Profile of JBIC

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1

Profile2

2

Message from the Governor, CEO

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JBIC’s Medium-Term Business Plan (FY2012–2014)8

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Outline of Operations in FY2013

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JBIC Annual Report 20141

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1. Profile

Profile of JBIC 1. Profile

The Purpose of JBICJBIC is a policy-based financial institution wholly owned by the Japanese government, which has the objective of contributing to
the sound development of Japan and the international economy and society, by conducting financial operation in the following
four fields:
Promoting the overseas development and securement of resources which are important 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
Preventing disruptions to international financial order or taking appropriate measures with respect todamages caused by such disruption

Corporate Slogan

Corporate Philosophy
The objective of JBIC, as set forth in its statutory law, is to “contribute to the sound development of Japan and the international
economy and society” by executing a variety of financial functions. To pursue this objective, we have set out the following corporate
philosophy, which espouses three core values: “Hands-on Policy,” “Customer-1st Approach” and “Forward-looking Action.”

Positioned at the crossroads of global business opportunities,
JBIC is opening new venues to the future for the Japanese and global economy.
Hands-on Policy:
Pioneering new value by participating at the forefront of overseas project development,
and by engaging proactively in projects from the early stages
Customer-1st Approach:Offering customers one-of-a-kind solutions by adopting their perspectives and integrating their views into
policy development
Forward-looking Action:
Contributing to the sustainable development of Japan and the world as a whole by deploying highly professional
skills, with a view to realizing a secure and affluent future society

Operational Principles
JBIC, as a policy-based financial institution and in accordance with the following principles, conducts speedy and well-focused
operations based on policy needs in response to economic and financial situations in Japan and abroad.
1. Supplementing the financial transactions implemented by private-sector financial institutions
To effectively perform the functions required for policy-based financing, JBIC shall take account of situations where
private-sector financial institutions are placed in their international finance activities and supplement their operations.
2. Ensuring financial soundness and certainty of repayment
Pursuant to the JBIC Act, JBIC shall make efforts to maintain the financial soundness of its operations, and when making
financial decisions, to conduct adequate screening regarding the outlook for the recovery of funds.
3. Maintaining and improving international creditworthiness and confidence
In order to conduct adequate operations and effective overseas funding operations, JBIC shall maintain and improve
the international creditworthiness and confidence gained by JBIC over the years.
4. Conducting business operations by drawing on its expertise and initiatives
JBIC shall conduct operations by drawing on its own expertise and initiatives on international finance.

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Profile of JBIC 1. Profile

JBIC Code of Conduct
Act consistently in the public interest. Contribute to Japan and the international community by pursuing our Mission.
Prioritize client satisfaction. Deliberate, decide and act from the client's perspective.
Accept responsibility as a professional. Perform every task based on your own initiative.
Undertake challenges daringly. Create new value without fear of failure.
Work quickly and cost-effectively. Enhance your work quality with an eye to efficiency.
Focus on teamwork. Share unified objectives with your colleagues to achieve significant successes.
Maintain high ethical standards and a law-abiding spirit. Observe our moral code as a JBIC member at all times.

HistoryJapan Bank for International Cooperation (JBIC) was established on April 1, 2012 in accordance with the Japan Bank for International
Cooperation Act (JBIC Act), which promulgated and came into effect on May 2, 2011.
October 2008

Japan Finance Corporation( JFC)
JBIC(International Wing)

Export-Import Bank ofJapan ( JEXIM)

Japan Bank forInternational Cooperation(former JBIC)

Micro Business andIndividual Unit
Agriculture, Forestry, Fisheries
and Food Business Unit
Small and Medium Enterprise(SME) Unit

International Financial
Operations

March 1961
Overseas Economic
Cooperation Fund (OECF)

Japan Bank forInternational
Cooperation( JBIC)(Domestic Finance Units)

October 1999

December 1950

April 2012

Overseas Economic
Cooperation Operations

Operations to Facilitate Crisis
Responses and Specific
Businesses Promotion, etc.

Japan International
Cooperation Agency ( JICA)

ProfileName
OfficeCapital*Outstanding Loans and Equity Participations**
Outstanding Guarantees**

Japan Bank for International Cooperation (JBIC)
4-1, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, Japan¥ 1,391.0 billion (wholly owned by the Japanese government)¥ 12,881.9 billion¥ 2,422.6 billion* As of June 27, 2014** As of March 31, 2014

JBIC Annual Report 20143

2. Message from the Governor, CEO

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Profile of JBIC 2. Message from the Governor, CEOAs we publish the 2014 Annual Report, I would like to express my heartfelt appreciation
for your continued understanding and support for our activities.
While the economic slowdown in Europe continued unabated and growth in theemerging countries slowed, the U.S. economy showed signs of a mild recovery.
Nonetheless, with trends in the U.S. exit policy from quantitative easing and its impact
on markets in emerging countries, there are continuing concerns about the risk of adownturn in the global economy.
Against this backdrop, the international economic climate surrounding Japan isundergoing dramatic change. As competition for securing natural resources remains
intense, a stable supply of natural resources and diversifying the supply source is a
crucial challenge for Japan that is directly linked to national living standards. Moreover,
the overseas deployment of infrastructure systems, including management know-how
and operation and maintenance, has become critical for Japanese industries. In addition,achieving economic growth in harmony with global environmental sustainability is an
issue common to all countries, and there are growing needs for projects that capitalize
on Japan’s advanced environmental technologies, renewable energy projects, andother projects conducive to conserving or improving the environment.
In view of such changes both overseas and in Japan, JBIC, as Japan’s policy-based
financial institution, will provide even more extensive support to the overseas businessdeployment of Japanese companies.

Hiroshi Watanabe
Governor, CEOJapan Bank for International Cooperation(JBIC)

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Profile of JBIC 2. Message from the Governor, CEOInterview with the Governor, CEOBusiness climate and evaluation of
JBIC’s performance— It has been two years since the new JBIC was established.
Overall, how do you evaluate the operation of the neworganization?
JBIC was established in April 2012 under the Japan Bankfor International Cooperation Act, and began operations
as a policy-based financial institution wholly owned by theJapanese government. So far, I believe, JBIC has been able tofunction and carry out its operations with great flexibility, a highdegree of expertise and improved capacity for negotiations
with overseas companies, institutions, and governments.
To recap the past two years, fiscal year 2012, the firstyear of the new JBIC, saw a total of ¥4,240.9 billion in loans,guarantees, and equity participation largely contributed bycommitment to natural resources development projects andM&A. This was the largest amount since the establishmentof the Export-Import Bank of Japan, the former JBIC.
In fiscal 2013 JBIC provided extensive support to Japanese companies in their overseas business operations covering natural resources projects, M&A and infrastructure
projects, and as a result, JBIC’s loans, guarantees and equity
participation continued at a high level with a total of ¥2,206.1
billion.
In 2011, before the shift to the new organization, thebusiness division, which until then had been a mix of regionand sector-based departments, was reorganized into three
Finance Groups for each sector, and this concentration of
know-how and skills in each industrial sector resulted in agreater capacity for project formulation. We’re now able
to promote projects more strategically, and I’m pleased to
say that this has led to operations that can better meet the
expectations of the Japanese people and industries.
— How is the Medium-Term Business Plan (FY2012-2014)
progressing, and what are the projections for the plan’s
final year?
Looking at the results from the fiscal 2012 and 2013 Annual
Business Plans, which are based on the current Medium-TermBusiness Plan, the plan has been progressing quite smoothly,
and the Management Advisory and Evaluation Committee,
which comprises external experts, has given the same assessment.
In fiscal 2014, the signs of a business recovery have led tothe start of a resurgence in private-sector finance, so I believethat as a policy-based financial institution, JBIC will see a slightdecline in the scale of its business operations, although we willcontinue our prompt response in areas that private financial

institutions are not able fully to cover. As we enter the final
year of the Medium-Term Business Plan, we are committed
to achieving our objectives while displaying full accountability
for the role and responsibilities we have been charged withby the Japanese people and the Diet.
— How do you rate the financial results for fiscal year 2013?
Net income in fiscal 2013 was ¥91.3 billion, an increase of¥27.8 billion over the previous fiscal year. This is the highest
level of income achieved, including that achieved in the periodof October 2008-March 2012. During this period, JBIC was theinternational wing of the Japan Finance Corporation and began

Fiscal 2012 saw
the highest level of loans,guarantees and equity participation
on record. The high level
continued in fiscal 2013
accounts settlement under the Company Act and corporate
accounting standards. The level was also highest on record
on a net business income base with ¥74.2 billion.
The increase in the balance of loans also resulted in an
increase in total assets by ¥1,915.8 billion to ¥16,346.0 billion.
From net income, JBIC paid ¥45.6 billion to the nationaltreasury in June 2014.
While our earnings for fiscal 2013 were the highest on
record, JBIC’s role is to provide loans to Japanese industry andpartner countries at interest rates lower than those available
on the private market, so, essentially, we do not pursue profit.
JBIC is required by legislation to display financial soundness,
and while our financial results for fiscal 2013 were solid,
increasing our income more than this is not our true goal.
What level of earnings we should maintain, and how we canconduct stable operations without imposing any additional

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Profile of JBIC 2. Message from the Governor, CEOburden on the Japanese tax payers are crucial issues that weare currently discussing. I expect that the outcome of these
discussions will be reflected in the next Medium-Term BusinessPlan.

Key business areas and issues facing JBIC
— What are your thoughts on the key business areas for JBIC
in the future, and how will JBIC tackle each of those areas?
There continues to be a substantial and diverse needfor support from JBIC not just in major natural resources,
infrastructure, and M&A projects, but also in the overseas
business operations of Japanese mid-tier enterprises andsmall and medium-sized enterprises (SMEs).
In the infrastructure sector, strong collaboration between
the private and public sectors will become even more criticalto enable Japanese companies to overcome the intenseinternational competition and achieve the government’s
2020 target of about ¥30,000 billion in infrastructure-systemrelated orders (about ¥10,000 billion in 2010). At JBIC weare fully aware that we are required not just to provide publicfinancing, but also to make the most of the broad-ranging
relations we have built up with foreign governments and others
over many years and become actively involved in the formationof projects from the early stages.
In infrastructure systems exports, for example, while there
are many Japanese companies that are world leaders in waterrelated products and technologies such as reverse osmosis

Meet the diverse needs ofnatural resources, infrastructure, M&A,
mid-tier enterprises and SMEs, etc.
membranes and high-pressure pumps, Japanese companies
have yet to enter into concession businesses in overseas
water supply and sewerage systems, or seawater desalination
projects. It has been pointed out that there is a lack of operatorswith the capability for integrated implementation of projects,
and how we at JBIC can provide support to management thatfaces such issues is a future challenge for us. We are looking
to support the establishment of international alliance in areas
where Japanese companies lack expertise, and boost our
support for acquisition of overseas companies that can beof value to Japanese companies in building up this expertise.
We will continue providing local currency loans to meet
local currency finance needs in infrastructure projects, andcommercial distribution in intermediary trade.
Another key sector is support for overseas M&A by
Japanese companies, and there are two facets to this.
The first is the acceleration of Japanese companies’ globalization. In the past, Japanese companies would establish

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JBIC Annual Report 2014

local subsidiaries overseas, and steadily expand their production or business operations using local human resources,
but this approach cannot keep up with the dynamic global
economy. Purchasing existing overseas companies and sales
networks, however, will enable Japanese companies to growtheir business much more quickly.
The second is to acquire overseas assets through support
for Japanese companies’ M&A. The accumulation of Japanese
assets overseas through the development of or acquisition ofinterests in oil and gas fields and mines is also crucial.
Japan continues to run a trade deficit because of fuelimports, including LNG, and in addition to this, if Japan’scurrent-accounts balance, which brings together all balanceof payments, were to fall into deficit, this would have an
adverse impact on Japan’s future generations. So overseas
M&A is essential from the perspective of Japanese companies
acquiring overseas assets when they have excess capacity, andusing these assets as a source of future investment income.
Therefore, we understand how important support foroverseas M&A by Japanese companies is both in the shortterm and in the medium term, and we will continue to focus
on this area in the future.
— What are your thoughts on the support JBIC provides
for the overseas business operations of Japanese mid-tierenterprises and SMEs?
JBIC is strengthening its support for Japanese mid-tierenterprises and SMEs in their overseas business operations.
Over the past three years we have provided steady support forthese companies through loans. In fiscal 2011 we provided 16
cases of loans totaling ¥3.6 billion, in fiscal 2012 there were 34
cases totaling ¥34.1 billion, and in fiscal 2013 there were 54
cases totaling ¥18.0 billion. We will continue providing suchactive support in the future as well.
In Japan, public-sector financial institutions have provided
various forms of support for companies after World War II.
SMEs with capital funds of up to ¥300 million have fallen
under the responsibility of the Small and Medium Enterprise
Unit or the Micro Business and Individual Unit of the Japan
Finance Corporation, but there has been nothing specified bylegislation covering support for companies with capital funds
above ¥300 million. The public-sector financial institutions
Japan Development Bank and the former Export-Import Bankof Japan mainly dealt with big enterprises. Fortunately, fromabout the mid-1960s there was a generous level of funding
available, but the bankruptcy of Lehman Brothers in 2008
triggered examination of liquidity on the global level, and thisin turn led to a greater focus on the need to provide support to
mid-tier enterprises, which underpin the Japanese economy.
Following the bankruptcy of Lehman Brothers, JBIC
provided support to many mid-tier companies in the formof two-step loans through Japan’s major banks. In addition,
based on debate in the Diet concerning the need for publicsector financial institutions to provide support for mid-tierenterprises and SMEs, since its start as a new organization,

1— What do you see as future challenges that JBIC will face?

JBIC has further expanded such support, including cofinancing with local banks, credit banks and other regional
financial institutions that deal with mid-tier enterprises andSMEs, and local currency loans.
Japan’s social structure is such that mid-tier enterprises
and SMEs play a critical role in providing employment. In theface of contracting domestic markets with the advance ofeconomic globalization and Japan’s aging population anddwindling birth rate, mid-tier enterprises and SMEs must

Loans for mid-tier enterprises and
SMEs grew steadily
look outside of Japan and expand their overseas businessdeployment to remain strong.
With the establishment of the new JBIC organizationin 2012, mid-tier enterprises and SME support units were
established in both the Head Office and the West Japan
Office (Osaka) to allow greater flexibility in supporting mid-tierenterprises and SMEs in their overseas business deployment.
Under this enhanced support structure, we will work evenmore closely with Japanese regional financial institutions andoverseas financial institutions to provide mid-tier enterprises
and SMEs with the support they need to expand their overseas
business deployment.

JBIC’s business is rapidly growing. JBIC loans, guarantees
and equity participation from 2000 to 2005 were generally
around the ¥1,200 billion mark, but in fiscal 2012 this soared toover ¥4,000 billion. This result was achieved by fewer staff than
before. For us to be able to continue making steady progressin this area, there are several issues we will have to address.
The first is to make internal procedures more efficient andstreamlined, and to this end, we are rearranging our work
authority regulations. In conjunction with this, we are reviewing
the various ways we can utilize IT in our business to improve
efficiency.
As I mentioned at the beginning, we introduced sectorbased Finance Groups three years ago. We will check whether
there are any business oversights compared to the previous
period when we were covering our business on a regional,
sector, and financial method basis from all directions, andwhether there are any weaknesses in our dialogue with hostcountry governments. We will then include any measures
to address organizational issues in our next Medium-TermBusiness Plan.
Another issue is how we deal with emergencies. The Great
East Japan Earthquake made us realize that we needed tostrengthen our business continuation plan (BCP) to make surethat the organization could continue operating at the time of an
emergency. We are currently developing a structure that will
enable us to recover and quickly return to normal operationsin the event of a disaster or other similar emergency, and areproceeding with plans to store our data securely in dispersed
locations outside of Tokyo.
JBIC will fulfill the role demanded of us based on government policies including the Infrastructure Systems Export
Strategy and the Japan Revitalization Strategy as amended
in June 2014, always bearing in mind the need to complement
the private sector and ensure Japan’s financial strength. To
this end, we are committed to working tirelessly and efficiently
under our corporate philosophy of “Positioned at the crossroads of global business opportunities, JBIC is opening newvenues to the future for the Japanese and global economy”
and our three core values of “Hands-on policy”, “Customer1st Approach”, and “Forward-looking Action”. Every member
of JBIC, both executives and regular employees, will work
together to ensure that we as an organization fully meet the
expectations of all parties concerned in every related sector.

JBIC Annual Report 2014

Profile of JBIC 2. Message from the Governor, CEO

Committed to working tirelessly andefficiently under our three core values of“Hands-on policy,”“Customer-1st Approach,” and“Forward-looking Action”

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3. JBIC’s Medium-Term Business Plan (FY2012-2014)

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Profile of JBIC 3. JBIC’s Medium-Term Business Plan (FY2012-2014)

Basic Principles, Backdrop and Overview
JBIC’s current Medium-Term Business Plan (FY2012-2014)
aims to promote efficient and results-oriented business
operations in line with the Japanese government’s policies andto accomplish proper accountability. To this end, it explicatedhigh priority business and management issues to be addressed
by JBIC over the medium term, and set forth strategies andaction plans to tackle these issues. JBIC also sets the Annual
Business Plan for each fiscal year to set specific targets JBIC
should strive to pursue this year with the action plans set in
the Medium-Term Business Plan.
JBIC sets the basic principles of the Medium-TermBusiness Plan of Operational Strategy for 6 Thematic Areas

and Basic Principles to 8 Basic Strategies, based on following
JBIC mission and policy; 1) Realizing projects strategicallywith original value added, while being deeply involved in the
project formulation stage, thereby contributing to economic
growth in Japan and the world, 2) Identifying precise needsof Japanese firms and seeking to strengthen “speed withflexibility,” “expertise” and “negotiating power” to execute
requisite policies, 3) Realizing sophisticated risk management
as well as maintaining and strengthening JBIC’s financial
position in response to increasingly high risk, long-term andlarge-scale projects.

JBIC’s Mission, Corporate Philosophy and the Basic Principles of the Medium-Term Business PlanJBIC’s Mission
Promoting overseas development
and acquisition of resources
important for Japan

Maintaining and improving theinternational competitiveness ofJapanese industries

Promoting overseas business forpreserving the global environment

Preventing disruptions tointernational financial order or totake appropriate measures withrespect to damages caused bysuch disruption

Contributing to the sound development of Japan and the international economic community

Corporate Philosophy

Positioned at the crossroads of global business opportunities,
JBIC is opening new venues to the future for the Japanese and global economy.
Hands-on Policy

Customer-1st Approach

Forward-looking Action

Pioneering new value by participating at theforefront of overseas project development,
and by engaging proactively in projects fromthe early stages

Offering customers one-of-a-kind solutions byadopting their perspectives and integrating
their views into policy development

Contributing to the sustainable developmentof Japan and the world as a whole by deploying highly professional skills, with a view torealizing a secure and affluent future society.

