presid
ent & C
EO, JBIC
Overview
of Activities in Fiscal Year 2010
Op
erations by Regio
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dm
inistrative Policies
Ab
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Data
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Financial Overview
The Third Term (FY2010) Financial Statements
M Statement of Operations M Balance Sheet (April 1, 2010–March 31, 2011; millions of yen) (As of March 31, 2011; millions of yen)
2011 2011 2011
Ordinary Income 197,217 Assets Liabilities
Interest Income 178,661 Cash and Due from Banks 978,074 Borrowed Money 5,502,495
Fees and Commissions 13,183 Securities 76,453 Bonds Payable 2,703,551
Other Ordinary Income 74 Loans and Bills Discounted 8,376,794 Other Liabilities 71,181
Other Income 5,298 Other Assets 1,001,457 Provision for Bonuses 465
Ordinary Expenses 147,576 Property, Plant and Equipment 37,664 Provision for Directors’ Bonuses 6
Interest Expenses 118,777 Intangible Assets 2,349 Provision for Retirement Benefits 12,135
Fees and Commissions Payments 1,332 Customers’ Liabilities for Acceptances and Guarantees 2,443,266
Provision for Directors’ Retirement Benefits 28
Other Ordinary Expenses 3,370
General and Administrative Expenses 15,861 Allowance for Loan Losses (134,417) Acceptances and Guarantees 2,443,266
Other Expenses 8,233 Total Liabilities 10,733,129
Ordinary Profit 49,641 Net Assets
Extraordinary Income 9,142 Capital Stock 1,091,000
Extraordinary Losses 0 Retained Earnings 801,398
Net Income 58,783 Total Valuation and Translation Adjustments 156,115
Total Net Assets 2,048,513
Total Assets 12,781,643 Total Liabilities and Net Assets 12,781,643
The Third Term (FY2010) Financial Statements on the Financial Account Related to the Financial Operations for Facilitating Realignment of United States Forces in Japan
M Statement of Operations M Balance Sheet (April 1, 2010–March 31, 2011; millions of yen) (As of March 31, 2011; millions of yen)
2011
Ordinary Income 411
Receipts from the National Budget 411
Other Income 0
Ordinary Expenses 170
Fees and Commissions Payments 22
General and Administrative Expenses 147
Ordinary Profit 241
Net Income 241
2011 2011
Assets Liabilities
Cash and Due from Banks 359 Other Liabilities 1
Other Assets 0 Provision for Bonuses 4
Property, Plant and Equipment 0 Provision for Directors’ Bonuses 0
Provision for Retirement Benefits 113
Provision for Directors’ Retirement Benefits 0
Total Liabilities 119
Retained Earnings 241
Total Shareholders’ Equity 241
Total Net Assets 241
Total Assets 360 Total Liabilities and Net Assets 360
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Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Financial Overview
M Government-guaranteed BondsJBIC raises part of its funds through government-guaranteed
bond issuance in international capital markets. Outstand-
ing bonds at the end of FY2010 amount to ¥1,635.3 billion,
which accounts for 19.9% of the total outstanding borrow-
ings and bonds. JBIC provides foreign currency loans, when
necessary for effective financing operations. Financial re-
sources funded by government-guaranteed bond issuance
in international capital markets are applied to such financial
operations.
In the FY2011 budget, JBIC plans to issue government-
guaranteed bonds in the total amount up to ¥640.0 billion,
equivalent to $7.19 billion.
JBIC’s government-guaranteed bonds receive the same
ratings as the Government of Japan from the rating agencies
(Aa3 from Moody’s and AA- from Standard & Poor’s as of the
end of August 2011). Since they are treated as assets for
which the Bank for International Settlements (BIS) assigns
zero risk weight in calculating the capital adequacy ratio
for depository institutions, these bonds provide a quality
investment opportunity for investors in international capital
markets.
M FILP Agency BondsIn compliance with the government policy to reform the FILP,
JBIC has issued bonds without government guarantee (FILP
agency bonds) in the domestic capital market since FY2001,
thereby raising funds based on its own creditworthiness. JBIC
issued a total of ¥50.0 billion FILP agency bonds in FY2010,
and plans to issue total amount up to ¥120.0 billion FILP
agency bonds in the FY2011 budget.
JBIC’s FILP agency bonds receive the same ratings as the
Government of Japan (as of the end of August 2011) as
shown below. They are treated as assets for which BIS assigns
10% risk weight in calculating the capital adequacy ratio for
depository financial institutions.
Rating & Investment Information, Inc (R&I): ........................AAA
Japan Credit Rating Agency, Ltd. (JCR): ................................AAA
Moody’s: ...........................................................................................Aa3
Standard & Poor’s: ........................................................................AA–
JBIC finances its operations through various sources, includ-
ing borrowings from the Fiscal Investment and Loan Program
(FILP) Fiscal Loan, Government-guaranteed Foreign Bond is-
suance, FILP Agency Bond issuance and capital contributions
from the government. As JBIC provides long-term financing,
its operations are financed by long-term funds to match ma-
turities between funding and lending instruments. Borrowings
from the FILP Fiscal Loan, Government-guaranteed Foreign
Bond issuance and capital contributions from the govern-
ment constitute part of the national budget (either as an
item in the General Account budget or the Special Account
budget). Therefore, they are submitted, together with the op-
erating budget of JBIC, to the Diet for approval. Recent fund-
ing results and plans for FY2011are shown in the table below.
1. JBIC did not make any loan, while receiving a government grant in March 2011 for U.S. Forces Japan Realignment Facilitation Operation.
Funding Sources
M Funding Sources: Actual and Planned(Unit: billions of yen)
FY2007 Actual FY2008 Actual FY2009 Actual FY2010 Actual FY2011 Planned
Capital Contribution from the General Account — 20.0 — — —
Capital Contribution from FILP Industrial Investment — 30.0 20.0 35.5 200.0
Borrowing from FILP Fiscal Loan 345.6 858.7 906.6 690.9 700.0
Borrowing from Foreign Exchange Fund — 490.3 987.4 323.5 —
Government-guaranteed Foreign Bondsa 177.5 175.5 626.3 463.3 640.0
FILP Agency Bondsa 200.0 70.0 70.0 50.0 120.0
Other Sources of Funds, Including Repayments 279.0 170.7 16.7 (244.4) (107.5)
Total 1,002.1 1,815.3 2,627.0 1,318.8 1,552.5
a. Figures for bonds are indicated in face value.
11
Profile o
f JFC and
JBIC,
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ent & C
EO, JBIC
Overview
of Activities in Fiscal Year 2010
Op
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peratio
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inistrative Policies
Ab
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Data
3 Overview of Operations
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Overview of Operations
JBIC as the international wing of JFC conducts international
finance operations, including lending, equity participation
and guarantee, with a view to complementing private sector
financial institutions.
Since projects in developing countries have risks that
private financial institutions find it difficult to assess and
assume, they become feasible when JBIC assumes their
risks and reduces burdens on the private sector. Specifically,
JBIC provides credit in project finance1 as well as structured
finance2; actively assumes local corporate risks; and utilizes
its guarantee facility for private sector lending, thereby help-
ing Japanese firms maintain their international competitive-
ness as well as secure stable resource supplies to Japan.
Furthermore, JBIC’s long-cultivated close ties and networks
with foreign governments and multilateral institutions as a
policy-based financing institution have served as its strength
for smooth project management and resolution of various
problems on-the-ground encountered by Japanese firms.
Following entry into force of the act to revise part of the
Revised JFC Act on March 31, 2010, JBIC launched operations
to support the overseas projects for preserving the global
environment, such as those preventing global warming under
the GREEN operations3.
(Note) In addition to the above functions, JBIC is responsible for making equity investments, loans and other operations necessary for the projects (the public–private partnerships of family housing and infrastructure projects associated with the relocation of U.S. Marine personnel and their dependents to Guam) to facilitate the realignment of U.S. Forces Japan (USFJ), the operations authorized to JBIC under “the USFJ Realignment Special Measures Act.” There is no equity and loan provision for FY2010.
M Financial OperationsLoan, equity participation and guarantee commitments in
FY2010 declined 47.5% from FY2009, to ¥1,765.9 billion.
This reflected the wind-down of Emergency Operations to
Support Japanese Overseas Business Activities—introduced
as temporary measures in response to the global financial
turmoil—as the global economy is inching forward on the re-
covery path. Of this total, loans fell 58.1%, to ¥1,107.9 billion;
guarantees declined 9.9%, to ¥638.1 billion; and investment
was down 52%, to ¥19.8 billion.
In operations for supporting the overseas development and
acquisition of strategically important resources to Japan, 13
commitments totaling ¥397.6 billion were made in loans and
guarantees. To support the maintenance and improvement of
the international competitiveness of Japanese industries, 101
commitments totaling ¥898.3 billion were made. Prominent
among them were loans to support the export of Japanese
ships, machinery and equipment, equity participation in
the fund that makes investments in growth companies and
guarantees for local currency loans. In GREEN operations, 8
commitments totaling ¥66.5 billion were made in loans and
guarantees.
In response to the global financial turmoil, exceptional
measures were taken at the end of December 2008 to main-
tain the international competitiveness of Japanese industries,
pursuant to the policy decision made by the Government of
Japan. With these measures, 4 commitments totaling ¥1.7
billion and 1 commitment totaling ¥2.9 billion were made
in loans and guarantees, respectively, to support Japanese
trade and business activities in developing and developed
countries.
In addition, 5 two-step loans (TSLs) totaling ¥381.9 billion
were extended to domestic financial institutions for support-
ing those Japanese firms—especially mid-tier enterprises,
SMEs, medium-sized enterprises and second-tier large enter-
prises—facing difficulties obtaining financing for their over-
seas business operations. Overall, 10 commitments totaling
¥386.6 billion were made in Emergency Operations to Sup-
port Japanese Overseas Business Activities.
In project finance, structured finance and risk-taking for
locally operating firms and financial institutions, 49 com-
mitments totaling ¥495.4 billion were made in loans and
guarantees.
As such, outstanding loans, investments and guarantees
increased 1.1% from a year earlier, to ¥10,910.3 billion. Of
this total, outstanding loans and investments decreased 4%,
to ¥8,467.0 billion, while outstanding guarantees increased
23.6%, to ¥2,443.2 billion.
1. Project finance is a financing structure that relies primarily on the cash flow generated by the project for repayment. It is used for financing large projects in such sectors as power genera-tion and oil, gas or other natural resource development.
2. Structured finance is a financing technique used by firms with financial needs to obtain funds by relying on export earnings of the resources or products they develop for repayment.3. GREEN (Global action for Reconciling Economic growth and ENvironmental preservation) operations support overseas projects having material impact on sustaining the global environ-
ment, including those mitigating and adapting to global warming, through mobilization of private financing. The GREEN Initiative was set out in the Revised JFC Act on March 31, 2010.
M Loans, Equity Participations and Guarantees (Unit: millions of yen)
FY2009 FY2010 % Change
Commitments Loans 2,644,135 1,107,925 (58.1)
Export Loans 97,878 151,238 54.5
Import Loans 8,208 169,512 1,965.2
Overseas Investment Loans 2,193,731 710,328 (67.6)
Untied Loans 344,317 76,845 (77.7)
Equity Participations 13,039 19,819 52.0
Guarantees 707,955 638,193 (9.9)
Total 3,365,130 1,765,938 (47.5)
Disbursements Loans 2,613,426 1,292,063 (50.6)
Equity Participations 13,634 26,823 96.7
Guarantees 703,435 777,001 10.5
Total 3,330,496 2,095,888 (37.1)
Repayments Loans 839,993 1,021,074 21.6
Equity Participations 50 844 1,580.2
Guarantees 343,943 236,714 (31.2)
Total 1,183,987 1,258,632 6.3
Outstanding (end of fiscal year)
Loans 8,773,803 8,394,412 (4.3)
Equity Participations 44,292 72,666 64.1
Guarantees 1,977,071 2,443,266 23.6
Total 10,795,166 10,910,344 1.1
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CA
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Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Overview of Operations
In untied loans, 8 commitments were made, totaling ¥76.8
billion, which was a decrease of 77.7% from FY2009.
There were 3 equity participations totaling ¥19.8 billion,
which increased 52% over FY2009. They included capital
contribution to the Credit Guarantee and Investment Facility
(CGIF) that provides guarantees and other services for the
securities issued by firms in the ASEAN+3 countries1.
Guarantees decreased 9.9%, to ¥638.1 billion, and included
those provided for yen-denominated foreign bonds (Samurai
bonds)2 issued by the Government of Mexico and others in
the Japanese financial market.
R Scope of OperationsJBIC conducted operations to perform its functions in the
following areas and thereby fulfill its mission by drawing on a
variety of financial instruments and schemes.
(1) Promoting overseas development and acquisition of stra-
tegically important resources to Japan
(2) Maintaining and improving the international competitive-
ness of Japanese industries
(3) Promoting the overseas business for preserving the global
environment, such as preventing global warming
(4) Responding to disruptions in financial order in the inter-
national economy
By financing facility, 35 export loan commitments were
made, with their amount increasing 54.5%, to ¥151.2 billion.
These loan commitments included financing the export of
machinery and equipment for a refinery project in Egypt. Im-
port loan commitments amounted to ¥169.5 billion.
In overseas investment loans, 60 commitments totaling
¥710.3 billion were made. This amount was a decrease
of 67.6% from FY2009. Of this total, ¥221.9 billion funded
projects for securing a stable supply of resources to Japan.
Notable among these was a loan for acquisition of interests
in shale gas in the United States. In the areas other than
resource developments, 49 commitments totaling ¥488.3 bil-
lion were made in overseas investment loans.
Demand continues to rise for energy resources, such as
oil and natural gas, and for rare metals, such as nickel
and cobalt, that are indispensable for manufacturing
semiconductors and other high-tech products. Countries
around the world are stepping up efforts to secure long-
term, stable supplies of these resources. JBIC supported
the securing of stable supplies of resources indispens-
able for Japan in order to ensure the sound development
of its economy.
In FY2010, JBIC provided loans for the acquisition of
interests in shale gas in the United States, the Similco
Copper Mine Redevelopment Project in Canada, and the
acquisition of an additional interest in the San Cristóbal
Mine producing zinc, lead and silver in Bolivia. Including
these loans, overseas investment loans for “promoting
overseas development and acquisition of strategically
important resources to Japan” amounted to ¥391.4 bil-
lion, of which ¥270.9 billion was for energy resources,
such as oil and natural gas, and ¥111.5 billion was used
for other mineral resources, such as iron ore, copper ore
and concentrate, lead and zinc.
In the wake of the Great East Japan Earthquake in
March 2011, the Japanese public has a perception that
it is urgent to secure a stable supply of electricity for
their living and economic activity. Thus, they now have
increased expectations for securing a stable supply of
energy resources, especially natural gas. JBIC will con-
tinue to make vigorous efforts to support the securing
of stable, lasting supplies of energy resources and other
strategically important resources to Japan.
Working toward the Sound Development of the Japanese Economy
JBIC’s Efforts to Secure Long-term, Stable Supplies of Resources to Japan
M Loans, Equity Participations and Guarantees by Purpose, FY2010
(Unit: billions of yen, %)
Loan and Equity
Participations Guarantee Total Share
Promoting overseas development and acquisition of strategically important resources to Japan
391.4 6.1 397.6 22.5
Maintaining and improving the international competitiveness of Japanese industries
292.1 606.2 898.3 50.9
Promoting the overseas business for preserving the global environ-ment, such as preventing global warming
40.7 25.7 66.5 3.8
Responding to disruptions in financial order in the international economy
403.4 — 403.4 22.8
Total 1,127.7 638.1 1,765.9 100.0
1. ASEAN+3 is a forum for cooperation between the Association of South East Asian Nations (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singa-pore, Thailand and Viet Nam) and three East Asian countries of China, Republic of Korea and Japan.
2. Samurai bonds are yen-denominated bonds issued by a foreign government or company in the Tokyo bond market.
13
Profile o
f JFC and
JBIC,
Message fro
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ent & C
EO, JBIC
Overview
of Activities in Fiscal Year 2010
Op
erations by Regio
nO
peratio
nal and A
dm
inistrative Policies
Ab
out JBIC
Data
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Overview of Operations
P Maintaining and Improving the International Competitive-
ness of Japanese Industries
Loan, equity participation and guarantee commitments in this
field amounted to ¥898.3 billion, accounting for 50.9% of the
total amount of financing commitments.
(1) Creating Export Opportunities
JBIC supported the export of 14 ships built by Japanese
shipyards, including bulk carriers to Turkish shipping firms.
JBIC provided a buyer’s credit1 to a refinery project in its first
project financing in Egypt, which is expected to make head-
way for Japanese firms’ export projects to African and Middle
Eastern countries. JBIC also offered a credit line to The State
Export-Import Bank of Ukraine (Ukreximbank) to finance the
import of machinery, equipment and services by Ukrainian
firms from Japanese exporters, thereby supporting the cre-
ation of Japanese business opportunities that will contribute
to the country’s infrastructure development, environmental
improvement and industrial development.
(2) Supporting the Overseas Business Development of Japa-
nese Firms
In supporting the overseas business development of Japa-
nese firms, JBIC provided a guarantee for a local currency
P Promoting Overseas Development and Acquisition of Stra-
tegically Important Resources to Japan
When total financing commitments in FY2010 are broken
down by the functions JBIC performed in conducting its
financing operations, loan and guarantee commitments
made for “promoting overseas development and acquisition
of strategically important resources to Japan” amounted to
¥397.6 billion. This accounted for 22.5% of the total amount
of financing commitments.
(1) Securing Stable Access to Energy and Resources to Japan
JBIC signed a loan agreement with Abu Dhabi National Oil
Company (ADNOC), a state-owned company in Abu Dhabi,
the United Arab Emirates (UAE), to secure a stable supply
source of crude oil. In addition, JBIC supported Japanese
gas companies for participating in a resource development
project in Australia and to secure a stable supply of liquefied
natural gas (LNG).
(2) Supporting Resource Development by Japanese Firms
JBIC supported Japanese firms for the acquisition of interest
in a mine producing zinc, lead and silver. In the United States,
JBIC provided the first loan to support the acquisition of inter-
est in shale gas and its development by Japanese firms.
Since the financial crisis in the fall of 2008, dwindling
credit supply from European financial institutions that
had primarily provided ship financing until then has
made it difficult to structure ship financing across the
world. If financing has not been structured by time ships
are delivered to ship owners, there may be trouble for
making payments to shipbuilders. This will prevent the
smooth delivery of ships, and, at the same time, have a
significant adverse impact on shipbuilders.
Under these circumstances, by providing buyer’s cred-
its and bank loans JBIC has been actively supporting
the export of ships built in domestic shipyards since the
financial crisis. In July 2010, JBIC signed a buyer’s credit
agreement with TATA NYK SHIPPING PTE. LTD. (TATA
NYK), a joint venture incorporated in Singapore between
Nippon Yusen Kabushiki Kaisha (NYK LINE) and an In-
dian company, TATA Steel Limited. This buyer’s credit is
to finance the purchase of a Handymax bulk carrier2 built
by Oshima Shipbuilding Co., Ltd. from its exporter Sumi-
tomo Corporation. And in February 2011, JBIC signed
4 buyer’s credit agreements with a shipping company
affiliated with Petróleos de Venezuela, S.A. (PDVSA), a
state-owned petroleum company in Venezuela, to fi-
nance its purchase of 4 Aframax crude oil carriers3 built
by Sumitomo Heavy Industries Marine & Engineering Co.,
Ltd. from their exporter ITOCHU Corporation. Overall,
JBIC provided ship financing for 14 ships in FY2010, and
this is a record figure since 1985.
JBIC will continue to actively support the export of
ships built in domestic shipyards in cooperation with the
Shipbuilders’ Association of Japan (SAJ), as shipbuilding
plays a major role in the regional economy by creating
employment and bolstering the local support industries.
