Data

Statistics
1

1

Overview

88(1) Commitments88		A. Commitments by Purpose of Financing

88		

B. Commitments by Region (Loans, Equity Participations and Guarantees)

882(2) Disbursements

89(3) Repayments

89(4) Outstandings

89

Commitments

90(1) Export Loans by Industry

90(2) Natural Resource Loans by Item

90(3) Overseas Investment Loans by Industry (Excluding Natural Resource Loans)

91(4) Commitments to Mid-tier Enterprises and		SMEs to Support their Overseas Business Activities

91(5) Guarantee Commitments by Purpose

91(6) Loan and Guarantee Commitments by Region92

		

A. Export Loan Commitments by Region92		

B. Import Loan Commitments by Region92		

C. Overseas Investment Loan Commitments by Region92		

D. Untied Loan Commitments by Region93		E. Bridge Loan Commitments by Region

93		F. Guarantee Commitments by Region

93		

G. Equity Participations by Region

93

3

4

(7) Geographical Distribution of Loan and Equity Participation Commitments

94

Outstandings

97(1) Outstandings by Purpose of Financing

97(2) Guarantee Outstandings by Purpose

97(3) Geographical Distribution of Loan and Equity Participation Outstandings

98

Others100(1) Major Buyer’s Credit and Bank-to-bank Loan Commitments

100(2) Untied Loan Commitments

100

5Standard Loan Conditions

101

6

Breakdown of Countries and Regions

102

JBIC Annual Report 2014

87

Data

1
Statistics

1. Overview(1) Commitments
A. Commitments by Purpose of Financing

1. Overview(Unit: billions of yen, %)FY2009NumberTotal

FY2010Share Number

Total

FY2011
Share Number

Total

FY2012
Share Number

Total

FY2013
Share Number

Share

Export Loans

46

97.8

3

35

151.2

9

40

207.9

13

40

126.6

3

33

126.2

6

Shipping

10

11.1

0

14

38.6

2

20

62.6

4

15

23.0

1

15

34.7

2

Plant

36

86.7

3

21

112.5

6

20

145.3

9

25

103.6

2

18

91.5

4

Import Loans

1

8.2

0

1

169.5

10

3

172.6

11

4

304.3

7

5

56.2

3

1

8.2

0

1

169.5

10

3

172.6

11

4

304.3

7

5

56.2

3

134 2,193.7

65

60

710.3

40

84

962.0

60

157 3,138.5

74

167 1,671.0

76Natural Resources

16

16

11

221.9

13

26

607.9

38

39 1,784.2

42

18

594.7

27

Others149 1,076.2

49

Natural Resources
Overseas Investment
Loans

522.9

118 1,670.8

50

49

488.3

28

58

354.0

22

118 1,354.3

32

Untied Loans

13

344.3

10

8

76.8

4

3

23.2

1

10

210.5

5

7

46.0

2

Bridge Loans

─

─

─

─

─

─

─

─

─

2

83.2

2

─

─

─

194 2,644.1

79

104 1,107.9

63

130 1,365.7

86

213 3,863.3

91

212 1,899.6

86

Guarantees

22

707.9

21

26

638.1

36

15

228.5

14

21

303.2

7

20

209.1

9

Equity Participations

5

13.0

0

3

19.8

1

1

1.5

0

8

74.3

2

7

97.4

4

221 3,365.1

100

133 1,765.9

100

146 1,595.9

100

242 4,240.9

100

239 2,206.1

100

Sub Total

Total

B. Commitments by Region (Loans, Equity Participations and Guarantees)
FY2009

Asia

88

Total

Loans

Number

Total

94

851.0

FY2010Share Number

25

57

Total

221.5

(Unit: billions of yen, %)FY2011
Share Number

13

65

Total

269.9

FY2012
Share Number

17

86

Total

FY2013
Share Number

513.6

12

108

Total

Share

472.7

21

Oceania

5

175.4

5

1

8.3

0

12

170.4

11

17 1,005.7

24

12

292.9

13

Europe

35

518.3

15

9

62.4

4

15

216.6

14

33

660.6

16

21

350.3

16

The Middle East

3

102.6

3

11

409.3

23

8

232.4

15

12

305.9

7

9

104.8

5

Africa

3

25.7

1

3

66.3

4

3

3.3

0

7

84.3

2

5

81.1

4

North America

27

495.9

15

10

148.5

8

11

113.6

7

35

710.8

17

43

654.0

30

Latin America
and the Caribbean

40

511.5

15

34

426.2

24

26

415.5

26

43

805.5

19

36

209.1

9

International
Organizations, etc.

1

9.1

0

2

24.3

1

3

12.3

1

─

─

─

─

─

─

Others

13

675.1

20

6

398.7

23

3

161.5

10

9

154.2

4

5

40.8

2

Total

221 3,365.1

100

133 1,765.9

100

146 1,595.9

100

242 4,240.9

100

239 2,206.1

100

JBIC Annual Report 2014

Data

1
Statistics(2) Disbursements(Unit: billions of yen, %)Total

FY2010

Share

Total

FY2011

Share

Total

FY2012

Share

Total

FY2013

Share

Total

Share

Loans
Export Loans

43.8

1

73.6

4

73.9

5

143.1

5

112.5

4

Import Loans

159.9

5

72.3

3

212.2

15

162.7

6

234.5

9

2,222.8

67

1,041.5

50

700.7

50

2,144.6

75

1,928.0

73

186.7

6

104.4

5

103.2

7

52.2

2

88.5

3

Overseas Investment
Loans
Untied Loans

─

─

─

─

─

─

79.7

3

─

─

Sub Total

2,613.4

78

1,292.062

1,090.277

2,582.590

2,363.6

90

Guarantees

703.4

21

777.0

37

310.8

22

270.6

9

178.7

7

Bridge Loans

Equity Participations
Total

13.6

0

26.8

1

7.3

1

17.2

1

85.4

3

3,330.4

100

2,095.8100

1,408.4100

2,870.4

100

2,627.8100

1. Overview

FY2009(3) Repayments(Unit: billions of yen, %)FY2009Total

FY2010

Share

Total

FY2011

Share

Total

FY2012

Share

Total

FY2013

Share

Total

Share

Loans
Export Loans

119.9

10

152.5

12

125.3

8

112.4

7

106.3

8

Import Loans

60.0

5

197.3

16

252.4

15

147.4

10

170.1

13

Overseas Investment
Loans

414.9

35

463.8

37

711.7

43

707.1

46

668.1

50

Untied Loans

242.4

20

204.9

16

192.4

12

161.6

11

173.5

13

Bridge Loans

─

─

─

─

─

─

79.7

5

─

─

Governmental Loans

2.6

0

2.4

0

3.1

0

2.9

0

2.9

0

Sub Total

839.9

71

1,021.081

1,285.2

78

1,211.3

79

1,121.1

84

Guarantees

343.9

29

236.7

19

362.6

22

318.1

21

204.9

15

0.0

0

0.8

0

6.1

0

3.0

0

5.0

0

1,183.9100

1,258.6100

1,653.9100

1,532.4100

1,331.1

100

Equity Participations
Total(Note) Prepayments in FY2012 and 2013 amounted to ¥94.9 billion and ¥92.9 billion, respectively.

(4) Outstandings(Unit: billions of yen, %)FY2009Total

FY2010

Share

Total

FY2011

Share

Total

FY2012

Share

Total

FY2013

Share

Total

Share

Loans
Export Loans

808.2

7

698.5

6

642.9

6

710.3

5

740.6

5

Import Loans

793.2

7

630.5

6

584.4

6

630.2

5

731.6

5

Overseas Investment
Loans

5,786.3

54

5,827.2

53

5,762.955

8,165.962

10,183.9

67

Untied Loans

1,333.912

1,183.7

11

1,086.3

10

1,035.8

8

998.8

7

51.9

0

54.3

0

45.6

0

42.6

0

39.7

0

Sub Total

8,773.881

8,394.477

8,122.3

77

10,585.1

81

12,694.9

83

Guarantees

1,977.0182,443.2

22

2,378.3222,400.6

18

2,422.6

16

Governmental Loans

Equity Participations
Total

44.2

0

72.6

1

70.3

1

100.1

1

187.0

1

10,795.1

100

10,910.3

100

10,571.0

100

13,086.0100

15,304.6

100

JBIC Annual Report 2014

89

Data

1
Statistics

2. Commitments(1) Export Loans by Industry(Unit: billions of yen, %)2. Commitments

FY2012
NumberTotal

FY2013
Share

NumberShipping

15

23.0

18

15

Total

34.7

Share

27

Road Vehicles and Other Transport
Equipment

1

10.2

8

─

─

─

Electrical Machinery

6

18.5

15

8

39.6

31

Telecommunication Equipment

1

1.7

1

1

0.9

─

Textile Machines

4

36.5

29

2

0.5

0

Other Industrial Machinery andEquipment, etc.

12

30.8

24

5

44.2

35

Mining Equipment

─

─

─

1

0

0

Chemical Facilities

1

4.7

4

1

8.9

7

Loading Machinery

─

─

─

2

7.3

6

Oil and Natural Gas Facilities

2

17.1

14

1

27.5

22

Iron and Non-ferrous Metals
Manufacturing Facilities

4

5.5

4

─

─

─

Others

5

3.3

3

─

─

─

Others

1

5.6

4

2

6.0

5

Total

40

126.6

100

33

126.2

100

(2) Natural Resource Loans by Item
(Unit: billions of yen, %)FY2012
Number

Total

Share

NumberEnergy Resources

26

1,473.1

71

13

372.1

57

Petroleum

6

337.2

16

5

255.5

39

Natural Gas

15

927.3

44

7

81.7

13

Total

Share

5

208.5

10

1

34.8

5

14

576.2

28

10

278.8

43

1

102.9

5

4

188.8

29

Copper Ore and Concentrate

9

456.3

22

5

69.5

11

Lead and Zinc

─

─

─

1

20.4

3

Nickel

2

9.8

0

─

─

─

Wood, Wood Chips and Pulp

2

7.0

0

─

─

─

Others

3

39.1

2

─

─

─

Total

43

2,088.5

100

23

651.0

100

Coal
Other Resources
Iron Ore90

FY2013

JBIC Annual Report 2014

Data

1
Statistics(3) Overseas Investment Loans by Industry (Excluding Natural Resource Loans)(Unit: billions of yen, %)Number

FY2013
Share

Number

45

166.0

12

73

243.3

23

Food

4

56.9

4

─

─

─

Manufacturing Industry

Total

Total

Share

Textiles

─

─

─

4

10.6

1

Chemicals

6

19.3

1

6

4.9

0

Petroleum and Coal Products

─

─

─

1

167.6

16

Ceramics, Stone and Clay

1

1.3

0

─

─

─

Iron and Non-ferrous Metal
Products

6

16.8

1

8

2.2

0

Machinery

5

1.6

0

1

0.0

0

Electrical Machinery

─

─

─

5

21.3

2

Transport Equipment

13

55.0

4

24

21.2

2

Other Manufacturing Industries

10

14.8

1

24

15.2

1

Construction

1

2.5

0

─

─

─

Electric, Gas and Heat Supply andWater Service

10

114.4

8

4

145.1

13

Telecommunications

─

─

─

1

220.0

20

Transport and Postal Services

1

119.5

9

1

0.7

0

Commerce

2

6.3

0

3

57.2

5

Service Industry

5

412.4

30

3

11.7

1

Others(Note)

Total

54

533.0

39

64

398.0

37

118

1,354.3

100

149

1,076.2100

2. Commitments

FY2012(Note) “Others” includes two-step loans to regional financial institutions in Japan. JBIC supports the overseas operations of Japanese enterprises (especially SMEs) engaged in adiverse range of manufacturing and services, such as motor vehicles and parts, electrical and electronic equipment, machinery and metals, chemicals, and wholesale andretail businesses.

(4) Commitments to Mid-tier Enterprises and SMEs to Support their Overseas Business Activities(Unit: billions of yen)

FY2012FY2013

Number of Projects

AmountNumber of Projects

Amount

34

34.1

54

18.0

Loans to SMEs and Mid-tier Enterprises(Notes) 1. In making loans to mid-tier enterprises and SMEs, JBIC applies favorable loan terms, such as interest rates.
		 2. In this table, an SME is defined to be, in principle, an incorporated firm or individual with capital of ¥300 million or less, or having permanent employees of 300 or less.
A mid-tier enterprise is defined to be an incorporated firm with capital of less than ¥1 billion (and excludes an SME).

(5) Guarantee Commitments by Purpose(Unit: billions of yen, %)FY2012FY2013

Number

Total

Share

Number

Total

Share

Guarantee for Samurai Bonds

3

170.0

56

2

52.4

25

Guarantee for Import of Aircrafts

5

51.1

17

8

76.3

37

Guarantee for Others

13

82.0

27

10

80.3

38

Total

21

303.2

100

20

209.1

100

JBIC Annual Report 2014

91

Data

1
Statistics(6) Loan and Guarantee Commitments by Region
A. Export Loan Commitments by Region

2. Commitments(Unit: billions of yen, %)FY2012
Number

15

Asia

Total

FY2013
Share

Number

32.9

26

9

Total

Share

38.0

East Asia

5

6.0

5

─

─

─

Southeast Asia

4

5.4

4

6

18.5

15

South Asia

5

7.5

6

2

10.5

8

Central Asia and the Caucasus

1

13.9

11

1

8.9

7

3

4.1

3

3

30.3

24

Central and Eastern Europe and Russia

─

─

─

2

27.8

22

Western Europe

Europe

3

4.1

3

1

2.4

2

The Middle East

5

6.6

5

6

28.2

22

Africa

6

59.3

47

─

─

─

Northern Africa

1

17.1

14

─

─

─

Sub-Saharan Africa

5

42.2

33

─

─

─

Latin America and the Caribbean

11

23.5

19

15

29.6

23

Total

40

126.6

100

33

126.2

100

B. Import Loan Commitments by Region(Unit: billions of yen, %)FY2012
NumberTotal

FY2013
Share

Number

Total

Share

Oceania

─

─

─

3

30.2

54

The Middle East

1

191.1

63

─

─

─

Latin America and the Caribbean

1

18.1

6

─

─

─

Others

2

95.0

31

2

26.0

46

Total

4

304.3

100

5

56.2

100

C. Overseas Investment Loan Commitments by Region(Unit: billions of yen, %)FY2012
NumberTotal

FY2013
Share

Number

Total

Share

52

169.6

5

87

335.1

East Asia

16

14.2

0

28

30.8

2

Southeast Asia

23

108.2

3

55

285.8

17

South Asia

12

27.6

1

4

18.5

1

Central Asia and the Caucasus

1

19.5

1

─

─

─

Oceania

16

983.9

31

9

262.7

16

Europe

18

Asia

20

30

656.4

21

17

301.4

Central and Eastern Europe and Russia

1

2.7

0

1

3.6

0

Western Europe

29

653.7

21

16

297.7

18

The Middle East

1

11.6

0

3

76.5

5

Africa

─

─

─

2

53.7

3

─

─

─

2

53.7

3
31

Sub-Saharan Africa

92

30

North America

30

659.6

21

34

517.6

Latin America and the Caribbean

24

645.7

21

15

123.7

7

Others

4

11.4

0

─

─

─

Total

157

3,138.5100

167

1,671.0

100

JBIC Annual Report 2014

Data

1
Statistics

D. Untied Loan Commitments by Region(Unit: billions of yen, %)FY2012
Total

Share

Number

Total

Share

4

133.2

63

3

Southeast Asia

3

129.0

61

─

─

─

South Asia

1

4.2

2

3

13.7

30

The Middle East

2

7.0

3

─

─

─

Africa

─

─

─

1

3.0

7

─

─

─

1

3.0

7

Latin America and the Caribbean

4

70.2

33

3

29.2

64

Total

10

210.5

100

7

46.0

100

Asia

Sub-Saharan Africa

13.7

E. Bridge Loan Commitments by Region(Unit: billions of yen, %)FY2012
NumberAsia
Southeast Asia
Total

30

Total

FY2013
Share

Number

2

83.2

100

─

Total

─

Share

─

2

83.2

100

─

─

─

2

83.2

100

─

─

─

F. Guarantee Commitments by Region(Unit: billions of yen, %)FY2012
NumberTotal

FY2013
Share

Number

Total

Share

9

89.6

30

8

85.8

41

East Asia

1

0.9

0

1

30.0

14

Southeast Asia

6

81.8

27

4

43.2

21

South Asia

2

6.9

2

3

12.5

6

The Middle East

3

89.4

30

─

─

─

Africa

Asia

1

25.0

8

2

24.3

12

Northern Africa

1

25.0

8

1

22.4

11

Sub-Saharan Africa

─

─

─

1

1.9

1

North America

5

51.1

17

8

76.3

37

Latin America and the Caribbean

3

47.9

16

2

22.6

11

Total

21

303.2

100

20

209.1

100

G. Equity Participations by Region(Unit: billions of yen, %)FY2012
NumberTotal

FY2013
Share

Number

Total

Share

4

4.8

6

1

0.0

East Asia

2

2.2

3

1

0.0

0

South Asia

2

2.5

3

─

─

─

Oceania

1

21.7

29

─

─

─

Europe

─

─

─

1

18.5

19

─

─

─

1

18.5

19

North America

─

─

─

1

60.0

62

Latin America and the Caribbean

─

─

─

1

3.9

4

Others

3

47.7

64

3

14.8

15

Total

8

74.3

100

7

97.4

100

Asia

Western Europe

2. Commitments

Number

FY20130

JBIC Annual Report 2014

93

Data

1
Statistics(7) Geographical Distribution of Loan and Equity Participation Commitments(Unit: billions of yen)

2. Commitments

Region / Country

Asia

East Asia

FY2012
Number

FY2013
Total

Number

Total

Number

16

12.1

21

21.7

1,525

3,871.4

Hong Kong

4

4.0

4

3.0

272

298.9

4

6.0

699

1,285.4

Others3

6.4

Sub Total

23

22.6

29

Indonesia

9

133.7

Malaysia3

13.9

Myanmar2

83.2

The Philippines

3

16.3

1,027

508.5

30.8

3,523

5,964.4

4

45.1

18

70.9

1,487

5,522.7

3

1.4

594

1,315.9

56

144.5

1

5.8

813

1,753.3

Brunei Darussalam

Singapore

2

35.3

7

13.1

467

775.2

Thailand

10

42.7

23

35.1

2,471

2,725.7

Vietnam

3

0.3

9

177.8

130

392.3

36

213.9

32

325.8

61

304.4

6,058

12,889.1

7

22.9

OthersSub Total
South Asia

Bangladesh

832

1,221.4

Pakistan

290

298.3

Sri Lanka

59

64.9

Others

17

3.6

1,205

1,611.3

25

301.8

India

Central Asiaand the Caucasus

20

41.9

Sub Total

20

41.9

Kazakhstan

2

33.4

Turkmenistan

9

42.7

9

42.7

1

8.9

Others

Oceania

84.2

20

255.7

Sub Total

2

33.4

1

8.9

53

641.7

77

423.9

100

386.9

10,83921,106.6

Australia

16

998.4

12

292.9

865

3,059.0

1

7.3

17

1,005.7

Papua New Guinea
OthersTotal

JBIC Annual Report 2014

8

Total
New Zealand

94

Total

China
Republic of Korea

Southeast Asia

Accumulated

12

292.9

145

141.2

56

267.2

52

27.0

1,118

3,494.5

Data

1
Region / Country

Central andEastern Europe
and Russia

Total

Number

Total

Number3

5.6

Bulgaria

117

134.4
85.0

Czech Republic

31

Moldova1

5.3

Romania

142

95.2

116

1,550.5

1

2.7

3

31.5

Ukraine11

41.3

Others848

2,049.8

1,269

3,967.5

18

17.4

57

78.9

Sub Total

1

2.7

Cyprus4

6.2

Denmark

3

31.5

1

18.5

France

4

118.9

309

641.6

Germany

5

6.8

6

21.8

265

264.3

United Kingdom

10

150.8

3

120.4

524

1,556.6

Ireland

3

277.4

40

302.7

Italy

3

9.5

Luxemberg

1

80.9

45

166.2

3

32.5

4

34.9

3

11.9

95

396.5

Norway248

456.2

Portugal

46

37.5

Malta
Netherlands

1

74.4

1

29.8

61

105.7

Sweden

2

12.0

58

144.8

Isle of Man

1

2.4

1

2.4

85

101.1

Spain

Switzerland

2

13.4

OthersThe Middle East

Total

Belarus

RussiaWestern Europe

Number

Accumulated

626

679.0

Sub Total

32

657.8

18

318.7

2,485

4,998.5

Total

33

660.6

21

350.3

3,754

8,966.0

6

110.4

199

1,026.8

Iraq

21

219.9

Jordan28

79.8

Bahrain
Iran

Kuwait

1

65.4

23

203.9

Oman

1

10.3

28

296.4

36

738.6

Qatar
Saudi Arabia
Turkey7

13.7

United Arab Emirates

2

202.8

1

18.5

77

703.2

6

10.4

182

621.1

66

1,461.2

Yemen

11

35.8

Others

106

212.0

783

5,709.8

Total

9

216.5

9

104.8

JBIC Annual Report 2014

2. Commitments

EuropeFY2013

Statistics(Unit: billions of yen)

FY2012

95

Data

1
Statistics(Unit: billions of yen)

Region / Country
2. Commitments

AfricaNorthern Africa

FY2012
Number

FY2013
Total

Number

Accumulated
Total

Number

345

971.8

Egypt

183

240.5

Morocco1

17.1

OthersSub Total
Sub-Saharan Africa Angola

17.1

557

1,368.9

4

36.5

29

93.4

2

17.1

Gabon

20

33.5

25

59.7

1

49.8

Kenya

30

19.3

Liberia

1,202

1,475.0

Madagascar

9

102.5

Mozambique

17

25.3

Niger

117

105.1

Nigeria51

266.5

Seychelles

2

1.2

114

313.6

Tanzania

1

5.6

2

6.9

20

11.4

Uganda

6

1.1

158

102.6

Sub Total

5

42.2

3

56.7

1,802

2,628.1

Total

6

59.3

3

56.7

2,359

3,997.1

OthersCanada

5

136.1

1

30.8

325

712.6

United States

25

523.4

34

546.8

2,591

6,556.4

Total

30

659.6

35

577.6

2,916

7,269.1

272

564.0

Argentina
The Bahamas

3

11.9

Bolivia
7

138.6

3

16.9

21

52.6

1

20.4

32

65.9

5

28.1

1,941

3,131.3

British Virgin Islands

3

11.4

Cayman Islands

5

97.3

159

1,334.3

122

276.2

Brazil

Chile

11

521.6

Colombia

1

5.6

5

69.5

Costa Rica

2

6.0

23

13.7

Ecuador

1

0.9

32

79.1

35

15.0

El Salvador
Jamaica
Panama

1

1.0

6

5.2

Peru
Mexico16

68.5

Venezuela

1

10.2

40

757.5

11

39.1

Others
Total

34

186.5

International Organizations, etc. Total
Others

Total
Grand Total

JBIC Annual Report 2014

2

3.5

290

420.4

112

447.7

807

2,196.5

81

661.8

180

234.8

4,117

9,606.156

1,208.0

9

154.2

5

40.8

106

1,915.1

221

3,937.7219

1,997.0

26,04863,272.6(Note) Others: Two-step loans to regional financial institutions in Japan and loans for crossborder projects, etc.

96

48.4
108.1

Equatorial Guinea

South Africa

Latin America andthe Caribbean

7
22

1

Ghana

North America

Total

AlgeriaData

3. Outstandings

1
Statistics(1) Outstandings by Purpose of Financing(Unit: billions of yen, %)Total

FY2013
Share

Total

Share

Loans
Export Loans

710.3

5

740.6

5

Shipping

118.9

1

142.0

1

Plant

590.4

5

598.1

4

0.9

0

0.5

0

Technical Service

630.2

5

731.6

5

Natural Resources

616.2

5

721.3

5

Manufactured Goods & Technologies

14.0

0

10.3

0

Import Loans

8,165.962

10,183.9

67

Natural Resources

3,709.428

4,715.0

31

Others4,456.534

5,468.9

36

Untied Loans

1,035.8

8

998.8

7

42.6

0

39.7

0

Sub Total

10,585.1

81

12,694.9

83

Guarantees

2,400.6

18

2,422.6

16

100.1

1

187.0

1

13,086.0100

15,304.6

100

Overseas Investment Loans

Governmental Loans

Equity Participations
Total

3. Outstandings

FY2012(2) Guarantee Outstandings by Purpose(Unit: billions of yen, %)FY2012Total

FY2013
Share

Total

Share

1,146.5

48

1,198.9

49

Guarantee for Import of Aircrafts

465.3

19

465.5

19

Guarantee for Others

788.8

33

758.2

31

2,400.6

100

2,422.6

100

Guarantee for Samurai Bonds

Total

JBIC Annual Report 2014

97

Data

1
Statistics(3) Geographical Distribution of Loan and Equity Participation Outstandings(As of March 31, 2014; billions of yen)

Region / Country
3. Outstandings

Asia

East Asia

China

Central Asiaand the Caucasus

Oceania

EuropeCentral andEastern Europe
and Russia

Western Europe

98

JBIC Annual Report 2014

Total

156.9

9

7.6

Republic of Korea

12

26.2

Sub Total

South Asia

137

Hong Kong
OthersSoutheast Asia

Number

9

44.8

167

235.6

1

16.5

Indonesia

114

652.1

Malaysia

32

126.4

The Philippines

17

262.7

Singapore

24

99.8

Thailand

70

194.0

Brunei Darussalam

Vietnam45

73.3

Sub Total

303

1,425.0

Bangladesh

1

1.4

India

75

174.4

Pakistan

3

59.6

Sri Lanka

2

0.7

Sub Total

81

236.2

Kazakhstan

12

189.9

Turkmenistan

1

26.6

Sub Total

13

216.6

Total

564

2,113.5

Australia

77

1,298.4

New Zealand4

0.8

Papua New Guinea

6

257.8

Total

87

1,557.1

Belarus1

1.5

Bulgaria

5

15.6

Czech Republic

2

0.8

Serbia2

3.0

Moldova1

1.0

Romania3

3.1

Russia28

506.8

Ukraine2

0.1

Sub Total

44

532.2

Cyprus7

12.2

France6

154.6

Germany

1130.1

United Kingdom

15

186.0

Ireland

3

328.4

Italy

4

53.0

Malta

3

14.7

Netherlands

3

94.3

Norway5

12.6

Portugal2

3.2

Sweden5

96.7

Isle of Man

1

2.5

Switzerland

5

60.7

Sub Total

70

1,049.7

Total

114

1,581.9

Data

1

The Middle East

Northern Africa

Sub-Saharan Africa

North America

Latin America andthe Caribbean

Total

Bahrain

2

51.4

Iran

8

105.0

Iraq

1

15.6

Jordan1

9.0

Kuwait

1

7.9

Oman

10

152.0

Qatar

5

338.4

Saudi Arabia

5

318.3

Turkey20

49.5

United Arab Emirates

8

675.1

Yemen

2

16.1

Total

63

1,738.7

Algeria

6

19.1

Egypt

3

28.1

Morocco1

22.2

Sub Total

10

69.5

Angola5

33.5

Equatorial Guinea

2

8.2

Gabon

2

0.4

Kenya

2

0.3

Liberia2

12.7

Madagascar

2

88.6

Mozambique

2

0.5

Niger

8

1.6

Nigeria2

16.1

Seychelles

30.5South Africa

9

49.2

Tanzania

1

0.2

Uganda1

0.1

Sub Total

41

212.2

Total

51

281.8

Canada12

223.0

United States

82

1,207.3

Total

94

1,430.4

Argentina

25

83.4

The Bahamas

4

15.4

Bolivia3

17.6

Brazil

73745.3

British Virgin Islands

1

2.8

Cayman Islands

1

26.5

Chile

25

842.1

Colombia

2

66.9

Ecuador

9

0.7

El Salvador

1

0.1

Jamaica1

0.2

Panama

14

66.3

Peru

7

36.8

Mexico55

234.3

Venezuela
Total

6

262.3

227

2,401.3

International Organizations, etc.