Basic Principles of the Medium-Term Business Plan
Operations
Realizing projects strategically with original value added, while being deeply involvedin the project formulation stage, thereby contributing to economic growth in Japanand the world

8

Organization

Finances

Identifying precise needs of Japanese firms and seeking to strengthen “speed with flexibility,” “expertise” and “negotiating power” toexecute requisite policies

Realizing sophisticated risk management as well as maintaining andstrengthening JBIC’s financial position in response to increasingly
high risk, long-term and large-scale projects

JBIC Annual Report 2014

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Basic Principles
Operations
Realizing projects strategically with original value added, while being deeply involved in the project formulation
stage, thereby contributing to economic growth in Japan and the world

Organization

Finances

Identifying precise needs of Japanese firms and seeking to strengthen “speed with flexibility,” “expertise” and “negotiating power” toexecute requisite policies

Realizing sophisticated risk management as well as maintaining andstrengthening JBIC’s financial position in response to increasingly
high risk, long-term and large-scale projects

Operational Strategy for Each Thematic Area (6 Issues)
1

Supporting development and acquisition of overseas
resources based on Japan’s natural resources policies

2

Basic Strategies (8 Issues)
7

Supporting steadfastly the area of preserving the global
environment

Partnership with private financial institutions(Devotion to complementing private business
operations)83

Supporting overseas development of infrastructure
projects

Effective use of a variety of tools such as equity
investment

94Enhancing support for mid-tier enterprises and SMEs

Wielding negotiating power with externalcounterparties by leveraging JBIC’s status as agovernment-owned institution

5

Supporting strategic overseas business activities ofJapanese firms

6Operations

Organization

Preventing disruptions to financial order in the international
economy or counteracting their adverse impact

Profile of JBIC 3. JBIC’s Medium-Term Business Plan (FY2012-2014)

Overview of the Medium-Term Business Plan FY2012-2014

10 Conducting speedy, flexible and efficient operations
11 Efforts to strengthen expertise in the organization
12 Self-disciplined corporate management
13 Managing risks commensurate with risk exposure

Financesof strategic operations

14 Maintaining appropriate profit levels and a stable
fiscal position

Basic Principles (on Operations) and Their Backdrop
Basic
Principles

Operations

Realizing projects strategically with original value added, while being deeply involved in the project formulation stage,
thereby contributing to economic growth in Japan and the world

What is expected of the government for the overseas business development of infrastructure projects?

Government
Efforts:
ExamplesJBIC’s Efforts

Collecting Information

Top sales
Supporting
the formation of
consortiums

Support financings
Policy dialogue
Being involved inproject formulation

Supporting
standardization, etc.

Areas where active efforts should bemade going forward

Areas where efforts have been
made to date

Proactive involvement from the early stages ofproject formulation

Provide financing based on the businessplan of the project operator

Consultation withpotential Japanese
project operations

Dialogue withhost country
government

Studies for
project
feasibility

Competitive
biddingAwardedconcession;ordersLoanstructuring

Offering
financing

Project
supervision

JBIC Annual Report 2014

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Profile of JBIC 3. JBIC’s Medium-Term Business Plan (FY2012-2014)

Basic Principles (on Organization and Finances) and Their Backdrop
Basic
Operations
Principles

Realizing projects strategically with original value added, while being deeply involved in the project formulation stage,
thereby contributing to economic growth in Japan and the world

Identifying precise needs of Japanese firms
and seeking to strengthen “speed with flexBasic
Organization
Principles
ibility,” “expertise” and “negotiating power”
to execute requisite policies

Basic
Principles

Finances

Realizing sophisticated risk management aswell as maintaining and strengthening JBIC’s
financial position in response to increasingly
high risk, long-term and large-scale projects

Functions required for organization and finances
Speed withflexibility

Speedy, accurate collection of project information

Expertise

Risk analysis of long-term projects involving substantial cost
Making policies for bidding and financial support

Negotiating
power

Expertise

Speed with flexibility

Formulating projects, winning orders, construction and operation in
public-private partnerships
Negotiating power

Dialogue with host country governments and agencies by drawing on
overseas network and expertise
Formulating a financing structure capable for Japan to provide support

Risk-assuming
capacity

Sustaining
credibility

Sustaining credibility

Solid financial position capable of supporting large financial support
Information disclosure and IR activities based on international rules

Risk-assuming capacity Offering competitive financing terms

The Medium-Term Business Plan contains the following content.
Basic Principles

Set out principles guiding JBIC operations over the medium term to effectively execute the mission mandated on JBIC,
given its status as a policy-based financing institution.

Key Strategies

Designate strategic issues necessary to conduct operations in accordance with the Basic Principles. These consist of the
Basic Strategies, which set out matters concerning operations, organization and finances, and Operational Strategies for
Thematic Areas, which set out an operational strategy for each thematic area.

Agendas and Action Plans

Assigned over the medium term for each of the Key Strategies.

Performance Indicators

Evaluate the extent to which the objective of each action plan has been achieved as well as monitor and evaluate theprogress being made for each action plan.

There are four types of performance indicators used in the Medium-Term Business Plan as shown below. Objectives are set in the
Annual Business Plan for each fiscal year, and the Management Advisory and Evaluation Committee will evaluate the performanceat the end of each fiscal year by assessing the extent to which the initially-set objectives have been achieved.
Indicator

Definition

Quantitative
Indicators

Set initially quantitative objectives for the end of the planned year
and evaluate the extent to which they are achieved at the end of theplanned period.

Monitoring
Indicators

Add up performance figures at the end of the planned period andmonitor their chronological changes.

Qualitative
Indicators

Set initially exemplified qualitative objectives for the end of theplanned period and evaluate the results actually achieved at theend of the planned period.

Set exemplified qualitative
objectives.

Tabulate actually achieved
results and evaluate them
qualitatively.

Milestone
Indicators

For issues that require steady progress in action over the medium tolong term (about 3 years), set initially concrete actions(milestones**) to take each year and evaluate the extent to which
they achieve the milestone (if necessary, a milestone may be modified at the beginning of the next year).

Set initially in the planned
3-year period milestones**(for each year).
Review at the initial point in
the subsequent years.

Evaluate the results
based on the already set
milestones.** Quantitative Milestone indicators may also be evaluated from a qualitative aspect.
** Quantitative figures may be incorporated in milestones.

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JBIC Annual Report 2014

Initial Assignment

Set quantitative objectives.

End Period Evaluation

Tabulate the actuallyachieved figures and evaluate them quantitatively.*
Tabulate the actuallyachieved figures andmonitor them.

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PDCA Cycle of Medium-Term Business Plan and Annual Business Plan
Medium-TermBusiness Plan
(Plan)

Feedback(Action)

PDCA Cycle for
Medium-TermBusiness Plan
(3 years)

AnnualBusiness Plan
(Plan)

Feedback(Action)Evaluation of
the Medium-TermBusiness Plan

PDCA Cycle for
Annual Business
Plan
Implementation,
Monitoring

Evaluation(Check)(Do)(Check)Profile of JBIC 3. JBIC’s Medium-Term Business Plan (FY2012-2014)

JBIC is committed to performing its mission and roles appropriately as a policy-based financing institution by implementing the
PDCA cycle in the Medium-Term Business Plan and the Annual Business Plan.

Strategies, Agendas (Action Plans) and Performance Indicators
The agendas (action plans) and performance indicators for the Operational Strategies for Each Thematic Areas (six strategies)
and Basic Strategies (eight strategies) are as below.
Operational Strategy for Each Thematic Area
1

Supporting Development and Acquisition of Overseas Resources Based on Japan’s Natural Resources Policies
Agenda and Action Plan

Supporting development/acquisition of resources in the upstream sector and a stablesupply of resources based on the Japanese
government policy of taking advantage of yen
appreciation and the changed environment in
the wake of the Great East Japan Earthquake

Performance Indicator

Type

Number of loan, guarantee and investment commitments for the projects/transactions contributing to acquisition of interests in resources, taking their delivery andobtaining their sales concessions

Quantitative

Among the above commitments, the number of those contributing to securing astable supply of energy resources

Quantitative

Among the immediately above commitments, their amounts of oil, natural gas, copperand iron ores, and coal obtained by new acquisition and delivery

Monitoring

Efforts (including support for related infrastructure) to reduce the procurement costof natural gas for Japan

Qualitative

2 Supporting Steadfastly the Area of Preserving the Global Environment
Agenda and Action Plan

Realizing steadfastly such environmental
projects as renewable energy, energy efficiency improvement and highly efficient power
generation

Performance Indicator

Type

Number of loan, guarantee and investment commitments for such environmental
projects as renewable energy, energy efficiency improvement and highly efficient
power generation

Quantitative

Projected reductions in greenhouse gas emissions in new projects to which loan,
guarantee and investment commitments were madeMonitoring

3 Supporting Overseas Development of Infrastructure Projects
Agenda and Action Plan

Performance Indicator

Type

Actively supporting overseas developmentof infrastructure projects by Japanese firms

Number of loan, guarantee and investment commitments supporting overseas
development of infrastructure projects

Quantitative

Strengthening efforts to support the formulation of highly strategic projects

Implementing support for the formulation of highly strategic projects

Qualitative

JBIC Annual Report 2014

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Profile of JBIC 3. JBIC’s Medium-Term Business Plan (FY2012-2014)

4 Enhancing Support for Mid-Tier Enterprises and SMEs
Agenda and Action Plan

Performance IndicatorType

Pressing forward efforts for active support

Number of loan, guarantee and investment commitments for mid-tier enterprises
and SMEs

Quantitative

Number of mid-tier enterprises and SMEs supported by the above commitments

Monitoring

Number of seminars and consulting sessions organized for mid-tier enterprises
and SMEs

Quantitative

Increase opportunities to disseminate information such as seminars and consulting sessions

5 Supporting Strategic Overseas Business Activities of Japanese Firms
Agenda and Action Plan

Supporting Japanese firms’ strategy to capture overseas market shares and the maintenance and strengthening of their supply chains
Supporting M&A activities based on the government policy of taking advantage of yen
appreciation

Performance Indicator

Type

Number of loan, guarantee and investment commitments for overseas investment
projects by Japanese firms or projects for supporting associated operations withsuch projects (Show breakdown by developed country for monitoring purposes)

Quantitative

Number of loan, guarantee and investment commitments for export transactions by
Japanese firms (Show breakdown by developed country for monitoring purposes)

Quantitative

Number of loan, guarantee and investment commitments for M&A deals

Quantitative

The total amount of M&A deals above

Monitoring

6 Preventing Disruptions to Financial Order in the International Economy or Counteracting Their Adverse Impact
Agenda and Action Plan

Performance Indicator

Type

Preventing disruptions to financial order in
the international economy or counteracting
their adverse impact with speed, flexibility
and effectiveness

Number of countries for which monitoring was done with respect to macroeconomic
conditions

Quantitative

Number of loan, guarantee and investment commitments for preventing disruptions
to financial order in the international economy or counteracting their adverse impact

Monitoring

Basic Strategies

Operations

7 Partnership with Private Financial Institutions (Devotion to Complementing Private Business Operations)
Agenda and Action Plan

Pressing forward strategic partnerships withprivate financial institutions, including appropriate cofinancing

Performance IndicatorType

The share of cofinancing commitments in the number of loan commitments(excluding matching* loans and loans to banks)

Quantitative

Private sector funds mobilized in the projects/transactions to which JBIC made loan,
guarantee and investment commitments

Monitoring

Number of private banks with which JBIC entered into a partnership

Quantitative* Application of the same credit terms offered by the participating or non-participating countries under the OECD Arrangement on Guidelines for Officially Supported Export Credits

8 Effective Use of a Variety of Tools Such as Equity Investment
Performance Indicator

Type

Active use of equity investment

Agenda and Action Plan

Number of investment commitments for equity investment (participation) projects

Quantitative

Effective use of guarantees and other financial
instruments

Record of effective use of guarantees and other financial instruments

Qualitative

Pressing forward efforts to finance with local
currencies

Number of local currencies with which loan, guarantee and investment commitments
were made (outstanding)

Monitoring

Pressing forward PF and SF* projects

Number of commitments to PF and SF projects

Quantitative* Project finance and structured finance

9 Wielding Negotiating Power with External Counterparties by Leveraging JBIC’s Status as a Government-owned Institution

12

Agenda and Action Plan

Performance Indicator

Type

Strengthening relations with foreign governments and government agencies, increasingcollaboration with multilateral institutions andforeign official institutions, and wielding JBIC’s
negotiating power with external counterparties

Efforts to strengthen relations with major countries (their governments and government agencies)

Qualitative

Cases where JBIC wielded its negotiating power among the number of loan, guarantee and investment commitments with which cross-border loans were extended

Quantitative

JBIC Annual Report 2014

1
Organization

10 Conducting Speedy, Flexible and Efficient Operations
Agenda and Action Plan

Enhancing strategic and flexible allocation of
given management resources
Efficient corporate management with work
flow improvement and other means
Upgrading IT infrastructure

Performance IndicatorType

Customer satisfaction survey (level of satisfaction with the time taken for approving
loans and other financial instruments)

Quantitative

Employee consciousness survey (awareness of equalizing work load among employers)

Monitoring

Progress in key BPR* measures

Milestone

Average overtime work hours per employee

Monitoring

Progress in IT investment, including improvement in the common infrastructure andthe establishment of a backup center

Milestone* Business Process Re-engineering

11 Efforts to strengthen expertise in the organization
Agenda and Action Plan

Recruiting and fostering human resources
capable of providing high value-added services
Strengthening the strategic collection anddissemination of requisite information

Performance Indicator

Type

Number of training sessions for providing advanced financing and appraisal methods(including the number of participants for monitoring purposes)

Quantitative

The percentage of the staff who have experience in an overseas posting or who wereloaned to overseas institutions (during the past 5 years)

Quantitative

Domestic and foreign entities with which an exchange of views continues to take placethrough operational cooperation or assignment, excluding clients (cumulative total)

Quantitative

Profile of JBIC 3. JBIC’s Medium-Term Business Plan (FY2012-2014)

Basic Strategies

12 Self-disciplined corporate management
Agenda and Action Plan

Corporate management that meets the needsof clients

Performance IndicatorType

Customer satisfaction survey (overall level of satisfaction)

Quantitative

Customer satisfaction survey (level of satisfaction on the time taken for loan approval)

Quantitative

The average appraisal period for PF projects

Monitoring

Promoting disclosure and public relations
activity

Number of times the JBIC website and other mediums are accessed

Monitoring

Mainstreaming compliance efforts

Number of internal training sessions on compliance

Quantitative

Basic Strategies

Finances

13 Managing Risks Commensurate with Risk Exposure of Strategic Operations
Agenda and Action Plan

A more improved and advanced framework forappropriately assessing and managing majorrisks associated with conducting strategic
operations

Performance IndicatorType

Loan assets to be disclosed under the Financial Revitalization Act

Monitoring

The ratio of provisions made for the above assets

Monitoring

Number of meetings held by the Risk Advisory Committee

Monitoring

14 Maintaining appropriate profit levels and a stable fiscal position
Agenda and Action Plan

Performance Indicator

Type

Securing appropriate levels of profits andlossesOverall profit margin*

Monitoring

The ratio of administrative cost

Monitoring

Maintaining financial stability

Capital Adequacy Ratio (BIS basis)

Monitoring

Preparation for International AccountingStandard

State of examination with respect to introducing IFRS

Milestone* Yields on Interest-earning Assets-Costs on Interest-bearing Liabilities

The performance will be evaluated at the end of each term by the Management Advisory and Evaluation Committee, which
consists of external experts and outside directors, and the result will be published.

JBIC Annual Report 201413

1

4. Outline of Operations in FY2013

Profile of JBIC 4. Outline of Operations in FY2013

Operational Highlights
acid carrier.

The total amount of commitments JBIC made during FY2013
in loans, guarantees and equity participation was ¥2,206.1
billion, which was 52% of the FY2012 amount. The outstandingof loans and guarantees as at the end of March 2014 was¥15,304.6 billion.
JBIC’s major operations in each sector for FY2013 areshown below.

 upport for Japanese Companies’ Strategic Overseas
S
Business Deployment
JBIC provided support for the overseas business deployment
of Japanese companies in a broad range of fields including
automobiles, such as automobile parts manufacture and sales
in Indonesia, chemicals, electrical equipment and electronics,
and general machinery and metals with the aim of further
promoting their overseas business deployment.
Making more extensive use of its equity investment function,
JBIC invested in the acquisition of a U.S. grain and fertilizer
company, and an offshore wind power joint venture between
Japanese and Danish companies. JBIC also provided risk
guarantees essential for the overseas business operations ofJapanese companies.

Efforts in the Energy and Natural Resources Sector
JBIC provided loans for LNG projects, upstream natural gas
field development, and various other projects in the energy andnatural resources sector in which Japanese companies wereinvolved. JBIC also provided funds for LNG imports and funds
necessary for the purchase of an LNG tanker to transport LNG.
In the mineral resources sector, JBIC provided loans forthe development and operation of an iron ore mine and related
infrastructure in Australia, and the further expansion of a zinc,lead and silver mine in Bolivia. JBIC also provided funds foracquisition of interests and development of a copper mine inChile, and for the operation of a mineral resources and sulfuricCommitments by Purpose of Financing

Supporting Exports by Japanese Companies
JBIC provided support for Japanese companies’ export ofequipment for chemical products manufacturing plants in

Commitments by Region(FY2013. Unit: billions of yen)

Equity Participations
97.4 (4%)

Export Loans
126.2 (6%)

Guarantees
209.1
(9%)

Import Loans
56.2 (3%)

Others40.8 (2%)
Latin America andthe Caribbean
209.1
(9%)

Asia
472.7
(21%)

North
America
654.0
(30%)

¥2,206.1
billionUntied Loans
46.0
(2%)

(FY2013. Unit: billions of yen)

¥2,206.1

Europe350.3(16%)

Overseas Investment Loans
1,671.0(76%)

Africa81.1 (4%)

The Middle East
104.8 (5%)

Changing Composition of Loans, Equity Participations and Guarantees (Commitments)
FY2009FY201097.8(3%)
8.2 (0%)(Unit: billions of yen)

344.3
(10%)

2,193.7
(65%)

169.5
(10%)

151.2
(9%)

Oceania
292.9
(13%)

billion

710.3
(40%)

707.9
(21%)

13.0
(0%) 3,365. 1 billions of yen
19.8
(1%)

638.1
(36%)

1,765.9 billions of yen

76.8 (4%)
FY2011

207.9
(13%)

172.6
(11%)

962.0
(60%)

228.5
(14%)

1.5
(0%) 1,595.9 billions of yen

23.2 (1%)
FY2012FY2013304.3(7%)
126.6 (3%)

3,138.5(74%)

210.5 303.2 74.3
(7%) (2%)(5%)
83.2 (2%)

56.2
(3%)
126.2 (6%)

1,671.0
(76%)

209.1
(9%)

Export Loans

14

Import Loans

JBIC Annual Report 2014

97.4
(4%)

46.0 (2%)
Overseas Investment Loans

Untied Loans

Bridge Loans

Guarantees

Equity Participations

4,240.9 billions of yen
2,206.1 billions of yen

1
into the ASEAN region.
 upporting Japanese Companies with Local Currency
S
Loans
JBIC provided local currency loans in Indonesian rupiah for the
manufacture and sales of sintered alloy parts for automobiles
in Indonesia, and in Thai baht for the manufacture and salesof precision machinery components in Thailand by Japanesecompanies. JBIC also provided local currency loans in South
African rand and Chinese yuan.

 upporting the Overseas Deployment ofS
Infrastructure Business by Japanese Companies
In the power and water sector, JBIC provided project finance1
support for various projects including a gas-fired combined
cycle power plant project in Thailand, a seawater desalination
project in Oman, a geothermal power project in Indonesia,
and also provided support for the export of power generationequipment and facilities to Saudi Arabia, Vietnam, and India.
In the transport and telecommunications sector, JBIC
provided support for the export of container cranes to Turkey
for a port infrastructure project, and established a credit line
for the Government of Ecuador to enable Ecuador’s staterun broadcasting company to purchase the broadcasting
equipment necessary for the terrestrial digital broadcasting
network development project from Japanese companies.