A Record Number of Commitments Since 1985
Supporting the Export of Ships Built in Domestic Shipyards
1. A buyer’s credit is a loan JBIC directly extends to a foreign importer (buyer) to finance its import of machinery and equipment from a Japanese firm. 2. Handymax bulk carriers are bulk carriers ranging from 40,000 DWT to 60,000 DWT in capacity.3. Aframax carriers, ranging from 80,000 DWT to 120,000 DWT in capacity, are primarily used for transporting crude oil.
14
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Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Overview of Operations
operations in November 2010, followed by loan agreements
with Corporación Andina de Fomento, Banco Nacional de
Desenvolvimento Econômico e Social and ICICI Bank Limited
in India. In total, 4 loan commitments were made in GREEN
operations in FY2010.
P Responding to Disruptions in Financial Order in the Inter-
national Economy
In FY2010, loan, equity participation and guarantee commit-
ments for “responding to disruptions in financial order in the
international economy” amounted to ¥403.4 billion, account-
ing for 22.8% of the overall amount of commitments.
In response to the global financial turmoil, JBIC launched
3 financial operations as special measures at the end of
December 2008 to maintain the international competitive-
ness of Japanese industries, pursuant to the policy decision
made by the Government of Japan. By the time Emergency
Operations to Support Japanese Overseas Business Activities
were terminated at the end of March 2011, JBIC had made
140 commitments totaling ¥2,446.1 billion. They primarily fi-
nanced such industries as automobiles and automobile parts,
electrical machinery and electronic equipment and chemi-
cals, thereby supporting Japanese firms’ overseas business
operations and contributing to maintaining their international
competitiveness (see column on p. 16).
private bank loan to a Japanese sales finance affiliate in Indo-
nesia. This is due to the fact that the sales finance business
is upholding that country’s buoyant demand for motorcycles
and serve a Japanese firm to capture the volume market seg-
ment. In the UAE, JBIC sought to promote steady growth in
its automobile market and serve to uphold and expand an
important market for Japanese automobile manufacturers.
To this end, JBIC signed agreements on acquiring securitized
notes backed by auto loans originated by local banks and on
providing a guarantee on additional securitized notes.
P Promoting the Overseas Business for Preserving the Global
Environment, such as Preventing Global Warming
In FY2010, loan and guarantee commitments for “promoting
the overseas business for preserving the global environment,
such as preventing global warming” amounted to ¥66.5 bil-
lion, accounting for 3.8% of the overall amount of commit-
ments.
Following entry into force of the act to revise part of the
Revised JFC Act in March 2010, an additional function was
added to JBIC, expanding its scope of operations to include
“promotion of the overseas business for preserving the global
environment, such as preventing global warming” (hereafter,
called GREEN operations). During FY2010, JBIC signed the
first loan agreement with Denizbank A.S in Turkey in GREEN
In May 2009, the Government of Japan made a pledge
of launching the Market Access Support Facility (MASF),
totaling up to ¥500 billion for supporting Samurai bond
issues. Under MASF, JBIC supported self-help efforts to
regain access to international capital markets by Asian
developing countries. MASF provides guarantees for the
Asian countries that were temporarily facing difficulties
issuing sovereign bonds in international financial markets
in the wake of the global financial turmoil. JBIC offered
guarantees to support Samurai bond issuance by the
Government of Indonesia and the Government of Philip-
pine. As part of “responding to disruptions in financial
order in the international economy,” JBIC supported
Samurai bond issues by the Government of Colombia
and the Government of Mexico as well.
In April 2010, JBIC launched the Guarantee and Acqui-
sition toward Tokyo Market Enhancement (GATE) facility
with a view to further developing and enhancing MASF.
The new GATE facility will enable JBIC to acquire part of
Samurai bonds, where appropriate, in addition to provid-
ing traditional partial guarantees for Samurai bond is-
sues. The facility would thus induce foreign governments
and government agencies to raise funds in the Tokyo
market. Attracting foreign bond issuers to the Tokyo
market diversifies investment opportunities available to
Japanese investors, thereby helping bolster activities in
the Tokyo market (Samurai bond market).
In FY2010, JBIC provided 5 guarantees totaling ¥451.5
billion for Samurai bond issues. Specifically, JBIC signed
guarantee agreements for Samurai bond issuances of the
Government of Mexico (amount of issue: ¥150.0 billion)
in October; the Government of Indonesia (¥60.0 billion)
in November; the Government of Panama (¥41.5 billion)
in January; the Government of Turkey (¥180.0 billion) in
March; and the Export-Import Bank of India (EIBI) (¥20.0
billion) in March 2011. The guarantees for the Govern-
ment of Turkey was the first guarantee in the Europe, the
Middle East and Africa region, while the guarantee for
EIBI was the first one for a government agency and an
Indian issuer under the GATE facility.
JBIC will use the GATE facility to support foreign gov-
ernments and government agencies to raise funds in the
Tokyo market.
Resorting to the New GATE Facility
Maintaining and Improving International Competitiveness by Bolstering Activities in the Samurai Bond Market
15
Profile o
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JBIC,
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ent & C
EO, JBIC
Overview
of Activities in Fiscal Year 2010
Op
erations by Regio
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peratio
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inistrative Policies
Ab
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Data
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Overview of Operations
LIFE InitiativeUnder the Leading Investment to Future Environment
(LIFE) Initiative, for which the Government of Japan
pledged $5 billion over a two-year period in March
2009, JBIC actively supported environmental investment
projects in Asian and other countries in which Japanese
firms participated or to which Japanese firms exported
machinery, equipment and services. The financing pro-
vided in FY2009, including private sector financing,
reached $5.4 billion in total. And in FY2010, similar loans
amounted to $900 million, including for the export of
the rolling stock in the Egyptian metro project. Since the
launch of the LIFE Initiative to the end of March 2011,
the cumulative financing to projects and exports added
up to 16 and the overall total of $6.28 billion, including
funding from the private sector.
In April 2011, JBIC launched a new facility, the JBIC
Enhanced Facility for Global Cooperation in Low Car-
bon Infrastructure and Equity Investment (E-FACE). This
developed and expanded the LIFE Initiative together
with the JBIC Facility for Asia Cooperation and Environ-
ment (FACE), which aimed to support climate change
mitigation projects and projects located in the Asian
region. With this new Facility, JBIC makes active efforts
to address new needs, including financing overseas infra-
structure development projects by Japanese firms, while
mobilizing private sector funding.
GREEN
Following the Revised JFC Act on March 31, 2010, JBIC
has expanded its scope of operations by adding the
function of promoting the overseas business for preserv-
ing the global environment, such as preventing global
warming. Financing operations for executing this func-
tion are called GREEN operations. GREEN denotes an ac-
ronym: “Global action for Reconciling Economic growth
and ENvironmental preservation.” The projects eligible
under the LIFE Initiative were limited to those aiming to
maintain and improve the international competitiveness
of Japanese industries. Accordingly, projects dedicated
solely to the preservation of the global environment
were not eligible for financial support from JBIC to date.
Launching GREEN operations enabled JBIC to focus its
financing on projects seeking to preserve the global
environment, such as those that materially reduce green-
house gas (GHG) emissions, while propagating interna-
tionally acclaimed, advanced Japanese environmental
technologies across the world.
In FY2010, JBIC made 4 loan agreements totaling $492
million (and the aggregate cofinanced amount of $820
million) in GREEN operations, including the agreement
with Turkish Denizbank A.S. in November.
Supporting Infrastructure and Environment Projects across the World
LIFE Initiative, GREEN Operations
India2009/7Manufacturing and Sales of Thermal Power Generation Facilities2009/10Manufacturing and Sales of Thermal Power Generation Facilities2011/3 Indian Thermal Power Plant Project2011/3 India Renewable / Energy Ef�ciency Projects
UAE, Abu Dhabi2009/10Power and Desalination Project (IWPP)
Turkey 2010/11 Turkey Energy Ef�ciency Renewable Energy Projects
Egypt2010/9 Egypt Metro Construction Project
Developing countries2009/12Fund Investing in Infrastructure Projects
2010/1Fund Focusing on Climate Change Mitigation Measures
Kazakhstan2009/12Thermal Power Generation Project
Asia 2009/10Fund Focusing on Ef�cient Energy and the Environment Sector
Republic of Korea2009/12By-product Gas Combined-cycle Power Plan Project2010/9By-product Gas Combined-cycle Power Plan Project
Indonesia2010/3Thermal Power Plant Project (IPP)2010/3Thermal Power Plant Expansion Project (IPP)
Brazil2010/11Brazil Subway Project2011/3 Brazil Renewable Energy Project
2011/3 Latin American and Caribbean Region Renewable Energy Project
Mexico2010/3Thermal Power Plant Project
The Maldives 2010/3Water Supply and Sewerage System Operation Project
Equity investments Loans Guarantees
Latin America and the Caribbean
(As of March 31, 2011)
(Note) Green-lettered descriptions indicate GREEN operations.
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Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Overview of Operations
regional financial institutions, prefectural and municipal gov-
ernments and local chambers of commerce and industry;
providing information and consulting services on transactions
with overseas business partners; publishing guidebooks on
overseas investment climates that are prepared based on
field studies; and holding seminars and other events. In this
way, JBIC is providing multifaceted services to mid-tier enter-
prises and SMEs. Through these efforts, JBIC is supporting
mid-tier enterprises and SMEs for their efficient overseas local
business operations and problem solving by drawing on close
ties with foreign governments and the networking it has built
up over the years of operations.
R Partnership with Regional Financial InstitutionsIn recent years, Japanese regional firms have realized the im-
portance of engaging in the internationalization of their busi-
ness, such as expansion into and the developing of foreign
markets. Their attention has been drawn to China, India and
ASEAN member countries as promising countries for their
business development, since their economies have been
developing at a significant pace. JBIC is thus strengthening
M Supporting Globalization Efforts of Mid-tier Enter-prises and SMEs
Advanced technologies held by Japanese mid-tier enterprises
and SMEs receive high credit at home and abroad. Devel-
oping countries are also focusing their efforts on attracting
investment from such high-tech firms. In the midst of ongoing
economic globalization, it is one of JBIC’s major functions
to support mid-tier enterprises and SMEs that are making
energetic efforts to develop overseas business. Compared
with large corporations, mid-tier enterprises and SMEs are
often constrained in fund-raising, information gathering and
human resources required for overseas business develop-
ment. JBIC is supporting them by providing three services:
“providing loans and other financing,” “providing information
on the investment climate” and “providing problem solving,”
when mid-tier enterprises and SMEs encounter problems lo-
cally, while working with host country governments and other
authorities.
Specific examples are: complementing private financial in-
stitutions in areas like assumption of political risks where they
are difficult to provide service; cooperating with domestic
In response to the global financial turmoil triggered by
credit panic in the financial and capital markets of de-
veloped countries, pursuant to the policy decision made
by the Government of Japan, JBIC launched 3 financial
operations at the end of December 2008 as exceptional
measures to maintain the international competitiveness
of Japanese industries (Emergency Operations to Sup-
port Japanese Overseas Business Activities)1.
In these emergency operations, 4 commitments total-
ing ¥1.7 billion to developing countries and 1 commit-
ment of ¥2.9 billion to a developed country were made
in loans and guarantee, respectively in FY2010. In addi-
tion, 5 TSLs totaling ¥381.9 billion were extended to do-
mestic financial institutions to support those Japanese
firms—especially mid-tier enterprises, SMEs, medium-
sized enterprises and second-tier large enterprises—
facing funding difficulties for their overseas business
operations. Overall, 10 commitments totaling ¥386.6
billion were made in Emergency Operations to Support
Japanese Overseas Business Activities. In FY2010, a total
of 913 sub-loans were extended under TSLs, of which
229 financed mid-tier enterprises and SMEs and 469
financed medium-sized enterprises and second-tier large
enterprises.
In FY2009 operations, 29 commitments totaling ¥57.8
billion and 43 commitments totaling ¥758.1 billion were
made in loans and guarantees, respectively, to support
trade and business activities in developing and devel-
oped countries. In addition, 8 TSLs totaling ¥666.7 billion
were extended to domestic financial institutions. Thus,
including TSLs, the overall Emergency Operations to Sup-
port Japanese Overseas Business Activities has made 80
commitments totaling ¥1,482.6 billion to date.
Emergency Operations to Support Japanese Overseas
Business Activities were terminated at the end of March
2011. By industry, 140 cumulative commitments total-
ing ¥2,446.1 billion were made in loans and guarantees
since December 2008. They primarily financed such
industries as automobiles and automobile parts, electri-
cal machinery and electronic equipment and chemicals.
This overall total is broken down as follows: 63 commit-
ments totaling ¥180.6 billion were in developing coun-
tries; 64 commitments totaling ¥1,216.8 billion were in
developed countries; and 13 TSLs of ¥1,048.6 billion
were extended to domestic financial institutions. Thus,
JBIC operations contributed to supporting Japanese
overseas business activities and maintaining the interna-
tional competitiveness of Japanese industries.
Multiple Initiatives to Support Japanese Overseas Business Activities
JBIC’s Response to the Global Financial Turmoil
1. They are: (1) supplier’s credit to finance exports to developing countries; (2) loans to finance major Japanese companies for continuing investment projects in developing countries; and (3) loans and guarantees to finance Japanese firms’ business operations in developed countries.
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business cooperation with regional financial institutions, such
as regional banks, prefectural and municipal governments,
and chambers of commerce and industry to share informa-
tion and know-how with them.
In FY2010, JBIC sent its staff as speakers to 11 external
seminars and events organized by those organizations de-
scribed above. JBIC speakers made presentations on eco-
nomic developments in China and ASEAN member countries
in which businesses had a considerable interest. A keynote
speech was also made by JBIC staff at the “Asia Business
Seminar” organized by the Kanagawa Industrial Promotion
Center in February 2011. In the following panel discussion
that centered on examples in Viet Nam, upwards of 350
participants—an impressive number of people—exchanged
opinions, questions and answers.
JBIC is also engaging in the task of developing a framework
for mid-tier enterprises and SMEs to expand their business
into the Asian region through domestic regional financial insti-
tutions, at the same time forming partnerships with overseas
local financial institutions. In May 2011 JBIC signed an MOU
on operational cooperation with the KASIKORNBANK Public
Company Limited in Thailand, followed by a similar MOU
with PT. Bank Negara Indonesia (Persero) Tbk.
R Itinerant Advisory Service on Trade and Foreign Invest-ment
JBIC provides knowledge, advice on foreign direct investment
and introductory consulting, etc., as it responds to direct in-
quiries from clients. At the same time, JBIC offers an itinerant
advisory service on trade and foreign investment to domestic
clients in cooperation with local governments and chambers
of commerce and industry that support overseas business
expansion of regional firms.
The direct inquiries JBIC receives cover a broad range
of issues. By the type of client, mid-tier enterprises, SMEs
and regional banks account for a majority of inquirers. A
large number of their inquiries ask for either the overseas
investment climate or information on foreign investment and
exports. Their interested country is overwhelmingly in Asia,
with a prominent trend of concentrating on China, ASEAN
countries and India.
Itinerant advisory service is offered regularly in Tokyo,
Nagoya, Ota City in Gunma Prefecture and other places, re-
sponding to inquiries on trade and foreign investment proce-
dures, how to obtain long-term financing and other relevant
questions.
R Providing Study Reports on the Overseas Investment Climate
JBIC has prepared information materials on investment cli-
mates in foreign countries based on in-field study and in-
terviews and made them available to interested clients. In
FY2010, 3 reports were prepared on “Investment Climate
Series in China: An Overview,” “Investment Climate in Viet
Nam” and “Investment Climate in Thailand.” They were pub-
lished from April to May 2011.
In particular, China is drawing attention not only as produc-
tion sites but also as a huge market having a consumer popu-
lation of 1.3 billion. Its economic relations with Japan have
been gaining depth year after year. In “Investment Climate
Series in China: An Overview,” the most up-to-date points in
the investment climate were described about China where
the situation is constantly changing and regional disparities
have been growing. It also described concrete characteristics
of the regions in which businesses have high interest.
These investment climate series are available in print and
as Web publications on the JBIC Website.
R Seminars on the Survey Report on Overseas Business Operations
JBIC conducts a survey of Japanese manufacturing companies
on their overseas business operations every year and pub-
lishes its results in the “Survey Report on Overseas Business
Operations by Japanese Manufacturing Companies.” This
year’s survey was the 22nd of an annual series of the survey
that began in 1989. In FY2010, the survey examined “evalu-
ations of overseas business performance,” “medium-term
business prospects” and “promising countries or regions for
overseas business operations” as done every year. Addition-
ally in this year, it also looked into “movements of domestic
and overseas earnings after the Lehman shock” and “com-
petition with companies in emerging market countries and
countermeasures,” based on analysis of responses from 605
companies across the country, including mid-tier enterprises
and SMEs cooperating with the survey. In the wake of the
Senkaku Island incident, an emergency survey was con-
ducted in November 2011 regarding their stance to business
operations in China.
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Overview of Operations
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Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Overview of Operations
In the FY2010 survey, Japanese manufacturing companies
are showing recovery in their earnings as a general trend,
mainly driven by robust performance in emerging Asian coun-
tries. This indicates a trend that Japanese overseas business
is expanding primarily in emerging markets. As a promising
country for investment, China still ranked first as a destination
of investment over the medium term, followed by India, Viet
Nam and Thailand. These top 4 countries attracted a larger
share of votes, compared with the survey in the previous year.
There was a finding that on the long-term horizon, India has
become the most promising country for making investments.
In December 2010, “Overseas Investment Seminars” were
Since it was established in 1937, SIGMA CORPORATION
has been engaged in the made-to-order production of
metal parts. Since President Toshitaka Shitanaka as-
sumed the office in 1989, he has been working hard to
establish an in-house unit to develop the company’s pro-
prietary unique products, taking aim at further growth,
looking into the future.
Since 1990, the company has launched a series of
5-year business plans and steadily transformed the com-
pany proposing unique products by raising its goal from
a “future-oriented company” to a “combined technol-
ogy future-oriented company” and to a “creative future-
oriented company.” In 1995, its automobile wiper shaft
acquired a utility model. Later, the company developed
a series of unique products, including an oil temperature
sensor for automatic transmissions and a headrest arm.
With these developments, the company received the
“300 healthy small and medium-sized manufacturers”
from the Ministry of Economy, Trade and Industry (METI)
in 2006.
The company has paid attention to expanding de-
mand for automobiles in emerging markets, and in 2007
established SIGMA PRECISE MACHINERY (JIANGSU) CO.,
LTD. in Jiangsu Province, China, as a production site of
parts for air bags. However, it was right after the plant
was built and production started that the global financial
crisis broke out in the fall of 2008. The company faced
adverse conditions, but as demand for automobiles
has quickly recovered in China, the plant is currently
operating at full capacity. Recently, they have been work-
ing to strengthen facilities to build a long-awaited full
production line. JBIC has extended loans for establishing
the plant and strengthening their facilities.
SIGMA CORPORATION is developing a new genera-
tion of high-performance parts and system components,
while engaging in intensive cost reduction by integrating
the technologies nurtured in the company to date. On
another front, it is devoting itself to fostering human
resources who are capable of planning and making pro-
posals when taking responsibilities for developing global
business in the future.
“As Asia will continue to be a growing market going
forward, our company is considering setting up a pro-
duction site in India, apart from China, to build a supply
chain. In addition, we have already set out to develop
robots and automated inspection and maintenance sys-
tems to realize a fully automated unmanned plant in our
head office plant in Hiroshima. Our theme is to introduce
IT and global business operations and to foster human
resources who will take up responsibilities in the future,”
President Shitanaka expressed his aspirations.