Total

5

88.7

OthersTotal

46

1,688.1

1,251

12,881.9

Grand Total

JBIC Annual Report 2014

3. Outstandings

AfricaNumberStatistics(As of March 31, 2014; billions of yen)

Region / Country

99

Data

1
Statistics

4. Others(1) Major Buyer’s Credit and Bank-to-bank Loan Commitments (FY2013)

4. Others

Country

Vietnam

Project/Transaction

Export of machinery and equipment for the coal-fired thermal
power plant

Borrower

Vietnam Oil and Gas Group

Amount

US$85 million

Turkmenistan Export of sulfuric acid production plant facility

Government of Turkmenistan¥8.9 billion

RussiaExport of ammonia production plant facility

OJSC PhosAgro-Cherepovets

US$264 million

Saudi Arabia

Export of machinery and equipment for the thermal power
generation

Saudi Electricity Company

US$183 million(Note) A buyer’s credit is a loan JBIC directly extends to a foreign importer (buyer) to finance its import of machinery, equipment or services from a Japanese company.

(2) Untied Loan Commitments (FY2013)
Country

Project/Transaction

BorrowerAmountMongolia

Guarantee for privately placed Samurai bonds (GATE) 1

Development Bank of Mongolia

India

Energy efficiency and renewable energy projects (GREEN)

State Bank of India

US$45 million 3

India

Renewable energy and energy efficiency projects (GREEN)

IDFC Limited

US$45 million 3

India

Renewable energy and energy efficiency projects (GREEN)ICICI Bank Limited

US$45 million 3

Tunisia

Guarantee for privately placed Samurai bonds (GATE) 1

Central Bank of Tunisia

South Africa

Renewable energy projects (GREEN)

Development Bank of Southern
Africa Limited

MexicoPartial acquisition of public offering Samurai bonds (GATE) 1

Government of Mexico

Renewable energy projects (GREEN)

Banco Nacional deDesernvolvimento Econômico
e Social

Brazil¥30 billion 2, 3

¥22.4 billion 2, 3
US$30 million 3—
US$150 million 3(Notes) 1. GATE refers to the “Guarantee and Acquisition toward Tokyo market Enhancement (GATE)” facility launched in April 2010. It will enable JBIC to acquire Samurai bonds
where appropriate, in addition to providing partial guarantees for Samurai bond issues. The GATE facility will thereby support foreign governments and government
agencies to raise funds in the Tokyo market.
2. Guarantee commitments made by JBIC (principal amount).
3. The figures denote loan commitments made by JBIC. Apart from them, JBIC has provided guarantees to the portion co-financed by private financial institutions.

100

JBIC Annual Report 2014

Data

5. Standard Loan Conditions

1(As of July 15, 2014)

Standard Interest Rate 2

Type of Loans

Export Loans

Fixed at commitment (Yen CIRR) 3• 1.10% (Repayment period 5yrs or less)• 1.18% (Repayment period over 5yrs to 8.5yrs)• 1.31% (Repayment period over 8.5yrs)

Percentage of Loan Provided by JBIC

5. Standard Loan Conditions

1— Standard Interest Rates

Statistics

Standard loan conditions are shown below. Loan Interest rates are linked to the funding cost of JBIC, including the rate on
borrowings from the Fiscal Loan Fund Special Account, and thus they are subject to changes in conditions of the financial market.
A loan applicant should make an inquiry at the relevant loan department for specific loan conditions.1

60% limit

Fixed at tenders 3• above rate + 0.2%
Import Loans /Overseas Investment Loans /Untied Loans /(Natural Resources /International Competitiveness) 1

Japanese yen 4• 0.775% 6

60% limit 7

Foreign Currency 5• LIBOR+0.4375% 6(Notes) 1. SMEs are eligible for preferential interest rates and other favorable loan conditions.
		 2. Premium is added based on the type of financing such as collateral /guarantee and loan schemes.
		 3. Synthetic rate based on interest rates charged by JBIC and cofinancing institutions.
		 4. Interest rates on loans in Japanese yen are determined based on specific loan periods and the amortization schedule.
			 The interest rate shown in the table is a reference rate for a 10-year loan with lump-sum repayment upon maturity. Please make an inquiry at the relevant department
for interest rate on specific conditions.
		 5. Interest rates on loans in foreign currencies are linked to 6-month LIBOR for US dollars.
		 6. Special interest rates will be applied based on policy implication such as contribution to “Promoting overseas development and acquisition of strategically importantnatural resources to Japan” or “Maintaining and improving the International competitiveness of Japanese industries.”		 7. 70% limit for resource-related (import and overseas investment) loans.

2— Loan Maturity
The loan maturity for each loan will be determined by taking account of cash flows generated by each project.

3— Collateral, Guarantee
Collaterals and guarantees are determined in consultation with the clients.

JBIC Annual Report 2014

101

Data

1
Statistics

6. Breakdown of Countries and Regions(As of April 1, 2014)

RegionsAsia
6. Breakdown of Countries and Regions

102

East Asia

China, Hong Kong, Democratic People’s Republic of Korea, Republic of Korea, Macao, Mongolia,
TaiwanSoutheast Asia

Brunei Darussalam, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, The Philippines,
Singapore, Thailand, Vietnam

South Asia

Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka

Central Asiaand the Caucasus

Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz, Tajikistan, Turkmenistan, Uzbekistan

Oceania

EuropeCountries

Australia, Cook Islands, Fiji, Kiribati, Marshall Islands, Micronesia, Nauru, New Caledonia,
New Zealand, North Mariana Islands, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga,
Tuvalu, Vanuatu
Central andEastern Europe
and Russia

Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Macedonia, Serbia, Montenegro, Moldova, Poland, Romania, Russia, Slovakia,
Slovenia, Ukraine, KosovoWestern Europe

Andorra, Austria, Belgium, Cyprus, Denmark, Finland, France, Germany,United Kingdom (U.K.),
Greece, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, Norway,
Portugal, San Marino, Spain, Sweden, Switzerland, Vatican, Channel Islands

The Middle East

Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, West Bank and Gaza Strip, Qatar,
Saudi Arabia, Syria, Turkey, United Arab Emirates (UAE), Yemen

AfricaNorthern Africa

Algeria, Egypt, Libya, Morocco, Tunisia

Sub-Saharan Africa

Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic,
Chad, Comoros, Democratic Republic of the Congo, Congo, Cote d’lvoire, Djibouti,
Equatorial Guinea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho,
Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria,
Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, Sudan,
Swaziland, Tanzania, Togo, Uganda, Zambia, Zimbabwe, Eritrea, South Sudan

North America

Canada, United States (U.S.)

Latin America and the Caribbean

Antigua and Barbuda, Netherlands Antilles, Argentina, The Bahamas, Barbados, Belize,
Bermuda Islands, Bolivia, Brazil, British Virgin Islands, Cayman Islands, Chile, Colombia,
Costa Rica, Cuba, Commonwealth of Dominica, Dominican Republic, Ecuador, El Salvador,
Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Panama, Paraguay, Peru,
Puerto Rico, Saint Christopher and Nevis, Saint Lucia, St. Vincent and the Grenadines, Suriname,
Trinidad and Tobago, Mexico, United States Virgin Islands, Uruguay, Venezuela, Curacao

International Organizations, etc.

International Monetary Fund (IMF),
International Bank for Reconstruction and Development (IBRD),
International Finance Corporation (IFC), Asian Development Bank (ADB),Inter-American Development Bank (IDB), African Development Bank (AfDB),
European Bank for Reconstruction and Development (EBRD),
Banco Centroamericano de Integración Económica (BCIE),
Corporación Andina de Fomento (CAF), Banque Ouest Africaine de Développement (BOAD),
Entidad Binacional Yacyretá (YACYRETA), East African Development Bank (EADB), etc.

OthersTwo-step loans to regional financial institutions in Japan and loans for crossborder projects, etc.

JBIC Annual Report 2014

Data

Financial Statements
1

2

Statutory Financial Statements

104

Balance Sheets

104

Statements of Operations

106

Statements of Changes in Net Assets

107

Statements of Cash Flows

109

Notes to Financial Statements

1102

Composition of Liabilities and Net Assets

138

3

The Average Balance of Interest-earning Assets andInterest-bearing Liabilities, Interest and Earning Yields

138

4

Breakdown of Operating Expenses

139

5

Balance of Due from Banks,
Receivables under Resale Agreements and Securities—Application of Surplus Funds

139

6

Information on Derivative Transactions

140

7

Yield / Interest Rate

141

8

Loans Outstanding per Employee

141

9Loans Outstanding by Industry

141

10 Write-off of Loans

142

11 Assets in Major Foreign Currencies

142

12 Administrative Expense Ratio

143

13 Balance of Loans / Borrowings, Bonds and Notes by Maturity

143

14 Information on the Quality of Assets

144

JBIC Annual Report 2014

103

Data

2
Financial
Statements

1. Statutory Financial Statements

1. Statutory Financial Statements

The balance sheets, statements of operations, statements of changes in net assets, and notes to the non-consolidated financial
statements of JBIC were prepared in accordance with the regulations concerning terminology, forms, and preparation methodsof financial statements set in the ordinance of the Ministry of Finance No.59 of 1963. Assets and liabilities, revenue and expenses
were classified in accordance with the ordinance of the Ministry of Finance regarding Japan Bank for International Cooperation
Act No.15 of 2012.
However, comparative information contained in the balance sheets of this fiscal year (April 1, 2013-March 31, 2014) was
prepared based on the regulations concerning terminology, forms, and preparations methods of financial statements before therevision of these regulations in accordance with Supplementary Article 2, Paragraph 2 of the ordinance of the Cabinet Office onpartial revision of the regulations concerning terminology, forms, and preparations methods of financial statements (Cabinet
Office Ordinance No. 61 issued on September 21, 2013).
FY 2013 financial statements for the period of April 1, 2013, to March 31, 2014, were audited by Ernst & Young ShinNihon LLC in
accordance with Article 193 Paragraph 2 Item 1 of Financial Instruments and Exchange Act.
No consolidated financial statements were prepared as JBIC has no consolidating subsidiaries.

Balance Sheets
March 31, 2013
(In millions of yen)March 31, 2014
(In millions of yen)¥¥March 31, 2014
(In millions of
U.S. dollars)

Assets:Cash and due from banks
Cash723,189

$

7,027

0

0

0

837,986

723,189

7,027

Receivables under resale agreements

Note 6284,902202,733

1,970

Securities

Note 5

122,181

227,201

2,208

122,181

227,201

2,208

Notes 7

10,555,128

12,655,401

122,963

10,555,128

12,655,401

122,963

338,679

213,627

2,076

307

323

3

Accrued income

34,55837,008360

Derivatives other than for trading-assets

264,231

73,135711

Cash collateral paid for financial instruments

39,070102,890

1,000

Due from banks

Other securities
Loans and bills discounted
Loans on deeds
Other assets
Prepaid expenses

Other
Property, plant and equipment

Note 9

511

271

2

28,20628,558277

Buildings

3,166

3,176

31

Land

24,694

24,694

240

37

31

0

Lease assets

5

—

—

Other

301

655

6

Intangible assets

1,352

1,561

15

Software

1,340

1,561

15

11

—

—

Customers’ liabilities for acceptances and guarantees

2,400,699

2,422,658

23,539Allowance for loan losses(138,891)(128,885)(1,252)

Construction in progress

Lease assets

Total assets

104

837,986

JBIC Annual Report 2014¥

14,430,245¥

16,346,047$

158,823

Data

2
Financial
Statements
1. Statutory Financial Statements

March 31, 2013
(In millions of yen)March 31, 2014
(In millions of yen)¥¥March 31, 2014
(In millions of
U.S. dollars)

Liabilities:
Borrowed money

7,234,598

8,407,707$

81,692

7,234,598

8,407,707

81,6922,215,962

2,711,377

26,345

216,171448,229

4,355

Accrued expenses

27,127

29,106

283

Unearned revenue

50,28452,091506

Derivatives other than for trading-assets

32,654

303,640

2,950

Cash collateral received for financial instruments

105,240

63,140613

Lease obligations

58

38

0

Other

805

211

3

Borrowings
Bonds payable

Note 8Other liabilities

445

483

5

Provision for directors’ bonuses

5

5

0

Provision for retirement benefits

15,595

14,251

138

29

20

0

2,400,699

2,422,658

23,539Provision for bonuses

Provision for directors’ retirement benefits
Acceptances and guarantees
Total liabilities¥

12,083,506¥

14,004,734$

136,074¥

1,360,000¥

1,360,000$

13,214

Net assets:
Capital stock

851,685

911,366

8,855

Legal retained earnings

788,314820,000

7,967

Other retained earnings

63,37091,366888

Retained earnings

63,37091,366888

2,211,685

2,271,366

22,069

2,221

5,472

53

Deferred gains or losses on hedges

132,83164,472627

Total valuation and translation adjustments

135,053

69,945680

Retained earnings brought forward
Total shareholders’ equity
Valuation difference on available-for-sale securities

Total net assets¥

2,346,738¥

2,341,312$

22,749Total liabilities and net assets¥

14,430,245¥

16,346,047$

158,823

JBIC Annual Report 2014

105

Data

2
Financial
Statements

Statements of Operations

1. Statutory Financial Statements

Ordinary income:March 31, 2013
(In millions of yen)March 31, 2014
(In millions of yen)¥¥

226,100$

2,197

167,947

181,143

1,760

132,408

149,7691,455Interest and dividends on securities

441

643

6

Interest on receivables under resale agreements

671

262

3

Interest on deposits with banks

1,232

1,623

16

Interest on interest swaps

33,191

28,784

280

2

60

0

23,28823,722

230

23,28823,722

230

9,171

3,615

35

Gain on foreign exchange transactions

5,197

3,615

35

Income from derivatives other than for trading or hedging

3,950

—

—

24

—

—

256

—

—

Interest income
Interest on loans and discounts

Other interest income
Fees and Commissions
Other fees and commissions
Other ordinary income

Other
Receipts from the national budget
Receipts from general account of the national budget
Other income
Recoveries of written-off claims
Recoveries of written-off claims
Gain on investments in partnerships

Note 12256——

16,627

17,617172—

10,006

97

4,572

3,713

36

11,843

3,694

36

211

203

3

153,708

134,741

1,309

119,510

115,677

1,124Interest on borrowings and rediscounts

63,79757,187556

Interest on bonds

55,47658,430568

Other interest expenses

236

60

0

Fees and commissions payments

1,427

2,217

22

Other fees and commissions

1,427

2,217

22

597

1,377

13

387

979

10

—

138

1

210

260

2

General and administrative expenses

17,551

14,952145

Other expenses

14,620516

514,620——

Other
Ordinary expenses:
Interest expenses

Other ordinary expenses
Amortization of bond issuance cost
Expenses on derivatives other than for trading or hedging
Other

Provision of allowance for loan losses
Other

0

516

5

Ordinary profit

63,58391,358888

Extraordinary income
Gain on disposal of noncurrent assets
Extraordinary loss

JBIC Annual Report 2014

1

8

0

1

8

0

—

0

0

—

Loss on disposal of noncurrent assets
Net income

106

217,291

March 31, 2014
(In millions of
U.S. dollars)¥

63,5850¥91,366

0
$

888

Data

2
Financial
Statements

Statements of Changes in Net Assets
March 31, 2014
(In millions of
U.S. dollars)

March 31, 2014
(In millions of yen)

Shareholders’ equity
Capital stock
Balance at the beginning of current period

Note 13 (b)¥ 1,291,000¥

1,360,000$

13,214

Changes of items during the period
69,000Issuance of new shares
Total changes of items during the period
Balance at the end of current period

69,000——1,360,000

1,360,000

13,214

788,314788,314

7,659

31,685308

1. Statutory Financial Statements

March 31, 2013
(In millions of yen)

Retained earnings
Legal retained earnings
Balance at the beginning of current period

Note 13 (b)Changes of items during the period
Issuance of new shares—

31.685308

788,314820,000

7,967

(5)

63,370616(31,685)

(308)

(209)

(31,685)(308)

63,58591,366888

Total changes of items during the period

63,37627,996

272

Balance at the end of current period

63,37091,366888

788,309851,685

8,275

—

—

(209)

(31,685)(308)

63,58591,366888

Total changes of items during the period
Balance at the end of current period
Other retained earnings
Retained earnings brought forward
Balance at the beginning of current period

Note 13 (b)Changes of items during the period
Issuance of new shares
Payment to national treasury
Net income

Total retained earnings
Balance at the beginning of current period

Note 13 (b)Changes of items during the period
Issuance of new shares
Payment to national treasury
Net income
Total changes of items during the period

63,376

59,681

580

Balance at the end of current period

851,685

911,366

8,855

2,079,309

2,211,685

21,489Total shareholders’ equity
Balance at the beginning of current period

Note 13 (b)Changes of items during the period
Issuance of new shares
Payment to national treasury
Net income
Total changes of items during the period
Balance at the end of current period

69,000

—

—

(209)

(31,685)(308)

63,58591,366888

132,376

59,681580

2,211,685

2,271,366

22,069JBIC Annual Report 2014

107

Data

2
Financial
Statements

March 31, 2013
(In millions of yen)March 31, 2014
(In millions of
U.S. dollars)

March 31, 2014
(In millions of yen)

1. Statutory Financial Statements

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the beginning of current period

Note 13 (b)

¥

—

¥

2,221

$

22

Changes of items during the period
2,221

3,251

31

2,221

3,251

31

2,221

5,472

53

—

132,831

1,291

132,831(68,358)(664)

132,831(68,358)(664)

132,83164,472627—

135,053

1,313

135,053(65,107)(633)

Total changes of items during the period

135,053(65,107)(633)

Balance at the end of current period

135,053

69,945680

2,079,309

2,346,738

22,80269,000——Net changes of items other than shareholders’ equity
Total changes of items during the period

Note 13 (c)Balance at the end of current period
Deferred gains or losses on hedges
Balance at the beginning of current period

Note 13 (b)Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period

Note 13 (c)Balance at the end of current period
Total valuation and translation adjustments
Balance at the beginning of current period

Note 13 (b)Changes of items during the period
Net changes of items other than shareholders’ equity

Total net assets
Balance at the beginning of current period

Note 13 (b)Changes of items during the period
Issuance of new shares(209)(31,685)(308)

Net income

63,58591,366888

Net changes of items other than shareholders’ equity

135,053(65,107)(633)

Payment to national treasury

Total changes of items during the period
Balance at the end of current period

108

JBIC Annual Report 2014

267,429(5,425)(53)

2,346,738

2,341,312

22,749Data

2Financial
Statements

Statements of Cash Flows
March 31, 2014
(In millions of yen)¥¥March 31, 2014
(In millions of
U.S. dollars)

Cash flow from operating activities
Net income

63,58591,366$888

Depreciation and amortization

1,018

1,245

12

Increase (decrease) in allowance for loan losses

14,620(10,006)

(97)

(55)

37

0

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors’ bonuses

4

0

0

Increase (decrease) in provision for retirement benefits

2,332(1,344)

(13)

11

(8)

(0)

Gain on fund management(167,947)(181,143)(1,760)Financing expenses

119,510

115,677

1,124

Loss (gain) related to securities(11,843)(3,694)(36)

Increase (decrease) in provision for directors’ retirement benefits

(1)

(8)

(0)

Net decrease (increase) in loans and bills discounted(2,444,771)(2,100,273)(20,407)

Net increase (decrease) in borrowed money

1,979,109

1,173,109

11,398Net decrease (increase) in deposit (excluding deposit paid to Bank ofJapan)(128,972)

134,009

1,302

Loss (gain) on disposal of noncurrent assets

Net decrease (increase) in receivables under resale agreements

317,822

82,169798

Increase (decrease) in straight bonds-issuance and redemption(163,469)

494,432

4,804

Proceeds from fund management

165,751

178,618

1,736

Payments for finance(120,524)(112,765)(1,096)

Other387,646

289,587

2,814

Subtotal

13,826

151,011

1,467

Net cash provided by (used in) operating activities

13,826

151,0111,467(35,224)(104,301)(1,013)

2,946

4,801

47

1. Statutory Financial Statements

March 31, 2013
(In millions of yen)

Cash flow from investing activities
Purchase of securities
Proceeds from sales of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

—

1,171

11

(322)

(771)

(7)

1

10

0

(432)

(998)

(10)

(33,030)(100,086)(972)

69,000

—

—

(117)

(26)

(0)

Payment to national treasury(26,524)(31,685)(308)

Net cash provided by (used in) financing activities

42,358(31,712)

(308)

—

—

—

Purchase of intangible assets
Net cash provided by (used in) investing activities
Cash flow from financing activities
Proceeds from issuance of common stock
Repayments of lease obligations

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Note 14¥

23,154

19,212187

023,154

225

23,154¥42,367$412

JBIC Annual Report 2014

109

Data

2
Financial
Statements

Notes to Financial Statements

1. Statutory Financial Statements

1. Basis of presentation
The accompanying financial statements have been prepared from the accounting records maintained by Japan Bank for International
Cooperation (“JBIC”) in accordance with the accounting principles and practices generally accepted in Japan, which are different
in certain aspects from the application and disclosure requirements of International Financial Reporting Standards.
Consolidated financial statements are not prepared since JBIC has no subsidiaries.
The amounts indicated in millions of yen are rounded down by omitting figures less than one million. Totals may therefore
not add up exactly because of this rounding.
Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥102.92=$1.00, theforeign exchange rate on March 31, 2014, has been used in translations. The presentation of such amounts is not intended to
imply that Japanese yen have been or could be readily converted, realized, or settled in U.S. dollars at the aforementioned rates
or any other rate.
2.

Significant accounting policies(a) Securities
Held-to-maturity securities are carried at amortized cost based on the moving average method. Investments in affiliates
are carried at cost based on the moving average method. Available-for-sale securities are in principle stated at fair value
with changes in net unrealized gains or losses included directly in Net assets. However, available-for-sale securities
whose fair value cannot be readily determined are carried at cost based on the moving average method.
Investments in partnerships for investment, which are regarded as securities under Article 2, Clause 2 of the Japanese
Financial Instruments and Exchange Law, are recognized at an amount equivalent to JBIC’s percentage share of the net
assets of such partnerships, based upon the most recent financial statements available depending on the report datestipulated in the partnership agreement.
(b) Valuation method for derivative financial instruments
Derivative financial instruments are carried at fair value.