Supporting Issuance of Samurai Bonds
JBIC provided guarantees for yen-denominated foreign bonds(Samurai bonds)2 issued in Japan by the Central Bank of Tunisia
and the Development Bank of Mongolia, and acquired a part ofthe public offered Samurai bonds issued by the Governmentof Mexico.

Profile of JBIC 4. Outline of Operations in FY2013

Turkmenistan and Russia, and also support for the export ofa very large ore carrier to Singapore, bulk carriers to Taiwan anda Dutch company, and seabed resources exploration vessels
to a Norwegian company.
JBIC established credit lines with the Sberbank of Russia,
Brazil’s state-owned oil company and others to support exports
from Japan, and also provided support for ship, automobile,and thermal power equipment manufacturing businesses.

 romoting Renewable Energy and Conserving theP
Global Environment
JBIC invested in a fund of funds that invests in renewable energy
and energy efficiency projects in developing countries, andestablished credit lines with five local financial institutionsin India, South Africa, and Brazil for renewable energy andenergy efficiency projects. JBIC also established credit lines
with Banco Centroamericano de Integración Económica (BCIE)
and Banco de Costa Rica for exports from Japan of machineryand equipment in the renewable energy sector, and signed amemorandum of understanding regarding cooperation in theenvironment sector with Abu Dhabi Future Energy Company(Masdar) of the Emirate of Abu Dhabi in the United ArabEmirates.

 upporting Overseas Business Deployment of
S
Japanese SMEs
JBIC provided loans for Japanese mid-tier companies and small
and medium enterprises (collectively called SMEs) to assist
them with their business operations overseas, particularly
in Asia. JBIC also extended investment credit lines, which
are designed to support Japanese SMEs in expanding theirbusiness operations overseas, to three Japanese banks: The
Senshu Ikeda Bank, Ltd.; Resona Bank, Limited; and Sumitomo
Mitsui Banking Corporation. Furthermore, JBIC acquired anequity stake in a private equity fund managed by a Singapore
subsidiary of Mizuho Bank, Ltd. that is aimed at supporting
Japanese companies in expanding their business operations

1. Project finance is a financing scheme in which repayments are made solely fromcash flows generated by the project and secured only on the project assets.
2. Samurai bonds are yen-denominated bonds issued by a foreign government orcompany in the Tokyo bond market.

Operational Results
Total disbursements made by JBIC in FY2013 stood at ¥2,449.0 billion.

Planned and Actual Lending and Investments(Unit: billions of yen)

FY2010
Plan

Export Loans
Import Loans and Overseas
Investment Loans

FY2011
ActualPlan

FY2012
Actual

FY2013

Plan

ActualPlan

Actual

113.0

73.6

120.0

73.9

200.0

143.1

190.0

112.5

1,080.0

1,113.9

1,113.5

913.0

1,879.0

2,307.4

1,971.0

2,162.5

Untied Loans

207.0

85.4

100.0

103.2

100.0

132.0

50.0

88.5

Equity Participations

45.5

26.8

200.0

7.3

100.0

17.2

100.0

85.4

Securitization

30.0

19.0

19.0

─

19.0

─

─

─

1,475.5

1,318.8

1,552.5

1,097.6

2,298.0

2,599.8

2,311.0

2,449.0

Total

JBIC Annual Report 201415

1
Profile of JBIC 4. Outline of Operations in FY2013

Financial Results
Pursuant to the Companies Act and Article 26 of the Japan
Bank for International Cooperation Act (JBIC Act), JBIC
prepares financial statements and submits them to the
Minister of Finance. The report on the final settlement ofaccounts is submitted to the Government of Japan, together
with the financial statements, and, after examination by the
Board of Auditors, to the Diet.
Statement of Operations
In FY2013, interest income amounted to ¥181.1 billion, withordinary income reaching ¥226.1 billion. These figures arelargely attributable to JBIC’s financial support in relation
to overseas M&A activities by Japanese companies andto overseas development and acquisition of strategicallyimportant resources. Interest expenses amounted to ¥115.6
billion, with ordinary expenses registering ¥134.7 billion. As
a result, ordinary profit stood at ¥91.3 billion. After taking

account of extraordinary income, net earnings for FY2013
amounted to ¥91.3 billion.
Balance Sheet
Total assets increased to ¥16,346.0 billion from FY2012.
This was largely attributable to an increase in loans and bills
discounted which increased by ¥2,100.2 billion to ¥12,655.4
billion due mainly to an increase in loans in foreign currencies.
Total liabilities increased to ¥14,004.7 billion from FY2012.
This was attributable to two factors. One is an increase of¥1,173.1 billion in borrowed money from FY2012 to ¥8,407.7
billion due in large part to new borrowings from the Foreign
Exchange Fund Special Account. The other factor is anincrease of ¥495.4.billion in bonds payable during the same
period to ¥2,711.3 billion, mainly because issuance exceeded
redemptions. Total net assets reached ¥2,341.3 billion, which
included ¥91.3 billion in net earnings.

The Second Term for JBIC (FY2013)
Statement of Operations(April 1, 2013–March 31, 2014; millions of yen)

Balance Sheet(As of March 31, 2014; millions of yen)AmountAmountOrdinary Income

226,100

Cash and Due from Banks

723,189

Borrowed Money

8,407,707

Interest Income

181,143

Receivables under Resale
Agreements Note 6

202,733

Bonds Payable Note 82,711,377

Fees and Commissions

23,722

Securities Note 5

227,201

Other Liabilities

Other Ordinary Income

3,615

Loans and Bills Discounted Note 7

Receipts from the National Budget─448,229

12,655,401

Provision for Bonuses

483

Other Assets

213,627

Provision for Directors’
Bonuses5

Other Income

17,617

Property, Plant andEquipment Note 928,558Provision for Retirement
Benefits

14,251

Ordinary Expenses

134,741

Intangible Assets

1,561

Provision for Directors’
Retirement Benefits

20Interest Expenses

115,677

Customers’ Liabilities for
Acceptances and Guarantees

2,422,658

Allowance for Loan Losses(128,885) Total Liabilities

Acceptances and Guarantees

Fees and Commissions Payments

2,217

Other Ordinary Expenses

1,377

Capital Stock

General and Administrative Expenses

14,952Retained Earnings

Other Expenses

Total Shareholders' Equity

516

2,422,658
14,004,734
1,360,000
911,366
2,271,366

91,358Valuation Difference on
Available-for-sale Securities

5,472

Extraordinary Income

8

Deferred Gains or Losses on
Hedges64,472Extraordinary Loss0

Valuation and Translation
Adjustments

69,945

Ordinary Profit

Net Income

91,366

Total Assets

16,346,047* See pages 113–114 for details of Notes 5 to 9

16

AmountLiabilities and Net Assets

AssetsJBIC Annual Report 2014

Total Net Assets

2,341,312

Total Liabilities and Net
Assets

16,346,047

1

guaranteed Foreign Bond issuance, capital contributions fromthe government, and borrowings from the Foreign Exchange
Fund Special Account constitute part of the national budget(either as an item in the General Account budget or the Special
Account budget). Therefore, they are submitted, together withthe operating budget of JBIC, to the Diet for approval. Recent
funding results and plans for FY2014 are shown in the tablebelow.

JBIC finances its operations through various sources, including
borrowings from the FILP Fiscal Loan, Government-guaranteed
Foreign Bond issuance, FILP Agency Bond issuance, capital
contributions from the government, and borrowings from theForeign Exchange Fund Special Account.
As JBIC provides long-term financing, its operations arefinanced by long-term funds to match maturities between
funding and lending instruments.
Borrowings from the FILP Fiscal Loan, Government-

Funding Sources: Actual and Planned(Unit: billions of yen)

FY2010 Actual

FY2011 Actual

FY2012 Actual

FY2013 Actual

─

69.0

Profile of JBIC 4. Outline of Operations in FY2013

Funding Sources

FY2014 Planned

Capital Contribution from FILP Industrial Investment

35.5

200.0

31.0

Borrowing from FILP Fiscal Loan

690.9

201.0

400.0

555.1

300.0

Borrowing from Foreign Exchange Fund Special Account

323.5

230.4

1,744.9

1,581.3

1,250.0

Government-guaranteed Foreign Bonds*

463.3

423.2

205.3

658.6

500.0

FILP Agency Bonds*

50.0

50.0

─

─

20.0

Other Sources of Funds, Including Repayments(244.4)

(6.9)

180.6

(345.9)

149.0

Total

1,318.8

1,097.6

2,599.8

2,449.0

2,250.0* Figures for bonds are indicated in face value.

Funding Sources

Financial Market

FILP Bonds

Special Account for Fiscal Investment
and Loan Program Fund
Investment Fund
Account

Fiscal Loan Fund
Account

Foreign Exchange
Fund Special
Account

Loans
CapitalContribution

Governmentguaranteed
Foreign Bonds

FILP Agency
Bonds

Internal Funds**Repayments, etc.

Loans

Loans /
Investments

Japanese and foreign firms, foreign financial institutions, foreign governments andgovernment agencies, multilateral financial institutions

JBIC Annual Report 201417

1
Profile of JBIC 4. Outline of Operations in FY2013

Government-guaranteed Bonds
JBIC raises part of its funds through government-guaranteedbond issuance in international capital markets. Outstanding
government-guaranteed bonds at the end of FY2013 amountto ¥2,145.0 billion at face value, which accounts for 19.3% of
the total outstanding borrowings and bonds. JBIC provides
foreign currency loans when necessary for effective financing
operations. Financial resources funded by governmentguaranteed bond issuance in international capital markets
are applied to such financial operations.
As Japanese companies have been recently stepping up
overseas business deployment, there are rising expectations
for JBIC to provide local currency-denominated financial
support. To meet such financial needs appropriately, JBIC
issued government-guaranteed foreign bonds in Canadiandollars and pounds sterling in March 2013 and March 2014,
respectively.
In the FY2014 budget, JBIC plans to issue governmentguaranteed bonds in the total amount of up to ¥500.0 billion.
JBIC’s government-guaranteed bonds receive the sameratings as the Government of Japan from the rating agencies(Aa3 from Moody’s and AA- from Standard & Poor’s as ofthe end of July 2014). Since they are treated as assets forwhich the Bank for International Settlements (BIS) assigns
zero risk weight in calculating the capital adequacy ratio
for depository institutions, these bonds provide a quality
investment opportunity for investors in international capital
markets.
FILP Agency Bonds
In compliance with the government policy to reform the FILP,JBIC has issued bonds without government guarantee (FILP
agency bonds) in the domestic capital market since FY2001,
thereby raising funds based on its own creditworthiness. In
the FY2014 budget, JBIC plans to issue FILP agency bonds
totaling up to ¥20.0 billion.
JBIC’s FILP agency bonds receive the same ratings as theGovernment of Japan (as of the end of July 2014) as shown
below. They are treated as assets for which BIS assigns
10% risk weight in calculating the capital adequacy ratio fordepository financial institutions.
Rating & Investment Information, Inc (R&I): .......AA+
Japan Credit Rating Agency, Ltd. (JCR): .............AAA
Moody’s: .................................................................Aa3
Standard & Poor’s: .................................................AA–

18

JBIC Annual Report 2014

The Environment
Surrounding JBIC and
Its Challenges

2

1Energy and Natural Resources Finance Group20

2

Infrastructure and Environment Finance Group24

3

Industry Finance Group28

JBIC Annual Report 201419

2

A Message from the Global Head of the GroupThe Environment Surrounding JBIC and Its Challenges 1. E nergy and Natural Resources Finance Group20

1. Energy and Natural Resources Finance GroupThe Energy and Natural Resources Finance Group engages in promoting theoverseas development and securement of resources which are importantfor Japan, one of the four fields of JBIC’s principal operations.
For Japan, a country poorly endowed with natural resources, procurementof energy and other mineral resources from abroad is indispensable forthe maintenance and improvement of people’s lives and the growth anddevelopment of the economy. Resource development projects overseas
call for large, long-term investment and entail various risks. JBIC provides
financial assistance in the forms of long-term loans and equity participationin such a way to complement private-sector financing. As a policy-based
financial institution, JBIC also creates an environment conducive to smooth
implementation of resource development projects through proactive dialogue
with the governments of host countries.
With these efforts, JBIC will continue to contribute to a stable supply ofenergy and natural resources.
Toshiyuki Kosugi
Managing Director,
Global Head of Energy and Natural Resources Finance Group

Business Environment and Priority Issues
Growing demand for energy in emerging-market countries
has exerted significant impacts on the global demand-supply
balance of energy. In particular, energy consumption in Asia,
which includes China and India, shows much higher growth
rates than other regions. Indonesia, a prominent producer ofoil and natural gas in Asia, has recently seen its energy demandsoaring due to its remarkable economic growth, sending its
export capacity down. As a result, Asia as a whole imports
more oil and natural gas than ever before.
Japan’s imports of crude oil are now more exposedto geopolitical risks in the Middle East as the country’s
dependence on the region for oil has exceeded 80%. Japan
now needs to contribute proactively to a more stable Middle
East and secure more oil from other regions in the context ofenergy security.
Liquefied natural gas (LNG) is another natural resource forwhich China and India have been increasing their imports inrecent years. Up until around 2000, Japan accounted for thevast majority of global LNG transactions; however, Japan's
share has been reduced to about 30%. The position of Japanas a major buyer of LNG is changing. The current power-supply
situation in Japan, where the country’s dependence on LNG
as a power-generating fuel is increasing, means that stableprocurement of LNG is vital for a stable power supply. It is
important to support Japanese companies in participating in
LNG projects overseas and thus pave the way for long-term
LNG delivery. The fact that increasing LNG imports constitutea factor for Japan’s growing trade deficits points to the needto procure more price-competitive LNG.

JBIC Annual Report 2014

Japan faces a major challenge in the mineral resource
sector as well. Ever-growing demand in China, India, and otheremerging-market countries makes it more difficult to securea stable supply of mineral resources that are used for manydifferent purposes in industry in Japan. Quality also matters
as far as iron ore is concerned. How to secure high-qualityiron ore in the face of the deteriorating quality of ore exiting
mines is another important challenge.
These changes in the global supply-demand balance ofenergy and other resources have made it more difficult tosecure a stable supply of these resources. This in turn makes
it more important than ever before to proactively support
Japanese companies in acquiring interests in, and securelong-term purchase of, natural resources.

JBIC’s Activities
During FY2013, JBIC conducted the following activities toaddress the challenge of securing a stable supply of energy
and mineral resources from abroad.
Oil
JBIC provided loans for Japanese companies to acquireinterests in the British North Sea oil field and an oil field
in southern Italy. It also financed the further development
and production of oil sands in Canada in which a Japanesecompany holds interests. This assistance is designed to allow
the Japanese company not only to secure bitumen1 from these
1. Bitumen is crude oil of high clay which does not have fluidity, and is transported
through a pipeline after being diluted usually in condensate.

2Natural Gas
The natural gas projects that JBIC financed include the Ichthys
LNG Project in Australia, the first major LNG project with anoperatorship of a Japanese company, and the Gorgon LNG
Project, also in Australia. These two projects are of particularimportance for securing a stable LNG supply for Japan amid
the growing importance of Australia as a supply source of LNG,
with its abundant gas reserves and political and economic
stability.
JBIC supports acquisitions of interests in unconventional
natural gases that are attracting attention as new energy
resources. JBIC provided a loan for the development of acoal-bed methane (CBM)2 gas field under the Queensland
Curtis LNG Project in Australia. This kind of loan is aimed
at financially supporting the upstream development ofoverseas LNG projects of Japanese companies. It will help
Japanese companies secure the long-term purchase of LNG
and accumulate know-how in CBM projects, thereby serving
to increase the ratio of energy resources independently
developed by Japanese companies and contributing to thediversification of Japan’s energy resources.
JBIC also finances projects aimed at procuring LNG tankers

Expansion of oil sands development in Canada.

as part of JBIC’s comprehensive support for the value chainof natural gas. JBIC financed the construction of LNG tankers
to be used by Japanese companies to deliver LNG to Japan.
Other Mineral Resources
JBIC proactively supports projects that will help to secure
the stable supply of mineral resources that are increasing
demand in emerging-market countries.
One of these mineral resources is iron ore. JBIC provided
2. Coal-bed methane (CBM) is methane extracted from and near coal-beds. It is drawing
attention, along with shale gas, as “unconventional” natural gas.

Major Projects Over the Last 10 Years (Amount of loan for natural resource projects (signed): Approx US$75 Billion)

Norwegian North Sea Oil Field

British North Sea Oil Field■ Neryungri Mine, Russia✚

Kashagan Field,
Kazakhstan◉◉Tempa Rossa
Oil Field, Italy

Suska Sukunka Mine, Canada◉ Sakhalin I, Russia

West Mynkuduk Uranium

Tungsten Mine,
Portugal

IGBC Shale Gas, Canada
Cordova Shale Gas, Canada

Pogo Gold Mine, U.S. ✚◉◉✚ Mine, Kazakhstan
✚

●●
●
■

◉● Sakhalin II, Russia■✚

Pagardewa Oil Field, Indonesia ◉✚●Kangean Oil & Gas Field, Indonesia
Wheatstone LNG
Pluto LNG

Woodchip,Mozambique

✚
◆✚

✚
✚

Assmang Iron, Zinc,
Chrome Ore Mine,
South Africa

Cape Lambert Iron Ore Shipping Port
Ambatovy Nickel,
Madagascar●Tangguh LNG, Indonesia● PNG LNG, Papua New Guinea
Prelude FLNG

● ● Bayu Undan LNG● Ichthys LNG●●●
Enfield/Vincent Oil Field ◉◆ ◆Roy Hill
● Curtis LNG
Gorgon LNG✚ ◆ Mine■ Rolleston Mine◆
Shark Bay Salt Field✚■ Boggabri Mine
Rasp ✚ ■ Moolarben Mine
Worsley Bauxite Mine &Alumina RefineryWest Angeles Mine
Jimblebar Mine

● Marcellus

Purchasing oil
METOR Methanol, Venezuela
product from
Drummond Project, Columbia ■●◉ PDVSA, Venezuela

Gas Fields, Malaysia● ✚Taganito Nickel Project, Philippine
Tayan Alumina Project, Indonesia●
Tiga LNG, Malaysia
Woodchip, Indonesia

MOZAL
Aluminum Smelter,
Mozambique

Alouette Aluminium✚ Smelter, Canada

Shale Gas, U.S.