Expanding the Chinese Plant to Strengthen Competitiveness in Asia
Aiming at the Top in Precision Molding Instrument Parts in the World Market
Chinese Plant
Complex molded metal and plastic impellers for water pumps
Cold-molded metal parts
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Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Overview of Operations
held in Tokyo, Osaka and Kanazawa, where the findings of
the survey were introduced. In Tokyo, during the Seminar
co-organized by JBIC and the Japan Institute for Overseas
Investment (JOI), an expert delivered a presentation on “Chi-
nese Economy in 2011: New Trend in Politics and Economy
and Evaluating China Risk” in addition to reporting on the
survey results. In the Osaka Seminar, co-organized by the
Osaka Chamber of Commerce and Industry, presentations
on “Business Operations in China by Taking Account of Op-
portunities and Risks Associated with Environmental Change”
and “Attractive Points and Challenges of the Indian Market
that Is Drawing Increasing Attention Recently” were made,
in addition to reporting on the survey results, and a lively
exchange of opinions in the question-and-answer session. In
the Kanazawa Seminar, co-organized by the Around Japan Sea
Economic Exchange Conference in Hokuriku (Hokuriku AJEC)
and supported by the Hokuriku Economic Federation, the
report on the survey results was followed by a presentation
on the business strategy taken by Japanese companies in the
Chinese market based on the country’s changing business
climate, as China is one of the emerging markets drawing
ever-increasing attention from AJEC member companies. This
presentation engendered intense discussion in the question-
and-answer session. Apart from these seminars, similar semi-
nars were held in Kobe in February 2011 and in Fukuoka in
March 2011. All these seminars were attended by many par-
ticipants, including from local mid-tier enterprises and SMEs.
M Addressing Climate Change and Supporting Environ-mental Business
In April 2008, JBIC established the JBIC Facility for Asia Co-
operation and Environment (FACE) with the objective of sup-
porting climate change mitigation and projects in Asia. Fur-
ther, JBIC launched in March 2009 the Leading Investment to
Future Environment (LIFE) Initiative to support environmental
investment projects in Asian and other countries undertaken
by developing country governments and the private sector.
In both measures, JBIC has actively supported environmental
investments in which Japanese firms could participate or to
which Japanese firms could export machinery, equipment
and services, while mobilizing private sector funding. Under
the LIFE Initiative, JBIC supported 16 projects totaling $628
million, including funding from the private sector, until the
end of March 2011. Under FACE, JBIC supported 17 projects
totaling ¥776.5 billion, including funding from the private sec-
tor (though some of the projects were not in the environment
sector).
In April 2011, a new facility, the JBIC Enhanced Facility for
Global Cooperation in Low Carbon Infrastructure and Equity
Investment (E-FACE) was launched. This is intended to devel-
op and expand the LIFE Initiative and FACE. With this Facility,
JBIC makes further efforts to finance overseas integrated in-
frastructure system development projects and other strategic
projects, while mobilizing private sector funding.
In April 2010, JBIC instituted GREEN operations, which
aimed to increase financial support for the overseas projects
for preserving the global environment, such as those prevent-
ing global warming, by providing loans, investments and
guarantees from JBIC, while mobilizing private sector funding.
In FY2010, 4 commitments were made in GREEN operations,
of which loans totaled ¥40.7 billion and guarantees totaled
¥25.4 billion.
R Partnerships with Prefectural and Municipal GovernmentsJBIC has provided cooperation for prefectural governments
by drawing on its know-how acquired in supporting Japanese
firms’ overseas business development.
In FY2008, JBIC signed an MOU with the Tokyo metropoli-
tan government on mutual cooperation concerning measures
to address climate change. In FY2009, JBIC signed an MOU
with the Kitakyushu municipal government for cooperation
on climate change mitigation and water infrastructure de-
velopment. These moves were followed in FY2010 by the
signing of an MOU in October 2010 with the Yokohama
municipal government for cooperation on environmental and
urban infrastructure projects. This MOU confirmed mutual
cooperation on maintaining and strengthening international
partnerships and cooperative relations in the urban infrastruc-
ture sector, which should take account of the environment
and water in Asian cities as well as other urban areas. It is
expected that the MOU will enable Yokohama City to provide
its know-how on the environment and water infrastructure
sectors to the international community through JBIC’s opera-
tions and international network, while supporting overseas
business activities of firms residing in Yokohama City.
JBIC has various forms of partnerships with domestic pre-
fectural and municipal governments for mutual cooperation
and the provision of knowledge assistance to other countries
(see column on p. 25 for partnership with foreign govern-
ments and institutions).
M International Networking Efforts to Support JBIC Operations
R Signing MOUs on Operational CooperationJBIC has signed MOUs for operational cooperation with a
broad range of institutions, including foreign governments,
governmental official financial institutions and multilateral
financial institutions. By strengthening cooperative ties with
them and collaborating in various operations, JBIC can pro-
vide further support for Japanese firms overseas operations.
In FY2010, under GREEN operations, JBIC signed MOUs on
operational cooperation with multilateral institutions, such
as the Asian Development Bank (ADB) and the European
Bank for Reconstruction and Development (EBRD), as well as
Banco Nacional de Obras y Servicios Públicos, S.N.C., a state-
owned development bank in Mexico (see column on p. 25).
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In April, JBIC signed an MOU with the National Bank for
Foreign Economic Activity of the Republic of Uzbekistan on
operational cooperation for promoting Japanese exports
and direct investments in Uzbekistan. In June, an MOU was
signed with Vietnam Oil and Gas Group (PETROVIETNAM) on
operational cooperation for strengthening business relations.
Its objective is to promote mutual cooperative ties, through
an exchange of relevant information and opinions on JBIC’s
financial cooperation for exports of Japanese machinery,
equipment and services and for participation by Japanese
firms in investments undertaken by PETROVIETNAM in such
sectors as oil and gas production, oil refining, petrochemicals
and power development, as well as in related industries. In
the same month, JBIC also signed an MOU with China Energy
Conservation and Environmental Protection Group (CECEP)
for operational cooperation in energy conservation and en-
vironmental protection projects. Specifically, the MOU sets
forth a close exchange of information and opinions between
JBIC and CECEP on projects in which both Japanese and Chi-
nese firms participate. Other MOUs signed include with the
Ministry of Industry, Tourism and Trade of Spain in Septem-
ber for mutual cooperation on environmental infrastructure
projects in third-country markets and with the Government
of Mexico in February 2011 on holding Annual Meetings to
discuss financial cooperation for promoting Japanese busi-
ness and investment opportunities in Mexico. Through these
MOUs, JBIC has strengthened its international networking in
a broad range of areas.
R Partnerships with Asian Exim BanksThe Asian Exim Banks Forum was established in 1996 to pro-
vide a forum for export credit agencies (ECAs) from 9 Asian
countries to discuss collaboration measures and strategies
that they can adopt for addressing a variety of issues facing
individual member countries.
Its 16th Annual Meeting was held in the Republic of Korea
in September 2010, and participating parties were JBIC and 8
Asian ECAs who are members of the Forum1. In this meeting,
the participating parties reached an agreement on the use
of a common contractual form and the procedures with the
objective of providing a common contractual framework for
promoting coordinated and streamlined provision of guaran-
tees and re-guarantees among the member institutions.
JBIC will continue to cement cooperative ties with Asian
ECAs in increasingly interdependent Asian economies
through this Forum.
R Contributing to Build the Framework for Utilizing Offi-cially Supported Export Credits
JBIC determines terms and conditions of its export credits in
accordance with the Organisation for Economic Co-operation
and Development (OECD)’s Arrangement on Officially Sup-
ported Export Credits. The purpose of this Arrangement is to
provide a framework for the orderly use of officially support-
ed export credits and to foster a level playing field for official
support. Japan, European Union (EU) member countries and
7 other countries have agreed to adopt the Arrangement as a
common rule for officially supported export credits extended
to finance exports of machinery and equipment as well as
other services.
JBIC has actively participated in discussions such as the
OECD’s Working Party on Export Credits and Credit Guaran-
tees to ensure the fairness of the Arrangement with respect
to Japanese exports and to make it serve as a common frame-
work for promoting fair international competition among
exporters. JBIC will continue to participate in various meet-
ings of OECD to set common international rules that can ap-
propriately address diverse issues involved in export credits,
including export credit terms, environmental considerations
and debt sustainability.
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Overview of Operations
1. Members of the Asian EXIM Banks Forum are: Export Finance and Insurance Corporation of Australia, Export-Import Bank of China, Export-Import Bank of India, Indonesia Eximbank, the Export-Import Bank of Malaysia Berhad, Philippine Export-Import Credit Agency, the Export-Import Bank of Korea, Export-Import Bank of Thailand and JBIC.
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Creating Value Added and Disseminating Information4
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Creating Value Added and Disseminating Information
In the current global economy, realizing economic develop-
ment compatible with environmental conservation is a signifi-
cant, common challenge facing both developed and devel-
oping countries. Under these circumstances, Japanese firms
are striving to disseminate their top-notch environmental
technologies overseas. Such efforts will not only help mitigate
adverse impacts on the global environment brought about
by the economic growth in emerging economies in Asia and
elsewhere, thereby leading to the sustainable development
of these regions. They will also serve as a growth engine for
the Japanese economy. Not only Japan is positively working
toward the environmental business development overseas,
however. Many countries, including the United States, which
has announced the Green New Deal, EU member countries
and the Republic of Korea, are adopting, and mainstreaming
in their national strategy, the policy of acquiring new markets
and creating employment through the development and dis-
semination of environmental technologies.
Amid this development, and setting its sight on sustainable
development of the global economy, JBIC focuses on confirm-
ing the environmental and social considerations in its opera-
tions, and devotes itself to supporting environmental conser-
vation and improvement projects. JBIC makes strategic efforts
in financing operations for attaining sustainable growth by
mobilizing Japanese advanced technologies.
M Efforts to Curb Global WarmingR Toward a Low Carbon SocietyThe first commitment period started in 2008 under the Kyoto
Protocol, wherein the decision was made to reduce green-
house gas (GHG) emissions. During this commitment period
of 2008–2012, Japan has an obligation to achieve a quantita-
tive target of reducing GHG emissions by an average of 6%
from the level of baseline year 1990. This target is difficult to
achieve solely with domestic efforts, even if Japanese firms
mobilize all their advanced energy-saving technologies. The
Government of Japan thus decided to achieve the target by
participating in projects generating GHG emission reductions
in developing countries, and by purchasing carbon credits
(emission allowances) generated by these projects in the Kyo-
to Mechanisms1 or by trading carbon credits in the markets.
By drawing on its past experience of supporting overseas
projects that mobilized Japanese advanced technologies, JBIC
is working to assist the projects contributing to environmen-
tal improvement and fighting global warming, to build up a
new finance system, and to propose a business model for
acquiring carbon credits, etc.
R Facilitating Carbon Credit Trading In November 2007, JBIC and JOI launched a Web-based
Carbon Credit Trading Platform (http://www.joi.or.jp/carbon)
that provides information on projects generating carbon
credits, market information on carbon credit trading, trends
in carbon credit prices and international developments in the
Kyoto Mechanisms. The Nikkei–JBIC Carbon Quotation Index
has been published in cooperation with Nikkei Digital Media
Inc., providing indicators of carbon credit prices in the do-
mestic market. Furthermore, the platform also helps Japanese
firms to have better access to good primary information by
providing not only secondary trading information of carbon
credits already registered and certified by the CDM Execu-
tive Board of the United Nations Framework Convention on
Climate Change (UNFCCC) but also primary information on
Kyoto credits.
R Efforts to Conserve Global Environment It is increasingly important to support developing countries’
measures to combat global warming, which requires a global
response, by utilizing Japanese technologies and financing. In
this context, JBIC is in a position to perform a unique catalytic
function when taking measures for climate change mitigation
by mobilizing private sector funds and encouraging private
investment.
Under the LIFE Initiative (pledging the total amount of
$5 billion over two years), which the Government of Japan
announced in March 2009, JBIC actively supported environ-
mental investment projects where Japanese companies are
involved through project participation and exports, while
mobilizing private funds. In FY2010, JBIC supported the metro
construction project in Egypt, the export of boilers and tur-
bines for supercritical thermal power generation in India and
similar projects, with the total loan commitments reaching
approximately $900 million, including loans cofinanced by pri-
vate funds. At the end of March 2011, the aggregate amount
of approximately $6.28 billion was provided under the LIFE
Initiative by JBIC and the private sector from its launch (see
column on p. 15).
Following the enforcement of the Revised JFC Act in March
2010, JBIC launched GREEN operations. Previously, JBIC was
allowed to support projects that directly aimed at maintain-
ing and strengthening Japanese industries’ international
competitiveness, such as projects where Japanese firms make
investments and export machinery and equipment. Projects
dedicated solely to preservation of the global environment,
such as global warming mitigation, were not eligible for JBIC
Efforts for Environmental Conservation
1. The Kyoto Mechanisms allow a country to incorporate GHG emission reductions generated in another country in achieving its numerical GHG emission target and allow countries to trade emission reduction credits among themselves. The Mechanisms consist of Clean Development Mechanism (CDM), Joint Implementation (JI) and Emissions Trading (ET).
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Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Creating Value Added and Disseminating Information
ever-increasing attention given by the global community to
the water issue. On top of that, the total value of announce-
ments for projects awarded, R&D MOUs and others reached
S$2.8 billion (approximately ¥180 billion), a 27% year-on-year
increase, attesting to the significant progress that SIWW has
made in size and quality.
R Supporting Overseas Water Infrastructure Business International “water majors” that have accumulated know-
how through years of involvement in the water business in
Europe and the United States, particularly in France, are now
developing water infrastructure projects in countries around
the world. Although Japanese companies have the world’s
most advanced technologies and hold a large market share
in the area of pumps, generators, wastewater treatment and
semi permeable membranes to filter water, such equipment
and materials account for a meager several percent of the
total water infrastructure market. In fact, more than 90% of
the water business comes from operation and management.
The comprehensive management of water infrastructure proj-
ects is, thus, one of the most important issues for Japanese
industries.
Another serious hurdle to entering the water infrastructure
business is the financing plan. It is characterized by a very
long period of payback, in local currency, for recouping a
large-scale initial investment. JBIC supports Japanese indus-
tries’ participation in this sector by drawing on its know-how
on project finance, since JBIC has developed the structuring
of project finance over the years through assistance to IPP1,
IWPP2 and other large-scale projects serving to public pur-
pose in the world. JBIC also serves as an official financial in-
stitution to help reduce exposure to political risk in the water
infrastructure business.
support. But with the inception of GREEN operations, JBIC can
now offer support to efforts aimed specifically at protecting
the global environment, such as projects that are expected
to significantly reduce GHG emissions, while promoting the
worldwide use of Japan’s internationally acclaimed advanced
technologies. It is hoped that Japan’s advanced environmen-
tal technologies are extensively utilized through GREEN,
thereby stimulating the Japanese economy (see columns
on p. 15 and p. 25).
R J-MRV Guidelines Upon the launch of GREEN operations, JBIC also established
Guidelines for Measurement, Reporting and Verification of
GHG Emission Reductions in JBIC’s GREEN operations (the
“J-MRV Guidelines”). For a project to be eligible for financial
support by JBIC’s GREEN operations, it needs to have a sig-
nificant effect in preserving the global environment, such as
greatly reducing GHG emissions, and the project proponent
must accept J-MRV as measurement, reporting and verifica-
tion of GHG emission reductions generated by the project.
JBIC takes a “learning by doing” approach to the J-MRV Guide-
lines, seeking to improve them by taking into consideration
experiences through actual GREEN operations and develop-
ments in international discussions.
M Water Infrastructure Development One may well say that “the 21st century is the century of
water.” Water has attracted attention as a valuable natural
resource, with such coinage given as “blue oil” or “blue gold.”
Of the total amount of water on the Earth, only 2.5% is fresh
water. And in practice, the water in rivers and lakes that can
be easily exploitable represents a mere 0.01%. Given this real-
ity, economic and population growth have aggravated water
shortages and pollution primarily in emerging economies. It
is likely that demand for water will come to exceed supply,
causing a water crunch. According to one forecast, a $420
billion investment might be required every year to eliminate
this “water shortage,” with the water market reaching ¥100
trillion by 2025.
R Singapore International Water WeekSingapore International Water Week (SIWW 2010) was
held from June through July 2010, where a variety of forums
and networking events were organized, and attracted some
14,000 participants from 85 countries / regions. Over 500
companies from 40 countries / regions took part in the
exhibition “Water Expo” (of which, 16 organizations par-
ticipated in the Japan Pavilion). The number of visitors grew
by some 40% from the previous SIWW 2009, indicating the
A speech delivered by JBIC at SIWW 2010
1. An Independent Power Producer (IPP) builds and operates a power plant on its own and sells the electricity produced to power utilities. 2. An Independent Water and Power Producer (IWPP) builds and operates power generation and water desalinization plants on its own and sells the electricity and water produced from
them.
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provide and share knowledge and information with partici-
pants from other countries.
In May 2010, JBIC sent officials to take part in lectures and
panel discussions in the Carbon Expo 2010 Global Carbon
Market Fair & Conference held in Koln, Germany, and set
up the JBIC Pavilion booth jointly with Japanese firms and
JOI. Taking this opportunity, JBIC held a “Finance for Climate
Change Mitigation and MRV” seminar in an effort to promote
international awareness of J-MRV Guidelines, a quantitative
methodology for measurement, reporting and verification of
GHG reduction in JBIC-financed projects.
In November, JBIC sponsored, jointly with the International
Energy Agency (IEA) and JOI, a seminar titled “Roadmap to
Low Carbon Society Envisioned by WEO2010.” The IEA pub-
lished The World Energy Outlook 2010 (WEO2010), a report
forecasting energy supply and demand up to 2030 contain-
ing projected energy consumption of major GHG-emitting
countries as well as an analysis of investment cost required
for realizing a low-carbon society. Based on such forecast and
analysis, lively discussions took place at the seminar, among
about 110 participants from interested firms and institutions,
on such issues as what type of analysis is most useful for
drafting a corporate strategy toward developing a low carbon
society.
In February 2011, JBIC staff served as a lecturer at the
7th Eco Products International Fair 2010 held in New Delhi,
India—the largest of its kind in the Asian region—and made
a presentation at the innovative Green Energy Technology (i-
GET 2011) seminar that was held concurrently with the Fair.
On the domestic front, JBIC participated in Eco-Products
2010 held at Tokyo Big Site in December 2010 and set up an
exhibition booth. Its staff members also attended as panelists
in the symposium “Promotion of Eco-Productive Future” and
delivered a lecture.
M Realizing Economic Growth that is Compatible with Environmental Conservation
In 2009, the Government of Japan made a commitment to the
international community that Japan would reduce its GHG
emissions by 25% below the 1990 level by 2020. Achiev-
ing this target, which is called “Challenge 25,” has to go far
beyond the current green business framework, calling for
dynamic low carbon innovations that would transform the
social system. The New Growth Strategy announced by the
Government of Japan also advocates “Strategy for becoming
an environment and energy power through green innovation.”
The objective of this Strategy is to promote efforts of tack-
ling Challenge 25 by implementing a comprehensive policy
consisting of: spreading the use of photovoltaic power, wind
power, small-scale hydraulic power, geothermal power, solar
heat, biomass and other renewable energy sources; turning
homes, offices, etc., into zero-emission structures through the
spread of eco-housing, heat pumps, etc.; and speed develop-
ment of innovative technologies, including storage batteries,
next-generation automobiles and improved thermal power
plant efficiency. It is also aimed at creating over ¥50 trillion
in new environment-related markets and reducing worldwide
GHG emissions by 1.3 billion tons of CO2 equivalent using
Japanese technology by 2020.
Expanded use of Japan’s environmental technologies in oth-
er countries will reduce the impact on the global environment
driven by economic growth in emerging market countries
in Asia and elsewhere, promote sustainable growth in their
regions and serve as an engine for Japan’s own economic
growth. To support Japanese private firms’ business develop-
ment overseas, it is vital to make a partnership from the proj-
ect formation stage. As a governmental financial institution,
JBIC is committed to supporting the dissemination of Japa-
nese advanced environmental technologies overseas, thereby
promoting Japanese and international economic growth that
is compatible with a sustainable global environment.
R Disseminating Information on Environmental Efforts to the International Community and Domestic Civil Society
JBIC participated in various events at home and abroad to
The 7th Eco Products International Fair 2010 in India
Panel discussion at Carbon Expo 2010
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M Environmental Guidelines and Confirmation of Envi-ronmental and Social Considerations
R JBIC’s Confirmation of Environmental and Social Consid-erations
Growing interest in environmental conservation has led to a
worldwide trend for more rigorous environmental regulations.