(c) Depreciation basis for fixed assets(i) Property, plant and equipment (except for lease assets)
JBIC’s tangible fixed assets are depreciated by the declining balance method over their useful economic lives except
for buildings (excluding installed facilities) which are depreciated by the straight-line method.
Depreciation is based on the following range of estimated useful lives:				
Buildings:
3 years to 50 years
				
Other:
		
2 years to 35 years(ii) Intangible assets (except for lease assets)
Depreciation of intangible fixed assets is computed by the straight-line method. Software used by JBIC is depreciatedover its useful life (5 years or less), which has been determined by JBIC.
		(iii) Lease assets
Lease assets in “property, plant and equipment” or “intangible assets,” under finance leases that do not involve
transfer of ownership to the lessee are depreciated by the straight-line method over the lease term. Depreciation
for lease assets is calculated with zero residual value being assigned to the asset.
(d) Method of amortization for deferred charges
Organization expenses and bond issuance cost are expensed as incurred.
(e) Foreign currency translation and revaluation method
JBIC maintains its accounting records in Japanese yen. Assets and liabilities denominated in foreign currencies aremostly translated into Japanese yen at the market exchange rate prevailing at the fiscal year end.
(f) Allowance for loan losses
JBIC’s allowance for loan losses is maintained in accordance with internally established standards.
The allowance for claims on debtors who are legally bankrupt (“Bankrupt borrowers”) or substantially bankrupt(“Substantially bankrupt borrowers”) is provided based on the outstanding balance after the write-offs described as
below and the deductions of the amount expected to be collected through the disposal of collateral and the executionof guarantees. The allowance for claims on debtors who are not legally bankrupt but are likely to become bankrupt

110

JBIC Annual Report 2014

Data

2
Financial
Statements
1. Statutory Financial Statements(“Potentially bankrupt borrowers”) is provided based on an assessment of the overall solvency of the debtors after
deducting the amount expected to be collected through the disposal of collateral and the execution of guarantees.
The allowance for claims on debtors other than Bankrupt borrowers, Substantially bankrupt borrowers and Potentiallybankrupt borrowers is provided primarily based on the default rate, which is calculated based on the actual defaults
during a certain period in the past. The allowance for possible losses on specific overseas loans is provided based on
the expected loss amount taking into consideration the political and economic situations of these countries.
All claims are assessed initially by the operational departments and subsequently by risk evaluation departments
based on internal rules for self-assessment of asset quality. The risk evaluation departments, which is independent fromthe operational departments, review these self-assessments, and the allowance is provided based on the results of theassessments.
With respect to claims with collateral or guarantees on debtors who are legally or substantially bankrupt (“Bankrupt
borrowers and substantially bankrupt borrowers”), the residual booked amount of the claims after deduction of theamount which is deemed collectable through the disposal of collateral or the execution of guarantees is written off.
There are no accumulated write-offs as of March 31, 2014 (the amount as of March 31, 2013 was ¥8,232 million ($80
million)).
(g) Provision for bonuses
The “provision for bonuses” is calculated and provided for based on the estimated amounts of future payments attributable
to the services that have been rendered by employees to the date of the balance sheets.
(h) Provision for directors’ bonuses
The “provision for directors’ bonuses” is calculated and provided for based on the estimated amounts of future payments
attributable to the services that have been rendered by directors to the date of the balance sheets.
(i) Provision for retirement benefits
The “provision for retirement benefits” represents the future payment for pension and retirement benefits to employees,
and is accrued based on the projected benefit obligations and the estimated pension plan assets at the fiscal year end.
① Method of attributing the projected benefits to periods of services
In calculating the projected benefit obligation, the estimated amount of retirement benefit payments are attributed
to the period up to the end of the fiscal year by straight line basis.
② Accounting for actuarial gains or losses and prior service costs
Actuarial gains or losses and prior service costs are expensed as they are incurred.
(Additional Information)
On April 1, 2013, JBIC obtained an approval from the Minister of Health, Labour and Welfare for an exemption from theobligation to pay benefits for future employee services related to the substitutional portion of the Japan Finance Corporation
Employee’s pension fund which resulted in the transfer of the obligations and related assets to the government. The
estimated plan assets to be returned to the government, as of March 31, 2014 amounted to: ¥2,868 million ($28 million).
If the estimated plan assets had been returned to the government on March 31, 2014, the effect on extraordinary income
arising from the application of Paragraph 46 of “Guidance on the Accounting Standard for Retirement Benefits” (ASBJ
Guidance No. 25) is ¥6,054 million ($59 million).
(j) Provision for directors’ retirement benefits
The “provision for directors’ retirement benefits,” which provides for future retirement pension payment to directors,
corporate auditors and executive officers, is recognized at the amount accrued at the end of the respective fiscal year.
(k) Accounting for hedges of interest rate risk
		(i) Hedge accounting
			
JBIC applies the deferral method to derivatives used for interest risk hedging purposes		(ii) Hedging instruments and hedged items
			
Hedging instruments: interest rate swaps
			Hedged items: loans, borrowings, bonds and notes
		(iii) Hedging policy
			
JBIC enters into hedging transactions up to the amount of the underlying hedged assets and liabilities
		(iv) Assessment of hedge effectiveness
JBIC assesses the effectiveness of designated hedges by measuring and comparing the change of fair value or

JBIC Annual Report 2014

111

Data

2
Financial
Statements

cumulative change of cash flows of both hedging instruments and corresponding hedged items from the date ofinception of the hedges to the assessment date.

1. Statutory Financial Statements(l) Accounting for hedges of foreign exchange risks
Hedging instruments used to hedge foreign exchange risks associated with JBIC’s foreign currency denominated monetary
assets and liabilities are accounted for using the deferral method, in accordance with the standard treatment of The
Japanese Institute of Certified Public Accountants (JICPA) Industry Audit Committee Report No. 25.
The effectiveness of the hedges described above is assessed by comparing the foreign currency position of thehedged loans and bills discounted, borrowings, and bonds payable denominated in foreign currencies with that of thehedging instruments, such as currency swaps and forward foreign exchange contracts which are used for hedging theforeign exchange risks of loans and bills discounted, borrowings, and bonds payable denominated in foreign currencies.
(m) Consumption and other taxes
Consumption taxes and local consumption taxes (“consumption taxes”) are excluded from transaction amounts. Nondeductible consumption taxes related to property, plant and equipment are expensed as incurred.
(n) Scope of cash and cash equivalents in the statements of cash flows
Cash and cash equivalents as stated in the Statement of Cash Flow consists of cash on hand and Deposit with the Bankof Japan in “Cash and due from banks” in the balance sheets.
3.

Standards issued but not yet effective•“Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012)•“Guidance on the Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012)(a) Overview
From the viewpoint of improvements to financial reporting and international convergence, the accounting standard andthe related guidance have been revised mainly focusing on (a) how retirement benefit obligations and current service
costs should be determined and (b) enhancement of disclosures.
(b) Effective date
The amendments related to the determination of retirement benefit obligations and service cost will be applied effectivefrom the beginning of the fiscal year beginning on April 1, 2014.
(c) Effect of the application of the Accounting Standard
As a result of the application of an Accounting Standards, retained earnings as of April 1, 2014 will increase by ¥1,182
million ($11 million).

4.

Changes in methods of presentation(a) Balance Sheets
The balance of “Cash collateral paid for financial instruments” included in “Other” under “Other assets” and that of“Cash collateral received for financial instruments” included in “Other” under “Other liabilities” in the fiscal year ended
March 31, 2013 are separately presented as of the fiscal year ended 2013 based on the application of attachment forms
provided in “Ordinance Concerning the Accounting of Japan Bank for International Cooperation” (Ministry of FinanceOrdinance No. 15 of 2012), which was amended in accordance with the Ordinance to Amend the Ordinance Concerning
the Accounting of Japan Bank of International Cooperation (Ministry of Finance Ordinance No. 57 of 2013). In order toreflect this change in the method of presentation, reclassifications have been made to the financial statements for the
fiscal year ended March 31, 2013.
Consequently, as it pertains to the balance sheets for the fiscal year ended March 31, 2014, ¥39,070 million ($380
million) has been reclassified from “Other assets” to “Cash collateral paid for financial instruments” while ¥105,240
million ($1,023 million) has been reclassified from “Other liabilities” to “Cash collateral received for financial instruments”.
(b) Retirement benefits“Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012) and “Guidance on the AccountingStandard for Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012) have been applied effective this fiscal year
except for certain provisions described in the main clause of section 35 of the standard and in the main clause of section
67 of the guidance and the method of presentation for Notes on retirement benefits has been changed.
Accounting Standard for Retirement Benefits and others have been applied pursuant to the transitional requirement

112

JBIC Annual Report 2014

Data

2

Equities securities of or investment in affiliates:
March 31, 2013
(In millions of yen)

Equities securities
Investments in affiliates

			¥March 31, 2014
(In millions of yen)— 			¥
70,822

March 31, 2014
(In millions of U.S. dollars)

1,499 			$81,16715789

6. Receivables under resale agreement:
Among the securities acquired under resale agreements, these securities which can be sold or pledged without restrictions
amount to:
March 31, 2013
(In millions of yen)

Receivables under resale agreement

7.

			¥

March 31, 2014
(In millions of yen)

284,902 			¥1. Statutory Financial Statements

5.

Financial
Statements

in Paragraph 37 of the Accounting Standard for Retirement Benefits, and no reclassification for Notes on retirement
benefits has been made.

March 31, 2014
(In millions of U.S. dollars)

202,733 			$

1,970

Loans
(a) Bankrupt loans and non-accrual loans included in loans and bills discounted:
March 31, 2013
(In millions of yen)

Bankrupt loans
Non-accrual loans			¥March 31, 2014
(In millions of yen)— 			¥
96,140March 31, 2014
(In millions of U.S. dollars)— 			$
96,366—936“Bankrupt loans” are loans, defined in Article 96, Paragraph 1, Item (iii), a. through e. and Item (iv) of the Corporate Tax
Law Enforcement Ordinance (Government Ordinance No. 97, 1965), on which accrued interest income is not recognized
as there is substantial uncertainty over the ultimate collectability of either principal or interest because they have been
in arrears for a considerable period of time or for other reasons.
(b) “Non-accrual loans” are loans on which accrued interest income is not recognized, although this excludes Bankrupt
loans and the loans on which interest payments are deferred in order to support the borrowers’ recovery from financial
difficulties.
(b) Loans with interest or principal repayments three months or more in arrears included in loans and bills discounted:
March 31, 2013
(In millions of yen)

Loans with interest or principal repayments
three months or more in arrears
			¥March 31, 2014
(In millions of yen)

69,065 			¥March 31, 2014
(In millions of U.S. dollars)

75,579 			$735“Loans with interest or principal repayments three months or more in arrears” are loans whose principal or interest
payment is three months or more in arrears, and which do not fall under the category of “Bankrupt loans” and “Nonaccrual loans.”(c) Restructured loans included in loans and bills discounted:
March 31, 2013
(In millions of yen)

Restructured loans			¥March 31, 2014
(In millions of yen)

79,976 			¥March 31, 2014
(In millions of U.S. dollars)

77,386 			$752“Restructured loans” are loans whose repayment terms and conditions have been amended in favor of the borrowers(e.g. reduction of or exemption from the stated interest rate, the deferral of interest payments, the extension of principal
repayments or renunciation of claims) in order to support the borrowers’ recovery from financial difficulties, and which
do not fall under the category of “Bankrupt loans,” “Non-accrual loans,” or “Loans with interest or principal repayments
three months or more in arrears.”(d) The total amount of bankrupt loans, non-accrual loans, loans with interest or principal repayments three months ormore in arrears, and restructured loans:
March 31, 2013
(In millions of yen)

Total amount			¥

March 31, 2014
(In millions of yen)

245,183 			¥March 31, 2014
(In millions of U.S. dollars)

249,332 			$2,423The amounts of loans indicated in table 3 through 6 above are the gross amounts prior to the deduction of allowancefor possible loan losses.

JBIC Annual Report 2014

113

Data

2
Financial
Statements
1. Statutory Financial Statements(e) JBIC, as a policy, does not pay down loans in part or in full immediately after the execution of the loan agreements, butinstead makes disbursement, in accordance with the progress of the underlying projects. These undisbursed amounts
are not included in the loans on deed in the balance sheets. The balance of unpaid amounts is as follows:
March 31, 2013
(In millions of yen)

Balance of unpaid loans		¥March 31, 2014
(In millions of yen)

2,615,921 		¥March 31, 2014
(In millions of U.S. dollars)

2,232,353 		$21,6908. Assets pledged as collateral
Pursuant to Article 34 of the Japan Bank for International Cooperation Act (“JBIC Act”), all JBIC assets are pledged as generalcollateral for bonds:
March 31, 2013
(In millions of yen)

Bonds payable

9.

		¥

March 31, 2014
(In millions of yen)

2,215,962 		¥March 31, 2014
(In millions of U.S. dollars)

2,711,377 		$26,345

Accumulated depreciation of fixed assets
March 31, 2013
(In millions of yen)

Accumulated depreciation

		¥March 31, 2014
(In millions of yen)308 		¥March 31, 2014
(In millions of U.S. dollars)

698 		$

7

10. Contingent liabilities
Contingent liabilities related to debt assumption agreements for bonds payable are as follows:
March 31, 2013
(In millions of yen)

15th FILP Agency Bonds (former JBIC)
31st FILP Agency Bonds (former JBIC)

		¥March 31, 2014
(In millions of yen)

50,000 		¥
20,000March 31, 2014
(In millions of U.S. dollars)

50,000 		$
—

486
—

In addition, Japan Finance Corporation (“JFC”) assumed the obligations of the JFC bonds on April 1, 2012, and JBIC is jointly
responsible for the obligations of these bonds. In accordance with Article 17 (2) of the Supplementary Provisions of the JBIC
Act, all of JBIC’s assets are pledged as general collateral for these joint obligations as follows.
March 31, 2013
(In millions of yen)		¥March 31, 2014
(In millions of yen)

1,085,000 		¥

March 31, 2014
(In millions of U.S. dollars)

780,000 		$

7,579

11. Restriction on dividend distribution
JBIC is subject to restriction on its dividends distribution pursuant to Article 31 of the JBIC Act.
JBIC shall accumulate, as a reserve, an amount calculated in accordance with the standards prescribed by the Cabinet Order
until it reaches a certain amount stipulated by the Cabinet Order; and if there still is a surplus, JBIC shall pay such surplus into
the national treasury within 3 months after the annual closing date.
In the event that the amount of retained earnings brought forward falls below zero, a reserve shall be transferred to theretained earnings brought forward to the extent that its amount of retained earnings brought forward becomes zero.
12. Income on transactions with affiliates
Income on transactions with affiliates is as follows:
March 31, 2013
(In millions of yen)

Gain on investments in partnerships

114

JBIC Annual Report 2014

			¥March 31, 2014
(In millions of yen)

11,780 			¥March 31, 2014
(In millions of U.S. dollars)

3,565 			$

35

Data

2
Financial
Statements(unit: thousands of shares)
Types

Issued shares
Common stocks
Classified stock
Total
Treasury stock
Common stocks
Classified stock
Total

		

The number of stocks at
the beginning of the fiscal year

Increase during
the fiscal year

Decrease during
the fiscal year

The number of stocks at
the end of the fiscal year

1,291,000,000—
1,291,000,000

69,000,000—
69,000,000———

1,360,000,000—
1,360,000,000

—
—
—

—
—
—

—
—
—

—
—
—

Remarks(Note)(Note)

1. Statutory Financial Statements

13. Changes in Net Assets(a) Issued shares and treasury stocks		
For the fiscal year ended March 31, 2013, type and number of issued shares and treasury stocks are as follows;(Note) The increase is due to the issuance of 69,000,000 thousand shares.

(b) The figures determined by the asset evaluation committee on July 6, 2012, as the opening balance sheet as of the
inception of JBIC are used as the balance at the beginning balances (April 1, 2012).
(c) “Valuation difference on available-for-sale securities” and “Deferred gains or losses on hedges” were presented under“Assets” and “Liabilities,” respectively, in the opening balance sheet as of the inception of JBIC. For this reason, they
are transferred to “Net assets” during the fiscal year ended March 31, 2014 and included in Changes of items during
the fiscal year.
For the fiscal year ended March 31, 2014, type and number of issued shares and treasury stocks are as follows;(unit: thousands of shares)
Types

Issued shares
Common stocks
Classified stock
Total
Treasury stock
Common stocks
Classified stock
Total

The number of stocks at
the beginning of the fiscal year

Increase during
the fiscal year

Decrease during
the fiscal year

The number of stocks at
the end of the fiscal year

1,360,000,000—
1,360,000,000

—
—
—

—
—
—

1,360,000,000—
1,360,000,000

—
—
—

—
—
—

—
—
—

—
—
—

Remarks

14. Cash Flows“Cash and cash equivalents” in the statement of cash flows as of March 31, 2013 and 2014 reconciles to cash and due frombanks in the balance sheets as follows:
March 31, 2013
(In millions of yen)

Cash and due from banks
Time deposits and others
Cash and cash equivalents

		¥
		¥

837,986 		¥(814,832)
23,154 		¥March 31, 2014
(In millions of yen)March 31, 2014
(In millions of U.S. dollars)

723,189 		$(680,822)
42,367 		$

7,027(6,615)412

15. Lease Transactions(a) Finance lease transactions
		Finance lease transactions that do not involve the transfer of ownership to the lessee		(i) Description of lease assets
			① Property, plant and equipment: Equipment and property			② Intangible assets: Software		(ii) Depreciation of lease assets			
Depreciation of lease assets is calculated under the method as set forth in Note 2 (c).

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Financial
Statements
1. Statutory Financial Statements

116(b) Operating lease transactions
		
Future minimum lease payments for noncancelable operating lease transactions are as follows:
March 31, 2013
(In millions of yen)

Due within one year
Due after one year
Total

		¥
		¥

2 		¥
0
2 		¥

March 31, 2014
(In millions of yen)March 31, 2014
(In millions of U.S. dollars)

0 		$
—
0 		$

0
—
0

16. Financial instruments and related disclosure(a) Status of financial instruments		(i) Initiatives for financial instruments
Based on the JBIC Act, JBIC is a policy-based financial institution wholly owned by the Japanese government, which
has the purpose of contributing to the sound development of Japan and the international economy and society, by
performing the financial function to promote the overseas development and securement of resources which areimportant for Japan; maintaining and improving the international competitiveness of Japanese industries; promoting
the overseas business having the purpose of preserving the global environment, such as preventing global warming,
as well as preventing disruptions to international financial order or taking appropriate measures with respect todamages caused by such disruption.
JBIC’s principal operations consist of providing export loans, import loans, investment financing, financing
for business development (including guarantees) and capital investment. To conduct these operations, funds areraised through borrowing from the fiscal investment and loans and the foreign exchange fund special account,and the issuing of bonds. An ALM (asset and liability management) function has been established in respect of our
financial assets and liabilities that are subject to interest rate and currency fluctuations to assist in ensuring thatsuch fluctuations do not have an adverse effect on our operations. In addition, derivative transactions are enteredinto for the purpose of mitigating risk inherent in foreign currency denominated transactions. Financial instrumentsthat can be used for the management of surplus funds are limited to safe instruments such as Japanese government
bonds, etc., as stipulated in the JBIC Act.
The budget required for governmental financial operations is decided upon by the Diet of Japan, and businessplans and financial plans (borrowing from fiscal investment and loans, bonds, general accounting investment, andloans, etc.) are appended to the budget and submitted to the Diet of Japan.
		(ii) Types of financial instruments and risks
The assets that JBIC holds mainly include loans to borrowers in Japan and overseas, and securities and liabilities
mainly include borrowings and bonds. The associated risks are described below.
			① Credit risk
Credit risk is the risk that JBIC will suffer losses if the financial condition of the borrower deteriorates and thevalue of assets (including off-balance sheet assets) decrease or disappear.
The credit risks associated with JBIC include sovereign risk, country risk, corporate risk, and project risk.
Because of the characteristic of supports for overseas economic transactions conducted by JBIC, much financing
is provided to overseas governments, governmental institutions, and overseas corporations; the credit risk
associated with the credit provided typically consists of sovereign or country risk.
As a result, if the financial condition of the individual borrower significantly deteriorates due to politicaland economic trends in the borrower’s country or region, JBIC’s performance and financial condition can beadversely affected.
(Note) Sovereign risk refers to risk associated with credit supplied to foreign governments, country risk refers
to risk associated with the country in which the corporation or project is located (risk, in addition tocorporate risk or project risk, associated with the country in which the corporation or the project islocated) and corporate risk refers to the risk associated with credit to corporations and project riskrefers to the risk that the cash flow of an underlying project will not perform as planned, in the caseof project finance, where the repayment of the borrowing is primarily secured by the cash flow of the
project to which credit is supplied.
			② Market risk
Market risk is the risk that the value of assets and liabilities (including off-balance sheet assets) will fluctuate
and losses will be incurred, or profits derived from assets and liabilities (including off-balance sheet assets)
will fluctuate and losses will be incurred due to the fluctuation of various market risk factors such as interest
rates, exchange rates, etc.
The market risk associated with JBIC mainly consists of foreign exchange risk and interest rate risk, andJBIC Annual Report 2014

Data

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1. Statutory Financial Statements

JBIC Annual Report 2014

Financial
Statements

losses could be suffered from these risks from market fluctuations. However, in principle, these risks are hedged
through interest rate swaps, currency swaps, and forward foreign exchange contracts.
JBIC uses hedge accounting for interest rate hedges, where the hedging instrument is interest rate swaps
to hedge the market fluctuation risk associated with loans, borrowed money and bonds. The effectiveness ofthe hedges is assessed by measuring and comparing the change in fair value or cumulative change in cash
flows of both hedging instruments and corresponding hedged items from the date of inception of the hedges
to the assessment date.
JBIC uses hedge accounting for foreign exchange hedges, where currency swaps and forward foreignexchange contracts are used to hedge items such as loans, borrowings, and bonds for foreign exchange risk.
The effectiveness of the hedging currency-swaps and forward foreign exchange contracts, hedging the foreignexchange risks of monetary assets and liabilities denominated in foreign currencies, is assessed by comparing
the foreign currency position of the hedged monetary assets and liabilities with that of the hedging instruments.
			③ Liquidity risk
Liquidity risk is the risk that losses will be incurred as a result of funding challenges due to a maturity mismatch
between financing and funding or unexpected outflow of funds, or being forced to fund at an interest rate
significantly higher than in normal circumstances (funding risk), as well as the risk that losses will be incurredfrom a failure to ingenerate transactions in the market due to market disruption or from being forced to maketransactions at a significantly disadvantageous price than in normal circumstances (market liquidity risk).
Long-term and stable funds, such as fiscal loan funds, government-guaranteed bonds, and FILP agency
bonds, are secured to finance JBIC and deposits are not accepted, with the result that it considers liquidity risk
to be limited. However, financing costs could increase due to market disruption and unexpected events.
		(iii) Risk management structure for financial instruments			
The risk management structure of JBIC is described below.
			① Credit risk management
The basis of credit risk management is centered on individual credit management based on the creditworthinessof the borrower during the credit approval process.
When a new credit application is processed, the relevant finance departments (sales promotion department)
and credit departments collect and analyze information on the borrower. The overseas representative offices
also play a part in collecting information on foreign governments and corporations. Credit appraisal takes
place based on the information that has been gathered and analyzed, with the different departments ensuring
appropriate checks throughout the process, leading to the final decision by the management.
For lending to foreign governments and corporations, JBIC makes most use of its position as a public
institution and exchanges views and information with governments and other authorities in recipient countries,
international institutions such as the IMF and the World Bank, other regional development banks and official
export credit agencies as well as private financial institutions in the industrial countries. Using all these channels,
JBIC evaluates sovereign or country risk (risk in addition to corporate risk associated with the country in which
the corporation is located) based on a broad range of information on government and government agency
borrowers as well as political and economic conditions in their countries.
The relevant finance departments and credit departments conduct proper credit risk management basedon the credit risk rating system for segmented risk categories and the asset self assessment system basedon the Financial Inspection Manual of the Japanese Financial Services Agency. In addition, an Integrated Risk
Management Committee is held regularly to report the status of credit management to the management. In
addition, an Integrated Risk Management Committee is held regularly to report the status of credit management
to the management. The credit management situation is also checked by an independent auditing department.
In addition, a claims protection mechanism exists based on an international framework unique to official
creditors, that is not contained in private sector financial institutions, for official claims on foreign governments.
This mechanism consists of international financial assistance upon international approval by the Paris Club, aninternational group focusing on debt, to allow the debtor country to continue debt repayment when the debtor
country becomes temporarily unable to service its debt due to economic conditions. As part of this international
financial assistance, the debtor country conducts an economic reform program upon agreement with the
IMF in order to secure the ability to sustainably service its debt. In view of JBIC’s position as a public financial
institution, it will use the framework of the Paris Club to preserve its official claims on foreign governments.
Besides the individual credit management outlined above, JBIC quantifies credit risks to assess the overall riskof the portfolio in these operations. To quantify credit risks, it is important to take into account the characteristicof the loan portfolio, namely, that there are a significant proportion of long-term loans and loans involving
sovereign risk or country risk. Also to be taken into account is the mechanism of securing assets, such as the

117

Data

2
Financial
Statements
1. Statutory Financial Statements

framework of international financial assistance to debtor countries through the Paris Club, which is unique to
official creditors. JBIC uses a unique model to quantify the credit risk taking account of the above explained
elements and measures amount of credit risk, which are utilized for credit risk management.
			② Market risk management
ALM is used to manage foreign exchange risk and interest rate risk for these operations. Market risk management
protocols contain detailed stipulations of risk management methods and procedures, which are used by the
ALM Committee to assess and confirm the execution of ALM, and for discussions concerning future responses.
In addition, monitoring is conducted through gap analysis and interest rate sensitivity analysis as well as Valueat Risk (“VaR”) to comprehensively assess the interest and terms of financial assets and liabilities. The results
are regularly reported to the ALM Committee.
The basic policy for managing foreign exchange risk and interest rate risk at JBIC is described below.
				1) Foreign exchange risk
Foreign currency-denominated loans conducted in JBIC involve risks related to exchange rate fluctuations.
We have a consistent policy of managing this risk by fully hedging this risk exposure through the use ofcurrency swaps and forward foreign exchange contracts.
				2) Interest rate risk
Interest rate risk arises from exposure to market interest rate fluctuations for yen-denominated loan andforeign currency-denominated loan operations and the policy for managing interest rate risk is described
below.
a. Yen-denominated loan operations
Funding for yen-denominated loans is mainly managed at fixed-rate interest. However, swaps are used
to hedge interest rate risk for portions of loans that are thought to have high exposures to interest rate
fluctuation. Interest rate risk for denominated loans is limited.
b. Foreign currency-denominated loan operations
For foreign currency-denominated loan operations, interest rate risk is hedged through the applicationof a consistent policy of using interest rate swaps and managing the funds with floating interest rates
for both loans and related funding arrangements.
				3) Status of market risk
JBIC only maintains a banking account and does not have financial instruments in a trading account. While
JBIC is managed by hedging operation in principle, as already stated previously, market risk is measured
in order to assess fair value and potential risks. The following represents an overview of VaR in the current
fiscal year.
a. VaR (end of this fiscal year)
March 31, 2014
(In billions of yen)

1) Interest rate VaR
2) Exchange rate VaR

b.

c.

118

JBIC Annual Report 2014

		¥March 31, 2014
(In billions of U.S. dollars)

63.6 		$
56.0

0.6
0.5

VaR measurement model
1) Interest rate VaR: Historical model2) Exchange rate VaR: Variance-covariance model
Quantitative standards:
1) Confidence Interval: 99%
2) Holding period: 1 year3) Observation period: 5 years
Risk management using VaR
VaR is a market risk measure that assesses the maximum possible profits or losses that could beincurred based on historical market movements of interest rates or exchange rates, etc., over a specificperiod in the past (or observation period) within a certain period of time (or holding period) under acertain probability (or confidence interval), that is derived statistically by employing the theory of
possibility distribution.
This measurement assumes actual market trends and the theory of probability distribution. Basedon the possibility that future market trends could deviate from these assumptions, a back-test is
performed to cross-check the model-measured interest rate VaR with actual profits or losses, in order
to confirm the effectiveness of market risk measurements using VaR. In addition, a stress test, whichgoes beyond the probability distribution of historical market movements is conducted in order tocapture risks from multifaceted perspectives.