◉ Advance Payment Loan to ADNOC
Oil Field, UAE ●Advance Payment Loan to VINACOMIN, Vietnam●◉ Hangingstone Oil Sands, Canada■ Grande Cache Coal Mine, Canada◉ Permian Basin Tight Oil, U.S.
Eagle Ford Shale Oil & Gas, U.S. ●● Cameron LNG, U.S.
Petra Nova CO2-EOR Project, U.S.◉ ◉ Oil & Gas Field, U.S.

LNG, Qatar ●Equatorial Guinia, LNG

MineralResources, etc

Montney Shale Gas, Canada

Coal-Bed Methane, Canada●
Similco Mine, Canada ▲Kharassan Uranium Mine, Kazakhstan◉ BTC Pipeline◉ACG Field,
Azerbaijan◉ Oil● Natural Gas■ Coal◆ Iron Ore▲ Copper✚ Other

The Environment Surrounding JBIC and Its Challenges 1. E nergy and Natural Resources Finance Groupoil sands but also to accumulate experience and know-how in
oil sands development using its own technology for extracting
and collecting the substance. The assistance is expected tohelp the company to expand its business even further.

Zinc &
Lead
Mine

Forestation, Brazil✚
AMAZON Alumina Refinery / Aluminum Smelter, Brazil✚
CENIBRA
Bayovar Phosphate Mine, Peru✚
Pulp,
BrazilCerro Verde Mine, Peru ▲✚▲Quellaveco Mine, Peru◆
San Cristobal Zinc Mine, Bolivia✚◆▲▲

Sierra Gorda
Copper Mine,
Chile
Antucoya Copper Mine,
Chile✚ Forestation, New Zealand■ Caval Ridge Mine
■ Isaac Plains Mine
■ Byerwen Mine
■ Kestrel Mine
■ Minerva Mine

Promoly Project, Chile✚▲
Escondida Mine, Chile ▲Caserones Copper Mine, Chile ▲Los Pelambres Mine, Chile ▲Stock Acquisition of ▲Anglo American Sur, Chile
Esperanza Mine, Chile◆

Logistical
Support forIron Ore
Transportation,◉ Brazil
Frade Oil Field,
BrazilNAMISA Mine, Brazil
MUSA Mine, Brazil

As of August 31, 2014

JBIC Annual Report 2014

21

2
The Environment Surrounding JBIC and Its Challenges 1. E nergy and Natural Resources Finance Group

Development and operation of the Roy Hill Iron Ore Mine and related infrastructure in Australia.

loans for Japanese companies to acquire interests in, anddevelop, the Jimblebar Iron Ore Mine in Australia. It alsofinanced the development of the Roy Hill Iron Ore Mine inAustralia as well as related transport infrastructure such asa freight railroad and a seaport on a project financing3 basis.
This development is managed jointly by Japanese and foreigncompanies.
Another mineral resource that JBIC focuses on is copper.
JBIC financed a joint project between a Japanese company
and a copper major to acquire interests in, and develop, theAntucoya Copper Mine in Chile on a project financing basis.
Thirty percent of copper ingot produced from the project will
be supplied to the overseas manufacturing bases — mostly in
Asia — of Japanese copper metal users, notably electric-wiremakers. JBIC also financed the expansion of the San Cristobal
Zinc, Lead, and Silver Mine in Bolivia.
JBIC provides loans for copper supply chains as well. JBIC
financed the procurement of a copper concentrate and sulfuric
acid carrier that will transport both copper concentrates
produced at several copper mines in Chile to smelters in Japanand sulfuric acid, a byproduct of copper smelting, back to
Chile.
 fforts toward Strengthening Multilayered Relations
Ewith Resource-Endowed Countries
It is also important to strengthen relations with countries andinternational enterprises that supply natural resources in thecontext of securing a stable supply of resources.
JBIC takes advantage of its status as Japan’s policy-based
financial institution to maintain coordination and dialogue with

22

JBIC Annual Report 2014

the governments of resource-endowed countries, thereby
facilitating acquisitions of interests in resources and resource
development projects by Japanese companies. Before deciding
to finance the project to expand the San Cristobal Zinc, Lead,and Silver Mine in Bolivia, mentioned earlier, JBIC concluded
that it could bear political risks in the country based on its
dialogue with the Bolivian government. JBIC reduced theburden of bearing such risks on the Japanese company
participating in this expansion project, thus supporting its
business expansion overseas.
JBIC worked to strengthen bilateral relations with resourceendowed countries that are important for Japan. For example,
JBIC and Abu Dhabi Future Energy Company (Masdar), a
government-owned company of the Emirate of Abu Dhabi in
the United Arab Emirates (UAE), signed a memorandum of
understanding (MOU) to work together in the environment
sector, notably in the field of renewable energy. UAE has been astable supplier of crude oil for the past three decades. JBIC also
signed an MOU with the Department of Natural Resources of
the State of Alaska, U.S. for regularly exchanging informationand views. Alaska has vast potential to offer investment
opportunities in oil, natural gas, and other mineral resources.
JBIC also made efforts to strengthen relations with international enterprises that supply natural resources. For
example, JBIC signed an MOU with Vale S.A. in Brazil withthe aim of exchanging information and views toward formulating projects that will help to secure the stable supply of
3. Project finance is a financing scheme in which repayments are made solely fromcash flows generated by the project and secured only on the project assets.

2

mineral resources to Japan. It also established credit lines
for Petróleo Brasileiro S.A., the state-owned oil company ofBrazil. The credit lines can be used to import equipment fromJapanese companies.
Going Forward
Securing natural resources in a stable, affordable, andeconomical manner is identified as one of the important issues
to be addressed in two policy documents that the Japanese
government endorsed in 2013 and revised in 2014: the “Japan
Revitalization Strategy” and the “Strategic Energy Plan”. Oneof the keys to addressing this issue is diversifying resources
and their supplier countries. The import of LNG from shale
gas in North America is raising particular expectations that it
will pave the way for the utilization of a new energy resource
and for new LNG pricing based on indices which were not used
for Japanese import of LNG before.
Japanese companies are already participating in shale gasbased LNG projects in the U.S. For some of these projects, theU.S. Department of Energy has already authorized the exportof such LNG to Japan due in part to proactive approach by
the Japanese government. Shale gas-based LNG projects arebeing planned in Canada to export such LNG to Asia, including
Japan. JBIC will proactively support these projects by, forexample, supplying risk money. JBIC also covers natural gas
and oil that derive from other unconventional resources suchas CBM, mentioned above, oil sands, shale oil, and tight oil.
JBIC also supports the acquisition of interests in, and thedevelopment of, such natural gas and oil, thereby contributing
to the diversification of energy resources for Japan.
JBIC is also committed to geological diversification of
suppliers. Japan is already diversifying its suppliers of oil
and natural gas to include, as explained earlier, the U.S. andCanada, as well as Australia where several LNG projects
involving Japanese companies are already underway. Apartfrom these countries, JBIC needs to explore the possibilityof participating in resource development projects in Mexico,
Russia, and non-Gulf Middle Eastern countries while taking into
account the situation at both the national and international
levels. Mexico’s energy sector reform is paving the way for the

The Environment Surrounding JBIC and Its Challenges 1. E nergy and Natural Resources Finance GroupJBIC signed an MOU on cooperation in the environment with Masdar, a governmentowned company of the UAE.

possibility that foreign companies may be able to participate
in oil and gas projects in new modalities. Russia and non-Gulf
Middle Eastern countries have vast resource potential.
Expectations are high for Africa as the last frontier for the
exploitation of oil, natural gas, and metal resources. Given that
non-African countries have already begun to invest in resource
development in Africa, JBIC will proactively support resource
development projects that will entail interest acquisitions
and offtake contracts for Japanese companies. Resource
development projects in Africa will provide opportunities forjob creation and foreign currency acquisition as well as thedevelopment of related infrastructure and the promotion ofrelated industries in countries where they are implemented.
In this respect, they constitute a form of embodiment ofJapan’s assistance to Africa under the Fifth Tokyo International
Conference on African Development (TICAD V).
New technologies are emerging in the resource development sectors. Enhanced Oil Recovery is designed to efficiently
recover residual oil resources in existing oil fields with theinjection of carbon dioxide. This technique reduces CO2 emissions into the air. A number of projects are being planned
that take advantage of the floating LNG (FLNG)4 technology
which allows natural gas from an offshore gas field to beprocessed into liquid offshore. It has the major advantage ofa lower environmental impact as there is no need to lay gas
pipelines from the offshore gas field to an onshore facility,
nor develop the coastal area. JBIC will proactively support
resource development projects that use new technologies
as well, based on appropriate risk assessment.
JBIC will continue its efforts to create an environment
conducive to the formulation and smooth implementationof resource development projects through dialogue withthe governments of resource-endowed countries and theiragencies. Strengthening relations with resource-endowed
countries calls not only for cooperation in resource development projects but also for efforts to build comprehensive
and long-lasting cooperative relationships in areas such as
infrastructure development, industrial sophistication, technology transfer, and environmental stress reduction (renewableenergy, energy efficiency, etc.) depending on the needs ofthese countries. JBIC offers comprehensive assistance thatencompasses support for projects in infrastructure development and manufacturing in resource-endowed countries inorder to maintain and strengthen multilayered and favorable
relations with the governments of these countries.

4. Floating liquefied natural gas (FLNG) is a new gas development technology whereby
natural gas from an offshore gas field is processed into liquid and stored on a large
vessel, which is equipped with an LNG plant, then directly offloaded to an LNG
carrier for shipment. As the floating LNG facility with the liquefaction plant can be
moved, it is also seen as having tremendous potential for the development of small
and medium scale offshore gas fields whose development to date has not been
economically feasible.

JBIC Annual Report 201423

2

*On July 1, 2014, the former Infrastructure Finance Group absorbed the Nuclear and Renewable Energy Finance Department to become theInfrastructure and Environment Finance Group. This arrangement integrated JBIC operations in conventional electric power with those in the
sector of new energy, energy efficiency, and global warming prevention. The new group is committed to further enhancing JBIC’s specialties andexpertise and implementing operations in a more flexible, responsive, and strategic manner.

A Message from the Global Head of the GroupThe Environment Surrounding JBIC and Its Challenges 2. Infrastructure and Environment Finance Group24

2. Infrastructure and Environment Finance GroupThe infrastructure market continues to grow in every part of the world,
especially in emerging-market countries. It is crucial to tap into this hugeinfrastructure demand by taking advantage of the strengths of Japanesecompanies to drive robust economic growth in Japan.
The FY2013 JBIC’s Survey Report on Overseas Business Operations by
Japanese Manufacturing Companies shows that while Japanese companies
have high expectations for investment opportunities in emerging-market
countries, they see undeveloped infrastructure as a major challenge. Morethan ever, they need to seek sustainable development while conserving the
global environment and achieving high energy efficiency.
To address these challenges, the Infrastructure Finance Group was
relaunched as the Infrastructure and Environment Finance Group on July
1, 2014. The new Group is committed to promoting and supporting theexport of infrastructure systems that take advantage of Japan’s outstanding
technologies and operational capabilities.
Tadashi Maeda
Senior Managing Director,
Global Head of Infrastructure and Environment Finance Group

Business Environment and Priority Issues
 apan’s Growth Strategy and the Need to Tap intoJ
Overseas Infrastructure Demand
It is expected that global infrastructure demand will grow morethan ever on the back of economic growth and rapid urbanization in emerging-market countries. Overseas infrastructure
demand in the electric power, nuclear power, seaports, andICT sectors are projected to increase at an annual rate of 2.2%,
2.4%, more than 5%, and about 4%, respectively.1
Such demand can be met by providing integrated infrastructure systems that involve not only the delivery of
infrastructure-related equipment from Japanese companies
with advanced and eco-friendly technologies, which they haveacquired from their experience in infrastructure development
in Japan, but also the provision of expertise in designing, constructing, operating, and managing infrastructure. Providing
such infrastructure systems will contribute to the developmentof the favorable economic infrastructure that is necessary forthe stability and growth of the global economy. At the sametime, it will help Japanese companies expand their businessand secure their market share in other countries.
In view of these circumstances, the Japanese government
set up three strategic documents: (1) the Japan Revitalization
Strategy, endorsed by the Cabinet in June 2013, and revisedin June 2014; (2) the Infrastructure Systems Export Strategy,
adopted at the Ministerial Meeting on Strategy Relating

JBIC Annual Report 2014

A British high-speed rail project in which a Japanese company participated.

Infrastructure Export and Economic Cooperation in May 2013,
and revised in June 2014; and (3) Basic Policies for Economic
and Fiscal Management and Reform, endorsed by the Cabinet
in June 2013 and revised in June 2014. In short, these policy
documents call for tapping into huge global infrastructure
demand by making the most of the technology and know-how
in which Japan has comparative advantage to drive sustainable
and robust economic growth in Japan.
JBIC will continue to proactively support Japanese com1. The Infrastructure Systems Export Strategy (2014 revised edition), adopted at
the Ministerial Meeting on Strategy Relating Infrastructure Export and Economic
Cooperation on June 3, 2014.

2

North America and European Region✚ Infrastructure Fund

◉ Power● Water■ Transport Infrastructure

RussiaMorocco◉ Power Transformer Manufacturing and Sales Project◉ Export of Gas-fired

ChinaPower Generation Plant(ports, railways, roads, etc.)◆ Broadcasting, Telecommunication▼ Renewable Energy✚ Others■ Monorail Project▼ Equity Participation in Environmental Fund

United Kingdom■ Intercity Express Programme▼ Offshore Wind Power Generation

Korea◉ Export of Gas-fired Power Generation Plant

Egypt■ Export for Metro Construction Project
CanadaTurkey▼ TSL for Renewable Energy-Related▼◉

Project▼ Renewable Energy-Related Project■ Export for Ports Facility Construction and■▼Expansion Project

◉
▼■
◉

◉
■

Kuwait◉● Power and

Desalination Project

Qatar◉● IWPP Project◉ IPP Project

◉
Dubai
■▼
● ● Equity Partcipation in Water Management Co.
◉●◉●◉◉◉ ◉●◉● ■▼
◉✚
◉
◉
●
◉
◉
◉
●
◉
●
▼
Singapore◉ Equity Participation

Power Plant Projectin Acquiring Sharesof Senoko Power
Limited● Export of Seawater
Desalination Plant

UAE◉● IWPP Project◉● IPP Project▼■

Coal Thermal Power Plant▼ TSL for Renewable

Energy-Related Project✚ Infrastructure Fund

■ Exports of

Efficient Coal-fired Power Plant◉ Hydro Power Plant Project◉ Portfolio Acquisition of
Existing IPP Projects

Railway Cars

◉
■ ◉
▼

▼ TSL for Renewable

Energy-Related Project

◆
◉◉
◉
◉
◉

The Philippines■◆

Panama◉ Portfolio Acquisition of
Existing IPP Projects■ Panama Canal Expansion Project

▼ ■
◆ ■
■

Ecuador◆ Export for Terrestrial Digital

Viet Nam

Broadcasting Project◉ Export of Gas-fired

Colombia

Thailand◉ Natural Gas-Fired

Maldives

Combined Cycle Power Plant Project● Water Supply and

Sewerage System◉ Hydroelectric Power Plant Project◉ Export of Hydraulic Power Generation Facilities▼ TSL for Renewable Energy-Related Project

Emerging Market Countries in Southeast Asia
✚ Infrastructure Fund

Oman
◉ Sur IPP Project● IWPP ProjectSouth Africa

Venezuela

Mexico◉ Export of High Energy ▼◉◉LaosPower Generation Plant■ The Port of Durban Expansion Project▼ TSL for Renewable Energy-Related Project

Energy-Related
Project

Corridor (DMIC) Project◉ Combined Gas-fired Power Plant Project◉ Export for Super Critical Pressure

Power Generation Plant

Saudi Arabia▼ TSL for Renewable■ Delhi-Mumbai Industrial

Kazakhstan◉ Export of Gas-fired◉ Export for Oil Thermal

Latin America andthe Caribbean

India◉ Export for Geothermal Power Project

Emerging Market Countries in Asia

✚ Infrastructure Fund

Indonesia
Malaysia▼ TSL for Renewable
Energy-Related Project◆ Export of Telecommunication Machinery and Equipment◉ IPP Project◉ Submarine Cables Replacement Project◉ Export of Transmission and Substation Equipment◉ Geothermal Power Plant Project◉ Hydro Power Plant Project

Brazil■ Belt Highway Project■ Railway Project■ Cargo Railway Network
Development Project◆ Equipment Export for
Digital Broadcasting▼ TSL for Renewable

Energy-Related Project(Note) An Independent Power Producer (IPP) builds and operates a power plant on its own and sells the electricity produced to power utilities.
		
An Independent Water and Power Producer (IWPP) builds and operates power generation and water desalinization plants on its own andsells the electricity and water produced from them.

panies in participating in infrastructure projects overseas bytaking advantage of two factors. One is experience in engaging in such projects in a range of sectors, including electric
power systems, railroads, seaports, roads, and water supply
systems. The other is the trusting relationships JBIC has
built with host countries over the years. In this way, JBIC willtranslate the Japanese government’s policies into action andcontribute to the stabilization of the global economy and thedevelopment of the Japanese economy.
I nfrastructure Systems Export Strategy Based on
Public-Private Partnership
Exporting an infrastructure system produces not only direct
benefits resulting from receipt of the order but also indirect
benefits in the form of a new foothold for Japanese companies
and a strengthened supply chain. On the downside, however,

The Environment Surrounding JBIC and Its Challenges 2. Infrastructure and Environment Finance GroupJBIC’s Financing for Infrastructure Projects

As of August 31, 2014it entails two major challenges. For one, it is one of the sectors
exposed to the fiercest global competition. It also involves
many difficulties that may not be addressed by the private
sector alone. These include huge business risks such as long
payback time as well as the need to negotiate with host-country
governments.
In view of these challenges, the Japanese government
is pushing ahead with public-private partnerships (PPP).
For example, the above-mentioned Japan Revitalization
Strategy and the Infrastructure Systems Export Strategy
set out a clear goal of tripling the total value of orders forinfrastructure systems received by Japanese companies tosome ¥30 trillion by 2020. They also call for sales promotion
by the Prime Minister and other ministers. Under the current
Abe Administration, the prime minister and other ministers
had an economic mission accompany them when they visited

JBIC Annual Report 201425

2
The Environment Surrounding JBIC and Its Challenges 2. Infrastructure and Environment Finance GroupA Thai project for a natural gas-fired combined-cycle power plant in which a Japanesecompany participated.