There are not a few cases, especially in overseas projects, in
which insufficient risk management of possible environmen-
tal and social impacts has seriously affected project imple-
mentation or undermined social reputation. JBIC supports
Japanese companies’ overseas business activities, while mak-
ing loans and investments in a variety of overseas projects,
including projects for developing and acquiring resources
that are strategically important for Japan and infrastructure
development projects in developing countries. In conducting
these operations, JBIC confirms whether the borrower made
appropriate considerations for local communities and the
natural environment in all the JBIC-financed projects based
on the “Japan Bank for International Cooperation Guidelines
for Confirmation of Environmental and Social Considerations.”
The Environmental Guidelines set out the procedures, cri-
teria and requirements that JBIC-financed projects must meet
in confirmation of environmental and social considerations.
When JBIC judges the project proponents have not made
appropriate environmental and social considerations, it will
encourage them to take remedial measures. If appropriate en-
vironmental and social considerations have not been taken,
JBIC may decide not to extend funding.
R Objection ProceduresFurther, to ensure compliance with the Environmental Guide-
lines, JBIC has appointed examiners for the Environmental
Guidelines, who are composed of third parties totally inde-
pendent from JBIC’s operational departments, and has es-
tablished procedures under which the examiners receive any
submission of objections concerning compliance with the
Environmental Guidelines from local stakeholders since Oc-
tober 2003. When an objection is filed, the examiners for the
Environmental Guidelines investigate it from an independent,
neutral standpoint, report the result to the President & CEO
of JBIC, and encourage communication among stakeholders
in an effort to solve the problem.
M Communication and Cooperation on Environmental Issues
JBIC has accumulated knowledge and expertise in interna-
tional financing and on-the-ground information through its
experience in financing overseas infrastructure and natural
resource development projects. To improve the quality of
addressing environmental and social issues in JBIC-financed
projects and contribute to sound development of the global
economy, JBIC has also entered into partnerships with mul-
tilateral institutions, foreign governments and government
agencies, industrial circles, private financial institutions,
nongovernmental organizations and other entities. JBIC can
thus draw on the knowledge shared with them for confirm-
ing environmental and social considerations in its operations.
The Government of Japan emphasized in its New Growth
Strategy the significance of supporting the overseas develop-
ment of integrated infrastructure systems. In fact, large-scale
infrastructure projects are expected to increase over the com-
ing years. Amid these developments, stakeholders are paying
growing attention to environmental and social considerations
that should be made for individual projects. To ensure effi-
cient project formation, it is getting increasingly important to
confirm that appropriate environmental and social consider-
ations are made in advance.
JBIC held in September 2010 a seminar on “JBIC’s Confirma-
tion of Environmental and Social Considerations: Practical
Procedures for Applying IFC EHS Guidelines” in Tokyo.
The objective of the seminar was to offer tips on how to
practically apply the International Finance Corporation (IFC)’s
Environmental, Health and Safety (EHS) Guidelines, which
serves as the World Bank Group’s environmental, health and
safety guidelines.
IFC Guidelines are major international standards, to which
the private sector financial institutions adopting Equator Prin-
ciples (EPs)1 refer to when confirming if the appropriate envi-
ronmental and social considerations have been made for the
project. By inviting IFC experts, this seminar and workshops
attracted many participants who listened with keen interest
and engaged in a lively exchange of views.
In recent years, there have been an increasing number of
projects in which JBIC collaborates with private financial in-
stitutions in making environmental assessment of individual
projects. Through such activities, JBIC has further developed
partnerships with private financial institutions by providing
knowledge and know-how in environmental assessment ac-
cumulated over the years. JBIC also signed a Cooperation
Agreement on Environmental Review for Export Credits with
Nippon Export and Investment Insurance (NEXI). The agree-
ment allows JBIC to provide NEXI with information and other
cooperation for environmental assessment, thereby leading
to simpler and efficient procedures for use by export financ-
ing users.
Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Creating Value Added and Disseminating Information
1. The Equator Principles (EPs) are a credit risk management framework for determining, assessing and managing environmental and social risk in project finance transactions. The EPs are adopted voluntarily by financial institutions and are applied where total project capital costs exceed $10 million.
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In a bid to preserve the global environment and realize
a low-carbon society, employing innovative products
and services is being mulled in many parts of the world,
including “Smart Grid,” an effective electrical grid utiliz-
ing IT, and “Eco City,” a city designed with consideration
placed on energy savings, an advanced water treat-
ment system, and a low-carbon, highly efficient thermal
coal-fired power plant. JBIC is making partnerships with
foreign governments and multilateral institutions to
provide more speedy and effective support for these
environmental projects.
Promoting the GREEN OperationsRegarding the new JBIC financial instrument called
GREEN operations, which was newly added to JBIC
operations in this fiscal year, JBIC signed an MOU with
the Asian Development Bank (ADB) on May 2010 to
closely share information about environmental projects
implemented under GREEN operations or by the ADB.
In August, an MOU was concluded between JBIC and
PT Sarana Multi Infrastruktur (Persero) to confirm their
further cooperation in promoting environment-friendly
projects categorized as GREEN. In September, an MOU
was signed with the European Bank for Reconstruction
and Development to promote operational cooperation
by sharing information about environmental technolo-
gies. JBIC also concluded an MOU in November with
the Inter-American Development Bank (IDB) to share
environment-related information in Latin America and
the Caribbean, and yet another MOU in December
with Banco Nacional de Obras y Servicios Públicos,
S.N.C., the Mexican National Infrastructure Fund, and
the IDB for operational cooperation concerning GREEN
operations in Mexico. Collaborating through these part-
nerships is expected to lead to more speedy and effec-
tive implementation of GREEN operations.
Supporting Japanese Industries for Overseas Business DevelopmentJBIC signed an MOU each with the People’s Govern-
ment of Tianjin Municipality in China and China Energy
Conservation and Environmental Protection Group in
June 2010, aimed at operational cooperation to facilitate
both parties’ participation in energy conservation and
environmental protection projects. Other MOUs that
JBIC concluded include: an MOU with the Ministry of In-
dustry, Tourism and Trade (MITYC) of Spain in September
for operational cooperation to promote joint projects by
Japanese and Spanish companies in water, the environ-
ment and other areas; an MOU with the Government of
Mexico in February 2011 on holding annual meetings to
discuss financial cooperation and promotion of Japanese
business and investment opportunities in such sectors
as power, energy and the environment in Mexico; and
an MOU with the Government of Morocco in March on
comprehensive strategic partnership for enhancing the
economic relationship between Morocco and Japan in
infrastructure, the environment and other sectors.
By deepening partnerships with relevant domestic and
foreign institutions engaged in environmental and water
infrastructure projects, JBIC is committed to supporting
overseas business developments as well as activities in
the environmental and water infrastructure businesses
by Japanese firms.
Supporting Overseas Environment Projects
Partnerships with Foreign Governments and Relevant Institutions in Support of Environmental Efforts
JBIC and Tianjin Municipality at signingJBIC and MITYC at signing
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Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Creating Value Added and Disseminating Information
JBIC has been conducting research related to its operations
primarily at the Research Division, Policy and Strategy Office
for Financial Operations (former International Research Of-
fice) of the Corporate Planning Department. The results of
research are made available to the public through seminars,
reports, periodicals and occasional papers. In addition, JBIC
is building a research network with relevant domestic and
overseas agencies and research institutions.
M Research / Study R Effective Use of Research OutputJBIC conducts research / study on international finance, and
foreign direct investment. In FY2010, JBIC issued the “Survey
Report on Overseas Business Operations by Japanese Manu-
facturing Companies,” 22nd annual survey report on Japa-
nese manufacturers’ policies and issues. Featuring a unique
perspective and consistency, the Report is drawing attention
from a broad spectrum of readers. There has been increas-
ing collaboration with overseas and domestic institutions in
research activities to obtain high-quality output as well as
analyses from a broader perspective. JBIC effectively utilizes
research output in offering policy recommendations for devel-
oping countries, and in exchanging ideas with Japanese and
overseas researchers and professionals. Research results have
often been introduced by newspapers, business journals and
other types of media, and JBIC makes contributions to the
media as well.
R Publishing Research ResultsThe results of research are extensively offered to the general
public through contributions, and are made available on the
JBIC Website (http://www.jbic.go.jp/english/research). To
disseminate the results of research, JBIC held seminars on the
“Survey Report on Overseas Business Operations by Japanese
Manufacturing Companies” both in Japan and abroad, and
sponsored presentation meetings for foreign offices of the
Japan Chamber of Commerce and Industry as well as foreign
government agencies (7 cities in 6 countries in FY2010).
<Major Seminars and Workshops during FY2010>
P Overseas Investment Seminar “Survey Report on Overseas
Business Operations by Japanese Manufacturing Compa-
nies” (Tokyo, Osaka and Kanazawa in December 2010,
Kobe in February and Fukuoka in March 2011; Solely or
jointly held by JBIC)
P Japan Chamber of Commerce and Industry in India (San-
moku-kai) Seminar (New Delhi, January 2011; Speaker sent
by JBIC)
P Consulate General of Japan in Mumbai Seminar (Mumbai,
January 2011; Speaker sent by JBIC)
P Japan Chamber of Commerce and Industry in Malaysia
Seminar (Kuala Lumpur, March 2011; Speaker sent by JBIC)
P Overseas Investment Seminar (Jakarta, March 2011; held
by JBIC)
M Networking ActivitiesR Building Networks through SeminarsJBIC staff made a presentation on “Fiscal Consolidation Policy
under the Arroyo Administration: Its Effect and Challenges
Ahead” in the East Japan Meeting of the Japan Association of
Asian Studies held in May 2010, at Hokkaido University.
JBIC also supported a series of Global Eco-Business Forums
held in Tokyo in June, Beijing in September, India in November
2010 and Viet Nam in February 2011; set up an exhibition
booth to introduce its efforts; and participated in the panel
discussion.
In October 2010, JBIC and the Graduate School of Manage-
ment (GSM), Kyoto University, signed a cooperation agree-
ment to promote an understanding of operational practice
and analytic research in project financing and established, as
a base of such activities, a new project finance visiting chair at
Overseas Investment Seminar: “Report on Japanese Manufacturers’ Overseas Business Operations”
Research and Networking Activities
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the GSM. Through this partnership, JBIC aims to organize and
develop expertise and know-how in project financing that it
has accumulated since the 1980s, the days of its predecessor,
the Export-Import Bank of Japan, thereby enhancing its sup-
port for the projects that Japanese firms should address for
the years to come, including integrated infrastructure system
development projects and resource development projects.
In November 2010, as a sideline event of APEC 2010 Japan
in Yokohama City, Kanagawa Prefecture, JBIC sponsored, joint-
ly with the APEC Business Advisory Council (ABAC) and the
ADB, APEC2010 ABAC-ADB-JBIC Private Infrastructure Forum.
Focusing on public–private partnership (PPP) infrastructure
development in the APEC region, the Forum invited officials
from foreign governments and agencies as speakers to facili-
tate the sharing of experience and know-how among stake-
holders engaged in infrastructure development business in
the APEC region, thereby exploring the areas of cooperation
and business opportunities.
In the same month, JBIC held a workshop titled “Public–
Private Finance Partnerships for Green Growth” jointly with
the Institute for Economic and Social Research at the Faculty
of Economics, University of Indonesia in Jakarta, Indonesia.
The workshop was part of the JBIC Partnership Forum in the
Asia knowledge-sharing program, and was organized in co-
operation with the Japan Center for International Finance. It
was aimed at encouraging discussions among key players in
Japan and Indonesia about PPP with an eye to realizing “green
growth,” an economic growth that is compatible with the low-
carbon society. Discussions this year mostly focused on the
catalytic role that financing institutions can play in investment
and technological innovation.
JBIC’s activities utilizing its network with foreign govern-
ments, multilateral institutions, corporations and research-
ers also include: holding investment seminars in Japan and
abroad; providing data on research activities; and offering
information on project finance.
R JBIC SeminarA JBIC Seminar was held in October 2010, by inviting middle-
ranking officials of its counterpart institutions including foreign
government agencies, central banks and financial institutions.
The objective of this seminar is to promote mutual under-
standing, and encourage participants to have deeper insight
into JBIC’s roles and functions, as well as economic, industrial
and financial situations in Japan. The seminar is thus expected
to contribute to the formulation of frameworks and policies
of individual governments. JBIC has been sponsoring these
seminars since FY1976, with the total number of seminar
participants exceeding 560.
Making a presentation at the Global Eco-Business Forum (Tokyo)
A scene of panel discussion at the Global Eco-Business Forum (India)
Delivering a speech at APEC2010 ABAC-ADB-JBIC Private Infrastructure Forum
JBIC Seminar
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Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Creating Value Added and Disseminating Information
JBIC is actively disseminating information on its operations
and activities to a broad spectrum of audiences at home and
overseas.
M Public Information ActivitiesVarious pamphlets, disclosure documents and other papers
are available to the general public at the JBIC Information
Center in the JBIC Head Office and at the JBIC Office in West
Japan.
A public information magazine, JBIC TODAY, is published
quarterly, reporting JBIC’s operations and latest activities.
Various pamphlets on JBIC operations and activities are up-
dated from time to time.
The Center also serves as the window for submitting a re-
quest for disclosure of information under the Act on Access
to Information Held by Independent Administrative Institu-
tions and a request for disclosure of personal information
held by JBIC under the Act on Protection of Personal Informa-
tion Retained by Independent Administrative Institutions.
Information on JBIC’s operations and activities, operational
results and financial information is also available on the JBIC
Website, where the latest information is posted on JBIC’s
financial products, various publications and environmental
efforts, as well as information for investors. A JBIC video titled
“Bridging the World, Building
the Future” is also available
on the JBIC Website.
JBIC Website: http://www.jbic.go.jp/en/
M Disseminating Information at Home and OverseasIn addition to the JBIC Head Office, the JBIC Office in West
Japan and overseas representative offices are also active in
public information activities.
The JBIC Office in West Japan provides a wide range of
information for businesses in western Japan to support their
overseas business operations. Its activities include provid-
ing advisory services on JBIC lending and holding overseas
investment seminars and lecture meetings to provide informa-
tion on economic conditions and the investment climate in
various countries. These seminars and meetings are held in
Nagoya and Fukuoka, as well as other locations in western
Japan. The JBIC Office in West Japan also provides informa-
tion to the general public at various events promoting inter-
national cooperation.
The overseas offices provide information on JBIC’s role,
functions and current operations by holding seminars and
publishing pamphlets in local languages, and through their
own Websites.
M Participating in Various EventsJBIC participated in the Global Eco-Business Forum held
in Tokyo in June 2010—the first of a series of Global Eco-
Business Forums held in four countries, namely, China in Sep-
tember, India in November and Viet Nam in February 2011—
and explained to the audience the effective use of Japanese
environmental technologies and the vital role played by fi-
nancial institutions. JBIC also participated in domestic events,
including Eco-Products 2010 in December held in Tokyo.
These activities may be seen on the JBIC Website.
A scene of panel dis-cussion at the Global Eco-Business Forum (China)
Public Information and Disclosure
JBIC booth at Eco-Products 2010
2JBIC
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Overview of Activities in Fiscal Year 2010
Japan Finance Corporation 2011 JBIC > Operations by Region
Operations by Region
1 Asia and Oceania 30
2 Europe 33
3 The Middle East 34
4 Africa 36
5 The Americas 37
6 Equity Participations 40
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Asia and Oceania1
Japan Finance Corporation 2011 JBIC > Operations by Region > Asia and Oceania
JBIC signed two buyer’s credit1 agreements worth approxi-
mately $116 million each with Mark V Shipping Pte. Ltd.
(Mark V), a company incorporated in Singapore and affiliated
with Wallenius Lines AB, one of the largest shipping compa-
nies for vehicle transportation. The loans were cofinanced
with private sector financial institutions.
The loans finance Mark V to purchase two Roll-on / Roll-
off vessels2 (deadweight tonnage: 41,820 tons), for which
Mitsubishi Heavy Industries, Ltd. had won the order prior to
the global financial turmoil that took place in the fall of 2008.
The ships are currently under construction at the company’s
Nagasaki Shipyard (Nagasaki City, Nagasaki Prefecture).
The credit crunch following the financial crisis has made
it difficult to structure ship financing across the world. The
loans provided by JBIC will lead to funding for the export of
Japanese ships, thereby helping maintain and improve the in-
In 2004, YANMAR Co., Ltd., a diesel engine manufacturer,
established YANMAR AgRICuLTuRAL MACHINeRY (THAI-
LANd) Co., LTd., an agricultural machinery sales company
in Thailand. Since the company started selling tractors, it
has been vigorously developing business by increasing sales
outlets and introducing new products. Furthermore, YANMAR
CAPITAL (THAILANd) Co., LTd. (YCT) was established in
2009 to strengthen the groundwork of business operations.
The company has thereby buttressed its manufacturing and
sales in the ever-expanding tractor market in Thailand. In the
context of these developments, JBIC signed a long-term loan
agreement with YCT for funding the financing business for
selling agricultural machinery. This loan was cofinanced with
private sector financial institutions.
Since Thailand has about six times the amount of rice pad-
dy fields that Japan does, there has been increasing needs for
agricultural machinery. This is also attributable to economic
growth, income growth among agricultural households and a
ternational competitiveness of Japanese shipbuilders who are
playing an important role in the regional economy through
the employment and related businesses.
decreasing agricultural population. As a result, the agricultural
machinery market has been rapidly growing.
This loan is expected to help expand Japanese business in
Thailand, a country whose economy is on a sustained growth
path over the medium and long term.
Supporting Export of Cargo Ships Built at Japanese Shipyard:Helping Japanese Shipbuilders to Maintain and Improve their International Competitiveness
Long-term Loan to Agricultural Machinery Sales Financing Business:Supporting Japanese Business Development
YAnMAR AgRICulTuRAl MAChInERY (ThAIlAnD) CO., lTD.
Roll-on / Roll-off vessel (a sister ship built by Mitsubishi heavy Industries)
Singapore
Thailand
1. A buyer’s credit is a loan JBIC directly extends to a foreign importer (buyer) to finance its import of machinery and equipment, etc. from a Japanese firm.2. Roll-on / Roll-off cargo ships have vehicle deck(s) as well as stern / bow ramps or side ramps allowing cars to roll-on / roll-off directly from / to the dock.
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Japan Finance Corporation 2011 JBIC > Operations by Region > Asia and Oceania
Kureha Vietnam Co., ltd.
JBIC and VDB at signing
As Viet Nam is drawing attention as a logistic base of the
Asian region where economic growth is significant, Kureha
Corporation, which regards Viet Nam as the strategic coun-
try for food package Films manufacturing has set up Kureha
Vietnam Co., Ltd. (KVC). In response to this, JBIC signed a
long-term loan agreement for KVC’s manufacturing and sales
business operations of food package Films. This loan was
cofinanced with private sector financial institutions.
KVC manufactures and supplies high-quality oxygen barrier
films used for hams, sausages, fish meat, dairy products as
well as for wrapping meat, to Asian countries.
In the Asian region, ever-increasing demand for processed
food is expected because of the improvement in living stan-
dards which has accompanied its rapid economic growth. In
response to such demands, we believe our loan will contrib-
ute to the Japanese industry to expand its sales volume in
overseas markets.
JBIC signed an untied loan agreement totaling up to $100
million with the Vietnam development Bank (VdB), with the
government of Viet Nam providing a guarantee for the loan.
The loan was cofinanced with a private financial institution,
with JBIC providing guarantee cover for the cofinanced por-
tion.
VdB is a public financial institution wholly owned by the
government of Viet Nam and provides finance for trade and
domestic business investment at its head office and branch
offices in the country. The loan aims to finance the local
supporting industries that are doing business with Japanese
firms, in partnership with VdB having a broad network across
the country. The loan is thus expected to help Japanese firms
operating in Viet Nam to secure a stable supply of raw and
other materials, with better quality and lower cost, thereby
supporting their efforts to strengthen international competi-
tiveness.