Data

2
Financial
Statements
1. Statutory Financial Statements

The following points should generally be noted for VaR model measurement.
• VaR will differ depending on the confidence interval, holding period or observation period.
• VaR indicates the maximum amount of unrealized profits or losses at the time of measurement.
However, calculated VaR may not always be realized in the future with a certain probability
because the assumptions, such as market movements, could vary during the holding period.
• VaR indicates the maximum value based on specific assumption. As such, it is imperative tokeep in mind that VaR may underestimate the potential losses when utilizing VaR as a risk
management measure.
			③ Liquidity risk management related to fund procurement
Long-term and stable funds such as fiscal loan funds, government-backed bonds, and FILP agency bonds areused to finance these operations and deposits are not accepted.
Cash flows are assessed and proper measures including establishing overdraft facility accounts with multiple
private sector financial institutions are taken to maintain daily cash flows for proper risk management.
			④ Derivative transactions
A protocol of internal checks with separate divisions executing transactions, assessing the effectiveness of hedges,
and conducting office management has been established for derivative transactions, and these transactions
are conducted according to derivatives-related regulations.
		(iv) Supplementary explanation concerning fair value of financial instruments
The fair value of financial instruments includes amounts based on market value and amounts that have been reasonably
estimated when no market value is available. Set valuation inputs are used for the calculation of this amount, and
if different valuation inputs are used the resulting amount could vary.
(b) Fair value of financial instruments
The carrying amount in the balance sheets as of March 31, 2013 and March 31, 2014 and the related fair value, anddifference is as follows. Note that unlisted securities whose fair value is extremely difficult to be determined are notincluded in the following chart (refer to Note 2).
As of March 31, 2013
Amount on balance sheet(1) Cash and due from banks(2) Receivables under resale agreements(3) Securities
Available-for-sale securities(4) Loans and bills discounted
Allowance for loan losses (*1)(5) Cash collateral paid for financial instruments
Total assets(1) Borrowings(2) Bonds payable(3) Cash collateral received for financial instruments
Total liabilities
Derivative transactions (*2)
Derivative transactions not qualifying for hedge accounting
Derivative transactions qualifying for hedge accounting
Total derivative transactions¥¥

837,986
284,902(In millions of yen)
Difference

Fair value¥

837,986
284,902¥——

22,002
10,555,128(133,585)
10,421,542
39,07011,605,503
7,234,598
2,215,962
105,240
9,555,800

22,002—

10,475,935
39,07011,659,896
7,336,897
2,312,996
105,240
9,755,134

54,392—54,392102,299
97,034—
199,334—
231,577
231,577—
231,577
231,577

—
—
—

¥

¥

JBIC Annual Report 2014

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Data

2
Financial
Statements

As of March 31, 2014
Amount on balance sheet

1. Statutory Financial Statements(1) Cash and due from banks(2) Receivables under resale agreements(3) Securities
Available-for-sale securities(4) Loans and bills discounted
Allowance for loan losses (*1)(5) Cash collateral paid for financial instruments
Total assets(1) Borrowings(2) Bonds payable(3) Cash collateral received for financial instruments
Total liabilities
Derivative transactions (*2)
Derivative transactions not qualifying for hedge accounting
Derivative transactions qualifying for hedge accounting
Total derivative transactions¥¥

723,189
202,733¥

723,189
202,733(5) Cash collateral paid for financial instruments
Total assets(1) Borrowings(2) Bonds payable(3) Cash collateral received for financial instruments
Total liabilities
Derivative transactions (*2)
Derivative transactions not qualifying for hedge accounting
Derivative transactions qualifying for hedge accounting
Total derivative transactions$——

40,129—12,558,905
102,890
13,627,848
8,488,478
2,770,588
63,14011,322,207

30,214—30,21480,77059,210—139,981—(230,505)(230,505)—(230,505)(230,505)

—
—
—

¥

Amount on balance sheet$¥

40,12912,655,401(126,709)
12,528,691
102,890
13,597,633
8,407,707
2,711,377
63,14011,182,225

As of March 31, 2014
(1) Cash and due from banks(2) Receivables under resale agreements(3) Securities
Available-for-sale securities(4) Loans and bills discounted
Allowance for loan losses (*1)

(In millions of yen)
Difference

Fair value

7,027
1,970

Fair value

$

7,027
1,970

¥

(In millions of U.S. dollars)
Difference

$

—
—

389
122,963(1,231)
121,7321,000
132,118
81,692
26,345
613
108,650389—

122,026
1,000
132,41282,477
26,920613
110,010

294
—
294
785
575
—
1,360

—
(2,240)(2,240)—(2,240)(2,240)

—
—
—

$

$

(*1)

General allowance for loan losses and allowance for loan losses, and the allowance for possible loan losses on specific overseas loans have been deducted fromloans.
(*2) Derivatives recorded in “other assets and other liabilities” are collectively displayed. The net values of assets and liabilities arising from derivative transactions
are displayed. The figures in parenthesis indicate net liabilities.

(Note 1) Valuation methodologies used for estimating fair values for financial instruments
Assets(1) Cash and due from banks
For Due from banks that do not mature or have a maturity under 3 months, the carrying amounts are used as fairvalue because the carrying amount approximates the fair value.
(2) Receivables under resale agreements
For securities acquired under resale agreements, the carrying amounts are used as fair value because the contractual
terms are short (within 3 months) and the carrying amount approximates the fair value.
(3) Securities
The fair value of “Available-for-sale securities” is based upon the prices that are indicated from the financial institutions
that JBIC transacts with.
(4) Loans and bills discounted
For loans with variable interest rates an amount calculated by the floating rate note method to reflect market interest
rates over the short term is used for fair value.
For loans with fixed interest, the total principal and interest is discounted by a risk free rate that incorporates thedefault ratio and coverage ratio to calculate fair value. However for obligations on bankrupt borrowers, substantiallybankrupt borrowers, and potentially bankrupt borrowers a provision for bad debt is calculated based on the expectedcollectable amount from the collateral or guarantee. Fair value approximates the amount on the balance sheets on
the closing date after a deduction has been made for the allowance for loan losses, so this amount is used for fairvalue.

120

JBIC Annual Report 2014

Data

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1. Statutory Financial Statements

Liabilities(1) Borrowings
Borrowings with variable interest rates reflect short-term market interest rates and the credit conditions of JBIC
have not changed significantly since borrowing. Therefore, the carrying amount is used as fair value because it
is considered that the carrying amount approximates the fair value. For borrowings with a fixed interest rate, in
principle, fair value is calculated by discounting the principal and interest of the borrowings by the risk free rate(the standard Japanese government bond rate) based on the set period of loan.
(2) Bonds payable
Market value is used as fair value of bonds.
(3) Cash collateral received for financial instruments
For cash collateral received for financial instruments, the carrying amount is used as fair value because the carrying
amount approximates the fair value.

Financial
Statements(5) Cash collateral paid for financial instruments
For cash collateral paid for financial instruments, the carrying amount is used as fair value because the carrying
amount approximates the fair value.

Derivative transactions
Derivative transactions are discussed under “Derivative transactions.”(Note 2) Financial instruments for which fair values are considered to be extremely difficult to be determined are as
follows. They are not included in “Assets, (3) Securities.”
Classification
March 31, 2013
(In millions of yen)

1) Unlisted stocks (subsidiaries and affiliates) (*1)2) Unlisted stocks (other than subsidiaries and affiliates) (*1)
3) Partnership investments (subsidiaries and affiliates) (*2)4) Partnership investments(other than subsidiaries and affiliates) (*2)
Total

¥

March 31, 2014
March 31, 2014
(In millions of yen) (In millions of U.S. dollars)—
22,59670,822¥

6,760
100,178

¥

¥

1,499
86,527
81,167
17,878187,072

$

15
841
789
173
1,818

$

(*1) Since unlisted stocks do not have quoted market prices available and their fair value is extremely difficult to be determined, fair values are not stated.
(*2) For partnership investments composed of unlisted stocks that do not have quoted market prices available and for which fair value is extremely difficult to be
determined, fair values are not stated.

(Note 3) Redemption schedule for receivables and redeemable securities with future redemption dates
March 31, 2013

(In millions of yen)
Due after
one year
but within
three years

Due within
one yearDue from banks (*1)
Receivables under resale agreements
Securities (*2)
Available-for-sale securities
Loans and bills discounted (*2)
Total

¥

837,986
284,9021,620
939,299¥ 2,063,809

¥

—
—

7,279
2,931,552¥ 2,938,832

Due after
three years
but within
five years¥——

12,9001,724,192¥ 1,737,092

Due after
five years
but withinseven years

¥

—
—

—
1,517,443¥ 1,517,443

Due after
seven years
but within
ten years

¥

—
—

—
1,704,365¥ 1,704,365

Due after
ten years

¥

—
—

—
1,569,549¥ 1,569,549(*1) Demand deposits contained within due from banks are stated as “Due within one year.”(*2) Within loans, the figure for claims against bankrupt borrowers, substantially bankrupt borrowers, and potentially bankrupt borrowers contains an amount of¥168,725 million that is not expected to be redeemed and not included in the table above.

March 31, 2014

(In millions of yen)
Due after
one year
but within
three years

Due within
one yearDue from banks (*1)
Receivables under resale agreements
Securities (*2)
Available-for-sale securities
Loans and bills discounted (*2)
Total

¥

723,189
202,733

1,781
1,801,513¥ 2,729,217¥——

11,0922,551,912¥ 2,563,004

Due after
three years
but within
five years¥——

18,8002,267,384¥ 2,286,184

Due after
five years
but withinseven years

¥

—
—

8,000
1,989,365¥ 1,997,365

Due after
seven years
but within
ten years

¥

—
—

2
2,020,247¥ 2,020,250

Due after
ten years

¥

—
—

—
1,853,015¥ 1,853,015

JBIC Annual Report 2014

121

Data

2
Financial
Statements

March 31, 2014

1. Statutory Financial Statements

Due after
one year
but within
three years

Due within
one yearDue from banks (*1)
Receivables under resale agreements
Securities (*2)
Available-for-sale securities
Loans and bills discounted (*2)
Total

$

$

7,027
1,970
17
17,504
26,518

$

$

—
—
108
24,79524,903Due after
three years
but within
five years

$

$

—
—
182
22,031
22,213(In millions of U.S. dollars)
Due after
seven years
but within
Due after
ten yearsten years

Due after
five years
but withinseven years

$

$

—
—
78
19,32919,407$$——0
19,62919,629$$———18,00418,004(*1) Demand deposits contained within due from banks are stated as “Due within one year.”(*2) Within loans, the figure for claims against bankrupt borrowers, substantially bankrupt borrowers, and potentially bankrupt borrowers contains an amount of¥171,962 million ($1,671 million) that is not expected to be redeemed and not included in the tables above.
(*3) The information about cash collateral paid for financial instruments is omitted since there is no fixed maturity date for repayments.

(Note 4) Redemption schedule for borrowings, bonds and other interest-bearing liabilities with future redemption dates
March 31, 2013

Borrowings
Bond payable
Total(In millions of yen)
Due within
one year

Due after
one year
but within
three years

Due after
three years
but within
five years

829,816
321,440¥ 1,151,256¥ 2,289,560
898,417¥ 3,187,977¥ 3,561,380
760,590¥ 4,321,970

Due within
one year

Due after
one year
but within
three years

Due after
three years
but within
five years

966,128
386,347¥ 1,352,475¥ 1,708,232
1,037,338¥ 2,745,570¥ 5,024,647
1,015,675¥ 6,040,322

Due within
one year

Due after
one year
but within
three years

Due after
three years
but within
five years¥

Due after
five years
but withinseven years¥¥

349,142
197,562546,704

Due after
seven years
but within
ten years¥¥

204,700
20,000224,700

March 31, 2014

Borrowings
Bond payable
Total

(*1)

¥
¥

—
20,00020,000(In millions of yen)¥

Due after
five years
but withinseven years¥¥

28,900152,806
181,706

Due after
seven years
but within
ten years¥¥

March 31, 2014

Borrowings
Bond payable
Total

Due after
ten years

$
$

9,387
3,754
13,141$$

16,598
10,07926,677$$

48,821
9,868
58,689

$

281
1,485
1,766

¥
¥

—
20,00020,000(In millions of U.S. dollars)
Due after
seven years
but within
Due after
ten yearsten years

Due after
five years
but withinseven years$

679,800
102,920
782,720

Due after
ten years

$
$

6,605
1,000
7,605

$
$

—
194
194

The information about cash collateral received for financial instruments is omitted since there is no fixed maturity date for repayments.

17. Market Value of Securities
The following tables contain information relating to negotiable certificates of deposit as well as “Other securities” that arepresented in the balance sheets.
(a) Trading securities
		Not applicable(b) Held-to-maturity debt securities with market value
		Not applicable

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JBIC Annual Report 2014

Data

2
Financial
Statements(c) Available-for-sale securities
March 31, 2013

Subtotal
Securities whose carrying
amount does not exceed theiracquisition cost

Carrying Amount

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

¥

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

Subtotal
Total

¥

—
—
—
—
18,205
18,205————
273,797273,797
292,002(In millions of yen)
Difference

Acquisition cost

¥

—
—
—
—
18,00018,000————273,800
273,800
291,800¥¥¥

March 31, 2014
Securities whose carrying amountexceeds their acquisition cost

Subtotal
Securities whose carrying
amount does not exceed theiracquisition cost

Type

Carrying Amount

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

¥

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

Subtotal
Total

¥

—
—
—
—
37,50237,502————
182,627
182,627
220,129

Securities whose carrying amountexceeds their acquisition cost

Subtotal
Securities whose carrying
amount does not exceed theiracquisition cost

Carrying Amount

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

$

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

Subtotal
Total

$

—
—
—
—
365
365
—
—
—
—
1,774
1,774
2,139

—
—
—
—
36,88136,881————
182,628
182,628
219,509¥

March 31, 2014
Type

(In millions of yen)
Difference

Acquisition cost

¥

—
—
—
—
205
205
—
—
—
—
(2)
(2)
202

1. Statutory Financial Statements

Securities whose carrying amountexceeds their acquisition cost

Type

¥

¥

—
—
—
—
620
620
—
—
—
—
(0)
(0)
619

(In millions of U.S. dollars)
Acquisition cost
Difference

$

$

—
—
—
—
359
359
—
—
—
—
1,774
1,774
2,133

$

$

—
—
—
—
6
6
—
—
—
—
(0)
(0)
6

(d) Held-to-maturity debt securities sold during the fiscal years ended March 31, 2013 and March 31, 2014
		Not applicable(e) Available-for-sale securities sold during the fiscal years ended March 31, 2013 and March 31, 2014
		Not applicable(f) Change in classification of securities
		Not applicable(g) Impairment of securities
		Not applicable

JBIC Annual Report 2014

123

Data

2
Financial
Statements
1. Statutory Financial Statements(h) Money held in trust		(i) Money held in trust for trading purposes			Not applicable		(ii) Money held in trust for holding-to-maturity purposes			Not applicable		(iii) Other money held in trust (other than investment and holding-to-maturity purposes)
			Not applicable(i) Net unrealized gains (losses) on available-for-sale securities are as follows;
Fiscal year ended March 31, 2013
Valuation difference
Available-for-sale securities (*)
Other money held in trust
Valuation difference on available-for-sale securities(*)(In millions of yen)¥

“Available-for-sale securities” includes foreign exchange translation differences in respect of available-for-sale securities whose fair value cannot be readily
determined.

Fiscal year ended March 31, 2014
Valuation difference
Available-for-sale securities (*)
Other money held in trust
Valuation difference on available-for-sale securities(*)(In millions of yen)

¥

5,472
5,472
—
5,472

“Available-for-sale securities” includes foreign exchange translation differences in respect of available-for-sale securities whose fair value cannot be readily
determined.

Fiscal year ended March 31, 2014
Valuation difference
Available-for-sale securities (*)
Other money held in trust
Valuation difference on available-for-sale securities
(*)

2,221
2,221
—
2,221

(In millions of U.S. dollars)

$

53
53
—
53

“Available-for-sale securities” includes foreign exchange translation differences in respect of available-for-sale securities whose fair value cannot be readily
determined.

18. Derivative transactions
Notes to derivative transactions in the fiscal years ended March 31, 2013 and March 31, 2014 are as follows;(a) Derivative transactions not qualifying for hedge accounting		(i) Interest rate-related transactions
			Not applicable		(ii) Currency-related transactions
			Not applicable		(iii) Equity-related transactions
			Not applicable		(iv) Bond-related transactions
			Not applicable		(v) Commodity-related transactions
			Not applicable		(vi) Credit derivative transactions
			Not applicable(b) Derivative transactions qualifying for hedge accounting
For derivative transactions qualifying for hedge accounting, contract value as of the settlement date or notional amountdefined in agreements, and fair value and its calculation method, by hedged item and by hedge accounting method, areas follows. Contract value does not indicate the market risk of the derivative transactions.

124

JBIC Annual Report 2014

Data

2
Financial
Statements		(i) Interest rate-related transactions
Fiscal year ended March 31, 2013
Type

Basic
Interest rate swap
accounting
methodMajor hedged items

Contract value¥ 1,705,469
592,416
58,504¥—¥ 1,556,724
590,036
58,504¥—Contract value

Contract value(Maturingafter one year)

Receive/fixed and pay/floating
Receive/floating and pay/fixed
Receive/floating and pay/floating
Total¥ 2,270,081
606,933
44,043¥—¥ 2,036,403
600,508
44,043¥—Contract value(In millions of U.S. dollars)
Contract value(Maturingafter one year)
Fair value$$

Fiscal year ended March 31, 2014
Hedge
accounting

Type

Basic
Interest rate swap
accounting
methodType

Major hedged items

Fair value

Major hedged items¥¥

42,953(29,642)
6
13,316Loans and bills discounted
Borrowings
Corporate bonds

Receive/fixed and pay/floating
Receive/floating and pay/fixed
Receive/floating and pay/floating
Total

			

¥

69,240(47,370)
69
21,940Loans and bills discounted
Borrowings
Corporate bonds

Fiscal year ended March 31, 2014

Basic
Interest rate swap
accounting
method¥(In millions of yen)

Receive/fixed and pay/floating
Receive/floating and pay/fixed
Receive/floating and pay/floating
Total

Hedge
accounting

Fair value

Loans and bills discounted
Borrowings
Corporate bonds

1. Statutory Financial Statements

Hedge
accounting(In millions of yen)Contract value(Maturingafter one year)$

22,057
5,897
428
—

$

19,786
5,835
428
—

$

$

417
(288)
0
129

(Note) Calculation of fair value is based on the discounted cash flows.

		(ii) Currency-related transactions
Fiscal year ended March 31, 2013
Hedge
accounting

Type(In millions of yen)

Major hedged items

Basic
Currency swap
accounting
methodLoans and bills discounted
Borrowings
Corporate bonds
Forward foreign exchange contracts Loans and bills discounted
Sell
Buy
Total

Contract value

Contract value(Maturingafter one year)¥ 4,149,728¥ 3,754,303

29
84
—

—
—
—

¥

¥

Fiscal year ended March 31, 2014
Hedge
accounting

Type

Basic
Currency swap
accounting
methodFair value¥

209,632¥0
4
209,636(In millions of yen)

Major hedged items

Loans and bills discounted
Borrowings
Corporate bonds
Forward foreign exchange contracts Loans and bills discounted
Sell
Buy
Total

Contract value

Contract value(Maturingafter one year)¥ 4,866,517¥ 4,217,463

1,635
79
—

—
—
—

¥

¥

Fair value¥(243,820)¥(2)0(243,821)

JBIC Annual Report 2014

125

Data

2
Financial
Statements

Fiscal year ended March 31, 2014

1. Statutory Financial Statements

Hedge
accounting

Type

Major hedged items

Basic
Currency swap
accounting
methodLoans and bills discounted
Borrowings
Corporate bonds
Forward foreign exchange contracts Loans and bills discounted
Sell
Buy
Total

Contract value(In millions of U.S. dollars)
Contract value(Maturingafter one year)
Fair value$

47,284$40,978

$

16
1
—

$

—
—
—

$

(2,369)$(0)0(2,369)Note 1. These are mainly accounted for using the deferred method of hedge accounting under “Accounting and
Auditing Treatment Relating to Adoption of Accounting Standard for Foreign Currency Transactions for
Banks” (JICPA Industry Audit Committee Report No.25).
Note 2. Calculation of fair value is based on the discounted cash flows.
		(iii) Equity-related transactions
			Not applicable		(iv) Bond-related transactions
			Not applicable
19. Retirement benefits
Fiscal year ended March 31, 2013
JBIC has a defined benefit pension plan comprising a welfare pension fund plan and a lump-sum severance indemnity plan.
(a) The funded status of the pension plans
March 31, 2013
(In millions of yen)

Disposition

Projected benefit obligation
Fair value of plan assets
Unfunded pension obligation
Unrecognized prior service costs
Actuarial unrecognized difference
Net amount recognized on the balance sheets
Prepaid pension cost
Provision for retirement benefits(A)(B)(C) = (A) + (B)(D)(E)(F) = (C) + (D) + (E)(G)(H) = (F) – (G)		¥(20,375)
4,780(15,595)——(15,595)—(15,595)(b) Component of pension cost
March 31, 2013
(In millions of yen)

Disposition

Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost accounted for as expense
Actuarial differences accounted for as expense
Other costs
Net pension cost

		

		

¥

554
192
(83)
—
2,388
—
3,051

(Note) Employee contributions to pension funds have been deducted from the service cost.

(c) Principal assumptions made		(i) Discount rate
March 31, 2013

Discount rate

		

1.1%

(ii) Expected rate of return on plan assets
March 31, 2013

Expected rate of return on plan assets		(iii) Method of attributing the projected benefits to periods of services
			Straight-line basis

126

JBIC Annual Report 2014

2.0%

Data

2
Financial
Statements

Fiscal year ended March 31, 2014(a) Overview of retirement benefit plans
JBIC has a defined benefit pension plan comprising a welfare pension fund plan and a lump-sum severance indemnity
plan. Although JBIC’s welfare pension is a multi-employer plan, the amount of the pension assets can be reasonably
calculated based on the ratio of the projected benefit obligations, and the related notes are included in the notes forthe defined benefit pension plan.
Under the welfare pension fund plan (funded type), pension or lump-sum payments are provided based on salaryand service period. Under the lump-sum severance indemnity plan (unfunded type), lump-sum payments are provided
as retirement benefit based on salary and service period.
Effective April 1, 2013, JBIC has been authorized by the Minister of Health, Labour and Welfare to be exempt fromthe obligations to pay future portions amounts in respect of the part of the employees’ pension fund it manages for thegovernment.

1. Statutory Financial Statements		(iv) Terms to amortize unrecognized prior service costs			Charged to expenses in the fiscal year of occurrence.
		(v) Terms to amortize actuarial unrecognized differences			
Charged to expenses in the fiscal year of occurrence.

(b) Defined benefit pension plan		(i) The changes in the projected benefit obligation during the fiscal year ended March 31, 2014 are as follows:
March 31, 2014
(In millions of yen)

Projected benefit obligation at the beginning of the fiscal year
Service cost
Interest cost
Actuarial losses
Retirement benefit paid
Prior service costs
Other
Projected benefit obligation at the end of the fiscal year		¥

20,375
461
213
917
(828)
(1,680)25
19,483

March 31, 2014
(In millions of U.S. dollars)				(Note) Employee contributions to pension funds have been deducted from the service cost.

		(ii) The changes in the plan assets during the fiscal year ended March 31, 2014 are as follows:
March 31, 2014
(In millions of yen)

Pension assets at the beginning of the fiscal year
Expected return on plan assets
Actuarial gains
Contribution by the company
Retirement benefit paid
Other
Pension assets at the end of the fiscal year

		

¥

4,780
95
561
166
(396)
25
5,231

$

198
4
2
9
(8)
(16)
0
189

March 31, 2014
(In millions of U.S. dollars)

		

$

46
1
5
2
(4)
1
51

(iii) Reconciliation between projected benefit obligation and plan assets as of March 31, 2014 and provision for retirement
benefits in the balance sheets
March 31, 2014
(In millions of yen)

Funded projected obligation
Fair value of plan assets
Unfunded Projected benefit obligation
Unfunded pension obligation
Unrecognized Actuarial gains or losses
Unrecognized prior service costs
Net amount of assets and liabilities in the balance sheets
Provision for retirement benefits
Net amount of assets and liabilities in the balance sheets		

¥14,438(5,231)
9,206
5,044
14,251——
14,251
14,251
14,251March 31, 2014
(In millions of U.S. dollars)

		

$

140
(51)
89
49
138
—
—
138
138
138

JBIC Annual Report 2014

127

Data

2
Financial
Statements		(iv) Component of retirement benefit expense
March 31, 2014
(In millions of yen)

1. Statutory Financial Statements

Service cost
Interest cost
Expected return on plans assets
Realized Actuarial loss
Amortization of prior service cost
Retirement benefit expense

		

¥

461
213
(95)
355
(1,680)(745)

March 31, 2014
(In millions of U.S. dollars)

		

$

4
2
(0)
3
(16)
(7)

Note 1. Employee contributions to pension funds have been deducted from the service cost.
2. As a result of having an approval on April 1, 2013 from the Minister of Health, Labour and Welfare for an
exemption from the obligations to pay benefits for future employee services related to the substitutional
portion of the pension fund, prior service costs of ¥927 million ($9 million) have been recognized as expenses
in the fiscal year ended March 31, 2014. In addition, due to the amendment to the regulations on retirement
allowance made effective December 20, 2013, prior service costs of ¥753 million ($7 million) have beenrecognized as expenses during the fiscal year ended March 31, 2014.
		(v) Plan assets
			① Major components of Plan assets				Percentages of components to the total are as follows;
Debt securities
StocksGeneral account of life insurance company
Cash and due from banks
Total

40%
45%
11%
4%
100%

			② Method of determining the long-term expected rate of return on plan assets
The long-term expected rate of return on plan assets is determined based on the current and projected pension
asset allocations as well as on the current and future rates of return expected from various assets that arecomponents of plan assets.
		(vi) Principal assumptions used			
Principal assumptions used in actuarial calculations for the fiscal year ended March 31, 2014
March 31, 2014

Discount rate

1.1%
March 31, 2014

Expected rate of return on plan assets

2.0%(c) Defined contribution plan
		
JBIC does not have a defined contribution plan.
20. Deferred tax accounting
JBIC does not apply deferred tax accounting since JBIC is a nontaxable entity classified in the Article 2, Paragraph 5 of the
Corporation Tax Act (Act No. 34, 1965).
21. Segment Information(a) Segment summary
The Reportable Segments of JBIC are components for which discrete financial information is available and whose
operating results are regularly reviewed by CEO and Board of Directors to assess performance.
JBIC conducts its operations by creating relevant accounts for each of the operations set forth in the JBIC Act andother laws and regulations and had defined its Reportable Segments to be JBIC Operations and Financial Operations for
Facilitating the Realignment of the United States Forces in Japan. However, as of September 30, 2012, JBIC terminatedthe Financial Operations for Facilitating the Realignment of the United States Forces in Japan.
Therefore, JBIC has changed to a single reportable segment comprised of loan, guarantee and equity participation
operations.
(b) Basis of calculation for segment information by reportable segments
The accounting policies of segment are substantially the same as those described in “Significant accounting policies.”