ASEAN, the Middle East, North America, Africa, and India, andconducted strong sales-promotion themselves. This resulted
in more orders for infrastructure systems. The total value oforders for such systems for FY2013 stands at ¥9.3 trillion,2 athree-fold increase from a year earlier.
The Infrastructure Systems Export Strategy divides
emerging-market countries targeted for overseas infrastructure development into three groups: (1) China and ASEAN;(2) Southwest Asia, the Middle East, Russia and the CIS, andLatin America and the Caribbean; and (3) Africa. Giving toppriority to China and ASEAN, the strategy states that Japan
will encourage the introduction of high-quality and robust
infrastructure systems that will help strengthen connectivity
within the ASEAN region.
The Infrastructure Systems Export Strategy also calls
for promoting Japan’s advanced low-carbon technologies
overseas. It stresses the need to steadily implement theProactive Diplomatic Strategy for Countering Global Warming.
Also known as Actions for Cool Earth (ACE), this strategy ismade up of three pillars: innovation (development of innovativetechnologies), application (export of Japan’s technologies),and partnership (assistance for developing countries). The
promotion of Japan’s advanced low-carbon technologies
overseas will not only support economic development andgreenhouse gas (GHG) emissions reduction in the developingworld but also contribute to the development of infrastructure
systems for which Japan enjoys a comparative advantage.
 hree Challenges Japanese Companies Face inT
Infrastructure Projects Overseas
As described earlier, the Infrastructure Systems Export
Strategy, which builds on PPP, is underway and is beginning
to produce some positive outcomes. Still, many Japanesecompanies face three difficult challenges in implementing
infrastructure projects overseas: (1) weak price competitiveness, (2) a shortage of versatile operators, and (3) the lack ofschemes designed to ensure project feasibility on the part ofemerging and developing countries.
The first challenge can be addressed by moving the
production base for noncore parts to other countries wherecosts are lower and combining them with core parts produced
in Japan. In fact, this approach is taken by many Japanesecompanies. Another approach is not to stick to the “All Japan”

26

JBIC Annual Report 2014

principle of mobilizing only Japanese entities but to adopt
the “Japan Initiative” strategy. Under this strategy, the core
part of plants will be managed by Japanese companies witha technological competitive edge while the other parts will be
managed in cooperation with partners from other countries so
as to achieve the best mix of Japanese and foreign products.
The second challenge is most evident in the Japanesewater and railroad sectors, in which know-how and expertise in
infrastructure construction and management are distributed
among different enterprises, including public corporations.
Few Japanese companies have a track record of integrated
business operations that includes upstream operations,such as the development of master plans, to downstream
operations, such as the operation and maintenance of facilities
and the collection of charges and fees. Hence, Japanesecompanies are not always able to adequately meet the needs ofhost countries that call for integrated infrastructure systems.
In these sectors where Japanese companies lack expertisein integrated business operations, it may be a viable option
to promote international alliances or buyouts of foreignbusinesses that will help them accumulate such expertise.
The third challenge is best represented by infrastructure
projects in emerging and developing countries that are designed so that project owners have to bear excessive risks.
These risks include inadequate laws and regulations regarding
the duties on the part of the host country governments and/or
their state-owned companies in power purchase agreements,
as well as inadequate compensation by host-country governments regarding the ridership risk3 in transport projects. It
happens sometime that in projects that involve supervision
and/or involvement by more than one competent authority
and those that cover more than one local government, thecentral government is unable to ensure coordination among
different parties and supervise projects adequately. In theview of prospective private contractors, this state of affairs
is nothing but a reflection of extremely low levels of feasibilityof project schemes, hindering private investment.
An effective approach to avoiding such cases would be
for the public and private sectors to fully communicate andcooperate with each other at early stages of the project sothat the project scheme will be adequately feasible in the eyesof both parties. Such PPPs can make it possible to engage inactivities of the host country government and/or local businesscorporations as early as the project formulation phasethrough, for example, the establishment of a business aimed
at promoting project formulation or regular dialogue with thehost country government. This will allow the Japanese side
to offer appropriate support to the host country government
in such aspects as the basic scheme for the project andproject implementation and management. It will also allow
the adoption of bidding criteria for all aspects of the project,including life-cycle costs. These actions will in turn improve
2. The figure represents the total value of major orders that the Japanese government
recognizes from publicly available information and other sources.
3. Ridership risk refers to the risk of being unable to secure the minimum number ofpassengers or users that is necessary to secure project profitability.

2

JBIC’s Activities
 BIC’s Support for Infrastructure
J
Systems Export
Expectations are rising for JBIC to play animportant role in the government’s Infrastructure Systems Export Strategy. JBIC
is building and reinforcing the frameworkfor helping Japanese companies overcome
the challenges described earlier.
During FY2013, JBIC made efforts toensure project feasibility through two
schemes: (1) the establishment of a busiA Canadian project for inland wind power generation in which a Japanese company participated.
ness aimed at promoting project formulation, and (2) regular dialogue with the hostIn this sector, a wide range of projects is underway all overcountry government. The first scheme is best represented by
the world. They include (1) energy efficiency improvement
equity participation in the Delhi Mumbai Industrial Corridor
projects; (2) solar and wind power generation and other
Development Corporation Limited (DMICDC), whose duties
renewable energy projects; (3) highly-efficient coal-fired
include, among other tasks, preparing development masterthermal power generation projects and natural gas-firedplans for the areas situated between Delhi and Mumbai andcombined-cycle power projects that reduce carbon dioxide
conducting feasibility studies for individual projects there. The
emissions; (4) urban transportation projects that mitigate
second scheme is best represented by the Financial Policy
traffic congestion and reduce air pollution, including rail transit
Dialogue between JBIC and the government of Indonesia andprojects; and (5) smart-grid projects aimed at efficient powerother countries. JBIC is now applying these two schemes tosupply using IT, as well as smart-city projects aimed at realizing
other countries. Regarding the first scheme, JBIC is in talks
an environmentally sustainable city.
with the Myanmar government toward the establishment of a
JBIC supports these kinds of projects through its global
project development promotion company. As for the second
promotion of Japan’s advanced environmental technologies
scheme, JBIC has already put in place a similar framework forunder the Infrastructure Systems Export Strategy. JBIC’s
dialogue with the governments of Mexico and Vietnam. As part
support also goes to (1) projects for developing solar powerof its efforts to ensure the feasibility of infrastructure projects
plants and energy-efficient power plants that take advantage
with a long payout time and whose revenues are received inof advanced environmental technologies in emerging-market
local currency, JBIC offered loans in local currencies in order tocountries; and (2) projects that entail significant environmental
reduce exchange risks for Japanese project owners associatedpreservation effects, such as those that introduce energywith foreign currency borrowing and thus supported stableefficient equipment. JBIC supports these projects with loans,
operations over the long-term.
equity participation, and guarantees while mobilizing private
JBIC will remain committed to upgrading and reinforcing its
financing under the Global action for Reconciling Economic
financial functions, which constitute JBIC’s core business, togrowth and ENvironmental preservation (GREEN) operations.
better accommodate the markets and needs. Also, as an entity
JBIC will remain committed to supporting businessthat coordinates the needs of the public and the private sector,
activities by Japanese companies and providing financial
JBIC will continue to support Japanese companies in a variety
support for efforts aimed at global environmental preservationof aspects so that the growing demand for infrastructure
by making the most of the GREEN operations.
overseas will create and increase business opportunities forthem.

The Environment Surrounding JBIC and Its Challenges 2. Infrastructure and Environment Finance Groupthe prospects for feasible projects that
accommodate local needs and realities.

 BIC’s Commitment to Conserving the Global
J
Environment
Achieving economic development compatible with environmental sustainability is now recognized as a common challenge
facing developed countries and emerging-market countries
alike. In this respect, there are growing expectations aroundthe world for the implementation of projects that will lead toenvironmental conservation and improvement.

JBIC Annual Report 201427

2

3. Industry Finance GroupA Message from the Global Head of the GroupThe Environment Surrounding JBIC and Its Challenges 3. Industry Finance GroupThe Industry Finance Group, as its name suggests, works to maintain andstrengthen the international competitiveness of various industries in Japan.
The Group is characterized by the wide variety of industries it supports andfinancial instruments it uses.
The Group comprises four units: the Corporate Finance Department, theMarine and Aerospace Finance/Financial Products Department, the WestJapan Office, and the Finance Division for SMEs. At a glance, these four
units are associated with one another loosely because of the differences in
the industrial sectors they are responsible for and the financial instruments
they excel in. However, as the Global Head of the Group who oversees theseunits, I see great potential for a synergistic effect among them. By sharing
special know-how and expertise among the units, the Group as a whole canoffer assistance that is fine-tuned to meet each need.
The Group will continue to strive for maximizing the synergistic effect asa whole and remain committed to working for Japan and the international
community by taking advantage of its diversity.
Shigeki KimuraManaging Executive Officer,
Global Head of Industry Finance Group

Business Environment and Priority Issues

 ctive Business Expansion Overseas in Various
A
Industries
Japanese companies are actively expanding their overseas
business as the global economy is experiencing a mild recovery.
Foreign direct investment (FDI) by Japanese companies has
been on the rise in recent years after the temporary downward
movement by the Lehman Shock. In FY2013, it posted asignificant increase of 40.3% over the previous year (Figure1). A conspicuous feature of FDI in recent years is that nonmanufacturing sectors (for example, finance/insurance andwholesale) have been assuming a larger share despite the
manufacturing sector accounting for a majority of FDI in thepast (Figure 2).
For business investment overseas, Japanese companies

 igns of Recovery for the Global and JapaneseS
Economies
The global economy began to pick up in the second half of
FY2012 after a long period in the doldrums as a result of aseries of economic and financial crises, including the euro
crisis and the crisis following the bankruptcy of the Lehman
Brothers, popularly known as the “Lehman Shock” in Japan.
FY2013 showed slight recovery centering on developed
countries, while the vulnerability of emerging economies
remains. Amid the gradual global recovery as a whole, theJapanese economy is also in a phase where further vigorous
corporate activities are expected.

Figure 1 Foreign Direct Investment by Japanese Companies

14

Figure 2 Foreign Direct Investment Position of Japanese Companies, breakdown by Industry(Trillions of yen)

120

12

Finance/Insurance808Wholesale

60

6

40

4

Manufacturing

20

2
05

06

07

08

09

[Source] Ministry of Finance Japan, Bank of Japan

28

Other nonmanufacturing

100

10

0

(Trillions of yen)

JBIC Annual Report 2014

10

11

12

13

(FY)

0

05

06

07

08

09

10

[Source] Ministry of Finance Japan, Bank of Japan

11

12

13

(calendar year)

2

600

Figure 4 Medium-term Prospects (next 3 yrs. or so) for Overseas Operations
Total responding companies(Number of cases)

Scale back/withdraw

500

400

300

05

06

07

[Source] RECOF Corporation

08

09

10

11

12

13
(FY)

Trends in Exports and Overseas Sales
A look at recent trends shows exports have remained almost
unchanged since FY2012, when the foreign exchange market
began to shift to the appreciation of the yen, although they wereon the rise during the weak-yen period prior to the Lehman
Shock (Figure 5, p. 30). This trend can be explained as various
factors, such as; (1) the relatively short period after the yen
began to appreciate, and (2) economic trends in countries

Strengthen/expand

have been taking advantage of overseas M&A in recent years
in addition to green field investments. The number of casesof M&A of foreign firms by Japanese companies has been on
the rise since FY2009. In 2013, it reached 527, up 26 cases
from a year earlier (Figure 3). Amid expectations that the
global economy will improve further, Japanese companies
will likely continue to utilize overseas M&A in implementing
their strategies for business expansion abroad that call fortapping into overseas demand.
Japanese companies have remained committed to
expanding their overseas operations over the medium-term.
This observation is substantiated by the FY2013 Survey(the 25th) Report on Overseas Business Operations by
Japanese Manufacturing Companies, which JBIC conducted
between July and October 2013. In this survey, to which 625
companies responded, 82.5% of the respondents said theywould strengthen and/or expand their overseas businessin response to the question regarding their medium-termbusiness prospects. The figure was 74.0% as far as mid-tierenterprises and small and medium enterprises (SMEs) areconcerned (Figure 4).
Given such active business expansion abroad in various
industries, it is important to extend long-term loans to financeJapanese companies’ overseas operations. It is also importantfor JBIC to meet financial needs associated with overseas
M&A and other investment activities with various instruments,
including equity participation as risk money supply. In addition,
the fact that Japanese SMEs often have only limited accessto financing and information necessary for their business
operations overseas points to the importance of improving
support for these SMEs.

Maintain present level

200

(611)
2.0%

(594)
0.7%

(586)
0.2%

(588)
0.9%

(610)
1.5%

32.2%

16.5%

12.6%

14.8%

16.1%

65.8%

82.8%

87.2%

84.4%

82.5%

FY2009FY2010FY2011FY2012FY2013Mid-tier enterprises/SMEs
(161)
2.5%

(156)
0.6%

(163)
0.0%

(153)
1.3%

(169)
2.4%

44.7%

28.2%

21.5%

26.1%

23.7%

52.8%

71.2%

78.5%

72.5%

74.0%

FY2009FY2010FY2011FY2012FY2013The Environment Surrounding JBIC and Its Challenges 3. Industry Finance Group

Figure 3 Number of Overseas M&As by Japanese Companies(Notes)1. “Overseas operations” is defined as production, sales, and R&D activities at overseas bases, as well as the outsourcing of manufacturing andprocurement overseas.
2. The numbers in the parentheses above the bar graphs indicate the numbersof responding companies to the question.
3. Mid-tier enterprises/SMEs are companies whose paid-up capital is lessthan ¥1 billion.
[Source] Results of the JBIC FY2013 Survey Report on Overseas Business Operations
by Japanese Manufacturing Companies

where Japan has close economic relations. Furthermore, it
is assumed that exchange-rate fluctuations are less and lessassociated with changes in exports.
Japanese companies are increasing sales in foreigncountries by taking advantage of their production bases
there (Figure 6, p. 30). This trend may point to the existenceof a corporate strategy that calls for, among other things,
improving production efficiency by building a global supply

JBIC Annual Report 2014

29

2
The Environment Surrounding JBIC and Its Challenges 3. Industry Finance Group

Figure 5 Trends in Real Exports and Exchange Rate
Real exports (in value terms)

120Real effective exchange rate index(seasonally-adjusted, base year 2010 = 100 1)(seasonally-adjusted, base year 2010 = 100 1)

Real effective exchange rate index

140
120

100

100

80
Real exports

80

60
60
40

40

20

95

96

97

98

99

00

01

02

03

04

05

06

07

08

09

10

11

12

20
13 (FY)

1. Base year is calendar year
[Source] Bank of Japan

Figure 6 Trends in Overseas Production Ratio1 and Overseas Sales Ratios2

42
40
38
36
34
32
30
28
26
24
22
20

(%)

Medium-term plans (FY2016)37.3

Overseas Sales Ratios

33.5

34.0

34.7

34.2

Overseas Production Ratios

28.0
26.0

29.2

30.5

30.6

30.8

34.6
32.9
31.3

31.0

FY2013 Projected

26.1

24.6

01

38.6

34.2

33.3
29.1

27.9

34.7

35.4

Actual

02

03

04

05

06

07

08

09

10

11

12

13

(FY)

(Notes)1. (Overseas Production) / (Domestic Production+Overseas Production)
2. (Overseas Sales) / (Domestic Sales + Overseas Sales)
3. Ratios were calculated by simply averaging the values the respondent companies provided.
[Source] Results of the JBIC FY2013 Survey Report on Overseas Business Operations by Japanese Manufacturing Companies

chain and expanding their business along with economic
growth in such countries by manufacturing their products
nearer to the markets.
In view of these efforts by Japanese companies, it isimportant to support sales activities by their subsidiaries
overseas while the importance of supporting their exports
as early as the project formulation phase remains unchanged.

JBIC’s Activities
In view of the situation and industry trends already described,
JBIC supported Japanese companies in their business
operations overseas in various aspects to maintain andstrengthen the international competitiveness of Japaneseindustries. JBIC’s Industry Finance Group had a total of 179
commitments concerning loans, equity participation, andguarantees in FY2013.
The following paragraphs take a closer look at these30

JBIC Annual Report 2014activities by JBIC.
 upporting Overseas Business Operations withS
Various Instruments
JBIC takes advantage of its equity participation function
in supporting overseas business operations by Japanesecompanies. During FY2013, it supported Japanese companies
in acquiring a grain business and a joint venture for offshore
wind power generation through equity participation in the formof preferred shares. It also made a commitment for equity
participation for a private equity fund that invests in companies
doing business in Asia.
JBIC conducts various activities in the field of loans as
well. During FY2013, it provided loans to overseas M&As ina wide range of industrial sectors, including manufacturing,food, and chemicals.
JBIC finances Japanese companies with funding for their
manufacturing and sales business abroad using project
financing, local currency-denominated financing, and other

2
The Environment Surrounding JBIC and Its Challenges 3. Industry Finance Groupfinancial instruments. During FY2013, it financed not
only manufacturers in chemicals and automobiles
but also to an FPSO1 chartering project.
The Japan Revitalization Strategy, endorsedby the Cabinet in 2013, calls for the strengtheningof local currency-denominated financial support
to facilitate local currency funding for Japanesecompanies expanding their business operations
overseas. In light of these policy developments
and the needs of Japanese companies, in FY2013,
JBIC extended loans in Thai baht, Indonesia rupiah,
and South African rand for projects including the
manufacturing and sales of auto parts. It also
3D seabed resource exploration vessel
provided a Chinese yuan-denominated loan — thefirst of its kind by JBIC — for a synthetic textile
project.
as revised in June 2014 call for specific measures. They
Since 2008, JBIC has engaged in securitization in additionare (1) supporting overseas business deployment in new
to its conventional financial operations, such as loans andfrontier sectors (health care, agriculture, aerospace, disasterguarantees, in an effort to employ new financial instruments
control, marine infrastructure, eco-cities, etc.); (2) assistingthat complement private-sector financing activities. During
Japanese SMEs in expanding their business overseas; and (3)2013, JBIC supported the securitization of credit card
supporting overseas M&A through JBIC’s equity participation
receivables in Thailand, thereby indirectly supporting funding
function. These strategies also call for the introduction
denominated in the local currency.
of new means that supplement financing for the privateSupporting the Export of Japanese Products
sector financial institutions: (1) subordinated loans and (2)JBIC is also committed to supporting exports and overseas
financing for leveraged buyout (LBO). In line with these andsales by Japanese companies.
other government strategies, JBIC will address the needs ofDuring FY2013, for example, JBIC supported the export ofJapanese companies appropriately while capitalizing on aships such as bulk carriers and seabed resource exploration
range of financial instruments, thereby serving a role thatvessels as well as construction machinery and chemical plants.
connects Japan with the world.
Supporting Overseas Business Deployment by SMEs
JBIC is striving more than ever to support SMEs’ overseas
business deployment through the units it set up in FY2012 forthis special purpose at its Head Office and West Japan Office.
During FY2013, JBIC committed a total of 54 cases for
SMEs while strengthening cooperation with private financial
institutions in Japan, including regional banks. In addition tofinancial support such as loans, JBIC offered information on a
range of topics, including the foreign investment climate. As in
FY2012, JBIC also continued to engage in activities designed toenhance cooperative relations with local financial institutions
in developing countries. Specifically, in FY2013, it signed new
MOUs with two such local institutions for supporting overseas
business deployment of SMEs through Japanese regional
financial institutions. To date, numerous Japanese regional
financial institutions have established partnerships with local
financial institutions in developing countries based on suchan MOU ( see pages 74–75).
Paying Close Attention to Real Corporate Needs
Amid the ever-changing economic climate, JBIC will continue
to work to maintain and strengthen the international
competitiveness of Japanese industries in accordance with
policy trends in Japan. Both the Japan Revitalization
Strategy and the Infrastructure Systems Export Strategy

1. A floating production, storage, and offloading (FPSO) system is a floating vessel
for the first stage processing of crude oil produced at the oil well, which separates
associated gas and water, and for the storage and offloading of oil.