According to the results of the FY2010 Survey Report on
overseas Business operations by Japanese Manufacturing
Companies that JBIC conducted, Japanese manufacturers
consider Viet Nam as the 3rd most promising country for
overseas business development over the medium term
(around 3 years), following China and India. Since the loan
is also expected to be utilized for trade finance in Viet Nam,
a country of increasing importance for Japanese firms, it will
prove effective in stabilizing the funding environment, thereby
contributing to the business development of locally operating
Japanese firms.
First Loan to Local Financial Institution in Viet Nam:Helping Japanese Firms’ Business Development by Promoting Supporting Industries
Long-term Loan for Manufacture and Sales of Food Package Films:Supporting Expanding Demand for Processed Food in Asian Region
Viet Nam
32
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Japan Finance Corporation 2011 JBIC > Operations by Region > Asia and Oceania
The global demand and supply balance of liquefied natural
gas (LNg) is projected to become tighter over the me-
dium and long term due to increasing demand in emerging
countries. Australia, a country endowed with abundant gas
reserves and political and economic stability, has come to
play an increasingly significant role as an LNg supply source
for Japan. under this situation JBIC signed a loan agreement
totaling up to $102 million with Tokyo gas gorgon Pty Ltd.
(Tgg), a wholly owned subsidiary of Tokyo gas Co., Ltd.
(Tokyo gas) incorporated in the Commonwealth of Australia.
This is one of the world’s largest-scale LNg projects, with
six participating parties: Tokyo gas (through Tgg), Chevron
Corporation (Chevron), exxon Mobil Corporation, Royal
dutch Shell Plc, osaka gas Co., Ltd. and Chubu electric
Power Co., Inc. The parties plan to develop large-scale gas
fields including gorgon and Jansz on the northwest coast of
the state of Western Australia, and transport gas through an
undersea pipeline to a liquefaction plant to be constructed
on Barrow Island located in the same state. The plant is ex-
pected to produce and sell 15 million tons of LNg annually
from the year 2014.
The loan finances Tgg for acquiring 1.0% interest of the
project from Chevron and for participating in its development.
Tokyo gas offtakes 1.1 million tons of LNg a year from the
project, which amounts to about 10% of the company’s yearly
LNg purchase. In addition, Tokyo gas also has rights to take
delivery of about 150 thousand tons of LNg volume commen-
surate with its participating interest. JBIC supports Japanese
firms in acquiring interests in crude oil and natural gas by
participating in
/ committing
to these proj-
ects, thereby
contributing to
Japan’s energy
security.
Energy and Natural Resources Finance for the World’s Largest-scale LNG Project:Supporting Japanese Gas Utility’s Participation in Energy Resource Development Project
Australia
An artist rendering of the liquefaction plant
JBIC signed two loan agreements with ICICI Bank Limited
(ICICI), one of the largest private sector banks in India. one is
a bank-to-bank loan to finance the export of thermal power
generation boiler / steam turbine sets to India, and the other
is an untied loan to finance renewable energy, energy effi-
ciency and other environment-related projects in India.
In the thermal power generation equipment export project,
two joint venture companies, established primarily by Larsen
& Toubro Limited—one of the largest construction and heavy
machinery manufacturing companies in India—and Mitsubishi
Heavy Industries, Ltd. (MHI), fabricate supercritical pressure
boiler / turbine sets manufactured by MHI and sell them to an
Indian corporation, Jaiprakash Power Ventures Limited, which
constructs and operates a thermal power plant. JBIC’s export
financing, which reached the aggregate amount of ¥15.3 bil-
lion, was cofinanced with a private financial institution. The
fast-paced growth in the Indian economy in recent years has
caused chronic power shortages, and eliminating this bottle-
neck in power generation infrastructure is an urgent issue. In
this context, there are growing expectations for supercritical
pressure coal-fired thermal power generation, which can sup-
ply stable power by making use of the country’s abundant
coal resources.
In the meantime, the untied loan is the first loan provided
in gReeN operations for the Asian region1. The loan, totaling
$200 million and cofinanced with a private financial institu-
tion, will help reduce greenhouse gas (gHg) emissions and
advance the Indian government’s environmental policy. It
is also expected to
provide opportuni-
ties for advanced
Japanese environ-
mental technolo-
gies to make their
way in to Ind ia ,
thereby helping vi-
talize the Japanese
economy.
Signing Loan Agreements with ICICI:Supporting Japanese Export of Thermal Power Generation Equipment, as well as Renewable / Energy Efficiency Proj-ects in India
India
Supercritical pressure coal-fired thermal power plant being built in nigrie
1. gReeN (global action for Reconciling economic growth and eNvironmental preservation) operations were instituted, pursuant to the revision of the Japan Finance Corporation Act on March 31, 2010. gReeN operations aim to offer increased and enhanced support to the overseas business for preserving the global environment, such as preventing global warming, while mobilizing funding from the private sector.
33
Profile o
f JFC and
JBIC,
Message fro
m the Presid
ent & C
EO, JBIC
Overview
of A
ctivities in Fiscal Year 2010O
perations by RegionO
peratio
nal and A
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inistrative Policies
Ab
out JBIC
Data
Europe2
Japan Finance Corporation 2011 JBIC > Operations by Region > Europe
JBIC signed two loan agreements with K LINe oFFSHoRe AS,
a Norwegian corporation in which Kawasaki Kisen Kaisha,
Ltd. holds a 95% equity share, for financing the offshore
support vessel business. The two loans, worth €96 million
and ¥4.3 billion, respectively, were cofinanced with private
financial institutions. These loans finance K LINe oFFSHoRe
AS for owning and operating the most-advanced, largest-class
anchor-handling tug supply vessels (AHTS)2 and large plat-
form supply vessels (PSV).3
offshore support vessels are indispensable for supporting
offshore oil / gas field development and production, and their
demand is expected to grow as the depletion of inland oil
and natural gas fields leads to deepwater and offshore devel-
opment of oil and natural gas resources.
This loan is expected to maintain and strengthen the
international competitiveness of Japanese marine resource
JBIC signed an agreement with The State export-Import Bank
of ukraine (ukreximbank), a government financial institution
in ukraine, for extending an export credit line1 totaling up to
¥8 billion. The credit line was cofinanced with private finan-
cial institutions.
This credit line will provide medium- and long-term funds
in yen or u.S. dollars to finance the import of machinery,
equipment and services by ukrainian firms from Japanese
exporters.
The ukraine suffered a significant decline in gdP in 2009,
impacted by the global financial crisis in the second half
of 2008. However, since 2010, its economy has been back
on the recovery path, driven largely by steel exports—the
country’s major industry—with an upturn in external demand.
under these circumstances, this credit line supports the
country’s sustainable growth by developing infrastructure,
improving the environment and creating business opportuni-
ties contributing to the promotion of industrial development.
In collaboration with ukreximbank, JBIC intends to sup-
port greater business opportunities for Japanese firms in this
industries through acquiring and improving technologies,
management practices and know-how on the operation and
management of offshore support vessels.
country. In particular, by supporting exports related to renew-
able energy and the natural resource sector, JBIC is pursuing
the expansion of overseas markets in the infrastructure sec-
tor and strengthening the international competitiveness of
Japanese firms.
Loans for Offshore Support Vessel Business:To Help Strengthen Japanese Marine Resource Industry’s International Competitiveness
Export Credit Line for Ukreximbank:Expanding Overseas Markets for Japanese Firms
An offshore support vessel
Norway
Ukraine
JBIC and ukreximbank at signing
1. An export credit line is a form of export credit in which JBIC makes a commitment of the maximum amount of credit to be extended to its client (foreign banks or other entities) to finance exports of machinery, equipment and services from Japan.
2. AHTS: An offshore support vessel primarily used for towing and anchoring oil production rigs as well as transporting their personnel and supplies to them.3. PSV: An offshore support vessel primarily for transporting supplies and fuel to oil drilling rigs as well as water and food to their personnel.
34
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3 The Middle East
Japan Finance Corporation 2011 JBIC > Operations by Region > The Middle East
Jubail refinery under construction
JBIC signed a general agreement for arranging the second
export credit line for ships in the amount of up to ¥22 billion
with Turkiye Is Bankasi A.S. (Isbank), a commercial bank in
Turkey. Concurrently, JBIC signed contract loan agreements
with Isbank for the export of two 55,800-dwt bulk carriers1
(exporter: Marubeni Corporation) to Mardas, a Turkish ship-
ping company, under the framework of this export credit line
(cofinanced with a private financial institution).
The credit crunch following the financial crisis since the
fall of 2008 has made it difficult to structure ship financing
across the world. This loan provided through Isbank helps
finance the export of ships built in Japanese shipyards, there-
by helping Japanese shipbuilders to maintain and improve
their international competitiveness.
JBIC offered its first credit line totaling ¥10 billion to Is-
bank in december 2009 to be used for financing the export
of ships to Turkey. This credit line supported the export of
three bulk carriers. JBIC also extended a bank-to-bank loan
cofinanced with a private financial institution to Yapi ve Kredi
Bankasi A.S., a Turkish commercial bank, in September 2010,
to help export a bulk carrier.
Second Export Credit Line for Ships to Isbank:Supporting Export of Ships Built in Japanese Shipyards
Turkey
JBIC signed a buyer’s credit agreement totaling up to approxi-
mately $400 million with SAudI ARAMCo ToTAL Refining and
Petrochemical Company (SAToRP), a company incorporated
in Saudi Arabia. The loan, provided on a limited-resource ba-
sis, was cofinanced with commercial banks.
In this project, SAToRP, in which Saudi Arabian oil Compa-
ny (Saudi Aramco) and Total S.A. (a French corporation) have
equity stakes, builds and operates a world-class grassroots
refinery with a throughput capacity of 400 thousand barrels
of crude oil per day in the Jubail Industrial City on the eastern
coast of Saudi Arabia. The refinery processes Arabian heavy
crude oil primarily into high-value-added refined products
such as diesel and petrochemical products. These products
are sold mainly in europe, the united States and Asia. JBIC
finances SAToRP for the ePC contract of a delayed coker,
which was awarded to a consortium participated by Chiyoda
Corporation, and for various types of machinery and equip-
ment, which IHI Corporation, elliott ebara Turbomachinery
Corporation, Kobe Steel, Ltd. and Hitachi Zosen Corporation
were awarded.
This is a very significant project for Saudi Arabia’s industrial
policy, which aims to produce and export large volumes of
value-added oil products, since the country is moving to
transform its industrial structure heavily dependent on crude
oil exports. JBIC supports the export of Japanese plant facili-
ties and machinery to this project, thereby contributing to the
creation of export opportunities for Japanese firms.
Buyer’s Credit for Mega Oil Refinery Project in Oil-producing Country:Supporting Export of Japanese Plant Facilities and Machinery
Saudi Arabia
1. A bulk carrier is a cargo ship designed to transport dry bulk cargo such as grains, coals, ores, etc.
35
Profile o
f JFC and
JBIC,
Message fro
m the Presid
ent & C
EO, JBIC
Overview
of A
ctivities in Fiscal Year 2010O
perations by RegionO
peratio
nal and A
dm
inistrative Policies
Ab
out JBIC
Data
Japan Finance Corporation 2011 JBIC > Operations by Region > The Middle East
The automobile market in the united Arab emirates (uAe) is
expected to continue to grow and, with Japanese automo-
biles accounting for a 60% share of the market, it is consid-
ered a promising market for Japanese automakers.
JBIC acquired ¥19 billion of securitized notes backed by
auto loan assets originated by emirates NBd PJSC (eNBd, the
originator1), which is the largest bank in the uAe in terms
of assets (the APC Notes), and guaranteed the principal of
repackaged notes using ¥15.2 billion of the APC Notes as
collateral (the Repack Notes), which were sold to investors in
the Japanese capital market.
Since october 2008, JBIC has added securitization op-
eration to its conventional financial operations, such as loans
and guarantees, in an effort to employ new financial instru-
ments that complement private sector financing activities.
Participation by JBIC as a guarantor of the Repack Notes (i)
reduces the country and structure risks associated with the
APC Notes, thereby providing a new investment opportunity
to the financial market, and (ii) satisfies the need of the origi-
nator to diversify funding sources. This deal supports smooth
provision of auto loans by local banks, thereby helping pro-
mote steady growth in the uAe automobile market and serv-
ing to uphold and expand an important market for Japanese
automobile manufacturers.
The uAe is an important country for Japan’s resource strategy
since it has been a stable source of crude oil to Japan for
more than 30 years. In addition, Abu dhabi allows entry of for-
eign oil companies based on concession agreements. In Abu
dhabi, a hub of oil / gas production in the uAe, oil and gas
business is conducted by Abu dhabi National oil Company
(AdNoC), a company wholly owned by the government of
Abu dhabi.
JBIC and AdNoC signed an Mou and a loan agreement
valued up to $3 billion. The objective of the Mou is to mutu-
ally recognize that the grant of new concessions to Japanese
entities and the renewal of existing concessions involving
Japanese entities are significant objectives of the JBIC man-
date and thereby further strengthen a comprehensive and
strategic partnership between JBIC and AdNoC. The loan
was cofinanced with private financial institutions, and aims to
secure a stable crude oil supply from AdNoC.
Funding Auto Loan Business in the UAE:Supporting Japanese Auto Sales in the Middle East Market
Downtown Dubai
JBIC and ADnOC at signing
United Arab Emirates
1. The originator is the initial owner of the securitized assets.
ADNOC and JBIC Sign MOU and Loan Agreement:To Help Secure Stable Supply of Energy to Japan
36
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4Africa
Japan Finance Corporation 2011 JBIC > Operations by Region > Africa
In Cairo, the country’s political and economic center, chronic
traffic congestion caused by excessive concentration of the
population is posing major problems. It was against this
backdrop that the project was formed to construct Line 3
(34-kilometer long; to be constructed in five phases) of the
greater Cairo Metro Network linking Cairo city center and
Cairo International Airport. JBIC signed a buyer’s credit agree-
ment totaling up to approximately ¥7.9 billion with the Na-
tional Authority for Tunnels (NAT), a company incorporated
in egypt. The loan finances the procurement by NAT of a fleet
of rolling stocks from Japan. This is the first financing for an
urban transport project under JBIC’s LIFe Initiative.
due to expansion of the global rolling stock market, many
manufacturers in europe, Asia, North America and elsewhere
are vigorously engaged in business activities to win orders for
transport infrastructure. The rolling stocks to be delivered are
produced mainly by The Kinki Sharyo Co., Ltd. and Toshiba
Corporation, and JBIC provides support for the exports
by Japanese firms. during the Fourth Tokyo International
Conference on African development (TICAd IV) in May 2008,
the government of Japan pledged $2.5 billion in financial
support for Africa, to be provided by JBIC for five subsequent
years. In May 2010, JBIC signed an Mou on a comprehensive
strategic partnership with the government of egypt. JBIC will
continue to support the expansion of Japanese businesses in
Africa through similar financing.
Export Loan for Metro Construction Project in Cairo:Supporting Japanese Exports of Transport Infrastructure
Egypt
JBIC signed a buyer’s credit agreement totaling up to approxi-
mately ¥19.3 billion with the government of Angola. This
transaction, cofinanced with a private financial institution, is
the first direct loan extended by JBIC to the country.
As the Angolan Ministry of geology, Mines and the Indus-
try implements the state-owned textile plant rehabilitation
project in Luanda, Angola, this loan finances the procurement
of a textile production facility for the project. The textile ma-
chinery and equipment to be installed in this transaction are
manufactured by Toyota Industries Corporation and Murata
Machinery, Ltd., whose exports benefit from JBIC’s financial
support.
Steadily advancing the reconstruction of the country dev-
astated by the 27-year civil war that came to an end in 2002,
the government of Angola gives policy priority to the reha-
bilitation of the textile industry, which now relies mostly on
imported textile goods. This project marks the first step for
the recovery of the Angolan textile industry.
This loan is well-aligned with the financial assistance for Af-
rica that the government of Japan pledged during TICAd IV.
Direct Loan to Help Rehabilitate Textile Industry:Supporting Export of Japanese Textile Machinery
An image of a Metro line 3 passenger car (courtesy of The Kinki Sharyo Co., ltd.)
JBIC and the government of Angola at signing
Angola
37
Profile o
f JFC and
JBIC,
Message fro
m the Presid
ent & C
EO, JBIC
Overview
of A
ctivities in Fiscal Year 2010O
perations by RegionO
peratio
nal and A
dm
inistrative Policies
Ab
out JBIC
Data
The Americas5
Japan Finance Corporation 2011 JBIC > Operations by Region > The Americas
JBIC signed a loan agreement totaling up to $160 million with
Similco Finance Ltd., a Canadian corporation, to cofinance
with private financial institutions the Similco Copper Moun-
tain Project in Canada.
under the project, Mitsubishi Materials Corporation (MMC),
which has an equity stake in Similco Finance Ltd., and Cop-
per Mountain Mining Corporation, a company incorporated
in Canada, jointly restart the Similco Mine (British Columbia,
Canada). Production will commence in 2011, and the cop-
per concentrate, generated from the project totaling ap-
proximately 150 thousand tons annually, will be purchased by
MMC and supplied to copper smelters in Japan.
In the face of an increase in the world copper demand
especially in China and India, Japan is being urged to secure
more copper concentrate supply source. Copper is a raw
material used extensively for various products, including elec-
tric cables, electrical equipment, transport vehicles such as
Shale gas is a natural gas contained in shale1, and is one of
the main types of unconventional natural gas. Previously, its
production was marginal and commercialization was consid-
ered difficult. However, technological advances, such as hori-
zontal drilling and hydraulic fracturing, have made low-cost
production possible and its development has been rapid,
especially in the united States.
JBIC signed a loan agreement totaling up to $700 million
with Mitsui e&P uSA LLC (MePuSA), a subsidiary established
by Mitsui & Co., Ltd. and Mitsui oil exploration Co., Ltd. The
loan, cofinanced with private financial institutions, finances
MePuSA acquiring a 15.5% interest in the Marcellus Shale
area in Pennsylvania from Anadarko Petroleum Corporation, a
u.S. corporation, and participating in its development.
For Japanese industries, the acquisition of interests in the
u.S. natural gas market will diversify their supply portfolio
and strengthen their corporate ability to balance demand
and supply. In addition, developing unconventional gas in the
united States will help relieve the tight Asian LNg market
and contribute to developing a more stable market. As there
are vast proven reserves of shale gas around the world, by
automobiles, and construction materials. Japan relies solely
on imports for all of its copper concentrate (approximately
5.36 million tons in 2010), from which copper cathodes are
produced. upon completion, this project is expected to meet
about 3% of Japan’s annual demand for copper concentrate.
acquiring knowledge and experience in shale gas develop-
ment, Japanese firms are expected to have future opportuni-
ties to participate in shale gas development projects in Asia
and other regions
Financing for Similco Copper Mine Redevelopment Project:Supporting Japanese Firms’ Efforts to Diversify Procurement Sources of Copper Concentrate
Financing Acquisition of Interests in and Development of Shale Gas:JBIC’s First Loan to Shale Gas Project
Similco Mine
Shale gas drilling rig (courtesy of Mitsui & Co., ltd.)
Canada
The United States
1. Shale is a sedimentary rock composed of mud, and contains organic matters, from which air and gas can be extracted.
38
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, JBI
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Japan Finance Corporation 2011 JBIC > Operations by Region > The Americas
JBIC signed a loan agreement totaling up to $253 million with
Minera San Cristóbal S.A., a Bolivian company in which Sumi-
tomo Corporation has an equity interest. The loan was cofi-
nanced with a private financial institution, with JBIC providing
a political risk guarantee for the cofinanced portion.
Bolivia has abundant resources of valuable minerals, and
is thus an important country with which Japan hopes to
strengthen relations. The loan, which finances the acquisition
by Sumitomo Corporation of an additional 65% interest in the
San Cristóbal Mine in Potosi department, Bolivia, producing
zinc, lead and silver, is the first direct loan provided by JBIC to
an entity in Bolivia. While there are many relatively small zinc,
lead and silver mines, this mine is the largest one in Bolivia
and one of the few large-scale mines. Thus, it is particularly
valuable. It supplies 13 to 14% of Japan’s total imports of
these resources (when converted into metal).