128

JBIC Annual Report 2014

Data

2
Financial
Statements

Segment profit is based on net income.

(In millions of yen)

Ordinary income
Ordinary income from outside customers
Inter-segment ordinary income
Total
Segment profit
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Interest income
Interest expenses
Extraordinary income
Extraordinary loss
Increase in property, plant and equipment,
and intangible assets

JBIC operations

Financial
operations forfacilitating
realignment of
United States
Forces in Japan¥¥

217,0354¥
217,040¥
63,37014,430,245
12,083,506

Reportable
Segment(Subtotal)

256
1
257
214
—
—

217,2915¥
217,297¥
63,585
14,430,245
12,083,506

1,018
167,947
119,510
1
—

0
—
—
—
—

803

—

¥
¥

¥

Adjustments andeliminations

¥

TOTAL

—
(5)
(5)
—
—
—

217,291—¥
217,291¥
63,585
14,430,245
12,083,506

1,018
167,947
119,510
1
—

—
—
—
—
—

1,018
167,947
119,510
1
—

803

—

803

¥
¥

¥

1. Statutory Financial Statements(c) Segment information by reportable segments.
		
Fiscal year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)

Note 1. Ordinary income is shown in place of sales for non-financial companies.
2. Adjustments for segment profits include ¥5 million of elimination of inter-segment transactions.
		

Fiscal year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)
Information has been omitted as JBIC has a single reportable segment comprised of loan, guarantee and equity participation
operations.

(d) Related information
		
Fiscal year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)
		(i) Information about services
JBIC classifies its operation into two operation accounts for financial reporting purposes. Refer to “21 (c). Segment
information by reportable segments” for information about Services.
		(ii) Information about geographical areas			① Ordinary income:(In millions of yen)
Japan

		

¥

40,852

Asia/Oceania

		

¥70,528Europe/Middle East/Africa

		¥54,300

North America/
Latin America

		

¥51,610

Total

		

¥

217,291

Note 1. Ordinary income is shown in place of Sales for non-financial companies.
2. Ordinary income is classified into “Japan”, “Asia/ Oceania”, “Europe/ Middle East/ Africa” and “North
America/ Latin America” depending on the customers’ location.
			② Property, plant and equipment
The information about property, plant and equipment is omitted since more than 90% of property, plant equipmenton the balance sheets are located in Japan.
		(iii) Information about major customers
The information about major customers is omitted since there are no transactions with a certain customer which
result in more than 10% of ordinary income on the Statement of Operation.
				

Fiscal year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)(i) Information about services
The information about services is omitted since ordinary income from outside customers in relation to the loan,
guarantee and equity participation operations is more than 90% of ordinary income on the Statement of Operation.

JBIC Annual Report 2014

129

Data

2
Financial
Statements		(ii) Information about geographical areas			① Ordinary income:

1. Statutory Financial Statements(In millions of yen)
Japan

		

¥

42,639Asia/Oceania

		

¥74,722Europe/Middle East/Africa

		

¥61,188

North America/
Latin America

		

¥47,549

Total

		

¥

226,100(In millions of U.S. dollars)
Japan

		

$

414

Asia/Oceania

		

$

726

Europe/Middle East/Africa

		

$

595

North America/
Latin America

		

$

462

Total

		

$

2,197

Note 1. Ordinary income is shown in place of Sales for non-financial companies.
2. Ordinary income is classified into “Japan”, “Asia/ Oceania”, “Europe/ Middle East/ Africa” and “North
America/ Latin America” depending on the customers’ location.
			② Property, plant and equipment
The information about property, plant and equipment is omitted since more than 90% of property, plant equipmenton the balance sheets are located in Japan.
		(iii) Information about major customers
The information about major customers is omitted since there are no transactions with a certain customer which
result in more than 10% of ordinary income on the Statement of Operation.
			(i) Information about impairment loss of property, plant and equipment in Reportable Segments
				Not applicable			(ii) Information about the amortization and balance of goodwill in Reportable Segments
				Not applicable(e) Information about the gains from recognition of negative goodwill in Reportable Segments		Not applicable
22. Profit and loss on equity method(a) Affiliates
March 31, 2013
(In millions of yen)

Investment in affiliates		¥
Investment in affiliates (equity method)
Profit of Investment in affiliates (equity method)(b) Special purpose entities
		Not applicable

130

JBIC Annual Report 2014

70,822 		¥70,822—

March 31, 2014
(In millions of yen)March 31, 2014
(In millions of U.S. dollars)

82,666 		$82,666
—

803
803
—

Data

2
Financial
Statements

Fiscal year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)
Corporate
nameLocation

Principal
Ministry
Chiyoda-ku,
shareholder of Finance Tokyo(Ministerof Finance)(Note 1)

Capital—Business

Ratio to
Total
VotingRights (%)

Administra- 100tion for(Direct)
policy based
financing

Relationwithrelatedparties

Receiptof funds,
etc.

Transactions

Amounts oftransactions(Note 5)

Underwritingof capitalincrease(Note 2)¥

Receipt offunds(Note 3)
Repaymentof borrowing
Payment ofinterest on
borrowings
Guarantee
for corporate
bonds(Note 4)2,144,992

69,000(In millions of yen)
Balance asof March 31,
2013
Items
(Note 5)—¥—

Borrowings

7,234,598

Accruedexpenses

14,675

1. Statutory Financial Statements

23. Related-party transactions
Related party transactions in the fiscal years ended March 31, 2013 and March 31, 2014 are as follows;(a) Transactions with parent company and major shareholder companies

645,564
63,723
1,526,051——

Note 1. Transactions with ministries and agencies other than the Ministry of Finance are as follows;		
Ministry of Defense: Receipts from the national budget (subsidy from the government) ¥ 256 million
2. The underwriting of capital increase represents the increase in capital through shareholder allocation by JBIC
at an allocation amount of ¥1 per share.
3. Receipt of funds represents borrowings from the FILP special account and foreign exchange funds special
account. FILP interest rates are applied under the FILP agreement, while the interest rate under the respective
agreements with foreign exchange funds special account is applied to the borrowing from foreign exchange
funds.
4. No guarantee fee has been paid for the guarantee of bonds.
5. Figures in the table above do not include consumption taxes.
Fiscal year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)
Corporate
nameLocation

Principal
Ministry
Chiyoda-ku,
shareholder of Finance Tokyo(Minister ofFinance)

Capital—Business

Ratio to
Total
VotingRights (%)

Administra- 100tion for(Direct)
policy based
financing

Relationwithrelatedparties

Transactions

Receiptof funds,
etc.

Receiptof funds(Note 1)
Repaymentof borrowing
Payment ofinterest on
borrowings
Guarantee
for corporate
bonds(Note 2)

Amounts oftransactions(Note 3)(In millions of yen)
Balance asof March 31,
2014
Items
(Note 3)

¥ 4,999,140

Borrowings

4,226,036—

57,1872,141,442

Accruedexpenses—¥ 8,407,707—
15,546—JBIC Annual Report 2014

131

Data

2
Financial
Statements

Fiscal year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)

1. Statutory Financial Statements

Corporate
nameLocation

CapitalPrincipal
Ministry
Chiyoda-ku,
shareholder of Finance Tokyo(Minister ofFinance)—Business

Ratio to
Total
VotingRights (%)

Administra- 100tion for(Direct)
policy based
financing

Relationwithrelatedparties

Transactions

Receiptof funds,
etc.

Receiptof funds(Note 1)

Amounts oftransactions(Note 3)(In millions of U.S. dollars)
Balance asof March 31,
2014(Note 3)
Items

48,573

Borrowings

Repaymentof borrowing

41,061——

Payment ofinterest on
borrowings

556

Accruedexpenses

151

—

—

$

Guarantee
for corporate
bonds(Note 2)20,807$

81,692

Note 1. Receipt of funds represents borrowings from the FILP special account and foreign exchange funds special
account. FILP interest rates are applied under the FILP agreement, while the interest rate under the respective
agreements with foreign exchange funds special account is applied to the borrowing from foreign exchange
funds.
2. No guarantee fee has been paid for the guarantee of bonds.
3. Figures in the table above do not include consumption taxes.
(b) Transactions with fellow subsidiaries and affiliates’ subsidiaries
Fiscal year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)
Corporate
nameCompaniesthat had the
majority of
their voting
rights heldby principal
shareholders

Japan
International
Cooperation
AgencyJapan
Finance
Corporation(Note 3)

Location

Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo

CapitalBusiness

Ratio to
Total
VotingRights (%)¥ 7,782,076 Official
Nonedevelopment
assistance
3,455,015 Finance

None

Relationwithrelatedparties

Transactions

Joint
obligorJoint
obligations

Joint
obligorJoint
obligations

Amounts oftransactions¥(In millions of yen)
Balance
as ofMarch 31,
Items
2013

990,145(Note 1, 4)——

1,063,475(Note 2, 4)——Note 1. JBIC assumed the obligations of the JBIC bonds in accordance with Article 12 (1) of the Supplementary Provisionsof the JBIC Act, and the Japan International Cooperation Agency (“JICA”) is jointly responsible for the obligationsof these bonds in accordance with Article 4 (1) of Supplementary Provisions of the Japan International Cooperation
Agency Act. Pursuant to Article 4 (2) hereof, all of JICA assets are pledged as general collateral for these joint
obligations.
2. JBIC assumed the obligations of the JFC bonds in accordance with Article 12 (1) of Supplementary Provisionsof the JBIC Act, and JFC is jointly responsible for the obligations of these bonds in accordance with Article46-2 (1) of Supplementary Provisions of the JFC Act. Pursuant to Article 46-2 (2) hereof, all of JFC’s assets
are pledged as general collateral for these joint obligations.
3. JBIC is jointly responsible for the obligations of the JFC bonds of ¥ 1,085,000 million in accordance with Article
17 (1) (ii) of Supplementary Provisions of the JBIC Act. In accordance with Article 17 (2) hereof, all of JBIC’s
assets are all pledged as general collateral for these joint obligations.
4. In relation to these joint obligations, no transactions are recognized in the statement of operations.

Fiscal year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)
Corporate
nameCompaniesthat had the
majority of
their voting
rights heldby principal
shareholders

132

JBIC Annual Report 2014

Japan
International
Cooperation
AgencyJapan
Finance
Corporation(Note 3)

Location

Chiyoda-ku,
Tokyo
Chiyoda-ku,
Tokyo

CapitalBusiness

Ratio to
Total
VotingRights (%)¥ 7,832,098 Official
Nonedevelopment
assistance
3,709,538 Finance

None

Relationwithrelatedparties

Transactions

Joint
obligorJoint
obligations

Joint
obligorJoint
obligations

Amounts oftransactions¥(In millions of yen)
Balance
as ofMarch 31,
Items
2014

674,595(Note 1, 4)——

1,147,740(Note 2, 4)

—

—

Data

2

Companiesthat had the
majority of
their voting
rights heldby principal
shareholders

Japan
International
Cooperation
AgencyJapan
Finance
Corporation(Note 3)

Location

CapitalChiyoda-ku,
Tokyo$ 76,099

Chiyoda-ku,
Tokyo

36,043(In millions of U.S. dollars)
Relationwithrelatedparties

Transactions

Amounts oftransactions

Official
Nonedevelopment
assistanceJointobligorJoint
obligations$
6,555(Note 1, 4)——

FinanceJointobligorJoint
obligations

11,152(Note 2, 4)——

Business

None

Items

Balance
as ofMarch 31,2014

1. Statutory Financial Statements

Corporate
nameBusiness
Ratio to
Total
VotingRights (%)

Financial
Statements

Fiscal year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)

Note 1. JBIC assumed the obligations of the JBIC bonds in accordance with Article 12 (1) of the Supplementary Provisionsof the JBIC Act, and the Japan International Cooperation Agency (“JICA”) is jointly responsible for the obligationsof these bonds in accordance with Article 4 (1) of Supplementary Provisions of the Japan International Cooperation
Agency Act. Pursuant to Article 4 (2) hereof, all of JICA assets are pledged as general collateral for these joint
obligations.
2. JBIC assumed the obligations of the JFC bonds in accordance with Article 12 (1) of Supplementary Provisionsof the JBIC Act, and JFC is jointly responsible for the obligations of these bonds in accordance with Article46-2 (1) of Supplementary Provisions of the JFC Act. Pursuant to Article 46-2 (2) hereof, all of JFC’s assets
are pledged as general collateral for these joint obligations.
3. JBIC is jointly responsible for the obligations of the JFC bonds of ¥780,000 million ($7,579 million) in accordancewith Article 17 (1) (ii) of Supplementary Provisions of the JBIC Act. In accordance with Article 17 (2) hereof, allof JBIC’s assets are all pledged as general collateral for these joint obligations.
4. In relation to these joint obligations, no transactions are recognized in the statement of operations.
24. Amounts per share
Amounts per share as of the fiscal years ended March 31, 2013 and March 31, 2014 are calculated as follows:
March 31, 2013
(In yen)

Net Assets per share of common stock
Net income per share of common stock		¥

1.72 		¥0.04

March 31, 2014
(In yen)March 31, 2014
(In U.S. dollars)

1.72 		$
0.06

0.02
0.00

Note 1. Net income per share of common stock is based on the following information.
		
Diluted net profit per share of common stock is not presented since there are no diluted stocks.
March 31, 2013
(In millions of yen)

Net income
Amount not attribute to common stock
Net income related to common stock
Average outstanding shares of common stock(during the period)

March 31, 2014
(In millions of yen)March 31, 2014
(In millions of U.S. dollars)		¥

63,585 		¥91,366 		$——63,58591,366
1,291,756,164
1,360,000,000
thousands of shares
thousands of shares

888
—
888

Note 2. Net assets per share of common stock is based on the following information.
March 31, 2013
(In millions of yen)March 31, 2014
(In millions of yen)March 31, 2014
(In millions of U.S. dollars)

Net Assets
		¥2,346,738 		¥
2,341,312 		$Deductions from net assets——
Net Assets related to common stock
2,346,738
2,341,312
Year-end outstanding shares of common stock
1,360,000,000
1,360,000,000
on which net assets per share was calculated
thousands of shares
thousands of shares

22,749—22,749JBIC Annual Report 2014

133

Data

2
Financial
Statements
1. Statutory Financial Statements

25. Subsequent Events
JBIC resolved at the Board of Director’s meeting held on June 3, 2014 to issue new share on June 27, 2014 through an allotment
to the Ministry of Finance (Minister of Finance), who is the underwriter.
Overview of issuance of new shares:
Type and number of shares to be issued
Issuing priceTotal amount of issuance
Issue price to be transferred to capital
Issue price to be transferred to regal capital surplus
Total issue amount to be transferred to capital
Total issue amount to be transferred to regal capital surplus
Payment due datePurpose31,000,000,000 shares of common stock¥1 per share ($0)¥31,000,000,000 ($301 million)¥1 per share ($0)¥0 per share ($0)¥31,000,000,000 ($301 million)¥0 ($0)June 27, 2014
Funds to fully deploy the facility for promoting trades with Africa

26. Fixed assets
Fixed assets as of March 31, 2014 are as follows;(In millions of yen)Class of asset

Property, plant and equipment
Buildings
Land
Lease assets
Construction in progress
Other
Total property, plant and equipment
Intangible assets
SoftwareLease assets
Total intangible assets¥

Class of asset

Balance atthe beginningof current
period

¥

¥
¥

3,356
24,69454
5403
28,515
1,954
107
2,061

Decreaseduringthe current
periodIncreaseduringthe current
periodBalance atthe beginningof current
period

¥

¥
¥
¥

207
—
4
296
562
1,071
1,039
—
1,039

¥

¥
¥
¥

9
—
14
302
3
329
15
107
122

Balance atthe end ofcurrent period

Accumulated
depreciation

Depreciation

¥

¥

¥

¥
¥
¥

3,554
24,69444—962
29,256
2,978
—
2,978

¥
¥
¥

377
—
13
—
307
698
1,416
—
1,416

¥
¥
¥

197
—
11
—
206
414
818
11
830

Net fixed
assets

¥

¥
¥
¥

3,176
24,69431—
655
28,558
1,561
—
1,561

(In millions of U.S. dollars)

Property, plant and equipment
Buildings
Land
Lease assets
Construction in progress
Other
Total property, plant and equipment
Intangible assets
SoftwareLease assets
Total intangible assets

134

JBIC Annual Report 2014

$

$
$
$

33
240
0
0
4
277
19
1
20

Decreaseduringthe current
periodIncreaseduringthe current
period

$

$
$
$

2
—
0
3
5
10
10
—
10

$

$
$
$

0
—
0
3
0
3
0
1
1

Balance atthe end ofcurrent period

Accumulated
depreciation

Depreciation

$

$

$

$
$
$

35
240
0
—
9
284
29
—
29

$
$
$

4
—
0
—
3
7
14
—
14

$
$
$

2
—
0
—
2
4
8
0
8

Net fixed
assets

$

$
$
$

31
240
0
—
6
277
15
—
15

Data

2
Financial
Statements

27. Bonds payable
Major components of bonds payable as of March 31, 2014 are as follows;
Date of issuance

Balance at the beginning ofcurrent period

Government
December 2,
guaranteed JBIC bonds 2003 –6th–8th, 13th, 17th
June 18, 2008¥
399,928(USD 2,648,972,000)(EUR 1,249,006,000)

Government
guaranteed JFC (JBIC)
foreign bonds
3rd, 5–9th
Government
guaranteed JBIC
foreign bonds 1st–7th

June 2, 2010 –February 7,
2012

892,323(USD 9,487,752,000)

July 19, 2012 –March 6, 2014

233,799(USD 1,993,929,000)(CAD 499,791,000)

JBIC FILP Agency
Bonds 10th, 12th,
13th, 16th, 18th, 19th,
21st–23rd, 25th, 27th,
29th, 30th
JFC FILP Agency
Bonds 3rd, 7th, 12th,
17th

February 6,
2004 –
May 29, 2008

519,920

October 29,
2009 –
May 9, 2011

169,990

Total

—

¥

2,215,962

Balance at the end ofcurrent period

Interest
rate (%)

Collateral

Maturity date

224,533[157,671](USD 1,149,576,000)[USD 499,920,000](EUR 749,871,000)[EUR 749,871,000]
976,878[128,591](USD 9,491,631,000)[USD 1,249,435,000]
940,029(USD 7,975,922,000)(CAD 499,833,000)(GBP 423,666,000)
399,943[49,997]

4.250~
5.250

Generalcollateral

June 18,
2013 –March 23,2016

*11.875~
2.875

Generalcollateral*2

0.596~
3.375

Generalcollateral

February 2,2015 –
February 7,
2019
July 19, 2017 –July 31, 2023

1.340~
2.090

Generalcollateral

December 20,
2013 –
December 19,
2025

*1

169,992[50,000]

0.421~
1.430

Generalcollateral*2

2,711,377—

December 19,
2014 –
September 20,
2019—

Balance at the end ofcurrent period

Interest
rate (%)

Collateral

Maturity date

2,182
[1,532](USD 1,149,576,000)[USD 499,920,000](EUR 749,871,000)[EUR 749,871,000]
9,492[1,249](USD 9,491,631,000)[USD 1,249,435,000]
9,134(USD 7,975,922,000)(CAD 499,833,000)(GBP 423,666,000)
3,886
[486]

4.250~
5.250

Generalcollateral

June 18,
2013 –March 23,2016

*11.875~
2.875

Generalcollateral*2

0.596~
3.375

Generalcollateral

February 2,2015 –
February 7,
2019
July 19, 2017 –July 31, 2023

1.340~
2.090

Generalcollateral

*1

1,651
[486]

0.421~
1.430

Generalcollateral

26,345—

December 20,
2013 –
December 19,
2025
December 19,
2014 –
September 20,
2019
—

¥

¥

—

Remarks

1. Statutory Financial Statements(In millions of yen)
Description of bonds
payable—(In millions of U.S. dollars)
Description of bonds
payableDate of issuance

Balance at the beginning ofcurrent period

Government
December 2,
guaranteed JBIC bonds 2003 –6th–8th, 13th, 17th
June 18, 2008$
3,886
(USD 2,648,972,000)(EUR 1,249,006,000)

Government
guaranteed JFC (JBIC)
foreign bonds
3rd, 5–9th
Government
guaranteed JBIC
foreign bonds 1st–7th

June 2, 2010 –February 7,
2012

8,670
(USD 9,487,752,000)

July 19, 2012 –March 6, 2014

2,272
(USD 1,993,929,000)(CAD 499,791,000)

JBIC bonds 10th, 12th,
13th, 16th, 18th, 19th,
21st–23rd, 25th, 27th,
29th, 30th
JFC corporate bonds
3rd, 7th, 12th, 17th

February 6,
2004 –
May 29, 2008

5,052

October 29,
2009 –
May 9, 2011

1,651

Total

—

$

21,531$$—

Remarks*2—

Note 1. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
2. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
3. JBIC assumed the obligations in respect of the government guaranteed JBIC bonds and the JBIC bonds (Note 1) which
had been issued by JBIC before JFC was established, and JBIC and JICA are jointly responsible for these obligations inaccordance with the JBIC Act.
			JBIC also assumed from JFC the obligations concerning the government guaranteed JFC (JBIC) foreign bonds andthe JFC corporate bonds (Note 2), and JBIC and JFC are now jointly responsible for these obligations pursuant to the
JBIC Act.

JBIC Annual Report 2014

135

Data

2
Financial
Statements

4. The redemption schedule of bond payable for each of the next five years as of March 31, 2014 is as follows:

1. Statutory Financial Statements

After 1 year but
within 2 years

Within 1 year

Amount¥386,347

¥

$

3,754

¥

After 1 year but
within 2 years

Within 1 year

Amount

575,658

After 2 year but
within 3 years

$

5,593

461,680¥

352,425

4,486¥

663,250(In millions of U.S. dollars)
After 3 year but
After 4 year but
within 4 years
within 5 years

After 2 year but
within 3 years$(In millions of yen)
After 4 year but
within 5 years

After 3 year but
within 4 years

$

3,424

$

6,444

28. Borrowings
Borrowings as of March 31, 2014 are as follows;
Balance at the beginningof current period(In millions of yen)

Borrowed money¥

7,234,598

Borrowings
Lease obligation(Due within one year)
Lease obligation(Due after one year)
Other interest-bearing liabilities
Cash collateral received forfinancial instruments

Balance at the endof current period(In millions of yen)¥

8,407,707

Balance at the endof current period(In millions of U.S. dollars)$

Averageinterest rate(%)

Due date ofpayment

81,692

0.62

7,234,598

8,407,707

81,6920.62—
April 2014 –November 2023

23

10

0

—

—

35
105,240

27
63,140

0
613

—
0.04

March 2018—

105,240

63,140

613

0.04

—

Note 1. Average interest rates represent the weighted-average interest rates of debts calculated from the interest rates andbalances of debt outstanding as at the end of the current period.
2. As for the lease obligation, there is no average lease rate since the short-cut method is applied for these transactions.
3. There is no fixed maturity date for the repayment of cash collateral received for financial instruments.
4. Borrowed money and lease obligation maturities for the next five years as of March 31, 2014 are as follows;
After 1 year but
within 2 years

Within 1 year

Borrowings
Lease obligations¥

966,128
10¥136

JBIC Annual Report 2014

$

9,387
0

¥

After 1 year but
within 2 years

Within 1 year

Borrowings
Lease obligations

1,027,076
10

After 2 year but
within 3 years

$

9,979
0

681,156
10

¥

6,618
0

1,047,388
6¥

3,977,258—(In millions of U.S. dollars)
After 3 year but
After 4 year but
within 4 years
within 5 years

After 2 year but
within 3 years$(In millions of yen)
After 4 year but
within 5 years

After 3 year but
within 4 years$

10,1770$38,644—

Data

2
Financial
Statements

29. Reserves
Reserves as of March 31, 2014 are as follows;

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses
Allowance for possible losses on specific overseas loans
Provision for bonuses
Provision for directors’ bonuses
Provision for directors’ retirement benefits
Total

¥

¥

138,891
32,61286,387
19,891445
5
29139,372

Increase during
the fiscal year¥¥

Balance atthe beginning ofcurrent period

Allowance for loan losses
General allowance for loan losses
Specific allowance for loan losses
Allowance for possible losses on specific overseas loans
Provision for bonuses
Provision for directors’ bonuses
Provision for directors’ retirement benefits
Total

Note
		
		
		

$

$

1,350
317
839
194
4
0
0
1,354

42,58439,616
—
2,968
483
5
6
43,080

Increase during
the fiscal year

$

$

413
385
—
28
5
0
0
418

Decrease during
the fiscal year(use for purpose)

Decrease during
the fiscal year
(others)(In millions of yen)
Balance atthe end ofcurrent period

¥

¥

¥

¥

—
—
—
—
445
5
15
466

¥

52,59032,612
86
19,891———
52,590¥128,885
39,61686,300
2,968
483
5
20
129,395

Decrease during
the fiscal year(use for purpose)(In millions of U.S. dollars)
Decrease during
Balance at
the fiscal year
the end of(others)
current period

$

$

$

—
—
—
—
4
0
0
4

$

511
317
0
194
—
—
—
511

$

$

1. Statutory Financial Statements

Balance atthe beginning ofcurrent period

1,252
385
839
28
5
0
0
1,257

The main factors in the decrease during the fiscal year in each of the following reserves is as follows:
General allowance for possible loan losses: Decrease is due to reversal
Specific allowance for possible loan losses: Decrease is due to collection, etc.
Allowance for possible losses on specific overseas loans: Decrease is due to reversal

30. Asset Retirement Obligation
Not applicable
31. Components of major assets and liabilities
Components of major assets and liabilities as of March 31, 2014 are as follows:(a) Assets:		(i) Due from banks:			Deposits with Bank of Japan (¥42,366 million ($412 million)) and other banks (¥680,822 million ($6,616 million))
		(ii) Other securities:			
Foreign securities (¥227,201 million ($2,208 million))
		(iii) Prepaid expenses:
			
General and administrative expenses (¥317 million ($3 million))
		(iv) Accrued income:			
Accrued interest on loans (¥34,737 million ($338 million)), and others
		(v) Other:			
Guarantees other (¥139 million ($1 million)) and suspense payments (¥131 million ($1 million))(b) Liabilities
		(i) Accrued expenses:
Accrued interest on borrowings and rediscounts (¥15,546 million ($151 million)), accrued interest on bonds (¥13,167
million ($128 million)), and others
		(ii) Unearned revenue:			Guarantee commission (¥51,975 million ($505 million)), and others
		(iii) Other liabilities
			
Suspense receipts (¥170 million ($2 million)), and others

JBIC Annual Report 2014

137

Data

2
Financial
Statements

2. Composition of Liabilities and Net Assets(Unit: millions of yen, %)March 31, 2013

March 31, 2014

Amount% (Note)Amount% (Note)2. Composition of Liabilities and Net Assets
3. The Average Balance of Interest-earning Assets and Interest-bearing Liabilities, Interest and Earning Yields

12,083,506

83.7

14,004,734

85.7

Borrowed Money

7,234,598

50.1

8,407,707

51.4

Bonds Payable

2,215,962

15.4

2,711,377

16.6

Acceptances and Guarantees

14.8

Liabilities

2,400,699

16.6

2,422,658

Other

232,2471.6

462,990

2.8

Net Assets

2,346,738

16.3

2,341,312

14.3

1,360,000

9.4

1,360,000

8.3

851,6855.9

911,366

5.6

2,221

0.0

5,472

0.0

Capital Stock
Retained Earnings
Valuation Difference on Available-for-sale Securities

132,8310.9

64,4720.4

14,430,245

100

16,346,047

100

Deferred Gains or Losses on Hedges
Total Liabilities and Net Assets(Note) Ratio to Liabilities and Net Assets added.