JBIC Annual Report 201431

Examples ofBusiness Outcomesin FY2013

3

1

Overview of Business Outcomes by Region

34

2

Examples of Business Outcomes by Region

36

3

Examples of Business Outcomes Relating toSupport for SMEs

52

Examples of Business Outcomes Relating to
the Environment

56

Examples of Business Outcomes Relating toStudies, and Collaboration with
Overseas Governmental Organizations andInternational Organizations

58

4

5

JBIC Annual Report 201433

3

1. Overview of Business Outcomes by Region

Examples of Business Outcomes in FY2013 1. Overview of Business Outcomes by Region

Geographical Distribution of Loan and Equity Participation Commitments (FY2013. Unit: billions of yen)
Isle of Man 2.4 (1%)
Sweden 12.0 (3%)
Russia
31.5
(9%)

Spain
29.8
(9%)

Luxembourg
32.5 (9%)

Denmark
18.5 (5%)
Germany
21.8 (6%)

Europe

350.3

¥
Italy
80.9
(23%)

Turkey10.4(10%)

Saudi Arabia
18.5
(18%)

United Kingdom
120.4
(34%)

Hong Kong
3.0 (1%)

Turkmenistan
8.9 (2%)The Middle East

104.8

¥

billionbillion

China
21.7
(6%)

India
42.7
(11%)

Kuwait65.4(62%)

Indonesia
70.9 (18%)

Oman
10.3
(10%)

Asia

386.9

¥

Malaysia
1.4(0%)

billionVietnam
177.8
(46%)

Thailand35.1(9%)

Singapore 13.1 (3%)
The Philippines 5.8 (2%)
South Africa
6.9
(12%)

Africa56.7¥

billion

Ghana
49.8
(88%)

Oceania292.9¥

billionAustralia
292.9(100%)

34

JBIC Annual Report 2014

Republic of
Korea
6.0 (2%)

3

North America

577.6

¥

billionUnited States
546.8
(95%)

Ecuador
0.9 (1%)
Panama5.2 (3%)

The Bahamas
16.9
(9%)

Mexico39.1(21%)

Bolivia20.4(11%)

Latin America
andthe Caribbean

186.5

¥

Costa Rica
6.0 (3%)

Chile
69.5
(37%)

 ransition of Composition of Commitments by Region
T(Loans, Equity Participations and Guarantees) over
the Last 5 Years (Unit: billions of yen)

The Middle East 102.6 (3%)
Africa 25.7 (1%)

Asia
851.0 (25%)

FY2009

Oceania 8.3 (0%)
Europe 62.4(4%)
The Middle
East
409.3 (23%)

Asia
FY2010 221.5(13%)

Africa 66.3 (4%)
The Middle East 232.4 (15%)
FY2011

Asia Oceania Europe
269.9 170.4 216.6
(17%)

(11%)

(14%)

Oceania
175.4
(5%)

Asia
513.6 (12%)

Latin America andthe Caribbean
426.2 (24%)

Asia
472.7

Others
398.7

(21%)

(13%)

3,365. 1 billion

1,765.9 billion

¥

(23%)

Latin America andthe Caribbean
415.5 (26%)

Oceania
1,005.7 (24%)

Oceania292.9¥

Africa 3.3 (0%)
North America 113.6 (7%)

The Middle East 104.8 (5%)
FY2013

Others675.1 (20%)

North America 148.5 (8%)
International Organizations, etc. 24.3 (1%)

1,595.9 billion¥

International Organizations, etc. 12.3 (1%)
Others 161.5 (10%)
FY2012

International Organizations, etc. 9.1 (0%)

America andNorth America Latin
the Caribbean
495.9 (15%)
511.5 (15%)

Europe518.3 (15%)

billionBrazil28.1(15%)

Examples of Business Outcomes in FY2013 1. Overview of Business Outcomes by Region

Canada30.8(5%)

Europe350.3(16%)

Africa 84.3 (2%)
Europe660.6 (16%)

Africa 81.1 (4%)
North America
654.0 (30%)

The Middle
East
305.9 (7%)

North America
710.8 (17%)

Latin America and the Caribbean 209.1 (9%)
Others 40.8 (2%)

Others 154.2 (4%)
Latin America andthe Caribbean
805.5 (19%)¥

4,240.9 billion

2,206.1 billion¥

JBIC Annual Report 201435

3

2. Examples of Business Outcomes by Region
China

Asia

Mongolia

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

Loan for Recycling Polyester Products and Manufacturing and Sales of Recycled Polyester Fiber
Supporting the overseas business deployment of the Japanese chemical fiber industry by providing the first local currency loan

JBIC signed a loan agreement with ZHEJIANG JIAREN NEW
MATERIALS CO., LTD (ZHEJIANG), a local joint venture of TEIJINLIMITED (Teijin). This is the first loan in Chinese yuan provided by JBIC,
and will provide funds for ZHEJIANG to recycle polyester products
and build a new plant to manufacture recycled polyester fiber. Teijinintends to manufacture and sell high added-value polyester fiber in
China using its proprietary chemical recycling technology. This loan
will lead to recycling practice in China, and in this respect, it also has
wide-ranging environmental significance.

Export Credit Line for Mongolia
Supporting Japanese companies’ machinery and equipment exports to Mongolia

JBIC established an export credit line1 with the Ministry of Economic
Development of the Government of Mongolia to provide funds for
local Mongolian companies to purchase Japanese machinery andequipment. Mongolia’s development of its mining resources is fuelingdemand for local infrastructure development, and with this, export
opportunities for Japanese companies are expected to grow. Throughthis credit line, JBIC is providing financial support for exports by
Japanese companies. This credit line is the result of discussions basedon the memorandum of understanding (MOU) signed between the
Mongolian Ministry of Finance and JBIC, and is provided as a part of
the ERCH Initiative2 proposed by Prime Minister Abe in March 2013
with a view to promoting economic ties between the two countries.

Indonesia

First Project Financing and Political Risk Guarantee for a Geothermal Power Project by JBIC
Supporting a power infrastructure project with capital participation by Japanese companies

JBIC signed a project finance3 loan agreement with Sarulla Operations
LTD (SOL), a Cayman Islands company in which ITOCHU Corporation
and Kyushu Electric Power Co., Inc. as well as other investors haveequity stakes, to finance the Sarulla Geothermal Power Plant Projectin Indonesia. This loan is co-financed by other financial institutions, andJBIC is providing political risk guarantee for the portion co-financed byprivate financial institutions. In this project, SOL will build and operate
the geothermal power plant, and sell electricity generated by the plant
to the state-owned power utility in Indonesia. Japanese companies
are taking part in this project as investors, and are also involved in
the plant’s operation and maintenance using Japanese technologies.
This loan is providing financial support for participation by Japanesecompanies in overseas infrastructure projects.

1. An export credit line is a form of export credit in which JBIC makes a commitment of the maximum amount of credit to be extended to foreign banks or other entities to financeexports of machinery and equipment from Japan.
2. The ERCH Initiative with two pillars of (1) development of investment/business environment and (2) cooperation for Mongolia’s sustainable economic development was proposedby Mr. Shinzo Abe, the Prime Minister of Japan, upon his visit to Mongolia in March 2013.
3. Project finance is a financing scheme in which repayments are made solely from cash flows generated by the project and secured only on the project assets.

36

JBIC Annual Report 2014

3

Myanmar

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

Indonesia

Asia

Loan for the Manufacture and Sales of Sintered Alloy Parts for Automobiles
Supporting Japanese companies’ business deployment in Indonesia with local currency loans

JBIC signed a loan agreement in Indonesian rupiah with PT. SUMIDEN
SINTERED COMPONENTS INDONESIA (SSI), a subsidiary of
Sumitomo Electric Sintered Alloy, Ltd. This loan will provide funds
for SSI to build a new plant, which will enable Sumitomo ElectricIndustries, Ltd., the parent company of Sumitomo Electric Sintered
Alloy, Ltd., to manufacture and sell sintered alloy parts for automobiles
in Indonesia through SSI. This loan will contribute to maintaining andstrengthening the international competitiveness of Japanese autoparts manufacturers.

MOU on Establishing a Vehicle to Promote Private-Sector Projects in Myanmar
Supporting Japanese companies’ participation in projects from the early stages

JBIC signed an MOU with the Ministry of National Planning andEconomic Development of the Government of Myanmar regarding
the establishment of a vehicle to promote project developmentin Myanmar (Project Promoting Vehicle–PPV). The PPV will beestablished to support commercially viable projects from theirearly stages, such as the urban development project in the Greater
Yangon area. The establishment of this PPV reflects the policies of
the Government of Myanmar to utilize private-sector resources andvitality to the maximum in urban development. It will also facilitate
private-sector projects, and enable support for the acquisition of
permits, and through this, contribute to promoting investment in
Myanmar by Japanese and other private-sector companies.

The Philippines

Loan for the Manufacture and Sales of Passenger Car Tires
Supporting a Japanese company’s overseas business deployment

JBIC signed a loan agreement with Yokohama Tire
Philippines, Inc. (YTPI), a subsidiary of The Yokohama
Rubber Company, Limited (Yokohama Rubber)incorporated in the Philippines. This loan will provide
funds for YTPI to expand its passenger car tire production
plant in the Clark Special Economic Zone in Pampanga
Province, Philippines. Yokohama Rubber manufacturesand sells tires, as well as industrial and sports products,
and in 1996 it established YTPI in the Philippines to supply
passenger car tires primarily to North America. In light ofthe steady purchasing sentiment in the North American
market, future demand for YTPI tires is projected to berobust, and Yokohama Rubber is seeking to grow its North

American sales through the expansion of the YTPI facility.
By supporting the overseas business deployment of
Yokohama Rubber, this loan will contribute to maintaining
and strengthening the international competitiveness ofJapanese industries.

JBIC Annual Report 201437

3
Thailand

Asia

Vietnam

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

Project Financing for Gas-Fired Combined Cycle Power Plant
Supporting overseas deployment of infrastructure system by Japanese companies

JBIC signed a project finance loan agreement with Khanom Electricity
Generating Company Limited (KEGCO), a Thai company in which
Mitsubishi Corporation (MC) and Tokyo Electric Power Company,
Inc. (TEPCO) have indirect equity stakes, to finance the Khanom 4
gas-fired combined cycle Power Generation Project. In this Project,
KEGCO will build and operate a gas-fired combined cycle power plantin southern Thailand, and sell electricity generated by the plant to
the Electricity Generating Authority of Thailand. TEPCO will provide
technical support for the construction, operation and maintenance ofthe plant. This loan will contribute to maintaining and strengthening
the international competitiveness of Japanese companies, and also
to ensuring the stable supply of electricity to southern Thailand.

Project Financing for Oil Refinery and Petrochemical Complex Project
Supporting the overseas business deployment of the Japanese Petroleum and Petrochemical Industry

JBIC signed a project finance loan agreement with
Nghi Son Refinery and Petrochemical Limited Liability
Company (NSRP), a Vietnamese company establishedby Idemitsu Kosan Co., Ltd., Mitsui Chemicals, Inc. andothers, to finance the Nghi Son Refineryand Petrochemical Complex construction
project. In this project, NSRP will build andoperate an oil refinery and petrochemicalcomplex in Thanh Hoa Province, Vietnam,
to produce petroleum and petrochemical
products. In supporting the Japanesecompanies participating in this projectto expand their overseas manufacturing

India

Loan for Acquiring an Industrial Gas Manufacturer
Supporting a Japanese company’s overseas M&A

JBIC signed a loan agreement with AIR WATER INC.
(AIR WATER) to provide a part of the funds necessary
for acquiring the Indian company Ellenbarrie Industrial
Gases Limited (EIGL). AIR WATER is aiming to expand its
overseas business operations using its proprietary gas
manufacturing technologies, such as VSU (high-efficiency
compact liquid nitrogen/oxygen co-production plant),
and gas application technologies. With the acquisitionof EIGL, which supplies liquefied gas and gas cylinders
primarily in eastern India, AIR WATER is seeking to buildand expand a business model with close regional ties
through the EIGL business infrastructure and network
for the effective supply of gas production technologies,

38

base through entry into the Vietnamese market, thisloan will contribute to maintaining and strengthening theinternational competitiveness of Japan’s oil refinery andpetrochemical industry.

JBIC Annual Report 2014

advanced AIR WATER technologies, and a broad rangeof products. By providing the necessary long-term funds
for overseas M&A by a Japanese company in support ofthe company’s new overseas business deployment, thisloan will contribute to maintaining and strengthening theinternational competitiveness of Japanese industries.

3
Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

India

Asia

Loan for India’s National Thermal Power Company
Loan for a large-scale infrastructure project

JBIC signed a loan agreement withNTPC Limited (NTPC) for NTPC topurchase steam turbine generatorsand boiler feed water pumps from
Toshiba JSW Power Systems Private
Limited (an Indian subsidiary of Toshiba
Corporation), Toshiba Corporation, andEbara Corporation for use in NTPC’sconstruction of supercritical coal-fired
power plants. As India’s largest power company, NTPC will play a
critical role in the Indian government’s power facilities expansion
program, and this, in turn, is expected to increase business
opportunities for Japanese companies with advanced technologies.

Turkmenistan

Buyer's Credit for Turkmenistan's State-owned Chemical Company
Supporting Japanese Company's Export of Sulfuric Acid Production Plant Facility

JBIC signed a buyer's credit1 agreement with the Governmentof Turkmenistan. This loan will finance the State Concern"Turkmenhimiya," Turkmenistan's state-owned chemical company
to purchase a complete set of plant facility from Mitsui Engineering& Shipbuilding Co., Ltd., as it builds a new sulfuric acid production
plant. With this loan, it is planned that sulfuric acid produced in thisplant by making effective use of the sulfur contained substantiallyin the natural gas produced in the country will be used as a raw
material for fertilizer. This is expected to contribute to developing the
agricultural sector in Turkmenistan. This loan will also lead to creating
business opportunities for Japanese companies in Turkmenistan’s
oil and gas sector.

Asia

Equity Participation in Fund to Invest in Companies Operating in the Asian Region
Supporting Japanese companies’ overseas M&A utilizing a private equity fund

JBIC signed agreements for equity participation in CVC
Capital Partners Asia Pacific IV (the Fund), a private equity
fund (PE fund) managed by CVC Capital Partners Jersey
Limited and advised by CVC Asia Pacific Limited and CVC
Asia Pacific (Japan) Kabushiki Kaisha (collectively, CVC
Group) for investing in companies operating mainly in the
Asian region. The Fund will use the CVC Group’s networkin the region to identify and invest in such companies.
With equity participation in the Fund, one of the major
PE funds, JBIC will build a cooperative framework withCVC Group and others for supporting M&A by Japanesecompanies. By collaborating with the PE fund, an M&A
seller, JBIC is seeking to boost support for overseas

M&A by Japanese companies, which are M&A buyers, inaddition to its conventional financial support for Japanesecompanies’ M&A.

1. 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.

JBIC Annual Report 201439

3
Australia

Oceania

Australia

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region
40

Loans for Iron Ore Mine Interests Acquisition and Development Project
Supporting the securing of mineral resources and participation in overseas iron ore mine development by Japanese companies

JBIC signed loan agreements with Mitsui & Co. Iron Ore Exploration& Mining Pty. Ltd. (MIOE), an Australian subsidiary of Mitsui & Co.,
Ltd., and ITOCHU Minerals & Energy of Australia Pty Ltd (IMEA), an
Australian subsidiary of ITOCHU Corporation, to provide funds for
MIOE and IMEA to acquire a partial interest in the Jimblebar Iron
Ore Mine in Australia from the Australian company BHP Iron Ore(Jimblebar) Pty Ltd. JBIC has also provided part of the necessary
funds for MIOE to develop the Jimblebar Mine. Through these loans,
JBIC will contribute to securing a long-term stable supply of mineral
resources for Japan.

Loan for CBM Gas Field Development in an LNG Project
Supporting Japanese companies’ participation in a CBM gas field development project

JBIC signed a loan agreement with Toyota Tsusho Corporation(Toyota Tsusho) to finance Toyota Tsusho’s acquisition of a partial
interest in a coal-bed methane (CBM) gas field in Queensland,
Australia through its wholly owned Australian subsidiary, and also
the company’s development of the gas field together with the U.K.
company BG Group plc (BG), Tokyo Gas Co., Ltd., and others. CBMfrom the gas field will be used as feed gas for the Queensland Curtis
LNG Project promoted by BG etc. The CBM development knowledge
and experience acquired through this loan will serve to expand theopportunities for Japanese companies to participate in CBM projects,
and contribute to increasing their in-house development ratio andalso diversifying non-conventional energy sources.

JBIC Annual Report 2014

3
Supporting the Overseas Manufacturing and Sales of Power Transformers by Japanese Companies

JBIC signed a loan agreement with the Sberbank of Russia (Sberbank),
Russia’s largest commercial bank, to provide the necessary
funds through Sberbank for Limited Liability Company “Izhora
Transformers” (IZT)1, a joint venture of Toshiba Corporation andOpen Joint Stock Company “Power Machines-ZTL, LMZ, Electrosila,
Energomachexport”, to establish a factory for the manufacture andsales of power transformers. JBIC signed a separate loan agreementwith IZT for this project in 2012. This loan will contribute to maintaining
and strengthening the international competitiveness of the Japanese
power machinery and equipment industry.

RussiaMemorandum of Cooperation to Establish
the “Far East and Baikal Infrastructure Development Partnership”
Supporting Japanese companies’ participation in infrastructure development, including PPP infrastructure projects

JBIC signed a Memorandum of Cooperation with The Far East andBaikal Region Development Fund (FEDF)2, a wholly owned subsidiary of
the governmental financial institution Vnesheconombank, to establish
the “Far East and Baikal Infrastructure Development Partnership”.
Under this partnership, JBIC and FEDF will share information andcooperate in the formation of infrastructure development projects
in Russia’s Far East and Baikal regions. The Russian government has
placed a high priority on the development of this region, and with the
projected boost to infrastructure development arising from this, thispartnership is expected to contribute to the business deployment
of Japanese companies in the region.

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

RussiaEuropeCredit Line for Russia’s Largest Commercial Bank

RussiaBuyer's Credit for Russian Company
Supporting Japanese Companies’ Export of Ammonia Production Plant Facility

JBIC signed a buyer's credit (export loan) agreement with OJSC
PhosAgro-Cherepovets engaging in the production of phosphorusand nitrogen-based fertilizers. This loan will finance OJSC PhosAgroCherepovets to purchase a production plant facility from Mitsubishi
Heavy Industries, Ltd. and Sojitz Corporation for building a newammonia production plant, in addition to its existing ammonia
production plant in Cherepovets city. In Russia, since there is theprospect of demand for rebuilding antiquated fertilizer plants in the
future, this loan will lead to the creation of business opportunities
for Japanese companies in petrochemical and fertilizer businessin Russia.

1. The company name changed to Power Machines Toshiba High-Voltage Transformers LLC on 17 December 2013.
2. FEDF is the fund established in 2011 in order to improve infrastructure in Russia's Far East and Baikal region.