Zinc is used for corrosion-resistant galvanization of motor
vehicles, housing materials and household electric appli-
ances, as well as for corrosion-resistant parts of ships, bridges
and docks. Lead is mainly used for automotive batteries.
JBIC signed a long-term loan agreement with Brazilian com-
pany Pilkington Brasil Ltda. (PBL), a wholly owned subsidiary
of Nippon Sheet glass Co., Ltd. (NSg), to finance manufactur-
ing and sales of automotive glass. The loan was cofinanced
with private financial institutions.
PBL manufactures automotive glass among others, and sup-
plies products to Japanese as well as u.S. / european auto-
motive vehicle manufacturers operating businesses in Brazil.
As vehicle demand has expanded in Brazil and other
Latin American countries in recent years, competition with
other manufacturers has become increasingly severe in the
automotive glass sector. JBIC’s financial support for PBL’s
Japan is totally dependent on imports for all the zinc and lead
concentrates used as raw materials for zinc and lead metals.
given the global increase in demand for those concentrates,
it is becoming increasingly important to secure supplies.
Through this loan, JBIC provides financial support for securing
a long-term stable supply of strategically important resources
for Japan.
manufacturing and sales of automotive glass is expected to
help the Japanese firm to secure the market share in Brazil.
Financing for Acquisition of Additional Interest in San Cristóbal Mine:To Help Secure Resources and Strengthen Bolivia–Japan Relationship
Long-term Loan for Manufacture and Sales of Automotive Glass:Supporting Japanese Firm for Acquiring Overseas Market
Bolivia
Brazil
San Cristóbal Mine
Pilkington Brasil ltda.
39
Profile o
f JFC and
JBIC,
Message fro
m the Presid
ent & C
EO, JBIC
Overview
of A
ctivities in Fiscal Year 2010O
perations by RegionO
peratio
nal and A
dm
inistrative Policies
Ab
out JBIC
Data
Japan Finance Corporation 2011 JBIC > Operations by Region > The Americas
JBIC signed an untied loan agreement totaling ¥14.6 billion
with the government of the State of São Paulo, Brasil. The
loan was cofinanced with a private financial institution, with
JBIC providing a guarantee for the cofinanced portion, and
finances the São Paulo Metro Line 4 extension Project (Phase
2) undertaken by the government of the State.
São Paulo, which is the center of the Brazilian economy, is
plagued by such urban problems as chronic traffic congestion
and air pollution. The project is designated by the federal
government as one of the priority projects for developing
transport infrastructure in Brazil’s largest metropolitan area.
Since Japanese firms are participating in Metro operations in
the project, JBIC’s financial support will help Japanese compa-
nies to maintain and strengthen their international competi-
tiveness in the railway sector.
Looking forward to the FIFA World Cup in 2014 and the
olympic games in 2016 in Rio de Janeiro, Brazil is planning
to make various infrastructure investments. With its wealth of
JBIC signed a loan agreement totaling up to $120 million with
usinas Siderúrgicas de Minas gerais S.A. (uSIMINAS), Nippon
Steel Corporation (NSC)’s equity-method affiliate incorporat-
ed in Brazil. The loan was cofinanced with a private financial
institution, with JBIC providing guarantee for the cofinanced
portion.
This loan finances uSIMINAS to add a new rolling mill for
the existing heavy plate production facility in Ipatinga, locat-
ed in the State of Minas gerais. As growing demand for steel
products is expected in Brazil due to its economic growth, the
heavy plates produced by this project are planned to be sold
as high-value-added steel to satisfy the demand of energy
and shipbuilding industries in the country.
natural resources, large markets and geographical proximity
to the united States and european markets, the country is
attracting global attention. For Japanese businesses, too, its
strategic importance has been increasing.
Amid increasingly intense competition in the global steel
industry, NSC sees the expansion of overseas operations as
one of the key components in its business strategy. desig-
nating uSIMINAS as one of the “global Tri-polar Production
and Processing Bases,” which covers the American and Pan-
Atlantic emerging market, NSC has provided the most ad-
vanced technology to uSIMINAS for the heavy plate produc-
tion facility. This loan will support NSC’s overseas business
strategy, which will ultimately serve to maintain and enhance
the international competitiveness of the Japanese steel
industry.
São Paulo Metro line 4
Financing Transport Infrastructure Development Project in São Paulo:Supporting Subway Project where Japanese Firms Participate
Loan and Guarantee for Steel Project:Supporting Overseas Business Operations by Japanese Steel Industry
JBIC
201
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, JBI
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Equity Participations6
Japan Finance Corporation 2011 JBIC > Operations by Region > Equity Participations
JBIC signed an agreement for equity participation in the fund
investing in Vietnamese growth companies. This fund, jointly
managed by dream Incubator Inc. and oRIX Corporation, is
launched with an initial capital commitment of about ¥5 bil-
lion, of which JBIC contributes up to ¥1 billion.
This is a private equity fund making investments in com-
panies that need funding and technologies to grow and
also provides support for them in such areas as matchmak-
ing business alliances with Japanese companies, thereby
JBIC signed an agreement for equity participation in Tata Cap-
ital growth Fund L.P., which invests primarily in Indian growth
companies. JBIC contributes up to $25 million to the Fund.
The Fund is a private equity fund jointly managed by a
Singaporean subsidiary of Tata Capital Limited and Mizuho
Securities Co., Ltd. through a fund management company. It
makes investments principally in Indian growth companies
that need funding and expertise for growth.
aiming to increase their corporate value. Its investments are
expected to stimulate the growth of Vietnamese firms, while
helping facilitate business development for Japanese firms in
Viet Nam, a country which is promising as a manufacturing
base as well as a market for consumer products.
JBIC actively supports funds where Japanese firms perform
a major role in management and making investment deci-
sions, while contributing to overseas business development
of Japanese firms.
Japanese business will have opportunities to access Indian
growth companies through the networks of the Tata Capital
Limited, the Tata network and the Mizuho group. JBIC is
working to support Japanese business development in India,
a promising country as a market and a production base,
thereby helping Japanese firms maintain / improve their inter-
national competitiveness.
Equity Participation in Fund Investing in Viet Nam’s Growth Companies:Supporting Business Development that Bridges Viet Nam and Japan
Equity Participation in Fund Investing in India’s Growth Companies:Supporting Japanese Business Development in India
1
2
The Credit guarantee and Investment Facility (CgIF) is a
trust fund established in November 2010 within the Asian
development Bank (AdB). All the member countries of the
ASeAN+31 and the AdB made capital contribution to the
CgIF, with JBIC making the largest contribution of $200 mil-
lion, out of its total fund volume of $700 million.
The primary function of the CgIF is to provide guarantees
for local currency-denominated bonds issued by the compa-
nies in the region with the aim of helping develop regional
bond markets. The operational principles of the CgIF have
been worked out in working-level meetings in which the
finance ministry officials of the region participated. In these
meetings, JBIC has contributed to designing framework of
CgIF by drawing on the expertise on bond guarantees and
corporate credit analysis gained through its operations.
The CgIF is one of the outcomes of the Asian Bond Mar-
kets Initiative agreed on at the ASeAN+3 Meeting in 2003.
The CgIF is expected to contribute to developing bond mar-
kets in the ASeAN+3 region as well as preventing financial
disorder in the region.
Equity Participation in CGIF Providing Guarantees to Corporate Securities in the ASEAN+3 Region:Support for the Prevention of International Financial Disorder
3
1. ASeAN+3 is a forum for cooperation between the Association of South east Asian Nations (Brunei darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singa-pore, Thailand and Viet Nam) and three east Asian countries of China, Republic of Korea and Japan.
3JBIC
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Overview of Activities in Fiscal Year 2010
Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies
1 Operational Policy in FY2011 42
2 Compliance 42
3 Disclosure 43
4 Risk Management 44
5 Business Management Plan and the Evaluation System 48
Operational and Administrative Policies
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Operational Policy in FY20111
Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies > Operational Policy in FY2011; Compliance
In FY2011, JBIC will execute its functions to live up to ex-
pectations of the public, guided by the following four policy
themes, while taking account of Japanese government poli-
cies, domestic and international economic and financial con-
ditions, developments in Japanese business activities, and
economic and social conditions in developing countries.
(1) Promoting overseas development and acquisition of stra-
tegically important natural resources to Japan
(2) Maintaining and improving the international competitive-
ness of Japanese industries
(3) Promoting the overseas business for preserving the global
environment, such as preventing global warming
(4) Responding to disruptions in financial order in the inter-
national economy
In conducting operations, JBIC will continue to play its role
as a policy-based financial institution by complementing and
encouraging the activities of private sector financial institu-
tions to ensure their effective financing in light of domestic
economic and financial conditions. Its operations will be
conducted in response to various policy initiatives and strate-
gies launched by the Japanese government. In addition, JBIC
will respond expeditiously and flexibly to the changing busi-
ness environment and client needs. In particular, following
the launching of the New Growth Strategy by the Japanese
government and entry into force of the new Japan Bank for
International Corporation Act (the new JBIC Act) on April 28,
2011, JBIC is empowered to support Japanese firms more ef-
fectively in their infrastructure business and in other strategic
overseas lending and investments. In other words, JBIC is now
able to provide: export loans for developed countries; over-
seas investment loans as short-term bridge loans; overseas in-
vestment loans to finance Japanese firms for acquiring foreign
businesses; two-step loans to facilitate mid-tier enterprises,
SMEs and other Japanese firms to develop their overseas
business; and guarantees for currency swaps.
JBIC will also make every effort to increase the transpar-
ency, effectiveness and efficiency of its operations by appro-
priately managing various risks associated with its changing
scope of operations, as it seeks to further expand strategic
business operations; by mainstreaming environmental and so-
cial considerations; and by constantly making improvements
from its clients’ viewpoint.
The planned financing volume in FY2011 amounts to
¥1,552.5 billion.
(Note) In addition to the above functions, JBIC started the Financial Operations for Facilitating Realignment of United States Forces in Japan (USFJ) from April 1, 2010. It is expected to provide loans in this operation in FY2011.
JFC’s Board of Auditors consists of four members, of which
three are outside auditors. In addition to auditors reviewing
the execution of duties of the executive officers of JFC, the
Audit Department, which reports directly to the Governor &
CEO of JFC as an independent unit from other departments
with responsibility for internal audit, conducts a periodic
internal audit of JBIC and other business units to ensure fair
and appropriate operations in compliance with the relevant
acts and regulations.
As a policy-based financing institution that operates in-
ternationally to advance Japan’s external economic policy,
JBIC places compliance high on its agenda. JBIC recognizes
an obligation to deliver concrete results to meet social and
international expectations. Moreover, JBIC seeks to enhance
the quality of operations by maintaining a clear vision and
integrity. From this perspective, JBIC will not limit itself to
achieving compliance with the relevant acts and regulations,
but will actively strive toward compliance in a broader sense
that includes socially accepted moral values as well as expec-
tations of the international community.
JBIC will continue to raise the awareness of management
and staff on compliance by various efforts including training
sessions on compliance issues, among others, based on the
compliance program prepared by the Corporate Governance
Committee of JFC, where major issues regarding its corporate
governance are discussed.
For appropriate management of information, including per-
sonal information, JBIC drew up and made public its privacy
policy (see p.124). Additionally, various efforts have been
made to increase the awareness of information management
for each employee, including training sessions for manage-
ment and staff.
2Compliance
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Profile o
f JFC and
JBIC,
Message fro
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EO, JBIC
Overview
of A
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Operational and A
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Ab
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Data
Disclosure3
Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies > Disclosure
JBIC discloses to the public operational and financial information to increase the understanding of its current activities
as follows.
Source of Information Access
JFC Annual Report (Japanese and English) P Available in all offices
JBIC Annual Report (Japanese and English) P Available in all offices
JBIC’s Activities for Environmental Sustainability (Japanese and English) P Available in all offices
The Role and Function of JBIC (Japanese, English, Chinese, Russian, French and Spanish) P Available in all offices
JBIC Website P On the Internet (http://www.jbic.go.jp/en/)
(Note) “Offices” denote JBIC Head Office; JBIC Office in West Japan; and overseas representative offices.
44
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4 Risk Management
Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies > Risk Management
More specifically, risk management is taken to be a task
for business management that needs to be addressed sys-
tematically by the entire organization. JBIC has thus adopted
an integrated risk management policy in which various risks
facing its operations are identified, measured and monitored.
The objective of this policy is to ensure sound and effective
operations and to earn returns commensurate with risks. JBIC
manages various risks facing a policy-based financing institu-
tion. The following sections describe how JBIC is managing
major risks.
process, leading to the final decision by management.
In providing credit for foreign governments and companies,
JBIC makes the most of its unique position as an official
financier, as it exchanges views and information with the gov-
ernments and relevant authorities in the recipient countries,
multilateral institutions such as the International Monetary
Fund (IMF) and the World Bank, other official export credit
agencies and, furthermore, with private financial institutions
in developed countries. Using all these channels, JBIC evalu-
ates sovereign and country risks based on a broad range of
information collected on borrowing governments, govern-
ment agencies and political and economic conditions in their
countries.
In providing credit for domestic and foreign companies,
there is a need to evaluate their creditworthiness and the
appropriateness of the collateral they offer. In particular, for
credit provision related to overseas projects, credit evaluation
involves checking and examining the certainty of conducting
transactions to be financed, feasibility studies of the projects
and the industry in which the borrower operates.
M Internal Credit RatingJBIC has established an internal credit rating system as part of
the bank-wide operating procedures. It covers, in principle, all
the borrowers. Internal credit ratings are the cornerstone of
credit risk management, being used for conducting individual
credit appraisals and quantifying credit risks. Internal credit
rating is revised when appropriate based on the bank’s risk
profile.
M Internal Assessment of Asset PortfolioJapanese private financial institutions undertake the internal
assessment of asset portfolios in accordance with Inspec-tion Manual for Deposit-Taking Institutions (the “Financial
Inspection Manual”) of Japan’s Financial Services Agency. JBIC
is similarly undertaking the internal assessment of its loan
In general, the operations of financial institutions involve vari-
ous risks, including credit risk, market risk (such as interest
rate and exchange rate risk, etc.), liquidity risk and operation-
al risk. As the international wing of JFC, a policy-based finan-
cial institution, JBIC conducts financial operations to achieve
policy objectives. Thus, JBIC differs from private financial
institutions in its nature as well as the extent of risks involved
in its operations and ways to deal with them. Nonetheless, it
is essential to have appropriate risk management as a finan-
cial institution. In line with the international trend of placing
increasing weight on risk management as underpinnings of
the operations of financial institutions, JBIC is improving its
internal risk management system.
Credit risk refers to the potential loss from a decline or loss of
the value of credit assets due to deterioration in the financial
conditions of a debtor. This risk is inherent in JBIC’s opera-
tions as it primarily engages in lending activities. Credit risk
exposure to JBIC may be classified into: sovereign risk, which
involves financing foreign governments; corporate risk, which
involves financing business firms; project risk, which occurs
when a project financed in project financing—a financing
structure in which a loan is primarily secured on the cash flow
generated from the project—fails to generate the planned
cash flow; and country risk, which involves financing foreign
firms as well as projects located in foreign countries (a risk
added to corporate risk and project risk arising from the
country where the debtor resides and the project is located).
Given the very nature of financial support JBIC provides for
promoting overseas development and acquisition of interests
in strategically important resources to Japan, for maintaining
and improving the international competitiveness of Japanese
industries, and for promoting the overseas business for pre-
serving the global environment, such as preventing global
warming, JBIC frequently extends loans to foreign govern-
ments, government agencies and companies. Therefore, sov-
ereign and country risks account for a considerable share of
the credit risks accompanying JBIC’s operations.
M Managing Credit RiskThe cornerstone of credit risk management at JBIC is the
evaluation of an individual borrower’s creditworthiness in the
process leading to credit approval. When a new loan applica-
tion is being processed, the relevant finance department and
the Credit Department collect and analyze information on
the borrower. The overseas representative offices also play
a part in collecting information on foreign governments and
companies. It is based on this information and its analysis
that credit appraisal takes place, with checks and balances
at work between these different departments throughout this
Credit Risk
Operations of JBIC
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Profile o
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JBIC,
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Overview
of A
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Ab
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Data
Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies > Risk Management
M Quantifying Credit RiskIn addition to individual credit risk management, JBIC is work-
ing on quantifying credit risks with a view to evaluating the
risk of the overall loan portfolio. To quantify credit risks, it is
important to take into account the characteristics of JBIC’s
loan portfolio, which holds a significant proportion of long-
term loans and loans involving sovereign and country risks.
Also to be taken into account are mechanisms for securing
assets, such as the Paris Club1, a unique framework for debt
management by official creditor countries. The credit risk
quantification model incorporating these factors is measuring
credit risks and is utilized for internal control.
M Credit Risk of Derivatives, etc. Account for JBIC Operations (As of March 31, 2011; billions of yen)
Contract Amounts / Notional Amounts Credit Risk
Interest Rate Swaps 2,952.8 85.5
Currency Swaps 3,600.5 1,156.9
Forward Exchange Contracts 0.5 0
Other Derivatives — —
Credit Risk Reductions through Netting (57.0)
Total 6,553.9 1,185.5
(Note) Credit risk is computed based on international standards.
(3) Risks Involved in Derivatives Transactions Derivatives transactions involve the following risks.R Counterparty Credit Risk
The potential loss from the failure of a counterparty to
perform its obligations in accordance with the terms and
conditions of the contract governing transactions due to
bankruptcy or its deteriorating business performance.R Market Risk
The potential loss from changes in the market value of finan-
cial products due to fluctuations in interest rates or exchange
rates in the market.
(4) Measures to Address These RisksR Counterparty Credit Risk
JBIC constantly monitors the market value of a derivative in
making transaction with each counterparty, credit risk expo-
sure to it and its creditworthiness. Such information is then
used to assess the appropriateness of making transaction
with it.R Market Risk
JBIC utilizes derivatives transactions exclusively for the pur-
pose of hedging. Therefore, the market risk on derivatives
transactions and the risk on hedged (lending or funding)
transactions, in principle, offset each other.
portfolio, based on the Financial Inspection Manual and in
consultation with an auditing firm so that the characteristics
of its loan assets will be accurately reflected on its assess-
ment. In this process, the first-stage assessment is conducted
by the relevant financing departments, while the second-
stage assessment is conducted by the Credit Department
and the Country Credit Department, which is then inspected
by the Audit Department. The results of internal assessment
conducted on the portfolio are not only used internally for
the continuous reviews of the loan portfolio but are also
reflected in the disclosure of asset quality to enhance the
transparency of JBIC’s financial position.
Market risk refers to the potential loss from changes in the
value of assets and liabilities as a result of fluctuations in in-
terest rates and foreign exchange rates. JBIC manages specific
market risks as follows.
M Exchange Rate RiskForeign currency-denominated loans involve the risk associ-
ated with exchange rate fluctuations. JBIC has a consistent
policy of hedging the full amount of such exposure through
currency swaps and forward exchange transactions.
M Interest Rate RiskInterest rate risk for foreign currency-denominated loans is
hedged through interest rate swaps. Thereby, both foreign
currency-denominated loans and their funding are made in
floating rates. On the other hand, yen-denominated loans are
mostly made in fixed interest rates. Their interest rate risk is
limited, however, since the maturities of loans and their corre-
sponding funding are more or less matched. In addition, JBIC
calculates and analyzes careful projections of its future asset /
liability structure and profits and losses.
M Derivatives Transactions(1) Basic Policy for Derivatives TransactionsJBIC engages in derivatives transactions exclusively for the
purpose of hedging exchange rate and interest rate risks.
(2) TransactionsDerivatives transactions of JBIC include interest rate and cur-
rency swaps and forward exchange contracts. The following
table gives a summary of these transactions.
1. An informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor nations. Since the first meeting took place in 1956 to resolve the debt problem of Argentina, the meeting has been held in Paris, with the French Treasury acting as its secretariat. Hence, it has come to be called the Paris Club.