(Information on the Capital Adequacy Ratios)
Although the Banking Act does not apply to JBIC, the capital adequacy ratios which are calculated in accordance with Basel II framework (the standardized approach/International
Financial Reporting Standards) are set in the table below.
(Unit: millions of yen)Core Capital (Tier I)(A)2,231,156

Supplementary Capital (Tier II)(B)

39,616

Exclusion(C)─

Total Capital (A)+(B)−(C)(D)

2,270,772

Risk Assets, etc.

(E)12,632,451

Total Capital Ratio (D)/(E)

17.98%

3. The Average Balance of Interest-earning Assets andInterest-bearing Liabilities, Interest and Earning Yields(Unit: millions of yen, %)Fiscal Year Ended March 31, 2013
Average Balance

Interest-earning Assets
Loans and Bills Discounted

138Interest

Fiscal Year Ended March 31, 2014

Earning Yields

Average Balance

9,908,559

167,947

1.69

13,126,752

Interest

181,143

Earning Yields

1.38

8,630,420

132,408

1.53

11,864,173

149,769

1.26

Due from Banks

461,807

1,232

0.27

640,483

1,623

0.25

Interest-bearing Liabilities

8,384,335

119,510

1.43

10,731,675

115,677

1.08

Borrowed Money

5,874,376

63,7971.09

8,161,468

57,1870.70

Bonds Payable

2,222,932

55,4762.50

2,487,554

58,4302.35

JBIC Annual Report 2014

Data

4. Breakdown of Operating Expenses

2
Fiscal Year Ended March 31, 2014

4,685

4,763

Expenses for Retirement Benefits

3,051

(745)

Welfare Benefits

545

639

Amortization of Property and Equipment

1,018

1,245

Leasing on Land, Buildings and Machinery

184

163

Building Maintenance

229

77

Supplies

202

328

Utilities

94

107

1,270

1,297

Communications

92

109

Advertising Expenses

32Fees, Donations and Social Expenses

14

13

Traveling Expenses

Taxes

298

313

Other

5,859

6,636

Total

17,551

14,952

5. Balance of Due from Banks,

Receivables under Resale Agreements and Securities—Application of Surplus Funds

4. Breakdown of Operating Expenses
5. Balance of Due from Banks, Receivables under Resale Agreements and Securities—Application of Surplus Funds

Salaries and Other Compensations

Financial
Statements(Unit: millions of yen)

Fiscal Year Ended March 31, 2013

(Unit: millions of yen)March 31, 2013

March 31, 2014

Due from Banks in Japanese Yen

310,000

180,000

Due from Banks in Foreign Currencies

425,707437,086

Receivables under Resale Agreements

284,902202,733──Securities

JBIC Annual Report 2014

139

Data

2
Financial
Statements

6. Information on Derivative Transactions

6. Information on Derivative Transactions(1) Basic Policy for Derivative Transactions
JBIC engages in derivatives transactions exclusively for the
purpose of hedging exchange rate and interest rate risks.

(4) Measures to Address These Risks
Counterparty Credit Risk
JBIC constantly monitors the market value of a derivativein making transaction with each counterparty, credit risk
exposure to it and its creditworthiness. Such information isthen used to assess the appropriateness of making transaction
with it.
Market Risk
JBIC utilizes derivatives transactions exclusively for the
purpose of hedging. Therefore, the market risk on derivatives
transactions and the risk on hedged (lending or funding)transactions, in principle, offset each other.

(2) Transactions
Derivatives transactions of JBIC include interest rate andcurrency swaps and forward exchange contracts. The following
table gives a summary of these transactions.
(3) Risks Involved in Derivatives Transactions
Derivatives transactions involve the following risks.
Counterparty Credit Risk
The potential loss from the failure of a counterparty to perform
its obligations in accordance with the terms and conditionsof the contract governing transactions due to bankruptcy orits deteriorating business performance.
Market Risk
The potential loss from changes in the market value of financial
products due to fluctuations in interest rates or exchange
rates in the market.

(As of March 31, 2014; 100 millions of yen)Contract Amounts /Notional Amounts

Credit Risk Amounts

Market Value

Interest Rate Swaps

29,621

708

133

Currency Swaps(2,438)48,665

4,324

Forward Exchange Contracts

17

0

0

Other Derivatives

─

─

─

(3,026)

Credit Risk Reductions through Netting
Total

78,3042,006(2,305)(Note) “The credit risk amounts” are calculated under Uniform International Standards in accordance with the Banking Act of Japan and the related regulations.

140

JBIC Annual Report 2014

Data

7. Yield / Interest Rate

2

0.27

0.30

Yields on Interest-earning Assets (A)

1.70

1.38

Costs of Interest-bearing Liabilities (B)

1.43

1.08

(A)−(B)

7. Yield / Interest Rate

Fiscal Year Ended March 31, 2014

8. Loans Outstanding per Employee(Note) Yields on Interest-earning Assets = Interest / Average Balance of Interest-earning Assets
		
Costs of Interest-bearing Liabilities = Interest Expenses / Average Balance of Interest-bearing Liabilities
Cf. Interest = Interest on Loans and Discounts + Interest on Securities + Interest on Receivables under Resale Agreements + Interest on Deposits with Banks+ Interest on interest swaps + Other interest income
Average Balance of Interest-earning Assets = Loans and Bills Discounted + Securities + Receivables under Resale Agreements+ Cash Equivalents (excluding current account deposit) + Cash collateral paid for financial instruments
Interest Expenses = Interest on Borrowings and Rediscounts + Interest on Bonds + Interest on interest swaps + Other interest expenses
Average Balance of Interest-bearing Liabilities = Borrowed Money + Bonds Payable + Cash collateral received for financial instruments(Unit: millions of yen)March 31, 2014

19,692

23,923

9. Loans Outstanding by Industry

8. Loans Outstanding per Employee
March 31, 2013

Financial
Statements(Unit: %)Fiscal Year Ended March 31, 2013

9. Loans Outstanding by Industry(Unit: millions of yen)

Industry

March 31, 2013
Number of Loans

March 31, 2014

Balance

Number of Loans

Balance

Manufacturing

91

297,48790

324,494

Mining and Quarrying of Stone and Gravel10

280,8769314,828

Construction

2

2,628

2

1,911

Electricity, Gas, Heat Supply, and Water

5

327,458

6

357,931

Information and Communications

1

1,400

2

221,000

Transport and Postal Services

541,636

5

32,537Wholesale Trade

19

857,52517

877,287

Finance and Insurance

16

1,901,498

20

2,338,289

7

45,3003

197,512

Overseas Yen Loan and Domestic Loans Transferred Overseas

450

6,807,548

484

7,989,608

Total, Including Others

606

10,563,360

638

12,655,401

Loans Outstanding to Small and Medium-sized Enterprises

72

10,447102

15,847Loans Outstanding to Mid-tier Enterprises

60

20,52462

28,876

Goods Rental and Leasing(Note) In this table, small and medium-sized enterprises are defined as domestic corporations with the capital of ¥300 million or less or corporations and individuals having 300 orless employees on the regular pay roll.
		Mid-tier enterprises are defined as domestic corporations with the capital of ¥1 billion or less (excluding small and medium-sized enterprises).

JBIC Annual Report 2014

141

Data

2
Financial
Statements

10. Write-off of Loans(Unit: millions of yen)

Fiscal Year Ended March 31, 2013

Fiscal Year Ended March 31, 2014─

─

10. Write-off of Loans
11. Assets in Major Foreign Currencies

11. Assets in Major Foreign Currencies(Unit: thousands of regarding currency unit)

142

March 31, 2013

March 31, 2014

Cash Equivalents in Foreign Currency (US$)

5,110,297

3,954,743

Cash Equivalents in Foreign Currency (STG£)

17,793445,717

Cash Equivalents in Foreign Currency (EUR)

10,411

12,824

Cash Equivalents in Foreign Currency (AUD)0─Cash Equivalents in Foreign Currency (THB)─

0Cash Equivalents in Foreign Currency (CAD)

192,465

116,897

Investments in Foreign Currency (US$)

900,047

1,104,649

Equity Investments in Foreign Currency (US$)

103,588

125,652

Equity Investments in Foreign Currency (EUR)00

Equity Investments in Foreign Currency (CNY)18,00065,580Equity Investments in Foreign Currency (INR)─

260,000

Equity Investments in Foreign Currency (SGD)

165,999

165,999

Loans in Foreign Currency (US$)

88,219,328

97,601,044

Loans in Foreign Currency (EUR)

558,771

1,035,388

Loans in Foreign Currency (ZAR)

359,900

756,400

Loans in Foreign Currency (AUD)

330,397

2,930,397

Loans in Foreign Currency (THB)

3,132,900

4,603,900

Loans in Foreign Currency (SDR)

669,180

467,883

Loans in Foreign Currency (CAD)

1,209,770

1,286,635

Loans in Foreign Currency (CNY)─

75,340Loans in Foreign Currency (IDR)

230,000,000

386,500,000

JBIC Annual Report 2014

Data

12. Administrative Expense Ratio

2
Fiscal Year Ended March 31, 2014

0.16

0.10

Administrative Expense Ratio

13. Balance of Loans / Borrowings, Bonds and Notes by Maturity
Maturity Structure of Loans as of March 31, 2014
(Unit: 100 millions of yen)

Maturity

Collection from Loans

1 Year or Less

18,015

1–2 Years

15,114

2–3 Years

10,405

3–4 Years

11,713

4–5 Years

10,960

5–6 Years

10,491

6–7 Years

9,402

7–8 Years

8,120

8–9 Years

6,745

9–10 Years

5,336

11-15 Years

14,88416-20 Years

3,558

21-25 Years

76

26-30 Years

11

31-35 Years─

36-40 Years

─Over 40 Years

─

Total

Maturity Structure of Long-term Borrowing andBorrowings from the Foreign Exchange Fund Special Accountas of March 31, 2014
(Unit: 100 millions of yen)

Maturity

1 Year or Less

9,661

1–2 Years

10,270

2–3 Years

6,811

3–4 Years

10,473

4–5 Years

39,772

5–6 Years

190

6–7 Years99

7–8 Years

─

8–9 Years

2,047

9–10 Years

4,751

Over 10 Years─
84,077

Total

Maturity Structure of Bonds and Notes as of March 31, 2014
(Unit: 100 millions of yen)

124,834(Note) The figures exclude: ¥171,962 million, the amount of loans and other credits
to debtors who are legally or substantially bankrupt, as well as those who arelikely to become bankrupt, since they have no prospect for redemption.

Repayment of Borrowings

12. Administrative Expense Ratio 13. Balance of Loans / Borrowings, Bonds and Notes by Maturity(Note) Administrative Expense Ratio = General and Administrative Expenses / (Average Balance of Loans and Bills Discounted + Average Balance of Securities + Average Balanceof Customers’ Liabilities for Acceptances and Guarantees)

Financial
Statements(Units: %)Fiscal Year Ended March 31, 2013

Maturity

Redemption of Bonds and Notes

1 Year or Less

3,863

1–2 Years

5,756

2–3 Years

4,616

3–4 Years

3,524

4–5 Years

6,632

5–6 Years

600

6–7 Years

928

7–8 Years

─

8–9 Years─

9–10 Years

1,029

Over 10 Years
Total

200
27,150JBIC Annual Report 2014

143

Data

2
Financial
Statements

14. Information on the Quality of Assets

14. Information on the Quality of Assets

Although the Banking Act and Act on Emergency Measures
for the Revitalization of the Financial Functions of 1998 (the“Financial Revitalization Act”) do not apply to JBIC, JBIC
has made a self-assessment of the quality of its assets
since the fiscal year ended March 31, 2001, in accordancewith the standards set forth in the Inspection Manual for
Deposit-Taking Institutions (last revised in March, 2014) of
the Financial Services Agency of Japan. This was aimed atincreasing disclosure on its asset quality and improving theinternal management of credit risks.
One characteristic of JBIC’s operations is that a considerable
portion of its loans is official credit for the governments ofdeveloping countries. Thus, when an indebted country is
temporarily unable to service debt due to economic difficulties,
debt rescheduling will sometimes take place—based on aninternational agreement among the creditor countries in
the Paris Club—in order to ensure sustainable debt service.
A debtor country receiving such temporary support forovercoming the liquidity problem will implement economic
restructuring programs agreed upon with the International
Monetary Fund (IMF) to acquire sustainable debt service
capacity.
The loans rescheduled under the agreement in the Paris
Club have a high probability of repayment, because, unlike
loans provided by private financial institutions, their nature
as official credit provides an asset-securing mechanism under
the above international framework. Nonetheless, to facilitatecomparison with private financial institutions, JBIC, in principle,
discloses the loans rescheduled in the Paris Club and whose
debtor countries are categorized as “Needs Attention” in its
self-assessment of asset quality, as loan assets required to bedisclosed classifying them either as restructured loans (underthe Banking Act) or substandard loans (under the Financial
Revitalization Act).
ERNST & YOUNG SHINNIHON LLC audited JBIC’s selfassessment regarding the quality of its assets, including thefollowing risk-monitored loans, loans to be disclosed under
the Financial Revitalization Act and reserves for possible
loan losses, in accordance with the Practical Guidelines for
Evaluation of Internal Control over Valuation of Assets andAudits for Write-Offs and Reserve for Possible Loan Lossesof Banks and Similar Institutions (Report No. 4 of the Ad
Hoc Committee for Audits of Banks, the Japanese Instituteof Certified Public Accountants (JICPA)).
1. Risk-Monitored Loans
The following table shows the classification of risk-monitoredloans based on the self-assessment of asset quality inaccordance with the disclosure standard of risk-monitoredloans applied to commercial financial institutions (under the
Banking Act).
Each category of risk-monitored loans is defined as follows:

1. Bankrupt Loans
Among loans that are placed in non-accrual status (except
the portion deduced as allowance for loan losses), when

144

JBIC Annual Report 2014

collection of either principal or interest becomes doubtful
for the reason that principal or interest is past due for aconsiderable period of time or for other reasons, those loans
for which there is filing of reorganization procedures under
the Corporate Reorganization Act rehabilitation procedures
under the Civil Rehabilitation Act, bankruptcy procedures
under the Bankruptcy Act, special liquidation procedures
under the Companies Act or other relevant laws, or there issuspension of transactions in promissory notes issued by the
debtors in the clearing house.(Note 1)

2. Non-accrual Loans
Loans that are placed in non-accrual status except thoseclassified as “Bankrupt Loans” or those whose interest
payments are deferred in order to expedite the debtors’
business restructuring or support their business operations.
3. Past Due Loans (3 months or more)
Loans whose principal or interest is past due 3 months or morefrom the date following the contractually scheduled payment
date and not classified as “Bankrupt Loans” or “Non-accrual
Loans”.
4. Restructured Loans
Loans whose terms and conditions are modified in favorof the debtors in order to expedite the debtors’ businessrestructuring or support their business operations by, among
others, reducing the stated interest rate, deferring interest
payments or write-downs, and that are not classified as“Bankrupt Loans”, “Non-accrual Loans” and “Past Due Loans(3 months or more)”.(Note 2)(Unit: millions of yen)

Fiscal Year Ended
March 31, 2013

Fiscal Year Ended
March 31, 2014──

Non-accrual Loans

96,14096,366

Past Due Loans(3 months or more)

69,06575,579Bankrupt Loans

Restructured Loans

79,976

77,386

Total (1)245,183

249,332

10,555,128

12,655,401

2.32

1.97

Total Amounts of Loans (2)(1) / (2) (%)

Data

2

2. Doubtful Assets“Doubtful Assets” are loans and other credits to debtors whose
financial and operational conditions have deteriorated and who
have a possibility that payment of principal and / or interest
will not be made on a contractual basis. In the asset quality
self-assessment, these loans are loans to the debtors who
are likely to become bankrupt.
3. Substandard Loans“Substandard Loans” are loans to debtors who are categorized
as “Needs Attention Debtor” in the asset quality selfassessment, and(i) loans whose principal and / or interest is overdue 3months or more from the date following the scheduled
payment date but which are not categorized as “Bankrupt
and Quasi-bankrupt Assets” and “Doubtful Assets” (“Past
Due Loans (3 months or more)”).

Bankrupt and Quasibankrupt Assets
Doubtful Assets
Substandard Loans
Loans Subtotal (1)Fiscal Year Ended
March 31, 2014─

─96,14096,366

149,042

152,965

245,183

249,332

Normal Assets

12,744,811

14,865,229

Total (2)12,989,995

15,114,562

1.89

1.65

(1) / (2) (%)

14. Information on the Quality of Assets

1. Bankrupt and Quasi-bankrupt Assets“Bankrupt and Quasi-bankrupt Assets” are loans and othercredits to debtors who have begun proceedings under the
Bankruptcy Act, the Corporate Reorganization Act, the Civil
Rehabilitation Act and other similar laws of Japan and havefinancially failed. In the asset quality self-assessment, theseloans are loans to debtors who are legally or substantiallybankrupt.

(Unit: millions of yen)

Fiscal Year Ended
March 31, 2013

Financial
Statements

2. Loan Assets to Be Disclosed under
the Financial Revitalization Act
The following table shows the classification of loans basedon the self-assessment of asset quality in accordance withthe disclosure standard of the Financial Revitalization Act.

Note 1
According to the Banking Act, which provides the disclosure requirements of “Riskmonitored Loans” adopted by commercial financial institutions in Japan, the loans tooverseas public debtors which meet all of the following conditions must be disclosed as“Bankrupt Loans”: (1) no payment of principal and its interest 3 years before term-end,(2) no agreement for the extension of the repayment deadlines 3 years before term-end
and (3) no concrete plan to conclude an agreement for the extension of the repayment
deadline at term-end. In the table shown on the previous page, however, taking into
consideration the international cooperation framework on public debt mentioned
above, the overseas public debtors who meet the conditions above are classified as“Potentially Bankrupt Debtors” under the asset quality self-assessment criteria andloans to such debtors are classified as “Non-accrual Loans” under the disclosure of“Risk-monitored Loans”.
Note 2In the event that a debtor country encounters temporary repayment difficulties in respectof external public debt (sovereign debt, trade insurance institutions and export credit
institutions, etc.) due to the deteriorating balance of payments, meetings of creditor
countries (the “Paris Club”) will be held to mutually agree on debt relief measures(rescheduling), and implementing of temporary support for overcoming the liquidity
problem (balance of payment support under an international cooperative framework).
With this temporary liquidity support, debtors carry out IMF-agreed economic
restructuring programs and continue to make debt repayments. The principal amountof loans for which JBIC has agreed to provide debt relief pursuant to the Paris Club
agreements is ¥215,181 million as of the end of the fiscal year ended March 31, 2014.
Loans to debtors classified under the self-assessment as “Needs Attention” (but not“Past Due Loans (3 months or more)”) that were rescheduled under the Paris Club as“Restructured loans”. The amount of such loans, included in “Restructured loans” in theabove table is ¥77,386 million, of which ¥77,386 million represents the original principal.

(ii) restructured loans on which the Bank granted concessions
to debtors in financial difficulties through amending terms
and conditions of the loans to assist them to recoverand eventually be able to pay to creditors, but which
are not categorized as “Bankrupt and Quasi-bankrupt
Assets”, ”Doubtful Assets” or “Overdue Loans (3 months
or more)”.(Note 2)

4. Normal Assets“Normal Assets” are loans to debtors with no particular
problem in their financial conditions, categorized in the asset
quality self-assessment either as “Loans to Normal Debtors”
or “Loans to Needs Attention Debtors (excluding substandard
loans)”, but which are not categorized as “Bankrupt andQuasi-bankrupt Assets”, “Doubtful Assets” and “Substandard
Loans”.

JBIC Annual Report 2014145

DataCorporate Data

3

1

Board of Directors and Auditors

148

2

Organizational Chart

149

3

Overseas Network

150

4

History

151

5Japan Bank for International Cooperation Act

152

6

Fundamental Policy on Internal Control

157

7

Security Policy

159

8

Privacy Policy

160

JBIC Annual Report 2014

147

Data

3
Corporate
Data
1. Board of Directors and Auditors148

1. Board of Directors and Auditors (As of July 1, 2014)
Governor, CEO

Hiroshi WATANABE

Executive Managing Director, COO

Koichi YAJIMA

Senior Managing Director,
Global Head of Infrastructure and Environment Finance Group

Tadashi MAEDAManaging Director,
Global Head of Energy and Natural Resources Finance Group

Toshiyuki KOSUGIManaging Director (Outside Director)

Akira KONDOH

Corporate Auditor (Full-Time Corporate Auditor)

Hiroshi IMOTO

Corporate Auditor (Outside Corporate Auditor)

Shinji NISHIO

Corporate Auditor (Outside Corporate Auditor)

Tatsuo IGARASHIJBIC Annual Report 2014

Data

2. Organizational Chart (As of October 1, 2014)(Global Head of Corporate GroupManaging Executive Officer: Masaaki Amma)

Corporate Planning Department

Legal Affairs and Compliance Office

Risk Management Department(Director General: Shinichi Ota)

Policy and Strategy Office for Financial
Operations

Treasury Department

Human Resources Management Office(Director General: Hideo Naito)(Director General: Moriyuki Aida)

2. Organizational Chart

Corporate Groupinstitution 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 ascore regional offices to supervise business and administrative
activities as well as to support project formulation in Asia andPacific; Europe, the Middle East and Africa, and the Americas
respectively.

Corporate
Data

JBIC is constituted by five business groups: three mission/sector-specific finance groups (Energy and Natural Resources
Finance Group; Infrastructure and Environment Finance Group;and Industry Finance Group) and the Corporate Group and theCredit, Assessment, and Systems Group which support thesefinance groups.
This organizational structure was intended to strengthen
the capacity to formulate projects by bringing together knowhow and expertise in each sector and area, thereby creating an

3(Director General: Naoya Komatsu)(Director General: Kazuhiko Amakawa)(Director General: Kuninori Kuroishi)

Administration and General Services
Department
Energy and Natural Resources
Finance Group(Global Head of Energy and Natural Resources
Finance GroupManaging Director: Toshiyuki Kosugi)(Director General: Yutaka Funada)

Oil and Gas Finance Department(Director General: Mitsuru Sato)

Mining and Metals Finance Department(Director General: Jun Matsumura)

Infrastructure and Environment
Finance Group(Global Head of Infrastructure and Environment
Finance GroupManaging Director: Tadashi Maeda)

Nuclear and Renewable Energy Finance
Department(Director General: Shinya Miyake)

Power and Water Finance Department(Director General: Masaaki Yamada)Transportation and Telecommunication
Finance Department(Director General: Kazuhiko Tanaka)

Industry Finance Group(Global Head of Industry Finance GroupManaging Executive Officer: Shigeki Kimura)

Corporate Finance Department(Director General: Kazuhisa Yumikura)

Marine and Aerospace Finance/
Financial Products Department(Director General: Koichi Isobe)West Japan Office(Managing Executive Officer, Executive Officer for WestJapan: Tsuguya Ieda)

Finance Division for SMEs

(Special Advisor: Yoshimasa Ohashi)

Credit, Assessment, and Systems Group(Global Head of Credit, Assessment, and Systems GroupManaging Executive Officer: Atsuhiko Hatano)

Credit Department(Director General: So Horikiri)

Environmental Assessment Office(Director General: Keisuke Kato)Country Credit Department(Director General: Zenko Shinoyama)

IT Planning and Operations
Administration Department(Director General: Tsuyoshi Nishitani)

Internal Audit Department(Director General: Hiroshi Kurihara)

Office of Corporate Auditor
Overseas Representative Offices(Executive Officer for Asia and Pacific: Munetaka
Horiguchi)(Executive Officer for Europe, the Middle East andAfrica: Toshiro Machii)(Executive Officer for Americas: Yasuo Ota)

Singapore(Regional Headquarters for Asia and Pacific)

Beijing
Bangkok
Hanoi
Jakarta
ManilaNew Delhi
London(Regional Headquarters for Europe, the Middle
East and Africa)

MoscowParis
Dubai
New York(Regional Headquarters for the Americas)

Washington, D.C.
Buenos Aires
Mexico City
Rio de Janeiro

JBIC Annual Report 2014

149

Data

3
CorporateData

3. Overseas Network (As of July 1, 2014)

3. Overseas Network●Moscow
London★

●Paris★New York●
Washington, D.C.