JBIC Annual Report 201441

3
United Kingdom

EuropeItaly

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

Supporting a Japanese company in the acquisition of interests and development of oil fields

JBIC signed a loan agreement with JX Nippon Exploration and
Production (U.K.) Limited (JXNEPUK), a wholly owned British
subsidiary of JX Nippon Oil & Gas Exploration Corporation (JX),
to finance JXNEPUK’s acquisition of interests and development of
the Mariner and Kinnoull Oil Fields, which are owned by Eni S.p.A.
Group in Italy. Although the production of oil and natural gas in the
North Sea has been declining, advances in oil and gas development
technologies have revived interest in this region. This loan willcontribute to increasing the ratio of independent oil development
through the acquisition of interests by a Japanese company.

Loan for Acquisition of Interests and Development of the Largest Undeveloped Oil Field
in Western Europe
Supporting a Japanese company in the acquisition of interests and development of an oil field

JBIC signed a loan agreement with Mitsui E&P Italia A S.r.l. (MEPIT),an Italian company in which MITSUI & CO., LTD. and Mitsui Oil
Exploration Co., Ltd. (MOECO) have indirect equity stakes, to finance
MEPIT’s partial acquisition of interests and development of the Tempa
Rossa Oil Field, which is located in southern Italy and owned by a
subsidiary of the French company Total S.A. This loan will enable
a Japanese company to acquire oil field development know-how
through cooperation with major international oil companies, which,in turn, is expected to lead to further joint operations in other oil fielddevelopment projects. The acquisition of interests will also improve
the independent oil development ratio by Japanese companies, andthrough this, contribute to Japan’s energy security.

Spain

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Loan for Acquisition of Interests and Development of Oil Fields in the British North Sea

Rendering of the Oil Center (©Total E&P Italia)

MOU on Business Cooperation with a Spanish Policy-based Financial Institution
Supporting the creation of business opportunities for Japanese companies in Spain and third countries

JBIC signed an MOU on promoting comprehensive cooperation
with the Instituto de Crédito Oficial (ICO) in Spain. ICO is a policybased financial institution wholly owned by the Spanish government,
and provides financial support to Spanish companies for domestic
and overseas business operations (including support for small andmedium-sized enterprises, and infrastructure projects). The objectiveof this MOU is to formulate and promote joint projects by Spanish
and Japanese companies in Spain and third countries, and facilitate
collaboration between Japanese companies that have an interest in
Spanish companies with a proven track record in infrastructure projects
on the one hand, and Spanish companies that have an interest in thetechnical strengths of Japanese companies on the other.

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Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

Isle of Man

EuropeBuyer’s Credit for Ship Export to a Leading Shipping Group
Supporting the export of a bulk ore carrier built by a Japanese shipbuilder

JBIC signed a buyer’s credit agreement with the Panamanian company
Berge Blanc Company S.A. (Berge Blanc), a wholly owned subsidiaryof Singapore’s leading shipping operator Berge Bulk Limited1. Thisloan will provide funds for Berge Blanc to purchase a unimax ore
carrier to be built by the Japanese shipbuilder Japan Marine United
Corporation at its domestic shipyard. Amid continuing constraints
on ship financing throughout the world, this loan will contribute tomaintaining and strengthening the international competitiveness ofJapan’s shipbuilding industry.

1. Berge Bulk is a registered corporation in the British Bermuda Islands.

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Kuwait

The Middle East

Saudi Arabia

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

Project Financing for Kuwait’s First PPP Power and Desalination ProjectContributing to stronger multi-layered relations with a resources-endowed country through support for an infrastructure project

JBIC signed a project finance loan agreement with SHAMAL AZZOUR AL-OULA FOR THE BUILDING, EXECUTION, OPERATION,
MANAGEMENT AND MAINTENANCE OF THE FIRST PHASE OF AZZOUR POWER PLANT K.S.C. (AZN1), a Kuwaiti company establishedby Sumitomo Corporation and other companies, to finance the AzZour North 1 IWPP Project1. In this Project, AZN1 will build a combinedcycle natural gas-fired power and desalination plant, and sell theelectricity and freshwater produced by the plant. As Kuwait’s firstpublic-private partnership (PPP) power and seawater desalination
plant project, there are high expectations of the project’s success,and it will contribute to further strengthening the comprehensive
multi-layered relations between Japan and Kuwait.

Photo credit: Hyundai Heavy Industries Co., Ltd &Societe Internationale de Dessalement S.A.

Buyer’s Credit for State-owned Saudi Arabian Power Company
First loan for the Saudi Arabian power sector

JBIC signed a buyer’s credit (export loan) agreement with the stateowned Saudi Electricity Company (SEC), which operates integral
power generation, transmission and distribution services, to finance
SEC’s purchase of steam turbines, boilers and other power generationequipment and machinery from Mitsubishi Heavy Industries, Ltd., forthe supercritical pressure thermal power station it plans to build. This
is JBIC’s first loan to SEC and the power sector in Saudi Arabia. The
loan will increase business opportunities for Japanese companies
with high technological capabilities in this sector, and this, in turn,will contribute to maintaining and strengthening the international
competitiveness of Japanese industries.

TurkeyBuyer’s Credit for a Turkish Company
Supporting the export of port container cranes by Japanese companies

JBIC signed a buyer’s credit (export loan) agreement with the Turkish
company Yilport Holding A. S. (Yilport) to finance the purchase of 18
port container cranes from Mitsui Engineering & Shipbuilding Co., Ltd.
(MES) for Yilport’s new construction of the Gemlik Port Terminal andexpansion of Gebze Port Terminal in western Turkey. Yilport’s newpurchase of MES port container cranes is based on its high confidence
in the performance of the cranes from past purchases, and this loan
will contribute to improving port infrastructure in Turkey, and also tomaintaining and strengthening the international competitiveness ofJapanese companies.

1. IWPP (Independent Water and Power Producer) is an independent company that builds and operates a power and water desalination plant on its own and sells the power anddesalinated water it produces.
2. JBIC launched The JBIC Facility for African Investment and Trade Enhancement (FAITH ) on June 1, 2013 to support the promotion of private sector-led growth and the accelerationof infrastructure development in African countries by drawing on its financial instruments such as loans, equity participations and guarantees.
3. Samurai bonds are yen-denominated bonds issued by a foreign government or company in the Tokyo bond market.

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Supporting the expansion of Japanese companies’ machinery and equipment exports to the African region

JBIC established a credit line for export loans with the Moroccan
commercial bank Banque Marocaine du Commerce Extérieur under
the JBIC Facility for African Investment and Trade Enhancement(“FAITH”)2 to provide funds for local companies in the African region
to purchase machinery and equipment from Japanese companies.
Many African countries are endowed with natural resources, andcurrent economic growth is increasing demand for infrastructuredevelopment. Against this backdrop, Japanese companies show astrong interest in machinery and equipment exports to the region,and this credit line receives high expectations from these companies.

Tunisia

Guarantee for Privately Placed Samurai Bonds Issued by the Central Bank of Tunisia
Supporting the Bank’s second Samurai bond issue

JBIC signed a set of agreements providing a guarantee for
yen-denominated foreign bonds issued in Japan (Samurai
bonds3) by the Central Bank of Tunisia under FAITH.
This guarantee is provided through JBIC’s Guarantee
and Acquisition toward Tokyo Market Enhancement(GATE) facility4 as a part of the support provided tocountries in the Middle East and North Africa under the
Deauville Partnership5, and is the second guarantee for
Samurai bonds issued by the Central Bank of Tunisia. The
continued support for the issue of bonds in the Samurai
bond market by the Central Bank of Tunisia will help theTunisian government to diversify its funding sources, provide new investment opportunities to Japanese investors,

and contribute to revitalizing the Samurai bond market
and maintaining and strengthening the international
competitiveness of the Japanese capital market. The
guarantee is also expected to further deepen bilateralrelations with Tunisia, and give added momentum tothe business operations of Japanese companies over abroad range of fields.

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

MoroccoAfricaLoan for a Commercial Bank in Morocco

Ghana

Project Financing for Deepwater FPSO Chartering Project
Supporting offshore resources development by Japanese companies

JBIC signed a project finance loan agreement with T.E.N Ghana MV25
B.V. (TGMV25), a Dutch company in which MODEC, Inc. (MODEC) andothers have equity stakes, to finance a long-term FPSO6 chartering
service project for the Jersey company Tullow Ghana Limited,which will oversee development of the T.E.N. (Tweneboa, Enyenra,
Ntomme) Oil Field off the coast of Ghana as the oilfield operator. In
this project, MODEC will build one deepwater FPSO, while TGMV25 will
provide a chartering service. This loan will contribute to maintaining
and strengthening the international competitiveness of Japanesecompanies in offshore resources development.
Similar model to this FPSO.

4. The Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility will enable JBIC to acquire Samurai bonds where appropriate, in addition to providing partial
guarantees for samurai bond issues.
5. Deauville Partnership is a framework for supporting the historical changes in Middle East and North African nations agreed upon at the G8 Deauville Summit in May 2011.
6. An FPSO (floating production, storage, and offloading) system is a floating vessel for the first stage processing of crude oil produced at the oil well, which separates associatedgas and water, and for the storage and offloading of oil.

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CanadaNorth America

United States

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

United States

46

Loan for Expansion of Oil Sands Development in Canada
Supporting oil sands development invested by Japanese companies

JBIC signed a loan agreement with Japan Canada Oil Sands Limited(JACOS) to finance the expanded development and production of oilsands in the Hangingstone Mine in Canada. JACOS, which holds a
75% interest in this mine, is a wholly owned subsidiary of Canada Oil
Sands Co. Ltd., in which Japan Petroleum Exploration Co., Ltd. holds
majority equity stakes. The loan will contribute to securing a stablesupply of important natural resources for Japan, while the experienceand know-how in oil sands development gained from this projectwill increase the potential for future development of neighboringoil sands mines, and further expand the business deployment ofJapanese companies.

MOU with the Department of Natural Resources of the State of Alaska
Supporting the creation of opportunities for Japanese companies to participate in natural resources development projects

JBIC signed an MOU with the Department of Natural Resources of theState of Alaska, U.S. with the aim of sharing information and viewson natural resources development projects that Alaska seeks to promote. A potential major supplier of LNG, Alaska offers an abundanceof potential investment opportunities in natural resources and energy,
and JBIC’s establishment of a framework for sharing information andviews with the Department of Natural Resources of the State of Alaska
is expected to facilitate projects that will contribute to diversifying
Japan’s resources and energy suppliers, and promoting the overseas
business deployment by Japanese companies in these fields.

Loan for the Acquisition of an Equipment Rental Company
Supporting Japanese companies’ overseas M&A

JBIC signed a loan agreement with Sumitomo Corporation of America,
a wholly owned U.S. subsidiary of Sumitomo Corporation, to provide
a part of the funds necessary for the Sumitomo Corporation Group toacquire the U.S. equipment rental company Sunstate Equipment Co.,
LLC (Sunstate). Through this acquisition in which it gains a controllinginterest in Sunstate, Sumitomo Corporation is seeking to further
expand its equipment rental business in North America, and increase
its market share within the industry. By supporting the overseas
business expansion of a Japanese company, this loan will contributeto maintaining and improving the international competitiveness ofJapanese industries.

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Supporting a Japanese company’s overseas M&A

JBIC signed loan agreements with Sumitomo Mitsui Banking
Corporation, the Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank,
Ltd., and Sumitomo Corporation of Americas, a wholly owned U.S.
subsidiary of Sumitomo Corporation, to provide a portion of thefunds necessary for Sumitomo Corporation of Americas to acquire
the U.S. company Edgen Group Inc. (Edgen). With this acquisition,
Sumitomo Corporation gains a broader global distribution platform,
including experienced staff, facilities, and an expanded specialized
steel product offering that supports Sumitomo’s growth strategy andcontinued development of a global energy infrastructure. By supporting
the overseas business expansion of a Japanese company, this loan
will contribute to maintaining and strengthening the international
competitiveness of Japanese industries.

North America

Equity Participation in a Fund Investing in Funds Specializing in the Resources and Energy Sector
Supporting the creation of investment opportunities for Japanese companies in resources and energy projects mainly
in North America

JBIC signed an agreement for equity participation in
Energy Opportunity Fund, L.P., a fund of funds managed
by a subsidiary of Alternative Investment Capital Limited(AIC) that invests in private equity funds specializing in
the resources and energy sector. This fund is establishedand managed by AIC in collaboration with TorreyCove
Capital Partners LLC, a company with extensive investment experience in funds specializing in the resourcesand energy sector in North America, and is funded by
Mitsubishi Corporation, Shinkin Central Bank, some otherinstitutional investors and JBIC.
Investment in the resources and energy sector in
North America has surged in recent years on the back of

the shale gas revolution, but investment opportunities forJapanese companies and institutional investors have been
limited owing to their lack of investment experience in andaccess to this sector. Participation in this fund by JBIC,
though, is expected to provide Japanese companies andinstitutional investors with new investment opportunities
in the resources and energy sector.

JBIC Annual Report 2014

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

United States

North America

Loan for Acquiring a Global Energy Materials and Pipe Distributor

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The Bahamas

Latin America and the Caribbean

Bolivia

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

Brazil

48

Buyer’s Credit for Ship Export to a Dutch Company
Supporting the export of a bulk carrier built by a Japanese shipbuilder

JBIC signed a buyer’s credit agreement with the Bahamian company
African Kite Shipping Co., Ltd. (AKS), which is a wholly owned
subsidiary of International Strategic Shipping Investments B.V., a fiftyfifty joint venture of MUR Shipping Holdings B.V. of the Netherlands
and J.P. Morgan Global Maritime Investment Fund L.P. of the U.S.
This loan will provide funds for AKS to purchase through ITOCHU
Corporation a bulk carrier to be built by the Japanese shipbuilder
Imabari Shipbuilding Co., Ltd. at its domestic shipyard. This loan
will contribute to maintaining and strengthening the international
competitiveness of Japan’s shipbuilding industry, which plays asignificant role in regional economies and associated industries.

Loan for Expansion of One of Bolivia’s Largest Mines
Supporting a Japanese company’s mine expansion project and the securing of a long-term stable supply of mineral resources

JBIC signed a loan agreement with the Bolivian company Minera
San Cristobal S.A. (MSC), a wholly owned subsidiary of Sumitomo
Corporation, to provide the necessary funds for MSC’s further
expansion of the San Cristobal Zinc, Lead and Silver Mine, one
of Bolivia’s largest mines. JBIC will bear the political risk, thereby
alleviating the local risk that accompanies the overseas businessdeployment of the Japanese company. Japan is dependent on imports
for all zinc and lead concentrates used in zinc and lead metals, so
this loan will contribute to securing the long-term stable supply ofstrategically important resources for Japan.

Loan for a State-owned Oil Company in Brazil
Supporting Japanese companies’ exports and business with overseas subsidiaries

JBIC established credit lines with the Brazilian state-owned oil company
Petróleo Brasileiro S.A. (PETROBRAS) to provide the necessary funds
for PETROBRAS to purchase equipment and services from Japanesecompanies. Brazil is the largest country in Central and South America
in terms of both population and GDP, and with the growing interest in
Brazil among Japanese companies in recent years, export opportunities
and business operations of local Japanese subsidiaries are expected toincrease. This loan will contribute to maintaining and strengthening theinternational competitiveness of Japanese industries and the economic
relationship between the two countries.

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Supporting Japanese companies’ overseas M&A

JBIC signed a loan agreement with Sojitz Corporation (Sojitz) to
provide a part of the funds necessary to acquire shares in the Brazilian
agriculture and grain collection and export companies CANTAGALO
GENERAL GRAINS S.A. and CGG TRADING S.A. With the acquisitionof these shares, Sojitz seeks to strengthen its agribusiness baseby obtaining the right of preferential purchase of Brazilian grains,
and also business resources including global procurement and sales
networks in agriculture and grain collection and exports. These shareacquisitions represent overseas agriculture investments promoted
under the Food, Agriculture and Rural Areas Basic Act, among others,
and are also consistent with the Japanese food policy.

Chile

Loan for Acquisition of Interests and Development of a Large-scale Overseas Copper Mine
Supporting a Japanese company in the acquisition of interests and participation in the development of a copper mine

JBIC signed a project finance loan agreement to provide long-term
financing necessary for the Antucoya Copper Mine Development Project
implemented by the Chilean company Minera Antucoya (Antucoya),in which Marubeni Corporation and the British company Antofagasta
PLC (Antofagasta) have equity stakes. JBIC is also providing financing
to Marubeni Corporation for acquiring shares in Antucoya from
Antofagasta thereby enabling it to participate in this mine development
project, and also long-term financing for developing the mine. Thisloan is highly significant for securing Japan’s medium- and long-term
supply of mineral resources as it will contribute to securing a stablesupply of copper at the overseas manufacturing bases of Japanese
copper metal users, and strengthen ties between Japanese companies
and Antofagasta, a major player in copper resources development.

Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

BrazilLatin America and the Caribbean

Loan for the Acquisition of Shares of Companies Engaged in Agriculture and Grain Exports

Costa Rica

Loan for Banco de Costa Rica
Supporting the expansion of Japanese companies’ business with Costa Rica

JBIC established a credit line with Costa Rica’s state-owned bankBanco de Costa Rica to provide funds for local companies in Costa
Rica to purchase general machinery and equipment, renewableenergy-related facility1, and also climate change mitigation facility2
from Japanese companies. Costa Rica is planning extensive renewableenergy development projects, and these credit lines are expected todeliver greater opportunities for Japanese exports into this sector
where Japanese technologies are highly regarded internationally.

1. They include those for geothermal power, wind power, biomass power, solar photovoltaic and solar thermal generation.
2. They include those for thermal power plants with CCS facilities, CCS projects, waste to energy projects, hybrid power plants, combined heat & power projects, district heating
and/or cooling related projects. CCS is a technology that separates, captures, and stores carbon dioxide, a major culprit of greenhouse gases, in deep sea beds or undergroundgeological formations.

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Ecuador

Latin America and the Caribbean

MexicoExamples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

Export Credit Line for Ecuador
Supporting the export of terrestrial digital broadcasting equipment by Japanese companies

JBIC established an export credit line with the Government of Ecuador to provide funds for the purchase fromJapanese companies of broadcasting equipment necessary for the terrestrial digital broadcasting network
development project to be implemented by Ecuador’s
state-run broadcasting company. With the adoption of
the Japanese ISDB-T digital broadcasting standard1 by
Ecuador as it plans to shift domestic broadcasting toterrestrial digital broadcasting, Japanese companies havebeen actively negotiating exports of Japanese broadcasting equipment. The Japanese government has beenpromoting the Japanese standard for terrestrial digital
broadcasting overseas, and to date (as of the end of July2014), 17 countries have adopted the Japanese standard.
This export credit line will extend financial support for theinternational propagation of the private-public-backed
Japanese terrestrial digital broadcasting and the exportof associated equipment by Japanese companies, andcontribute to expanding high-quality terrestrial digital
broadcasting network
in Ecuador, and also
to maintaining andstrengthening the international competitiveness of Japanesecompanies.