Market Risk
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Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies > Risk Management
JBIC is minimizing liquidity risk through effective cash flow
management and the diversification of its funding sources,
including borrowings under the Fiscal Investment and Loan
Program (FILP), government-guaranteed bond issues in inter-
national capital markets and FILP agency bond issues in the
domestic capital market.
M Computer System RiskComputer system risk refers to the potential loss from a
breakdown or malfunction in computer systems as well as
from their misuse. JBIC has minimized computer system risk
by increasing readiness to respond effectively to emergency
situations. Specifically, (a) measures have been taken to pre-
vent system malfunctions and leakage of client information;
and (b) contingency plans have been prepared to respond to
system malfunctions caused by natural disasters, accidents
and other causes, and disaster-response drills have been
conducted.
Liquidity risk refers to the potential loss resulting from difficul-
ties in funding due to a maturity mismatch between financing
and funding caused by unexpected cash-outs or from being
forced to fund at an interest rate significantly higher than in
normal circumstances, as well as the potential loss result-
ing from a failure to make transactions in the market due to
market turmoil or from being forced to make transactions at
a significantly disadvantageous price compared to normal
circumstances.
Operational risk refers to the potential loss resulting from
inadequate or failed internal processes, people and systems
or from external events. Apart from administrative and com-
puter system risks, JBIC recognizes that its operations involve
various direct and indirect risks. JBIC will proactively identify,
assess and manage such risks.
M Administrative RiskAdministrative risk is the risk of a financial institution incur-
ring losses from the neglect by officers and employees to
conduct administrative work properly, accidents caused by
them and violation of laws and regulations, etc., conducted
by them in the course of the administrative work process. JBIC
has been minimizing this risk by ensuring sound operations
through scrupulous checks on work processes, creating op-
erational manuals, improving training programs, and stream-
lining and adopting systematic procedures. In addition, the
Audit Department, independent from other departments and
reporting directly to the Governor & CEO, conducts internal
auditing of JBIC.
Liquidity Risk
Operational Risks
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EO, JBIC
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Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies > Risk Management
related accounts are cash deposits and therefore market risk
is considered to be limited.
loan as of the end of the current fiscal year and as it spent
the expenses required for this operation, the liquidity risk is
considered to be limited.
M Computer System RiskFollowing the practice common with JBIC operation, JBIC has
minimized computer system risk by increasing readiness to
respond effectively to emergency situations. Specifically, (a)
measures have been taken to prevent system malfunctions
and leakage of client information; and (b) contingency plans
have been prepared to respond to system malfunctions
caused by natural disasters, accidents and other causes, and
disaster-response drills have been conducted.
No loan was extended in these operations.
Since no loan was extended in these operations in FY2010,
the only financial assets or liabilities held in these operations
These operations do not accept deposits, other than govern-
ment grants. In FY2010, they conducted stable funding only
from government grants, while they have yet to provide a
M Administrative RiskFollowing the practice common with JBIC operation, JBIC
has been minimizing this risk by ensuring sound operations
through scrupulous checks on work processes, creating op-
erational manuals, improving training programs and stream-
lining and adopting systematic procedures. In addition, the
Audit Department, independent from other departments and
reporting directly to the Governor & CEO of JFC, conducts
internal auditing of JBIC.
Credit Risk
Market Risk
Liquidity Risk
Operational Risks
Financial Operations for Facilitating Realignment of United States Forces in Japan
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Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies > Business Management Plan and the Evaluation System
5 Business Management Plan and the Evaluation System
advisors and external executives, and “expert members” who
are external experts having specialized knowledge of JFC
operations. The “evaluation & review members” and “expert
members” are shown below.
R Evaluation & Review Members(As of July 11, 2011; in alphabetical order)
Kozo Fujita Attorney at Law Former President, Hiroshima High Court
Sachiko Hayakawa
Former Director, Shiseido Communication CenterExternal Executive Director, Japan Finance Corporation
Kiyoe Kado Dean, College of Law and Politics, Rikkyo University
Hirofumi Miki
Chairman and Representative Director, Toyo Seikan Kaisha, Ltd. External Executive Director, Japan Finance Corporation
*Akio Mimura Chairman Representative and Director, Nippon Steel Corporation
Kazuo Mori Senior Staff Writer/Nikkei Inc.
** Naoyuki Yoshino Professor, Faculty of Economics, Keio University
* Chairman ** Deputy Chairman
R Expert Members(As of July 11, 2011; in alphabetical order)
Yoshio Higuchi Dean, Faculty of Business and Commerce, Keio University
Masao Nakata Associate Professor, Graduate School of Economics, Kyushu University
Tadanobu Nemoto Professor, Faculty of Commerce, Chuo University
Shuji Okada Professor, Faculty of Agriculture, Iwate University
Shinichi Shogenji Professor, Graduate School of Bioagricultural Sciences, Nagoya University
Yuzo Takagi Chairman & Representative of Godai Auditors
Shujiro Urata Professor, Graduate School of Asia-Pacific Studies, Waseda University
M Pursuing More Transparent and Efficient Operations
Business Management Plan
JFC formulated its business management policy and business
management plan guided by its corporate philosophy for the
period of FY2011–2013 at its Board meeting in March 2011.
Based on this policy and plan, JBIC will perform its function
effectively as a policy-based financing institution, provide sta-
ble financing and improve the quality of service to its clients.
Specifically, JBIC will provide focused and timely financing
for developing and acquiring strategically important natural
resources to Japan; maintaining and improving the interna-
tional competitiveness of Japanese industries; and promoting
the overseas business for preserving the global environment,
such as preventing global warming. JBIC will also respond to
disruptions in financial order in the international economy.
In conducting these financing operations, JBIC will cofinance
with private financial institutions, thereby complementing
private sector financing activities.
JBIC will also make efforts to identify client needs and
improve the quality of its service. In collaboration with other
business units of JFC, JBIC will provide beneficial information
to firms operating overseas by providing business consulting
services and holding seminars and other events.
M The Evaluation SystemJFC has set up the Evaluation & Review Committee, which
consists of external advisors, to monitor and evaluate wheth-
er operations are performed efficiently in line with the policy
objectives that follow decisions made by the Japanese gov-
ernment. The Committee monitors and evaluates overall JFC
operations, including those conducted by JBIC, while evaluat-
ing the performance of executives responsible for business
operations.
In principle, the findings of operational evaluation will be
made public. Under this evaluation system, JBIC will make
further improvements in its operations through the Plan–Do–
Check–Action (PDCA) cycle, whereby operational direction
and objectives are set (Plan); operations are conducted to
achieve the objectives (Do); their performance is measured
(Check); and the results are fed back into future operations
(Action).
The membership of the Evaluation & Review Committee
consists of “evaluation & review members” who are external
JBIC
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Overview of Activities in Fiscal Year 2010
1 Purpose and Overview of Financing Operations and Other Activities 50
2 Funding Sources 51
3 Principles of JBIC Operations 52
4 A Comprehensive Approach 53
5 Financial Instruments 54
6 History 59
7 Board of Directors and Auditors of JFC 60
8 Organizational Chart 61
9 Overseas Network 62
(Note) In addition to the above functions, JBIC is responsible for making equity investments, loans and other operations necessary for the projects (the public–private partnerships of family housing and infrastructure projects associated with the relocation of U.S. Marine personnel and their dependents to Guam) to facilitate the realignment of U.S. Forces Japan (USFJ), the operations authorized to JBIC under “the USFJ Realignment Special Measures Act.” There is no equity and loan provision for FY2010.
About JBIC
Japan Finance Corporation 2011 JBIC > About JBIC
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Purpose and Overview of Financing Operations and Other Activities1
Japan Finance Corporation 2011 JBIC > About JBIC > Purpose and Overview of Financing Operations and Other Activities
M Purpose As the international wing of the Japan Finance Corporation (JFC), JBIC has a mission to contribute to the sound development of
the Japanese and international economies and to improvement in the standards of living of the Japanese people. To fulfill this
mission, JBIC performs its functions in the following areas by conducting financial operations and other activities.
P Promoting overseas development and acquisition of strategically important natural resources to Japan
P Maintaining and improving the international competitiveness of Japanese industries
P Promoting the overseas business for preserving the global environment, such as preventing global warming
P Responding to disruptions in financial order in the international economy
JBIC is taking a multifaceted approach to supporting the development of the international economies, as well as the Japanese
economy, by effectively combining its financial instruments to meet increasingly diverse needs in the world of international fi-
nancing.
Fiscal Investment and Loan Program (FILP), Bond Issues, Internal Funds, etc.
Funding
JBIC OperationsMain objectives: to promote secure access to strategic resources to Japan; promote Japanese exports and imports; facilitate Japanese overseas business activities; con-tribute to a stable financial order in the international economy; and contribute to preserving the global environment. Untied Loans
Loans for supporting improvement in the busi-
ness environment to facilitate Japanese overseas business
activities, including trade and investment, and for supporting structural adjustment in devel-oping countries. Untied loans do not require procurement
of goods and services from Japan.
Research and Studies
Research and study activities relevant to JBIC’s financial
operations.
Overseas Investment Loans
Loans for financing Japanese firms in their international
business development, including overseas projects for engaging in local production and sales and developing natural resources.
Equity Participations
Equity investments in Japanese joint ventures undertaking over-
seas projects or in the funds participated by Japanese
firms.
Import LoansLoans for Japanese imports of strategically important
natural resources, including oil, natural gas (such as LNG) and iron ore. The guarantee facil-ity is available for the import
of goods (such as aircraft) other than resources.
Bridge LoansShort-term loans for develop-
ing country governments facing balance-of-payment difficulties in financing their external trans-
actions.
Export LoansLoans for Japanese exports
of machinery and equipment, including power and telecom-
munications facilities and ships, and technologies
GuaranteesGuarantees for loans
extended by private financial institutions; for bonds issued by governments or official institu-tions; and for corporate bonds issued by overseas Japanese
affiliates, etc.
A Schematic View of Operations
51
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f JFC and
JBIC,
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of A
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bout JBICD
ata
Funding Sources2
Japan Finance Corporation 2011 JBIC > About JBIC > Funding Sources
JBIC finances its activities by drawing on various funding sources, including borrowings from the Fiscal Investment and Loan Pro-
gram (FILP) Fiscal Loan, Government-guaranteed Foreign Bonds issuance, FILP Agency Bonds issuance and capital contributions
form the government.
JBIC’s budget of revenues and expenditures is submitted to the Diet for its approval as part of the national budget.
Internal Funds*
Government-guaranteed
Bonds
FILP Agency Bonds
Fiscal Loan Fund
Account
Investment Fund
Account
FILP Bonds Loans
Capital Contribution
*Repayments, etc.
Loans / Invest-mentsFinancial
Market
Japanese and foreign firms,
foreign financial institutions, foreign governments and
government agencies, multilat-
eral financial institutions
JBIC
Special Account for Fiscal Investment and Loan Program Fund
Funding Sources
52
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IC,
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, JBI
CA
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JBIC
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Principles of JBIC Operations3
Japan Finance Corporation 2011 JBIC > About JBIC > Principles of JBIC Operations
0 20 40 60 80 100
60.3(98%)
1.0(2%)
402.8(74%)
33.3(6%)
68.5(13%)
31.1(6%)
7.4(1%)
356.4(40%)
233.5(26%)
182.4(21%)
101.4(11%)
14.2(2%)
174.0(14%)
321.4(27%)
523.7(43%)
67.4(6%)
118.3(10%)
Guarantees 0.5(0%)
710.3(40%)
169.5(10%)
151.2(9%)
638.1(36%)
76.8(4%)
19.8(1%)
(%)
61.3
543.0
888.4
1,204.7
1,765.9
Export loans Import loans Overseas investment loans Guarantees Equity participationsUntied loans Governmental loans
FY2010
FY2000
FY1985
FY1970
FY1955
M Policy-based Financing As a policy-based financing institution, JBIC has a mandate to
advance Japan’s external economic policy for the sound de-
velopment of the Japanese and international economies and
to the improvement of the quality of national life. Under the
supervision of the Minister of Finance, JBIC conducts sound
and efficient operations in accordance with the Japan Fi-
nance Corporation Act (the JFC Act), as well as other related
acts and regulations, and based on its fiscal budget passed
by the Diet. Of the supervisory powers of the Minister of
Finance, those associated with risk management involved in
operations may be delegated to the Commissioner of the Fi-
nancial Services Agency, as in the case of other policy-based
financing institutions.
M Complementing Activities of Private Financial Insti-tutions
Under the JFC Act, JBIC is to complement activities of private
financial institutions.
M Ensuring Financial Soundness JBIC pursues sound and efficient financial operations. In con-
ducting its financial operations, JBIC adheres to the principles
of “certainty of repayment” and “sufficient revenues to cover
expenditures.”
M Risk Management JBIC makes internal assessment of its asset portfolio in ac-
cordance with the Financial Inspection Manual prepared by
the Financial Services Agency and in consultation with an
auditing firm. In addition, JBIC is making efforts to perform
risk management appropriate to a policy-based financing
institution, including measures to strengthen compliance (see
p. 44).
M Evaluating Operational Performance JFC has set up the Evaluation & Review Committee, which
consists of external experts and will review and evaluate
whether operations are performed efficiently in line with
policy objectives that are based on decisions made by the
Government of Japan. The Committee evaluates and reviews
the overall JFC operations, including those conducted by JBIC.
In principle, the findings of operational evaluation will be
made public (see p. 48).
Changing Composition of Loans, Equity Participations and Guarantees(Commitments; billions of yen)
53
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f JFC and
JBIC,
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EO, JBIC
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of A
ctivities in Fiscal Year 2010O
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bout JBICD
ata
A Comprehensive Approach4
Japan Finance Corporation 2011 JBIC > About JBIC > A Comprehensive Approach
Contributing to the sound development of the Japanese and international economies and society, and to the improvement
in the standards of living of the Japanese people.
Offering financing solutions by utilizing a range of financial tools
Japanese government
Host country
governments
Japanese firms
JBIC
Private financial
institutions
Multilateral financial
institutions
JBIC Performs Four Statutory FunctionsP Promoting overseas development and acquisition of strategically important natural resources to Japan
P Maintaining and improving the international competitiveness of Japanese industries
P Promoting the overseas business for preserving the global environment, such as preventing global warming
P Responding to disruptions in financial order in the international economy
Identifying needs, matching policies, proposing solutions by making full use of networking
with various players
P Export Loans
P Import Loans
P Overseas Investment Loans
P Untied Loans
P Guarantees
P Bridge Loans
P Equity Participations
JBIC is making comprehensive use of its various financial instruments and schemes in conducting operations to perform its func-
tions in the following areas: “promoting overseas development and acquisition of strategically important natural resources to
Japan,” “maintaining and improving the international competitiveness of Japanese industries,” “promoting the overseas business
for preserving the global environment, such as preventing global warming” and “responding to disruptions in financial order in the
international economy.” In the process of executing these operations, JBIC has conducted policy dialogue with host country gov-
ernments and formed partnerships with multilateral and private financial institutions. Thereby, JBIC is contributing to the sound
development of the Japanese and international economies and to improvement in the standards of living of the Japanese people.
54
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Financial Instruments5
Japan Finance Corporation 2011 JBIC > About JBIC > Financial Instruments
JBIC contributes to the sound development of the Japanese
and international economies and to improvement in the
standards of living of the Japanese people by utilizing a wide
range of financial instruments in conducting operations to
perform its functions in the following four areas: “promoting
overseas development and acquisition of strategically impor-
tant natural resources to Japan;” “maintaining and improving
the international competitiveness of Japanese industries;”
“promoting the overseas business for preserving the global
(1) Export LoansExport loans support Japanese export of machinery, equip-
ment and technology. They take the form of buyer’s credits
(B/Cs)1 to foreign importers (buyers) and bank-to-bank loans
(B/Ls) to financial institutions overseas.
Since machinery and equipment—particularly plants, in-
cluding power generation facilities—embody various ad-
vanced technologies and technical features, their exports
are expected to enhance the technological base of Japanese
industries. Furthermore, in view of the fact that the domes-
tic industries associated with plants encompasses a large
number of firms, including mid-tier enterprises and small and
medium-sized enterprises (SMEs) producing parts and com-
ponents, plant export financing supports a broad spectrum
of these firms.
For developing countries, imported plants will bring such
economic benefits as industrial infrastructure development,
increased employment opportunities and the acquisition of
skills through technical transfer in plant operations, thereby
promoting sustainable economic development.
However, the provision of long-term financing for devel-
oping countries involves country risk, which arises from
changes in domestic political and economic situations, and
high risks of interest and currency rate fluctuations. These
risks are often too large to be dealt with by private financial
institutions. It is for this reason that JBIC steps in as an official
financial institution to ensure well-functioning international
financing. Other developed countries also have similar official
financial institutions to support exports. Examples include
the Export-Import Bank of the United States (US EXIM), the
Export Credits Guarantee Department (ECGD) of the United
Kingdom, Kreditanstalt für Wiederaufbau (KfW) of Germany,
Compagnie Française d’Assurance pour le Commerce Extéri-
eur (COFACE) of France and Export Development Corpora-
tion (EDC) of Canada.
Due to the enforcement of the Japan Bank for International
Cooperation Act (the new JBIC Act) in May 2011, JBIC can
environment, such as preventing global warming;” and “re-
sponding to disruptions in financial order in the international
economy.”
JBIC finances its operations through various sources, includ-
ing borrowings from the FILP, bond issues in international and
domestic capital markets and internal funds including loan
repayments. JBIC places emphasis on financial soundness.
The JFC Act sets out the principles of “certainty of repayment”
and “sufficient revenues to cover expenditures.”
now support the export of machinery and equipment for
developed countries in eligible sectors as follows.
M Eligible Sectors of Export Loans in Developed Coun-tries (as of the end of July 2011)
R Integrated Infrastructure System ProjectsRailways (high-speed, inter-city projects and projects in major
cities), water business, biomass fuel production, renewable
energy power generation, nuclear power generation, power
transformation, transmission and distribution, highly efficient
coal-fired power generation, coal gasification, carbon capture
and storage (CCS), highly efficient gas-fired power generation
and smart grid
R Other Export TransactionsShips, satellites, aircrafts, medical positron beam therapy
equipment
(2) Import LoansImport loans support imports of strategically important
goods including natural resources. They are extended to
Contributing to the Sound Development of the Japanese and International Economies
Principal Financial Instruments
1. Buyer’s credit is a loan JBIC directly extends to a foreign importer (buyer) to finance its import of machinery and equipment from a Japanese firm.
Loans (B/Ls)
Loans (B/Cs) Loans
Exports of plants, etc.
JBICFinancial
institutions, etc., in foreign
countries
Importers in foreign countries
Japanese exporters
Export Loans
Loans Loans
Imports of natural
resources
JBIC
Foreign exporters
Japanese importers
Import Loans
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Japan Finance Corporation 2011 JBIC > About JBIC > Financial Instruments
(3) Overseas Investment LoansOverseas investment loans support Japanese direct invest-
ments. They are extended to Japanese business investors,
foreign affiliates including joint ventures where Japanese
firms have equity interests and governments or financial
institutions that make equity investments in or extend loans
to such joint ventures. Previously, overseas investment loans
extended directly to Japanese business investors were limited
to projects aimed at developing or acquiring interests in over-
seas resources that are strategically important to Japan or
projects undertaken by mid-tier enterprises and SMEs. How-
ever, following the promulgation and entry into force of the
new JBIC Act, JBIC is empowered to extend loans to domestic
firms, including large firms, for supporting their merger and
acquisition (M&A) activities. In addition, JBIC can now provide
two-step loans (TSLs) for Japanese firms, including mid-tier
enterprises and SMEs to support their overseas business
development, as well as TSLs for domestic firms to support
their M&A activities. Apart from these new operations, JBIC is
further empowered to provide short-term loans for overseas
business operations in cases when bridge loans are required
to fill the financing gap before it offers long-term loans and
expands eligible areas for overseas investment loans in devel-
oped countries.