Beijing●
New Delhi●
Dubai●

Hanoi●
Bangkok●●Manila●Mexico City

Singapore★
Jakarta●●
Rio de Janeiro●
Buenos Aires★Regional Headquarters★ REPRESENTATIVE OFFICE IN SINGAPORE(Regional Headquarters for Asia and Pacific)

9 Raffles Place,#51-02 Republic Plaza,
Singapore 048619
Tel. 65-6557-2806
Fax. 65-6557-2807● REPRESENTATIVE OFFICE IN NEW DELHI

1st floor,
The Metropolitan Hotel New Delhi,
Bangla Sahib Road, New Delhi,
110001, India
Tel. 91-11-4352-2900
Fax. 91-11-4152-5294★ REPRESENTATIVE OFFICE IN NEW YORK(Regional Headquarters for the Americas)

712 Fifth Avenue 26th Floor
New York, NY 10019 U.S.A.
Tel. 1-212-888-9500
Fax. 1-212-888-9503● REPRESENTATIVE OFFICE IN● REPRESENTATIVE OFFICE IN BEIJING

2102, Tower C Office Building,YINTAI Center,No.2 Jianguomenwai Avenue,
Chaoyang District,
Beijing 100022, P.R.C.
Tel. 86-10-6505-8989
Fax. 86-10-6505-3829★ REPRESENTATIVE OFFICE IN LONDON(Regional Headquarters for Europe, the Middle
East and Africa)

7th Floor, 80 Cheapside,
London, EC2V 6EE, U.K.
Tel. 44-20-7489-4350
Fax. 44-20-7489-4351● REPRESENTATIVE OFFICE IN MOSCOW● REPRESENTATIVE OFFICE IN BANGKOK

14th Floor, Nantawan Bldg.,
161 Rajdamri Road, Bangkok, 10330,
Thailand
Tel. 66-2-252-5050
Fax. 66-2-252-5514

123610 Moscow,
Krasnopresnenskaya Nab.12,
World Trade Center, Office No.905,
Russian Federation
Tel. 7-495-258-1832,1835,1836
Fax. 7-495-258-1858● REPRESENTATIVE OFFICE IN HANOI● REPRESENTATIVE OFFICE IN PARIS

3rd Floor, Sun City,
13 Hai Ba Trung Street,
Hoan Kiem District, Hanoi, Vietnam
Tel. 84-4-3824-8934~6
Fax. 84-4-3824-8937

21, Boulevard de la Madeleine,
75038 Paris Cedex 01, France
Tel. 33-1-4703-6190
Fax. 33-1-4703-3236● REPRESENTATIVE OFFICE IN DUBAI● REPRESENTATIVE OFFICE IN JAKARTA

Summitmas II 5th Floor,
Jl. Jenderal Sudirman, Kav. 61-62,
Jakarta Selatan, Indonesia
Tel. 62-21-5220693
Fax. 62-21-5200975● REPRESENTATIVE OFFICE IN MANILA

11/F, Tower 1, The Enterprise Center,
6766 Ayala Avenue corner Paseo deRoxas, Makati City, Philippines
Tel. 63-2-856-7711~14
Fax. 63-2-856-7715, 7716

150

JBIC Annual Report 2014

9th floor, West, The Gate Dubai
International Financial Centre,
P.O. Box 121300, Dubai, U.A.E.
Tel. 971-4-363-7091
Fax. 971-4-363-7090

WASHINGTON, D.C.
1627 Eye Street, N.W., Suite 500,
Washington, D.C., 20006, U.S.A.
Tel. 1-202-785-1785
Fax. 1-202-785-1787● REPRESENTATIVE OFFICE IN

BUENOS AIRES
Av.Del Libertador No.498, Piso19,
1001 Capital Federal, Buenos Aires,
Argentina
Tel. 54-11-4394-1379, 1803
Fax. 54-11-4394-1763● REPRESENTATIVE OFFICE IN

MEXICO CITY
Paseo de la Reforma 222-900B,
Col. Juárez, Del. Cuauhtémoc,México D.F., C.P. 06600, México
Tel. 52-55-5525-6790
Fax. 52-55-5525-3473● REPRESENTATIVE OFFICE IN

RIO DE JANEIRO
Praia de Botafogo, 228-801B (Setor A),
Botafogo, CEP 22359-900,
Rio de Janeiro, RJ, Brazil
Tel. 55-21-2554-2305
Fax. 55-21-2554-8798

Data

4. History

3
Corporate
Data

Events related to The Export-Import Bank of Japan (JEXIM)
The Japan Export Bank Act promulgated and enforced; The Japan Export Bank established

April 1952

The Japan Export Bank changed its name to The Export-Import Bank of Japan

4. History

December 1950

Events related to the Japan Bank for International Cooperation (former JBIC)
April 1999

The Japan Bank for International Cooperation Act promulgated and enforced

September 1999

Order for the Japan Bank for International Cooperation Act promulgated and enforced

October 1999

The Japan Bank for International Cooperation (former JBIC) established (taking over operations of the Export-Import Bankof Japan and those of the Overseas Economic Cooperation Fund)

October 2003

“JBIC Guidelines for Confirmation of Environmental and Social Considerations” and “Procedures to Submit Objections
Concerning JBIC Guidelines for Confirmation of Environmental and Social Considerations” enforced

Events related to the Japan Finance Corporation
June 2006

The Act on Promotion of Administrative Reform for Realization of Small and Efficient Government promulgated and enforced

May 2007The Japan Finance Corporation Act promulgated and enforced

April 2008

Order for the Japan Finance Cooperation Act promulgated and enforced

October 2008

The Japan Finance Corporation establishedMarch 2010

The Revision of Japan Finance Corporation Act enforced (Promoting the overseas business having the purpose of preserving
the global environment, such as preventing global warming was added to JBIC mission)

April 2010

The Account for Facilitating Realignment of United States Forces in Japan createdEvents related to the Japan Bank for International Cooperation (new JBIC)
May 2011

The Japan Bank for International Cooperation Act promulgated and enforced

July 2011

Order for Enforcement of the Japan Bank for International Corporation Act and Cabinet Order for Revising Part of the Japan
Finance Corporation Act promulgated and enforced (The scope of operations was expanded, including the rule on export
financing to developed countries)

April 2012

The Japan Bank for International Cooperation (JBIC) established

November 2012

The Account for Facilitating Realignment of United States Forces in Japan closed

JBIC Annual Report 2014

151

Data

3
Corporate
Data

5. Japan Bank for International Cooperation Act
Excerpt of the Japan Bank for International Cooperation Act (Act No. 39 of 2011)

5. Japan Bank for International Cooperation Act

Article 1: Purpose
Japan Bank for International Cooperation shall be a Kabushiki-Kaisha,
which has the purpose of contributing to the sound development of Japanand the international economy and society, by taking responsibility for thefinancial function to promote the overseas development and securementof resources which are important for Japan, to maintain and improve theinternational competitiveness of Japanese industries and to promote
the overseas business having the purpose of preserving the global
environment, such as preventing global warming, also providing thefinancial services that are necessary to prevent disruptions to international
financial order or to take appropriate measures with respect to damages
caused by such disruption, while having the objective of supplementing
the financial transactions implemented by ordinary financial institutions.
Article 3: Holding of Shares by Government
The Government shall, at all times, hold the total number of outstanding
shares of JBIC.
Article 4: Government’s Contribution
1. The Government may, when it finds it to be necessary, makecontributions to JBIC within the amount appropriated in the budget.
2. When a contribution is made by the Government pursuant to theprovisions of the preceding Paragraph, JBIC shall, notwithstanding
the provisions of Paragraph 2 of Article 445 of the Companies Act(Act No. 86 of 2005), be allowed not to record the amount exceeding
half of such contribution amount as the capital. In this case, “this Act”
referenced in Paragraph 1 of the same Article shall be deemed to be
replaced with “this Act or Japan Bank for International Cooperation
Act (Act No. 39 of 2011).”
Article 5: Limitation, etc. on Use of Name
1. No person other than JBIC shall use the words “Japan Bank forInternational Cooperation” in its name.
2. The provisions of Paragraph 2 of Article 6 of the Banking Act shallnot be applied to JBIC.
Article 6: Resolution for Appointment and Removal, etc. of Officers,etc.
1. The resolution for the appointment and removal of the Officers, etc.
(meaning Directors, Executive Officers and Auditor(s); the same shallapply hereinafter) of JBIC shall not take effect unless the authorizationof the Minister of Finance is granted.
2. The resolution for selection and displacement of a Representative
Director or Representative Executive Officer of JBIC shall not takeeffect unless the authorization of the Minister of Finance is granted.
Article 11: Scope of Operations
JBIC shall, for attaining its purpose, engage in the operations listed below:(1) The loan of funds necessary for the Export of Equipment, etc.,
the acquisition by assignment of loan receivables related tosuch funds, the Guarantee, etc. of Liabilities related to suchfunds, in the case where the Foreign Financial Institutions, etc.
or the Foreign Governments, etc. provide the Guarantee, etc.
of Liabilities with respect to such funds, the Guarantee, etc. of
Liabilities related to such Guarantee, etc. of Liabilities, or theacquisition of the Public/Corporate Bonds, etc. issued in orderto procure such funds by certain measures, such as acquisition
through subscription;(2) The loan of funds necessary to ensure the reliable and timely
Import of Important Goods, etc., the acquisition by assignmentof loan receivables related to such funds, the Guarantee, etc. of
Liabilities related to such funds or the acquisition of the Public/
Corporate Bonds, etc. to be issued in order to procure such funds
by certain measures, such as acquisition through subscription;

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(3) The loan of funds to be used directly or indirectly for the business
which the Juridical Persons, etc. of Japan, Foreign Governments,
etc. or Foreign Juridical Persons, etc. Invested in conduct outside
Japan, the acquisition by assignment of loan receivables related tosuch funds, the Guarantee, etc. of Liabilities related to such funds,
in the case where the Juridical Persons, etc. of Japan, Foreign
Juridical Persons, etc. Invested in, Foreign Financial Institutions,etc. or Foreign Governments, etc. provide the Guarantee, etc. of
Liabilities to the Juridical Persons, etc. of foreign countries withrespect to such funds, the Guarantee, etc. of Liabilities related
to such Guarantee, etc. of Liabilities, or the acquisition of the
Public/Corporate Bonds, etc. to be issued in order to procuresuch funds by certain measures, such as acquisition throughsubscription;(4) (i) The loan to the Foreign Governments, etc., Foreign Financial
Institutions, etc. or international organizations, such as theInternational Monetary Fund, of long-term funds (meaning
the funds required to be provided for more than one (1) year;
the same shall apply hereinafter) required for their overseas
business or the import of goods or introduction of technologies
by the foreign country concerned, or funds required to attain theinternational balance of payments or achieve the stability of thecurrency of the foreign country concerned, (ii) the acquisition
by assignment of loan receivables related to such funds or the
Guarantee, etc. of Liabilities related to such funds or (iii) the
acquisition of the Public/Corporate Bonds, etc. issued in orderto procure such funds by certain measures, such as acquisition
through subscription;(5) When it is found remarkably difficult for a foreign government or
foreign resident to conduct overseas transactions, such as importby reason of the international balance of payments of the foreigncountry concerned, and it is found urgently necessary, the loan to
the governments, governmental agencies or banks of the foreigncountry concerned, of the short-term funds (meaning the funds
required necessary to be provided for one (1) year or less than one(1) year; the same shall apply hereinafter) necessary to facilitate
overseas transactions, such as import, until the International
Monetary Fund, etc. (meaning international organizations, such as
the International Monetary Fund, or governments, governmental
agencies or banks of more than two (2) countries other than that
foreign country concerned; the same shall apply hereinafter)
provides funds to assist the development of the economy of
the foreign country concerned (hereinafter referred to as the“Funds for Economic Assistance”);(6) The provision of contributions to persons who are carrying on
business outside Japan (including those Juridical Persons, etc.
of Japan whose sole purpose is to make overseas investments
and who make contributions to those carrying on the aforesaid
business) to contribute funds required for their business;(7) The carrying out of the necessary studies related to the operations
listed in each of the preceding Items;(8) The provision of information to the users of operations provided
by JBIC that pertains to such operations; and(9) Any other operations incidental to those listed in each of thepreceding Items (excluding those listed in Item (7)).
Article 12:
1. Among the operations listed in Item (1) of the preceding Article, thosewhich are related to the Export of Equipment, etc. destined for any
area other than developing overseas areas (hereinafter referred toas the “Developing Areas”) may be conducted only in the cases listed
below:(1) when necessary countermeasures are taken in accordancewith multilateral arrangements in the case where the Foreign
Governments, etc., in which exporters conduct the export

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5. Japan Bank for International Cooperation Act

Cabinet Order set forth in the same Item).
(3) When the execution of overseas business of the Juridical Persons,etc. of Japan has become remarkably difficult due to disruptions
to international financial order, in the case where the Minister ofFinance determines that the exceptions of operations of JBIC
are necessary in order to deal therewith.
7. Among the operations listed in Item (3) of the preceding Article(excluding those conducted in order to promote overseas development
and securement of resources important for Japan), with respect tothe business in any area other than the Developing Areas may be
conducted only when it is prescribed by a Cabinet Order as being acase recognized especially necessary in order to promote the policiesof the Government concerning the maintenance or improvement of
the international competitiveness of Japanese industries.
8. The loan to the governments, governmental agencies or banks offoreign countries listed in Item (5) of the preceding Article may be
conducted by obtaining the authorization of the Minister of Financeonly when the provision of the Funds for Economic Assistance fromthe International Monetary Fund, etc. is expected to be certain andonly in the cases listed below:(1) where, by appropriating all or part of the Funds for Economic
Assistance from the International Monetary Fund, etc. (excluding
JBIC) for the redemption of the funds related to the loan, theredemption is expected to be secured; or(2) where adequate underlying assets are secured for the loan.
9. Among the operations listed in Items (1) through (4) of the preceding
Article, the Guarantee, etc. of Liabilities related to the liabilities ofany person other than the Juridical Persons, etc. of Japan (excluding
those related to the Public/Corporate Bonds, etc.) may be provided
only in the cases listed below:(1) When the Banks, etc., Foreign Financial Institutions, etc. or Foreign
Governments, etc. provide the loan of such funds set forth inItems (1) through (4) of the preceding Article, in the case where
the Guarantee, etc. of Liabilities related to such loan is provided(including the case in which the loan receivables related to suchloan are assigned to the persons specified by the Minister ofFinance);(2) In the case where the Guarantee, etc. of Liabilities related to the
Guarantee, etc. of Liabilities set forth in Items (1) and (3) of thepreceding Article is provided;(3) When, among the Guarantee, etc. of Liabilities related to thefunds set forth in Item (3) of the preceding Article, the Juridical
Persons, etc. of Japan or the Foreign Juridical Persons, etc.
Invested in assign the monetary claims related to the overseas
business to be conducted by the Juridical Persons, etc. of Japanor the Foreign Juridical Persons, etc. Invested in to the Banks,etc. or Foreign Financial Institutions, etc. and use the proceedsfrom the assignment for such business, in the case where the
Guarantee, etc. of Liabilities related to such monetary claims
is provided; or(4) When the Banks, etc. or Foreign Financial Institutions, etc. provide
the loan of funds set forth in Item (3) of the preceding Article
in foreign currency, in the case where the Guarantee, etc. of
Liabilities related to swap transactions (transactions listed in
Item 5 of Paragraph 22 of Article 2 of the Financial Instruments
and Exchange Act (Act No. 25 of 1948)) related to such funds
conducted by such Banks, etc. or Foreign Financial Institutions,etc., is provided.
10. Among the operations listed in Items (1) through (4) of the preceding
Article, the Guarantee, etc. of Liabilities (limited to those related to
the Public/Corporate Bonds, etc.) and the acquisition of the Public/
Corporate Bonds, etc. may be conducted only in the cases listed
below (with respect to the operations listed in Items (1) through (3)of the same Article, the cases listed in Items (2) through (6) below
shall apply):(1) where part of the Public/Corporate Bonds, etc. (limited to thosewith a redemption period of more than one (1) year; the same
shall apply in the following Item and Item (3) below) that were
issued by the Foreign Financial Institutions, etc., the Foreign

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destined for the said area, grant credit, underwrite insurance
or provide an interest rate support with more favorable conditions
than usual in order to promote the export from such foreigncountries; or(2) when it is prescribed by a Cabinet Order as being a case recognizedespecially necessary in order to promote the policies of theGovernment concerning the maintenance or improvement of
the international competitiveness of Japanese industries.
2. Among the operations listed in Item (1) of the preceding Article,
those relating to the funds provided to the Juridical Persons, etc. ofJapan may be conducted only in the case where the execution of theexport by the Juridical Persons, etc. of Japan has become remarkably
difficult due to disruptions to international financial order and theMinister of Finance determines that the exceptions of operations of
JBIC are necessary in order to deal therewith.
3. Among the operations listed in Item (2) of the preceding Article, otherthan those conducted in order to promote overseas development andsecurement of resources important for Japan, only those relating to
the funds listed below that are the Guarantee, etc. of Liabilities may
be conducted:(1) funds necessary to import the products, such as aircraft, specified
by the Minister of Finance, with respect to which the products
produced in Japan are not sufficient to replace and the importto Japan is essential; or(2) funds necessary to introduce such technologies specified by the
Minister of Finance, with respect to which the technologies ofJapan are not sufficient to replace and the introduction to Japanis essential.
4. Among the operations listed in Item (3) of the preceding Article,
those relating to the short-term loans may be conducted only inthe case where JBIC has agreed to make loan of funds (excluding
short-term funds) set forth in the same Item for the execution ofbusiness conducted by the Juridical Persons, etc. of Japan and theForeign Juridical Persons, etc. Invested in and such loan of funds isrecognized especially necessary in order to execute such business.
5. Among the operations listed in Item (3) of the preceding Article, theoperations of provision of the loan of funds necessary for the overseas
business to be conducted by the Juridical Persons, etc. of Japan,
other than those listed in Item (2) of the following Paragraph, may
be conducted only if such loan is provided directly to such Juridical
Persons, etc.
6. Among the operations listed in Item (3) of the preceding Article(excluding those conducted in order to promote overseas development
and securement of resources important for Japan), loans to the
Juridical Persons, etc. of Japan, other than the loans to the Small andMedium Enterprises, etc. (meaning the Small and Medium Enterprises
or medium enterprises specified by the Minister of Finance; hereinafter
the same shall apply) may be conducted only in the cases listed
below.
(1) When the Juridical Persons, etc. of Japan begin or expand overseas
business, or improve the efficiency thereof by contributing to theforeign juridical persons or accepting the assignment of all orpart of the business of the foreign juridical persons (hereinafterreferred to as “Contributions, etc.” in this Item), in the casewhere the loan of funds necessary for such Contributions, etc.
is provided (only when it is prescribed by a Cabinet Order as
being a case recognized especially necessary in order to promote
the policies of the Government concerning the maintenance or
improvement of the international competitiveness of Japaneseindustries).
(2) When the Banks, etc. provide the loan of funds listed below, inthe case where the loan of funds necessary for such loan bysuch Banks, etc. is provided to such Banks, etc.:		a. loan of funds set forth in Item (3) of the preceding Article to
the Small and Medium Enterprises, etc. or the Foreign Juridical
Persons, etc. Invested in related to the contribution of the
Small and Medium Enterprises, etc.; or		
b. loan of funds set forth in the preceding Item to the Juridical
Persons, etc. of Japan (limited to those prescribed by the

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Governments, etc. or international organizations, such as theInternational Monetary Fund, are acquired;(2) where the Public/Corporate Bonds, etc. are acquired and thensuch Public/Corporate Bonds, etc. are assigned to the SpecificPurpose Company, etc. within the period specified by the Ministerof Finance or where the Specific Trust is established, the Public/
Corporate Bonds, etc. are entrusted to the Trust Company, etc.
as assets of such Specific Trust, and then all or part of beneficial
interests in such Specific Trust is assigned;(3) where the Public/Corporate Bonds, etc. to be issued by theSpecific Purpose Company, etc. or the Trust Company, etc. which
are secured by loan receivables or the Public/Corporate Bonds,
etc. are acquired;(4) where the Guarantee, etc. of Liabilities relating to the Public/
Corporate Bonds, etc. to be issued by the Foreign Juridical
Persons, etc. Invested in, the Foreign Financial Institutions, etc.,
the Foreign Governments, etc. or international organizations,such as the International Monetary Fund, is provided;(5) where the Guarantee, etc. of Liabilities related to such loan
receivables, Public/Corporate Bonds, etc. or the monetary claims,
which constitute such underlying assets, or the Public/Corporate
Bonds, etc. to be issued by the Specific Purpose Company, etc.
or the Trust Company, etc. is provided (excluding the Guarantee,
etc. of Liabilities related to the Public/Corporate Bonds, etc. to beissued by the Banks, etc.) when the Specific Purpose Company,
etc. or the Trust Company, etc. issues the Public/Corporate
Bonds, etc. which are secured by loan receivables, the Public/
Corporate Bonds, etc. or the monetary claims set forth in Item(3) of the preceding Paragraph; or(6) where the Guarantee, etc. of Liabilities related to the borrowingof funds by the Specific Purpose Company, etc. for the purposeof acquiring by assignment, or acquiring, such loan receivables or
Public/Corporate Bonds, etc., which constitute such underlying
assets, is provided when the Specific Purpose Company, etc.
issues the Public/Corporate Bonds, etc., which are secured byloan receivables or the Public/Corporate Bonds, etc.
11. Among the operations listed in Items (1) through (4) of the preceding
Article, those listed below shall be conducted only when the loan
thereof or the loan related to the loan receivables to be assigned is
the Co-financing; provided, however, that this shall not apply, withrespect to the operations listed in Item (1) below, in the case where
it is recognized that it is remarkably difficult for the Banks, etc. toprovide a loan of funds together with JBIC and the loan from JBIC
is urgently necessary to attain the purpose of such loan, or if thecase falls under any of the cases listed in Item (2) of Paragraph 6
hereof, with respect to the operations listed in Item (2) below, in thecase where the loan receivables to the Foreign Juridical Persons, etc.
Invested in with a redemption period of more than one (1) year are
acquired by assignment within the period specified by the Minister ofFinance for the purpose of assigning the same to the Specific Purpose
Company, etc. or for the purpose of establishing the Specific Trust,with respect to the same, in the Trust Company, etc. and assigning
all or part of the beneficial interest in such Specific Trust:(1) loan of funds pursuant to the provisions of Items (1) through(3) of the preceding Article made to the Juridical Persons, etc.
of Japan; or(2) acquisition by assignment of the loan receivables pursuant to
the provisions of Items (1) through (4) of the preceding Article.
12. The operations listed in Item (7) of the preceding Article may be
conducted only if they are the minimum necessary to promote theperformance of the operations listed in Items (1) through (6) of thesame Article smoothly and effectively.
Article 13: Practice of the Operation
1. The loan of funds, the acquisition by assignment of loan receivables, theacquisition of the Corporate/Public Bonds, etc., the Guarantee, etc. of
Liabilities or the provision of contributions pursuant to the provisionsof Items (1) through (6) of Article 11 hereof may be conducted only
when the repayment of the funds so loaned, the collection of loan

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JBIC Annual Report 2014

receivables so acquired, the redemption of Corporate/Public Bonds,
etc. so acquired, the performance of the liabilities so guaranteed,etc. or the realization of profits that enable the payment of dividends
resulting from business so contributed is recognized as being certain.
2. The conditions, such as the interest rates of loans and yield on assigned
loan receivables related to the operations listed in Items (1) through(6) of Article 11, shall be determined in light of usual conditions fortransactions by the Banks, etc. or the trends of financial markets, sothat revenue of JBIC will be sufficient to cover the expenses therefor.
Article 15: Business YearThe business year of JBIC shall begin on April 1 of each year and end on
March 31 of the following year.
Article 16: Budget
1. JBIC shall prepare the budget for revenues and expenditures andsubmit it to the Minister of Finance for each business year.
2. The revenues set forth in the preceding Paragraph mean interest
on loans, interest on the Corporate/Public Bonds, etc., dividends
on contributions, debt guarantee fees and other incomes related
to asset management and miscellaneous incidental income, andthe expenditures set forth in the same Paragraph mean expenseof operations, business entrustment fees, interest on borrowings,
interest on bonds and notes and incidental expenses.
3. Upon receipt of the budget submitted pursuant to the provisionsof Paragraph 1 above, the Minister of Finance shall examine suchbudget and make any necessary adjustments thereto, and obtain
the Cabinet’s decision thereon.
4. After the Cabinet’s decision is made pursuant to the provisions of
the preceding Paragraph, the Cabinet shall submit such budget to
the Diet together with the national budget.
5. The form and content of the budget and procedures for the preparationand submission thereof shall be specified by the Minister of Finance.
Article 26: Submission of Financial Statements
1. JBIC shall prepare the list of assets every business year.
2. JBIC shall, within three (3) months after the end of every business year,
submit to the Minister of Finance the balance sheets, statements ofoperations and list of assets (hereinafter referred to as the “Balance
Sheets, etc.”) and business report (including the Electro-Magnetic
Record (which means the record specified by the Minister of Financeas a record which is produced by electronic, magnetic, or any othermeans unrecognizable by human perception and which is used fordata-processing by a computer; the same shall apply hereinafter)
which has recorded the matters to be described in such Balance
Sheets, etc. and its business report) for each business year.
Article 27: Preparation and Submission of Report on Settlementof Accounts
1. After submitting the Balance Sheets, etc. pursuant to the provisionsof Paragraph 2 of the preceding Article, JBIC shall, every business
year, prepare a report on the settlement of accounts for the
relevant business year (including the Electro-Magnetic Record
which has recorded the matters to be described in such report on
the settlement of accounts; the same shall apply hereinafter) andsubmit it to the Minister of Finance, without delay, by attaching theopinion of the Auditor(s) or Audit Committee concerning such reporton the settlement of accounts, together with such submitted Balance
Sheets, etc.
2. Upon receiving the report on the settlement of accounts pursuant to
the provisions of the preceding Paragraph, the Minister of Financeshall send it to the Cabinet, together with the Balance Sheets, etc.
referenced in the same Paragraph.
3. Upon making the submission pursuant to the provisions of Paragraph
1 of this Article, JBIC shall, without delay, keep the report on thesettlement of accounts and the document stating the opinion of the
Auditor(s) or Audit Committee at its head office and branch offices
and make them available for public inspection during the period
prescribed by the Ordinance of the Ministry of Finance.