Increasing globalization has given rise to a business envi-
ronment where a wide range of Japanese businesses have
found it imperative to conduct operations overseas. Overseas
investments by Japanese firms will lead to capturing overseas
markets growing with brisk demand and an advanced do-
mestic industrial structure. This will result in a more efficient
international division of labor. For investors, however, foreign
direct investment involves risks that they do not ordinarily
Japanese importers or foreign exporters. As Japan is poorly
endowed with natural resources, stable imports of natural
resources over the long term are one of the key factors un-
derpinning domestic economic activity. Import loans finance
the development and import of energy resources, including
oil and natural gas, and mineral resources, including iron ore.
take into consideration in domestic investments, including an
abrupt shift in economic policy, fiscal collapse and economic
turmoil. In addition to financing, JBIC provides information
and advice on investment climates in foreign countries pri-
marily for mid-tier enterprises and SMEs. As an official finan-
cial institution, JBIC also seeks to mitigate such risks through
dialogues with host country governments and government
agencies.
M Eligible Sectors of Overseas Investment Loans in Developed Countries (as of the end of July 2011)
Railways (high-speed, inter-city projects and projects in major
cities), water business, renewable energy power generation,
nuclear power generation, power transformation, transmis-
sion and distribution, highly efficient coal-fired power gen-
eration, coal gasification, carbon capture and storage (CCS),
smart grid, development of telecommunications network,
biomass fuel production, highly efficient gas-fired power gen-
eration, aircraft maintenance and sales, M&A activities, etc.
(4) Untied LoansUntied loans are loans not conditional on procurement of
equipment and materials from Japan. They have served to:
(1) maintain and expand trade and direct investment from
Japan;
(2) secure stable supplies of energy and mineral resources
to Japan;
(3) promote business activities of Japanese firms;
(4) finance projects having significant effect on global environ-
mental preservation; and
(5) maintain international financial order.
Loans
Loans
Loans
Loans
Loans
Japanese affiliates
Joint venture partners
Governments, financial
institutions, etc., in foreign countries,
Japanese banks
Projects in foreign countries
JBIC
Japanese firms
Overseas Investment Loans
Loans
Equity investment
Loans and / or equity investment
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Japan Finance Corporation 2011 JBIC > About JBIC > Financial Instruments
Untied loans may be categorized into two types: project
loans and policy adjustment loans. Project loans are used
to finance projects for developing economic infrastructure,
including power, telecommunications and transportation
facilities, and for developing natural resources. Policy ad-
justment loans support economic management, including
structural adjustment in the overall economy and in individual
sectors. A project loan may take the form of a TSL, which
supports the promotion of exports and the development
of supporting industries in a developing country through its
official financial institution. As untied loans are often provided
in cofinancing with such multilateral financial institutions as
the World Bank, the International Monetary Fund (IMF), the
Asian Development Bank (ADB), the Inter-American Develop-
ment Bank (IDB) and the European Bank for Reconstruction
and Development (EBRD), JBIC has developed close coop-
erative relations with these institutions. Furthermore, drawing
on its strong ties with developing countries fostered by the
provision of untied loans, JBIC provides indirect support for
Japanese firms’ business activities in developing countries by
helping solve disputes that arise between developing country
authorities and Japanese firms.
In providing untied loans, the focus is placed on:
(1) resource development projects (including related infra-
structure projects) and the projects that will serve to
strengthen relations with resource-producing countries in
order to secure stable supplies of natural resources;
(2) infrastructure projects and projects for developing sup-
porting industries in order to improve the business envi-
ronment for Japanese firms conducting business opera-
tions in developing countries; and
(3) projects that have a substantial impact on global
2 Guarantees for Corporate Bonds Issued by Japanese Affiliates
JBIC supports Japanese affiliates operating overseas by pro-
viding guarantees for the bonds they issue in local capital
markets.
environmental preservation, including those substantially
reducing greenhouse gas (GHG) emissions.
(5) GuaranteesJBIC provides guarantees for loans extended to developing
countries by private financial institutions and bonds issued
by governments and other entities in developing countries.1 Guarantees for Imports of Manufactured ProductsJBIC has a guarantee facility for the borrowings made by
Japanese firms to finance the import of aircraft and other
manufactured products that are important for Japan.
Loans
Projects in the recipient
countries
ExportersForeign importers
JBIC
Governments, financial
institutions, etc., in foreign
countries
Untied Loans
Imports of equipment technology
Loans
Foreign exporters
Japanese importers
Private financial
institutions, etc.
JBIC
Guarantees for Imports of Manufactured Products
Guarantees
Import of products
Guarantees
Issue of bonds
Guarantees
JBIC
Japanese affiliates (Issuer)
Investors
Japanese firms (Parent
companies, private finan-cial institu-
tions)
Guarantees for Corporate Bonds Issued by Japanese Affiliates
Sub guaranteesCounter
guarantees
57
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liciesA
bout JBICD
ata
Japan Finance Corporation 2011 JBIC > About JBIC > Financial Instruments
3 Guarantees for Overseas Syndicated Loans and Public-sector Bonds
Loans to developing countries involve, among others, curren-
cy conversion risk, transfer risk and country risk. Guarantees
that JBIC issues to cover such risks will enable Japanese pri-
vate financial institutions to provide medium- and long-term
financing for developing countries, supporting developing
countries to bring in private capital and facilitating private
firms expanding international finance activities.
(7) Equity ParticipationsEquity participations are capital contributions to joint ven-
tures set up by Japanese firms to undertake overseas projects
and funds where Japanese firms perform a significant role.
JBIC also makes equity participations to joint ventures set
up by international financial institutions or other multilat-
eral institutions which have a concrete positive effect on the
overseas business development of Japanese firms or which
respond to the disruption of international finance.
(6) Bridge LoansBridge loans provide short-term financing for governments of
developing countries to meet their foreign currency needs
for external transactions when they face balance-of-payment
difficulties.
When JBIC provides export loans, import loans,
overseas investment loans and untied loans, JBIC
can also provide credits, in addition to providing
loans and guarantees, by purchasing loan assets
and acquiring public and corporate bonds1 issued
by borrowers for funding. The objective of such
operations is to promote private financial institu-
tions’ loans in international finance and Japanese
firms’ funding in international capital markets.
Acquisition of Loan Assets and Public and Corporate Bonds
Loans
Investors
Governments, etc., in foreign
countries
Private financial
institutions, etc.
JBICGuarantees
Guarantees for Overseas Syndicated Loans and Public-sector Bonds
Loans
Import or other external transactions
Loans from the IMF, World Bank,
etc.
JBIC
Governments, financial
institutions, etc.,
in foreign countries
Bridge Loans
Guarantees Issues of
public bonds, etc.
(Conditionality)
Funds
Japanese firmsJBIC
Joint ventures of Japanese firms, etc.
Equity Participations
Perform a significant
role
Equity participationsEquity
participations
Equity participations
Equity participations
1. The scope of assets and securities acquired includes public bonds, corporate bonds, debt securities and trust beneficiary rights.
58
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Japan Finance Corporation 2011 JBIC > About JBIC > Financial Instruments
(3) Counter Guarantees for Export CreditsWhen Japanese exporters export machinery and equipment
with other country’s firm(s), JBIC provides a counter guaran-
tee for the guarantee provided by that country’s Export Credit
Agecy (ECA), thereby participating in a multilateral mutual
guarantee scheme.
Following the new JBIC Act promulgated and entered into
force in May 2011, JBIC is empowered to provide export
loans for developed countries, overseas investment loans for
equity investment in foreign companies for supporting M&A
activities, etc., overseas investment loans to provide short-
term bridge loans and TSLs for domestic private financial
institutions, as mentioned previously. These operations have
begun from July 2011. In addition, JBIC will be able to offer the
following financing products from April 2012.
(1) Guarantee for Currency SwapsJBIC provides guarantees for swap transactions to support the
local currency financing of overseas infrastructure projects
undertaken by Japanese firms.
Other New Operations
Guarantee
Guarantee
Counter guarantee
Loan
Local currency
loan
Payment
Assignment of account receivable
Payment
Accounts receivable,
etc.
Export
Private financial
institutions
Private financial
institutions Investors
Private bank syndicate
Foreign ECA
Swap counterparty
in a developing country
Japanese firms
Local Japanese affiliates
Foreign companies
Japanese companies
Overseas infrastructure
projects
Local companies
Foreign importers
JBIC
JBIC
JBIC
Guarantee for Currency Swaps Transaction
Guarantee for Liquidation and Securitization of Accounts Receivable
Counter Guarantees for Export Credits
Currency swap
contract
SPC or
Trust
Investment
Operation
Guarantee
Asset-backed
securities
Guarantee
(2) Guarantee for Liquidation and Securitization of Accounts Receivable
JBIC helps increase the liquidity of the accounts receivable
held by overseas Japanese affiliates by providing guarantees
for them, which facilitate their inter-bank transactions.
When a special purpose company (SPC) or a trust com-
pany issues securities secured on monetary claims held by
overseas Japanese affiliates, JBIC may also provide guarantees
such as security issues.
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History6
Japan Finance Corporation 2011 JBIC > About JBIC > History
Date The Export-Import Bank of Japan-related events Date The Overseas Economic Cooperation Fund (OECF)-related events
Dec. 1950 “Japan Export Bank Act” enacted
Apr. 1952 The bank changed name to “The Export-Import Bank of Japan”
Dec. 1960 “The Overseas Economic Cooperation Fund, Japan Act” enacted
Mar. 1961 “The Overseas Economic Cooperation Fund, Japan (OECF) was established, and took over Southeast Asia Development Cooperation Fund
Apr. 1999 The Japan Bank for International Cooperation Act promulgated
Apr. 1999 The Japan Bank for International Cooperation Act pro-mulgated
Sep. 1999 Cabinet Order related to the execution of the Japan Bank for International Cooperation Act promulgated Ministerial Ordinance related to the execution of the Japan Bank for International Cooperation Act pub-lished on official register
Sep. 1999 Cabinet Order related to the execution of the Japan Bank for International Cooperation Act promulgated Ministerial Ordinance related to the execution of the Japan Bank for International Cooperation Act published on official register
Date JBIC-related events
Oct. 1999 JBIC established (takes over operations of the Export-Import Bank of Japan and those of OECF)
Oct. 2003 “JBIC Guidelines for Confirmation of Environmental and Social Considerations” and “Procedures to Submit Objections Concern-ing JBIC Guidelines for Confirmation of Environmental and Social Considerations” enforced
Dec. 2005 Cabinet Decision on Important Policy for Administrative Reform
May 2006 Act on Promotion of Administrative Reform for Realization of Small and Efficient Government
Jun. 2006 System Design regarding the Reform of Policy-based Finance adopted by the council for the Reform of Policy-based Finance
Nov. 2006 Partial Amendment to the Act on the Japan International Cooperation Agency, Independent Administrative Agency promul-gated
May 2007 Japan Finance Corporation Act promulgated
Sep. 2007 The Act on Special Measures Concerning Effective Realignment of the U.S. Forces in Japan enacted
Date Japan Finance Corporation (JFC)-related events
Oct. 2008 JFC established under the Japan Finance Corporation Act
Mar. 2010 The revised Japan Finance Corporation Act enforced (The promotion of overseas business for preserving the global environ-ment was added to the scope of JBIC operations)
Apr. 2010 Financial account established to facilitate the realignment of U.S. Forces Japan
Apr. 2011 The Japan Bank for International Cooperation Act (the new JBIC Act) was legislated / enacted. Following promulgation and entry into force in May 2011, its financing facilities were expanded, which includes export loans to developed countries. The new JBIC Act also set forth that JBIC be separated from JFC and become an independent official financial institution.
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, JBI
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Board of Directors and Auditors of JFC7
Japan Finance Corporation 2011 JBIC > About JBIC > Board of Directors and Auditors of JFC
(As of June 22, 2011)
Governor & CEO Shosaku Yasui
Deputy Governor Koichi Hosokawa
President & CEO, JBIC Hiroshi Watanabe
Senior Managing Director Ryuhei Katsuno
Senior Managing Director Masatoshi Sakano
Senior Managing Director Yoshihiko Murase
Senior Managing Director Kazuhiko Bando
Managing Director Fumio Hoshi
Managing Director Yasutaka Tobita
Managing Director Yoshio Nakamura
Managing Director Masahiko Hara
Managing Director Hiromi Minagawa
Managing Director Kozo Yamamoto
Executive Director Masaharu Miyahara
Executive Director Hiroo Motegi
Executive Director Masami Yoshida
Executive Director Kohei Nakanishi
Executive Director Yasuhiro Mitsumasu
Executive Director Yasushi Yamazaki
Executive Director Masafumi Yamamoto
External Executive Director Sachiko Hayakawa
External Executive Director Hirofumi Miki
Corporate Auditor Katsufumi Nomura
Corporate Auditor Jun Kanamori
External Auditor Toshio Ikeda
External Auditor Nobuko Takahashi
61
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ns by Region
Op
erational and
Ad
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ata
Organizational Chart8
Japan Finance Corporation 2011 JBIC > About JBIC > Organizational Chart
(As of October 1, 2011)
Corporate Group (Head Manager: Kohei Nakanishi, Executive Director)
Corporate Planning Department Policy and Strategy Office for Financial Operations
Legal and Environment Finance Engineering Department
Human Resources Management Office
Risk Management Department
Treasury Department Administration and General Services Office
Operations and Transaction Department
Energy, Natural Resources and Environment Finance Group
(Head Manager: Koichi Yajima, Managing Executive Officer)
Oil and Gas Finance Department
Mining and Metals Finance Department
Nuclear and Renewable Energy Finance Department
Infrastructure Finance Group (Head Manager: Takaya Naito, Managing Executive Officer)
Power and Water Finance Department
Transportation and Telecommunication Finance Department
Industry Finance Group (Head Manager: Kazuo Yuhara, Managing Executive Officer)
Global Manufacturing Finance Department
New Technology and Industry Finance DepartmentExecutive Officer for West Japan
(Hiroshi Imoto)
Credit and Assessment Group (Head Manager: Masahiko Hara, Managing Director)
Credit Department Environmental Assessment Office
Country Credit DepartmentBeijing Bangkok Hanoi Jakarta Manila Singapore (Regional Headquarters for Asia and
Oceania) New Delhi Sydney Moscow London (Regional Headquarters for Europe,
the Middle East and Africa) Paris Dubai New York (Regional Headquarters for the
Americas) Washington, D.C. Buenos Aires Mexico City Rio de Janeiro
Finance Department for Facilitating Realign-ment of U.S. Forces Japan1
1. The Department is responsible for operations neces-sary for facilitating realignment of U.S. Forces Japan, the operations authorized to JBIC under the Act on Special Measures Concerning Smooth Implementation of Re-alignment of United States Forces in Japan.
Representative Offices
(Resident Executive Officer for Asia and Oceania: Ryuichi Kaga)(Resident Executive Officer for Europe, the Middle East and Africa: Toshiyuki Kosugi)(Resident Executive Officer for the Americas: Toyoaki Fujita)
Prior to the shift to a new independent organization from April 2012, JBIC realigned its organizational structure from region-based
loan departments to three mission / sector-specific business groups: Energy, Natural Resources and Environment Finance Group;
Infrastructure Finance Group; and Industry Finance Group. With the Corporate Group and the Credit and Assessment Group sup-
porting these finance groups, JBIC is now constituted by five business groups. The objective of realignment is to strengthen the
capacity to formulate projects by bringing together know-how and expertise in each sector and area, thereby creating an institu-
tion that can execute the functions in its mission more flexibly and strategically—the mission directly linked to Japan’s economic
policy. In the network of overseas representative offices, Singapore, London and New York are assigned as core regional offices
to supervise business and administrative activities and support project formulation in Asia and Oceania; Europe, the Middle East
and Africa; and the Americas, respectively.
JBIC
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Overseas Network9
Japan Finance Corporation 2011 JBIC > About JBIC > Overseas Network
(As of October 1, 2011)
P REPRESENTATIVE OFFICE IN BEIJING2102, Tower C Office Building, YINTAI Center, No. 2 Jianguomenwai Avenue, Chaoyang District, Beijing 100022, P.R.C. TEL : 86-10-6505-8989FAX: 86-10-6505-3829
P REPRESENTATIVE OFFICE IN BANGKOK14th Floor, Nantawan Bldg., 161 Rajdamri Road, Bangkok 10330, ThailandTEL : 66-2-252-5050FAX: 66-2-252-5514
P REPRESENTATIVE OFFICE IN HANOI3rd Floor, Sun City, 13 Hai Ba Trung Street, Hoan Kiem District, Hanoi, Viet Nam TEL : 84-4-3824-8934~6FAX: 84-4-3824-8937
P REPRESENTATIVE OFFICE IN JAKARTASummitmas II 5th Floor, Jl. Jenderal Sudirman, Kav. 61-62, Jakarta Selatan, Indonesia TEL : 62-21-5220693FAX: 62-21-5200975
P REPRESENTATIVE OFFICE IN MANILA11/F, Tower 1, The Enterprise Center, 6766 Ayala Avenue corner Paseo de Roxas, Makati City, Philippines TEL : 63-2-856-7711~4FAX: 63-2-856-7715~6
◉REPRESENTATIVE OFFICE IN SINGAPORE(Regional Headquarters for Asia and Oceania)9 Raffles Place, #51-02 Republic Plaza, Singapore 048619 TEL : 65-6557-2806FAX: 65-6557-2807
P REPRESENTATIVE OFFICE IN NEW DELHI1st Floor, The Metropolitan Hotel New Delhi, Bangla Sahib Road, New Delhi 110001, India TEL : 91-11-4352-2900FAX: 91-11-4352-2950
P SYDNEY OFFICESuite 2501, Level 25, Gateway, 1 Macquarie Place, Sydney, N.S.W. 2000, Australia TEL : 61-2-9241-1388FAX: 61-2-9231-1053
P REPRESENTATIVE OFFICE IN MOSCOW123610 Moscow, Krasnopresnenskaya Nab. 12, World Trade Center, Office No. 905, Russian FederationTEL : 7-495-258-1832, 1835,1836FAX: 7-495-258-1858
◉REPRESENTATIVE OFFICE IN LONDON(Regional Headquarters for Europe, the Middle East and Africa)4th Floor, River Plate House, 7-11 Finsbury Circus, London EC2M 7EX, U.K. TEL : 44-20-7638-0175FAX: 44-20-7638-2401
P REPRESENTATIVE OFFICE IN PARIS21, Boulevard de la Madeleine, 75038 Paris Cedex 01, France TEL : 33-1-4703-6190FAX: 33-1-4703-3236
P REPRESENTATIVE OFFICE IN DUBAI9th Floor, West, The Gate Dubai International Financial Center, P.O. Box 121300, Dubai, U.A.E. TEL : 971-4-363-7091FAX: 971-4-363-7090
◉REPRESENTATIVE OFFICE IN NEW YORK(Regional Headquarters for the Americas)712 Fifth Avenue, 26th Floor, New York, NY 10019, U.S.A. TEL : 1-212-888-9500FAX: 1-212-888-9503
P REPRESENTATIVE OFFICE IN WASHINGTON, D.C.1627 Eye Street N.W., Suite 500, Washington, D.C., 20006, U.S.A. TEL : 1-202-785-1785FAX: 1-202-785-1787
P REPRESENTATIVE OFFICE IN BUENOS AIRESAv. Del Libertador No. 498, Piso19, 1001 Capital Federal, Buenos Aires, ArgentinaTEL : 54-11-4394-1379, 1803FAX: 54-11-4394-1763
P REPRESENTATIVE OFFICE IN MEXICO CITYPaseo de la Reforma 222-900B, Col. Juárez, Del. Cuauhtémoc, México D.F., C.P. 06600, México TEL : 52-55-5525-6790FAX: 52-55-5525-3473
P REPRESENTATIVE OFFICE IN RIO DE JANEIROPraia de Botafogo, 228- 801B (Setor A), Botafogo, CEP 22359-900, Rio de Janeiro, RJ, Brazil TEL : 55-21-2554-2305FAX: 55-21-2554-8798
Regional Headquarters
Moscow
Manila
Buenos Aires
Rio de Janeiro
Washington, D.C.
New YorkParis
London
Jakarta
Sydney
Mexico City
Singapore
New Delhi
Dubai HanoiBangkok
Beijing