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Article 29: Submission of Report on Settlement of Accounts to Diet
The Cabinet shall submit JBIC’s report on the settlement of accounts
for which the Board of Audit of Japan has finished its inspection, to theDiet, by attaching the Balance Sheets, etc. set forth in Paragraph 1 of
Article 27 hereof, together with the settlement of accounts for national
revenues and expenditures.
Article 31: Payment to National Treasury
1. In the event that the amount of the surplus recorded in the settlement ofaccounts for each business year exceeds zero, JBIC shall accumulate,as a reserve, the amount calculated in accordance with the standards
prescribed by a Cabinet Order, among such surplus, until it reaches
the amount prescribed by the Cabinet Order, and if there is still asurplus, JBIC shall pay the amount of such surplus into the National
Treasury within three (3) months after the end of such business year.
2. In the event that the amount of the surplus recorded in the settlementof accounts for each business year falls below zero, JBIC shall allocate
such surplus by drawing down the reserve set forth in the preceding
Paragraph until the amount of such surplus becomes zero.
3. The procedures for the payment into the National Treasury pursuant
to the provisions of Paragraph 1 of this Article, the account into whichsuch payment is to be made and other necessary matters concerning
the payment to the National Treasury shall be prescribed by a Cabinet
Order.
4. JBIC shall not be allowed to make any appropriation of its surplus, suchas dividend of its surplus, unless such disposition is made pursuant
to the provisions of Paragraphs 1 and 2 of this Article.
Article 32: Provision of Loans by Government
The Government may provide monetary loans to JBIC.
Article 33: Borrowings and Corporate Bonds
1. Borrowings of funds made in order to meet JBIC’s fund requirements
for the performance of its operations shall be limited to the borrowingsof short-term loans from financial institutions, such as banks, orthe borrowings related to the monetary loans obtained from theGovernment pursuant to the provisions of the preceding Article.
2. The short-term loans set forth in the preceding Paragraph shall be
repaid during the business year in which these borrowings are made;provided, however, that in cases where repayment cannot be madedue to shortage of funds, JBIC may reborrow only the amount whichcannot be so repaid, with the authorization of the Minister of Finance.
3. Loans reborrowed pursuant to the proviso of the preceding Paragraphshall be repaid within one (1) year.
4. Pursuant to the provisions of a Cabinet Order, JBIC shall, every
business year, prepare a basic policy concerning the issuance ofcorporate bonds made in order to meet fund requirements for the
performance of its operations and obtain the authorization of the
Minister of Finance. When JBIC intends to make any change to thepolicy, the same shall apply.
5. When JBIC has issued corporate bonds pursuant to the provisionsof preceding Paragraph, it shall, without delay, make a notificationof such fact to the Minister of Finance pursuant to the provisions
prescribed by a Cabinet Order; provided, however, that this shall not
apply if JBIC issues the certificates of corporate bonds, as prescribedby a Cabinet Order, in order to deliver to anyone who has lost suchcertificates of corporate bonds and, as a result of the issuance ofsuch certificates of corporate bonds, JBIC assumes new liabilities.

5. Japan Bank for International Cooperation Act

Article 28: S ending of Report on Settlement of Accounts to Board
of Audit of Japan
Upon receiving JBIC’s report on the settlement of accounts pursuant to
the provisions of Paragraph 2 of the preceding Article, the Cabinet shallsend it, together with the Balance Sheets, etc. set forth in Paragraph 1 ofthe same Article, to the Board of Audit of Japan no later than November
30 of the following business year.

6. The total amount of (i) the outstanding amounts of the short-termloans and the borrowings related to the monetary loans obtained
from the Government as set forth in Paragraph 1 of this Article and (ii)the outstanding amount of liabilities relating to the principal amountof corporate bonds set forth in Paragraph 4 of this Article shall not
exceed the amount (hereinafter referred to as the “Limitation Amount”
in this Article) equivalent to ten (10) times the total amount of thecapital and reserves of JBIC (hereinafter referred to as the “BaseAmount” in this Article).
7. Notwithstanding the provisions of the preceding Paragraph, when theissuance of new bonds is necessary to reborrow the issued corporate
bonds with respect to corporate bonds set forth in Paragraph 4 ofthis Article, the corporate bonds may be issued in excess of theLimitation Amount only within the period necessary to make such
reborrowing.
8. The total amount of the outstanding amounts of (i) monetary loans,(ii) acquisition of the receivables related to assignment and the
Corporate/Public Bonds, etc., (iii) liabilities relating to the Guarantee,
etc. of Liabilities and (iv) contributions, all of which are made pursuant
to the provisions of Items (1) through (6) of Article 11 hereof, shall not
exceed the aggregate amount of the Base Amount and the Limitation
Amount.

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4. The form and content of the report on the settlement of accounts
shall be specified by the Minister of Finance.

Article 34: Statutory Lien
1. A holder of JBIC’s corporate bonds shall, with respect to the property of
JBIC, have the right to have his/her receivables satisfied in preference
to other creditors.
2. The order of the statutory lien set forth in the preceding Paragraphshall be next to the general liens prescribed by the provisions of the
Civil Code (Act No. 89 of 1896).
Article 35: Government Guarantee
1. Notwithstanding the provisions of Article 3 of the Act Concerning
Restrictions on Financial Assistance by the Government to
Corporations (Act No. 24 of 1946), the Government may execute a
guarantee agreement with respect to the liabilities related to JBIC’s
corporate bonds (excluding the liabilities with respect to which theGovernment may execute a guarantee agreement under Paragraph 2 ofArticle 2 of the Act on Special Measures Pertaining to the Acceptanceof Foreign Capital from the International Bank for Reconstruction andDevelopment, etc. (Act No. 51 of 1953) (referred to as the “Foreign
Capital Acceptance Act” in the following Paragraph and Paragraph
1 of Article 16 of the Supplementary Provisions)) within the scopeof the amount fixed by the budget.
2. Among the amount fixed by the budget set forth in the preceding
Paragraph, the amount of liabilities related to the corporate bonds
issued in a foreign country and denominated in Japanese currency
may be fixed by adding up to the amount fixed by the budget as set
forth in Paragraph 2 of Article 2 of the Foreign Capital Acceptance Act,
when it is difficult to fix the said amount of liabilities separately fromthe said amount fixed by the budget set forth in the same paragraphof the Foreign Capital Acceptance Act.
3. The Government may, in addition to the provisions of Paragraph 1of this Article, execute a guarantee agreement with respect to theliabilities related to the certificates of corporate bonds or coupons
thereof, which are issued by JBIC, pursuant to the provisions
prescribed by a Cabinet Order, in order to deliver to a person who
has lost the certificates of corporate bonds or coupons thereof.
Article 36: Investment of Surplus Funds
JBIC shall not invest any surplus funds of its business except by means of:(1) Acquisition of national government bonds, local government
bonds or government-guaranteed bonds (which mean the bonds
for which the redemption of its principal and payment of interest
thereon are guaranteed by the Government) and other securities
designated by the Minister of Finance;(2) Deposit with the Fiscal Loan Fund;(3) Deposit with banks or other financial institutions designated by
the Minister of Finance;

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5. Japan Bank for International Cooperation Act(4) Holding of negotiable deposit certificates;(5) Money trust to the financial institutions engaging in trust business(which mean the financial institutions that have obtained theauthorization set forth in Paragraph 1 of Article 1 of the Act on
Provision, etc. of Trust Business by Financial Institutions);(6) Lending of call funds; or(7) Means prescribed in the Ordinance of the Ministry of Finance as
the means equivalent to the means listed in each of the preceding
Items.
Article 38: Supervision
1. The Minister of Finance shall supervise JBIC in accordance with theprovisions of this Act.
2. With respect to the management or administration of JBIC, in thecase where the Minister of Finance finds that there is a violation oflaws and regulations or the Articles of Incorporation or any grossly
unjust matter exists and in other cases where they find it necessary
for the enforcement of this Act, the Minister of Finance may issue JBIC
orders concerning its operations as are necessary for the supervision.
Article 39: Report and Inspection
1. If the Minister of Finance finds it necessary for the enforcement of
this Act, the Minister of Finance may cause JBIC or the Juridical
Person Delegated to submit reports or may cause its officials toenter the facilities of JBIC or of the Juridical Person Delegated,such as the offices to inspect the accounting books, documents
and other necessary objects; provided, however, that, with respect
to the Juridical Person Delegated, such action shall be limited to thescope of operations delegated to it by JBIC.
2. When an official of the Minister of Finance carries out an on-site
inspection pursuant to the provisions of the preceding Paragraph, he/she shall carry with him/her identification certifying his/her status
and present it to parties concerned.
3. The authority to carry out the on-site inspection pursuant to theprovisions of Paragraph 1 above shall not be construed to be thatgiven for the investigation of a criminal offense.
Article 40: Delegation of Authority
1. The Minister of Finance may, as prescribed by a Cabinet Order,delegate part of the authority to carry out an on-site inspection
pursuant to the provisions of Paragraph 1 of the preceding Article
to the Prime Minister.
2. If the Prime Minister has carried out an on-site inspection pursuant to
the provisions of Paragraph 1 of the preceding Article on the basis of
the delegation pursuant to the provisions of the preceding Paragraph,he/she shall promptly submit a report of the results of the inspection
to the Minister of Finance.
3. The Prime Minister shall delegate both the authority delegatedpursuant to the provisions of Paragraph 1 above and the authority set
forth in the provisions of the preceding Paragraph to the Commissionerof Financial Services Agency.
4. The Commissioner of Financial Services Agency may, as prescribedby a Cabinet Order, delegate all or part of the authority delegatedpursuant to the provisions of the preceding Paragraph, to DirectorGeneral of the Local Finance Bureau or the Director-General of the
Local Finance Branch Bureau.
5. Part of the authority of the Minister of Finance set forth in this Act(excluding that delegated to the Prime Minister pursuant to theprovisions of Paragraph 1 above)may, as prescribed by a Cabinet
Order, be delegated to the Director-General of the Local Finance
Bureau or the Director-General of the Local Finance Branch Bureau.
Article 41: Articles of Incorporation
1. In the Articles of Incorporation of JBIC, in addition to the matterslisted in each of the Items of Article 27 of the Companies Act, mattersrelating to the procedures and requirements for the appointmentof a person to assume management responsibility from among theRepresentative Directors or Representative Executive Officers shallbe described or recorded.

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2. With respect to the matters related to the requirements for theappointment of a person to assume management responsibility set
forth in the preceding Paragraph, the provisions that the requirements
listed below be satisfied shall be incorporated:(1) A person who has discernment and the capability recognized asnecessary in light of the purposes set forth in Article 1 hereof andthe operations set forth in Article 11 hereof shall be appointed;
and(2) Due consideration shall be required in order to avoid automaticallyappointing such persons who have held certain specificgovernmental positions.
3. The resolution for the amendment of the Articles of Incorporationof JBIC shall not take effect unless the authorization of the Ministerof Finance is granted.
Article 42: Merger, Company Split, Share Exchange, Assignment andAcceptance of Assignment of Business and Dissolution
Notwithstanding the provisions of Part II, Chapters VII and VIII and Part
V, Chapters II, III and IV, Section I of the Companies Act, the merger,
company split, share exchange, assignment and acceptance of assignmentof all or part of business, to which JBIC becomes a party, and dissolutionof JBIC shall be provided for separately by an Act.
Article 43: Exclusion from Application, etc. of Financial Instruments
and Exchange Act
1. When JBIC performs the actions listed in each of the Items of
Paragraph 8 of Article 2 of the Financial Instruments and Exchange
Act pursuant to the provisions of Article 11, the provisions of Article
29 of the same Act shall not apply.
2. In the case set forth in the preceding Paragraph, JBIC shall be deemedas the Financial Instruments Business Operator defined in Paragraph
9 of Article 2 of the Financial Instruments and Exchange Act, andthe provisions of Chapter III, Section I, Subsection V and Section II(excluding Article 35, Article 35-2, Articles 36-2 through 36-4, Item(2) of Paragraph 1 of Article 37, Item (2) of Paragraph 1 of Article37-3 and Article 37-7) of the same Act (including the penal provisions
relating to such provisions) shall apply.
3. When JBIC performs the actions listed in each of the Items of
Paragraph 1 of Article 63 of the Financial Instruments and Exchange
Act pursuant to the provisions of Article 11 hereof, the provisions ofParagraph 2 of the said Article 63 shall not apply.
4. In the case set forth in the preceding Paragraph, JBIC shall be deemedas the Financial Instruments Business Operator defined in Paragraph
9 of Article 2 of the Financial Instruments and Exchange Act, andthe provisions of Article 38 (limited to the portions relating to Item(1)) and Article 39 of the same Act (including the penal provisions
related to such provisions) shall apply.

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6. Fundamental Policy on Internal Control

Article 3. Regulations and Other Systems relating to Managementof Loss Exposure
1. In recognition of the importance of risk management, JBIC shalladopt Comprehensive Risk Management Regulations and otherrules relating to risk management, with respect to risk management
specific to different types of risks that should be recognized in theperformance of operations, as well as the organizational structure,etc., for comprehensive risk management. JBIC shall apply appropriate
risk management tools to control various types of risks.
2. JBIC shall appoint persons responsible and departments thatoversee risk management matters for the management of various
types of risks and establish a committee with the Governor as its
chairman to conduct reviews and examinations to ensure effective
risk management.
3. JBIC shall adopt Crisis Management Regulations and other rules
relating to crisis management and establish crisis management
systems to prepare for the occurrence of disasters and other criticalevents.
4. If a critical event occurs that either disrupts or is feared to disrupt
normal operations, JBIC shall establish a response headquarters asnecessary and take measures for the speedy and efficient restorationof operations in accordance with various rules concerning crisis
management.

6. Fundamental Policy on Internal Control

Article 2. Systems relating to Retention and Management of Information concerning Performance of Duties by Directors
1. JBIC shall adopt Information Asset Management Regulations andother rules concerning the retention and management of information
assets so that information concerning the performance of duties bydirectors, customer information, and other information handled by
JBIC can be appropriately retained and managed.
2. JBIC shall retain and manage the minutes of Board of Directors
meetings and other documents concerning the performance of duties
by directors in accordance with laws, regulations, and rules relating
to the retention and management of information assets.
3. Directors and employees shall appropriately retain and manage
information assets in line with laws, regulations, and rules relating
to the retention and management of information assets.

Article 4. 
System to Ensure Efficient Performance of Duties byDirectors
1. The Board of Directors shall establish Business Plans and conduct
management appropriately.
2. JBIC shall establish the Executive Committee. It shall take on responsibility for certain decisions delegated by the Board of Directors. In
addition to making decisions for which it has earned responsibility,
it shall deliberate matters prior to the Board of Directors meetings inorder to contribute to the decision-making of the Board of Directors.
Moreover it shall establish various committees, etc., that take responsibility for certain decisions delegated by it, or as an advisoryorganization for it.
3. In order to ensure the efficient performance of duties based on thedecisions of the Board of Directors, JBIC shall undertake adjustments
to internal regulations related to organizational systems, etc., andassign duties appropriately.
4. JBIC shall introduce a mission/sector-specific group structure anda managing executive officer system in order to expedite decisionmaking processes, and delegate authority based on internal regulations related to organizational systems and authority.

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Article 1. Systems for Ensuring Compliance with Laws, Regulations,and the Articles of Incorporation in the Performance ofDuties by Directors and Employees
1. JBIC shall adopt Corporate Philosophy, Code of Conduct, and internal
rules concerning compliance, including Regulations Concerning
Compliance with Laws and Regulations, to ensure that the performanceof duties by directors and employees, including temporary workers(this definition applies to the remainder of this document), comply withlaws, regulations, and the Articles of Incorporation of JBIC (hereinafterreferred to as “Laws and Regulations”). Furthermore, JBIC shall makesuch internal rules known to all directors and employees.
2. Directors and employees shall abide by all such internal rules
concerning compliance.
3. JBIC shall appoint persons responsible for compliance anddepartments that oversee compliance matters so as to establish andreinforce structures relating to compliance with Laws and Regulations.
4. JBIC shall establish a committee with the Governor as its chairman
to review key matters relating to compliance and to monitor the
status of compliance with the Laws and Regulations.
5. JBIC shall establish effective internal reporting systems and operatethem appropriately so that material matters relating to compliancecan be discovered promptly and necessary corrective measures canbe introduced.
6. JBIC shall not maintain any relationships whatsoever with antisocial
forces. It shall maintain an uncompromising attitude throughout theorganization toward antisocial forces, and decisively reject all improper
demands from such forces.

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Article 5. I nternal Audit Systems for Ensuring Proper Operations
1. JBIC shall adopt Internal Audit Regulations and other rules relating
to internal audits to ensure the appropriateness and soundness of
its operations.
2. JBIC shall establish the Internal Audit Committee to make decisions
and deliberations concerning important matters relating to internal
audits.
3. JBIC shall establish the Internal Audit Department, independent of
the departments being audited, to handle matters relating to internal
audits.
4. The Internal Audit Department shall undertake internal audits basedon internal regulations related to internal audits, and report to thedirector responsible for internal audits about the results.
5. The Internal Audit Department shall periodically and as necessary,
as well as upon request of a director or a corporate auditor, report
the results of internal audits to the Board of Directors or otherorganizations or bodies.
6. The Internal Audit Department shall exchange information asnecessary and collaborate with the corporate auditors and accounting
auditors, in order to perform internal audits efficiently.
Article 6. Matters relating to Employees Assigned to Assist Corporate Auditors in Performing their Duties upon Request by
Corporate Auditors
1. JBIC shall establish the Office of Corporate Auditor and assign fulltime employees to assist the corporate auditors in performing theirduties.
2. Those full-time employees shall perform their duties in line with
instructions from the corporate auditors.
3. When deemed necessary, the corporate auditors may assign
employees other than the full-time employees referred to above toassist in the performance of audits with the approval of the Governor.
Article 7. Matters relating to Independence from Directors of Employees Assisting Corporate Auditors
1. JBIC shall secure prior approval of the full-time corporate auditorson any decision concerning personnel evaluations, transfers, orother personnel matters relating to employees assisting with theperformance of duties by the corporate auditors (hereinafter “theauditor’s office staff”).
2. When the auditor’s office staff concurrently serve in a position otherthan the auditor’s office, JBIC shall secure prior approval of the fulltime corporate auditors by making clear each of the following points
in writing.
(1) The rational reason shall be clearly stated that the auditor’s
office staff need to concurrently serve in that position.
(2) In assisting with the duties of the corporate auditors, the auditor’s
office staff shall follow the instructions of the corporate auditors

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6. Fundamental Policy on Internal Control

(4)

(5)

(6)

and not the instructions of the position where the auditor’s office
staff serve concurrently.
The scope of duties of and instructions to the auditor’s office staff
in the position other than the auditor's office shall be expressly
limited.
The auditor’s office staff shall not share with others the information
obtained from performing the duties of the auditor’s office whileserving in that position.
The auditor’s office staff shall always give priority to the duties
of assisting the corporate auditors more than the duties at theoffice where the staff serve concurrently in order not to hamper
the effectiveness of audits by the corporate auditors.
When the full-time corporate auditors deem it necessary, it ispossible for them to withdraw the approval that the auditor’s
office staff may serve concurrently in any other office.

Article 8. 
System of Reporting by Directors and Employees to
Corporate Auditors and Other Systems of Reporting toCorporate Auditors
1. The representative director and other directors who perform operational duties shall make accurate reports concerning the statusof performance of their duties from time to time at the Board of
Directors meetings and other important meetings attended by corporate auditors.
2. In the event that a director or an employee discovers any fact thathas the potential of inflicting substantial harm upon JBIC, or improper
conduct or serious violations of Laws and Regulations, said director
or employee shall promptly report the fact to the corporate auditors.
Article 9. System for Ensuring Effective Performance of Audits by
Corporate Auditors
1. The corporate auditors shall be entitled to request reports fromdirectors and employees concerning the status of performance of
their duties whenever they determine such reports are necessary
for the effective performance of audits. A director or employee who
receives such a request shall promptly furnish a report in line withthe request.
2. The corporate auditors may attend important meetings, including theBoard of Directors meetings and the Executive Committee meetings,
to express their opinions as necessary. Corporate auditors may also
request to review minutes and other related documents.
3. The Governor shall hold periodic meetings with the corporate auditors
to exchange opinions.
4. The corporate auditors may request the cooperation of the Internal
Audit Department and departments that oversee compliance matters.
5. The corporate auditors may seek the advice of attorneys, certified
public accountants, and other professionals concerning audits when
deemed necessary for the effective performance of audits.

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7. Security Policy

3(1) Basic Principles
JBIC shall use and manage information assets in line with thebasic principles set forth hereunder while complying with allapplicable laws, regulations, and rules.
A. Information assets shall be used appropriately and only
for their intended purposes.
B. Authority concerning the management of information
assets shall be granted only after careful considerationof the nature of the work and necessity.
C. When adopting and implementing information security
measures, the following matters shall be taken into
consideration, based on the nature of the work:(a) Clarification of responsibilities and roles within
implementation structures(b) Timely and prompt implementation of necessary,
sufficient, effective, and efficient measures(8) Responses to Incidents Concerning Information
AssetsIn the event of improper disclosure of personal or client
information or other incidents causing a problem on
information security, JBIC shall promptly take appropriate
measures.

7. Security Policy(7) Outsourcing WorkIn the event that JBIC engages persons other than its
officers and employees to manage its information assets byoutsourcing such work, it shall verify that information security
is ensured and that appropriate measures have been taken inaccordance with the content of the information assets.

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Japan Bank for International Cooperation (hereinafter “JBIC”)
adopts the following fundamental policy concerning the use
and management of information assets and will properly
handle, manage, protect, and maintain information assets toachieve information security that meets the highest standards
so as to support its proper and efficient operations.

(9) Evaluation and Review
JBIC shall evaluate and review this policy, as necessary,to make flexible responses to changes in the external
environment, such as the enactment, amendment, or repealof applicable laws and regulations, as well as innovations in
information security technology, and to changes in the internal
environment, including organizational and operational changes
and updates to JBIC’s information systems.

(2) Proper Management of Information Assets
Information assets refer to information and information
systems. JBIC classifies them according to such factors as
their degree of confidentiality, completeness, usability, andimportance, and manages them appropriately in accordancewith their classification.
(3) Information Asset Management Structures
JBIC shall establish a structure for ensuring the security of
information assets.
(4) Protection of Personal Information
JBIC shall protect and manage personal information by
establishing and making public our Privacy Policy and pursuant
to the provisions of the Act on the Protection of Personal
Information Held by Independent Administrative Agencies(Law No. 59 of 2003).
(5) Protection of Client Information
JBIC shall establish the basic policy for protecting its clientsand increasing their convenience for the purpose of appropriate
protection and management of information pertaining to themin accordance with this basic policy.
(6) Training on Information Asset Management
JBIC shall provide necessary training to all officers andemployees who handle information assets to ensure thatthey understand requirements in the applicable laws andregulations, as well as in this policy and other applicable rules,
and prevent the occurrence of information security problems.

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8. Privacy Policy

8. Privacy Policy

Japan Bank for International Cooperation (hereinafter “JBIC”)
positions the trust of our clients as our first priority, deeply
recognizes the importance of our clients’ personal information,and believes that it is our duty to our clients to properly manageand protect their personal information.
With a view to protecting our clients’ personal information,
JBIC will conduct our operations in a manner whereby weobserve the Act on the Protection of Personal Information
Held by Independent Administrative Agencies, etc. (hereinafter“Act”), the Guidance concerning the Measures to Properly
Manage the Personal Information held by Independent
Administrative Agencies, etc. and so forth.
(1) Acquisition of Personal Information
JBIC will acquire our clients’ personal information throughproper and lawful means. When we acquire personal
information from our clients directly in writing, we will specify inadvance the purposes for its use that are within the necessary
scope of JBIC’s operations.
(2) Use of Personal Information
JBIC will specify the purposes for use in obtaining the necessary
personal information of our clients as listed below, and will use
it within the scope that is necessary to achieve such purposes:
A. Loan, equity participation, and guarantee operations, andtheir related due diligence exercise and research (or their
supplementary work)
B. Due diligence and communication on contracts with JBIC
(other than 1. above)
C. Confirmation of personal identity as per such laws as
Foreign Exchange and Foreign Trade Act (Act No. 228,
1949)
D. Invitation to events (such as seminars) organized by JBIC
E. Delivery of various JBIC-related materials
F. Issuance and collection of surveys and questionnaires, andstatistical processing and analysis of such outcomes
G. Operations necessary for responding to questions andinquiries, and for dealing with transactions including
queries from JBIC, in a proper and smooth manner(3) Provision of Personal Information to Third Parties
JBIC will not provide the personal information acquired fromits clients to third parties except in the following cases:
A. It is required by law.
B. It is provided within the scope of the purposes for use asprescribed above.
C. Consent is obtained from the clients.
D. There are convincing reasons why executive agencies,
independent administrative agencies, local municipal
entities or local independent administrative agencies would
use it to the necessary extent to carry out the law-stipulated
operations.
E. It is used for statistics compilation or academic research.
F. It is clearly beneficial to the clients or there exist special
reasons to provide personal information.

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JBIC Annual Report 2014(4) Subcontract
JBIC may subcontract the handling of our clients’ personal
information to conduct such operations more smoothly. In suchcases, JBIC will attempt to select a trustworthy subcontractor,
enter into a confidentiality agreement, adequately supervise
the handling and administering of the personal information,
and assure the protection of personal information.
(5) Personal Information Management (PIM)
A. JBIC will attempt to keep our clients’ personal information
correct and updated, and take prevention and safetymeasures against unauthorized access, leakage, loss,
damage, and alteration of personal information.
B. JBIC will constantly educate its employees about theprotection and proper management of our clients’ personal
information to thoroughly make sure of its proper handlingin its daily operations.
C. JBIC will audit and inspect whether the protection andmanagement of personal information is undertaken
properly.
(6) Disclosure, Correction, and Disuse
If a client wishes to make a request to disclose, correct ordisuse the clients’ personal information held by JBIC, we
will deal with such a request by following the procedure ofdisclosure etc. stipulated in the Act. Meanwhile, there aresome cases when such disclosure etc. could be made outof the procedure of disclosure etc. stipulated in the Law, forwhich please contact at our Head Office or West Japan Office.
(7) Inquiries about Personal Information Management(PIM)
For inquiries or complaints about the clients’ personal
information management (PIM) at JBIC, please contact atour Head Office or West Japan Office.
(8) Continuous Improvement
JBIC will continuously improve the clients’ personal information
management (PIM) as necessary.