Loan for Electronic Parts Mounting and Equipment and Parts Assembly and Processing
Supporting the overseas business deployment of a Japanese electronics manufacturing services company

JBIC signed a loan agreement with SIIX Corporation (SIIX) to provide
funds to SIIX for establishing, through its wholly owned U.S. subsidiary,
SIIX EMS MEXICO S. de R.L. de C.V. (SEM) to carry out electronicparts mounting, and assembly and processing of equipment and partsin Mexico. SIIX will establish SEM as a base for exports of electronic
components for vehicle parts for the North American markets, which
are vital to Japan’s major automobile manufacturers, and is seeking
to expand its share of the Central and South America markets where
further economic growth is projected. This loan will contribute tomaintaining and strengthening the international competitivenessof Japanese industries.

MexicoLoan for Auto Parts Transport, Warehousing and Packaging
Supporting the overseas business deployment of the Japanese auto-related industry

JBIC signed a loan agreement with the Mexican company
Mazda Logistica de Mexico S.A. de C.V., a subsidiary of
Mazda Logistics Co., Ltd. (Mazda Logistics), to provide
funds for Mazda Logistics to set up Mazda Logisticade Mexico S.A. de C.V, and procure the equipment andfacilities necessary for auto parts transport, warehousing
and packaging operations in Salamanca, Estado deGuanajuato, Mexico. With Mexico’s rapid growth inautomobile production, Japanese and other automakers
have flooded into the Mexican market, and against thisbackdrop, Mazda Logistics will establish Mazda Logisticade Mexico S.A. de C.V as its distribution base in Mexico
with a view to boosting its overseas business operations.

This loan will contribute to maintaining and strengthening
the international competitiveness of the Japanese autorelated industry.

1. ISDB-T (Integrated Services Digital Broadcasting-Terrestrial) is an international standard of digital broadcasting. It has a technological comparative advantage in its capabilitiesof broadcasting voices, moving images and data to portable devices and broadcasting in times of emergency for disaster prevention. One of its other characteristics is that it is
economical, since one transmitter can simultaneously broadcast to portable devices (called 1-seg broadcasting) and high-definition TVs.

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Examples of Business Outcomes in FY2013 2. Examples of Business Outcomes by Region

Central America

Latin America and the Caribbean

Export Credit Line for Banco Centroamericano de Integración Económica
Supporting Japanese companies’ exports to Central American countries

JBIC established an export credit line with Banco Centroamericano deIntegración Económica (BCIE) to provide funds for local companies
in Central America to purchase general machinery and equipment,
renewable-energy-related facility2, climate change mitigation facility3,and equipment connected with the water sector from Japanesecompanies. Countries in Central America have been adopting a rangeof measures to facilitate the sustainable development of regional
economies, and this is expected to lead to greater capital investment
opportunities. This credit line, through BCIE, will support the exportof Japanese machinery and equipment to Central America, andthereby contribute to maintaining and strengthening the international
competitiveness of Japanese industries.

2. They include those for geothermal power, wind power, biomass power, solar photovoltaic and solar thermal generation.
3. They include those for thermal power plants with CCS facilities, CCS projects, waste to energy projects, hybrid power plants, combined heat & power projects, district heating
and/or cooling related projects. CCS is a technology that separates, captures, and stores carbon dioxide, a major culprit of greenhouse gases, in deep sea beds or undergroundgeological formations.

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JBIC supports SMEs in a wide range of industries with their overseas business deployment.

MORROW Co., Ltd.
Manufacturing and Sales of Sportswear Products

China

China

MORROW Co., Ltd. (MORROW) manufactures sportswear
products. The company’s Chinese subsidiary QINGDAO
MORROW APPAREL CO., LTD. (QINGDAO MORROW) plans
to expand its manufacturing business in the country, where
the apparel markets, including the sportswear market, areexpected to grow, driven by robust Chinese economic growth.
JBIC provided a loan for MORROW to finance the expansionof a QINGDAO MORROW
production facility.

KOTANI CORPORATION
Manufacturing and Sales of Forged Parts for Automobiles

KOTANI CORPORATION (KOTANI) manufactures automobile parts with its integrated production system thattakes advantage of its proprietary processes for manufacturing forged products. The company plans to establish
Kotani (Zhangjiagang) Co., Ltd., a subsidiary in China, tomanufacture and sell forged automobile products, specifically transmission parts, which will primarily be supplied toJapanese-affiliated car manufacturers. JBIC provided a loan
for KOTANI to finance the establishment of this subsidiary.

CVT shaft.

Pinion drive forfront-wheel-drive cars.

SHÓSHIBA MANUFACTURING COMPANY, LTD.
Manufacturing and Sales of Automobile Parts

SHÓSHIBA MANUFACTURING COMPANY, LTD. (SMC)
manufactures and sells press parts for car safety products
such as air-bag cases and seat frames. Its Chinese subsidiary
SHOSHIBA AUTOMOTIVE PARTS (Wújiāng) CO., LTD.
(SHOSHIBA WUJIANG) supplies car press parts to Chinese
subsidiaries of Japanese car manufacturers as well as tolocal car manufacturers. JBIC provided a loan for SMC tofinance the operations of SHOSHIBA WUJIANG.

JBIC Annual Report 2014

China

China

Examples of Business Outcomes in FY2013 3. Examples of Business Outcomes Relating to Support for SMEs
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3. Examples of Business Outcomes Relating to Support for SMEs

Movable CVT pulley.

Gear differential fora hot rolling gear.

MIRAREED CORPORATION CO, LTD
Manufacturing and Sales of Car Accessories

MIRAREED CORPORATION CO, LTD (MIRAREED) manufactures and sells car accessories. Its Chinese subsidiary
NINGBO MIRAREED PLASTIC CO., LTD manufactures andsells car sockets, ashtrays, and other products. MIRAREED
plans to increase production in China as part of its strategy to
expand its share in the Chinese market. JBIC provided a loanfor MIRAREED to finance the operations of this subsidiary.

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URASE Corp. (URASE) dyes and prints on textiles forgarments, interior goods, and industrial and sports materials.
It also provides functional processing for such textiles. The
company plans to establish its first subsidiary overseas,
PT. URASE PRIMA, in Indonesia to process medium-thicksynthetic textile products, in which it excels, for the Asianand Middle East markets. JBIC provided a loan for URASE
to establish this subsidiary.

Manufacturing and Sales of Buddhist Ornaments

Since its foundation, Kotera Manufacturing Co., Ltd. has
manufactured, installed, and repaired metal ornaments
and altar fittings, primarily for Buddhist temples and Shinto
shrines. Its subsidiary PT. KOTERA INDONESIA (PTKI) plans
to boost production and sales of metal ornaments. It alsoplans to increase orders for metal fittings and metal dies, aswell as plastic processing based on its Buddhist ornament
processing technology. JBIC provided a loan for PTKI tofinance these operations.

Malaysia

Indonesia

Kotera Manufacturing Co., Ltd.

Daiki Aluminium Industry Co., Ltd.
Manufacturing and Sales of Secondary Aluminium Alloy Ingots

Daiki Aluminium Industry Co., Ltd. (Daiki Alumi) has been
maintaining a top share in the domestic market for many
years as a pioneer of the secondary aluminium-alloy ingots
maker. Its Indonesian subsidiary, PT. DAIKI ALUMINIUM
INDUSTRY INDONESIA (DAI), plans to strengthen its manufacturing and sales capacity in Indonesia, where the demand
for secondary aluminium-alloy ingots from automobile andrelated industries is expected to grow. JBIC provided a loan
for Daiki Alumi to finance the operations of DAI.

General Co., Ltd.
Manufacturing and Sales of Office Automation-Related Products

General Co., Ltd. (General) is a long-established company
that manufactures and sells products related to officeautomation (OA). With the technologies for manufacturing
carbon paper that it has cultivated over the years, General
has been an original equipment manufacturer (OEM) for
major electrical manufacturers. IS INDUSTRIES SDN. BHD.
(ISI), the company’s subsidiary in Malaysia, manufacturesand sells thermal transfer ribbons and other OA-related
products. JBIC provided loans for General to finance thebusiness expansion of ISI.

JBIC Annual Report 2014

Examples of Business Outcomes in FY2013 3. Examples of Business Outcomes Relating to Support for SMEs

Dye Processing and Processed Products Sales

Indonesia

Indonesia

URASE Corp.

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BENDA-KOGYO CO., LTD. is one of the largest companies
in the world in terms of market share for metal ring gears
for automobiles. Given the prospect of growing demand forautomobile parts in Asia over the coming years, the company
plans to establish its subsidiary BENDA (THAILAND) CO.,LTD. (BTC) to manufacture metal ring gears for automobilesin Thailand. JBIC provided a local currency loan for BTC tofinance the establishment of a manufacturing plant.

Manufacturing and Sales of Precision Machinery Components

MANO-SEIKO Co., Ltd. processes parts for automobiles,
electrical equipment, and many other products by taking
advantage of its high-precision processing technology. To
meet the needs of its major customers, the company has
recently established MANO Precision (Thailand) Co., Ltd.
(MANO) to manufacture and sell metal parts for trucks andcars in Thailand. JBIC provided a local currency loan for
MANO to finance its operations.

VietnamThailand

MANO-SEIKO Co., Ltd.

Manufacturing and Sales of Automobile Parts

ThailandThailand

Examples of Business Outcomes in FY2013 3. Examples of Business Outcomes Relating to Support for SMEs

BENDA-KOGYO CO., LTD.

Irifune Kozai Co., Ltd.
Processing and Sales of Steel Products

Irifune Kozai Co., Ltd. (Irifune Kozai) has its forte in processing for producing pickled and oiled steel sheets andplates1, supplying them to suppliers of parts for electric appliances, automobiles, construction machines, and industrial
machinery. To expand its business, the company plans to
set up IRIFUNE STEEL (THAILAND) CO., LTD. (IST), its firstsubsidiary outside Japan. JBIC provided a loan for Irifune
Kozai to finance the establishment of IST.

Japan Chemical Engineering & Machinery Co., Ltd.
Plant Engineering Business

As the first Japanese company to succeed in developing an
alcohol distillation system, Japan Chemical Engineering &Machinery Co., Ltd. (JCEM) manufactures and constructs
various types of chemical industrial machinery. Recently
it has expanded its business to include engineering forenvironment-conscious plants. Its Vietnamese subsidiary
JCEM VIETNAM CO., LTD. (JCVN) engages in plant engineering for such sectors as chemicals, food, beverages,
and energy. JBIC provided a loan for JCEM to finance theoperations of JCVN.

1. In manufacturing hot-rolled steel sheets, oxide layers (scales) are produced on the surface of them through contact with oxygen in the air. Pickled and oiled steel sheets are finesurface steel sheets processed in a hydrochloric acid bath to remove the scales chemically.

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Since its foundation in 1960, Nagatsu Industries Ltd.
(Nagatsu Industries) has continued to manufacture andsell construction equipment parts. NAGATSU VIETNAMCOMPANY LIMITED (NVC), a subsidiary of Nagatsu
Industries, manufactures and sells construction equipment
parts, such as hydraulic parts used for hydraulic shovels
and bulldozers as well as magnetic sensors. JBIC provided
a loan for NVC to finance its operations.

Manufacturing and Sales of Grain Processing Machinery

Since its foundation in 1896, SATAKE CORPORATION
has continued to manufacture and sell grain processing
machinery. The company’s subsidiary in Brazil, SATAKEAMERICA LATINA LTDA. (SAL), manufactures and sells grain
processing machinery for Brazil and neighboring countries.
Amid steady economic growth in South American countries,
SAL plans to expand its business. JBIC provided a loan for
SAL to finance its business expansion.

Manufacturing and Sales of Auto Parts

Kosei Aluminum Co., Ltd. (Kosei) manufactures and sells
primarily aluminum wheels for motorcycles and four-wheeled
motor vehicles as well as other aluminum products. KOSEIMINDA ALUMINUM CO., LTD. (KMA) is the Indian subsidiaryof Kosei International Trade and Investment Co., Ltd. (KITI),
Kosei’s subsidiary in Hong Kong. KMA has been set up as a
new base for manufacturing and selling aluminum wheels.
JBIC provided a loan for KITI to finance the operations of
KMA.

MexicoBrazilSATAKE CORPORATION

Kosei Aluminum Co., Ltd.

HIRUTA KOGYO CO., LTD.
Manufacturing and Sales of Automobile Parts

HIRUTA KOGYO CO., LTD. manufactures and sells automobile
parts. In anticipation of growing demand for automobiles
in Mexico, the company set up HIRUTA MEXICO, S.A.
DE C.V. (HMX) after its major customers expanded theirbusinesses overseas. HMX will manufacture and sell chassis
and transmission parts, among other automobile parts.
JBIC provided a loan for HMX to construct a manufacturing
plant in Mexico.

JBIC Annual Report 2014

Examples of Business Outcomes in FY2013 3. Examples of Business Outcomes Relating to Support for SMEs

Manufacturing and Sales of Construction Equipment Parts

India

Vietnam

Nagatsu Industries Ltd.

55

3

4. Examples of Business Outcomes Relating to the Environment

Examples of Business Outcomes in FY2013 4. Examples of Business Outcomes Relating to the Environment

Supporting Environmental Conservation and Improvement Projects
Nowadays, achieving economic development compatible
with environmental sustainability is recognized as a common
challenge facing developed and developing countries alike.
Given this self-realization, there are growing expectations
across the world on implementing projects conducive toenvironmental conservation and improvement.
A wide range of efforts are underway all over the world inthis sector, including energy efficiency improvement projects;
renewable energy harnessing projects such as solar and wind
power generation; highly efficient, high performance coal-fired
thermal power generation and natural gas-fired combined
cycle power projects that reduce carbon dioxide emissions;urban transport projects such as transit rails that mitigate
traffic congestion and reduce air pollution; smart grid projects

that supply efficient power by using IT and eco-city projects
that aim to realize environmentally sustainable cities.
Amid these developments, JBIC is devoting itself tosupporting environment conservation and improvement
projects, not to mention environmental and social considerations being made in individual projects. JBIC also launched
GREEN (Global action for Reconciling Economic growth andENvironmental preservation) operations in April 2010 and hassince been actively focusing its support on efforts to conserve
the global environment, such as projects that are expected
to significantly reduce greenhouse gas (GHG) emissions,while taking account of the global dissemination of Japan’sinternationally-acclaimed advanced environmental technologies ( see p. 65).

Supporting a Japanese Company in Offshore Wind Turbine BusinessWind power manufacturers around the world are working hard to develop and getorders for large generators amid expectations for the growth of the offshore windenergy market, especially in Europe, where it is backed by renewable energy policies
in the United Kingdom, Germany, and other countries. Under these circumstances,
JBIC undertook equity participation in the Denmark-based joint venture between
Mitsubishi Heavy Industries, Ltd. (MHI) of Japan and Vestas Wind Systems A/S(Vestas) of Denmark through MHI Holding Denmark ApS, an MHI subsidiary inDenmark. In this way, JBIC supports offshore wind turbine business by the MHIVestas joint venture. This joint venture seeks to establish itself as a global leader inthe offshore wind energy market by bringing together the technological strengths
and creditworthiness that MHI has cultivated over the years as a manufacturing
company in the field of power system plants and the abundant experience andtechnologies held by Vestas. This kind of equity participation will not only promote
the renewable energy business but will also help to maintain and improve theinternational competitiveness of Japanese companies.
Photo credit: MHI Vestas Offshore Wind A/S

Supporting a Seawater Desalination Project in Oman
Demand for water in Oman is projected to increase at anannual average rate of five percent from 2013 through2019 as its population and economy continue to grow.
JBIC signed a loan agreement with Muscat City
Desalination Company S.A.O.C. (MCDC) in Oman for the
Al Ghubrah IWP Project. MCDC was established jointly
by Sumitomo Corporation, a Malaysian company, anda Spanish company to implement this project. The loan
is provided on a project financing basis. In this project,
MCDC will build a new seawater desalination plant inMuscat, the capital city of Oman, and sell desalinatedwater to Oman Power and Water Procurement Company S.A.O.C., a state-owned
company, for a period of 20 years on a BOO basis.1 The amount of water supplied bythis project will meet the water demand of about 800,000 people. The desalination
plant will thus serve as an important water supply source.

1. BOO (Build, Own, and Operate) is a form of financing whereby a private sector company build, own and operate a plant, such as a seawater desalination plant, throughout thecontract period.

56

JBIC Annual Report 2014

3

JBIC offered a credit line to the Development Bank of Southern Africa
Limited (DBSA). This credit line, the first loan offering that JBIC has
extended to Africa under GREEN (Global action for Reconciling
Economic growth and ENvironmental preservation) operations,is intended to finance environment-related projects such as wind
power, solar photovoltaic power generation, and other projects thatharness renewable energy resources in the member countries of theSouthern African Development Community. It is expected that thiscredit line will contribute to reduction of GHG emissions in Southern
African countries. It is also expected to provide the opportunity topromote Japan’s advanced environmental technologies, which areinternationally acclaimed.
Following the Fifth Tokyo International Conference on African

Development (TICAD V), JBIC launched the JBIC Facility for African
Investment and Trade Enhancement (FAITH) to support private sector–driven economic
growth and infrastructure development on the
African continent. This
credit line is provided as
financial support under
FAITH.

Contributing to Reduction of GHG Emissions in Developing Countries
Under GREEN operations, JBIC has undertaken equity participationin the IFC Catalyst Fund (Japan), LP (the Fund), a fund of funds
that is managed by IFC Asset Management Company, LLC, a wholly
owned subsidiary of the International Finance Corporation (IFC). The
Fund invests in renewable energy and energy efficiency projects. It ismanaged jointly with the IFC Catalyst Fund, LP and IFC Catalyst Fund(UK), LP, both of which are managed with participation by IFC, thegovernments of the United Kingdom and Canada, and other public
institutions. JBIC’s participation in the Fund is expected to promote
investment in the renewable energy sector in developing countries
and thereby contribute to the reduction of GHG emissions there incooperation and coordination with international organizations aswell as the governments and public institutions of other countries.

Partnerships and Knowledge Sharing in the Environmental Sector
As environment-related projects are expected to be implemented in many places across the world with the aim ofrealizing global environmental conservation and a low carbon
economy, JBIC is supporting Japanese overseas businessdeployment as well as efforts being made by foreign governments, not only in financing but through information sharing

Examples of Business Outcomes in FY2013 4. Examples of Business Outcomes Relating to the Environment

Supporting Renewable Energy Projects in Southern African Countries

and knowledge dissemination by holding seminars andparticipating in relevant events, while forming close partnerships with foreign governments and government agencies,
domestic prefectural and municipal governments, and otherstakeholders.

MOU on Cooperation in Environment Sector with Company Owned by Government of Emirate of Abu Dhabi in UAE
JBIC signed an MOU on cooperation in the environment sector with
Abu Dhabi Future Energy Company (Masdar), which is indirectly
owned by the Government of the Emirate of Abu Dhabi in the United
Arab Emirates (UAE). The signing took place in the presence ofPrime Minister Shinzo Abe and H. H. General Sheikh Mohammed
bin Zayed Al Nahyan, Crown Prince of the Emirate of Abu Dhabi and
Deputy Supreme Commander of the UAE Armed Forces. Masdar, as agovernment-owned company, focuses on research and developmentof renewable energy and alternative energy sources to oil. In January
2010, JBIC had equity participation in a fund co-managed by Masdar
and mainly investing in climate change mitigation projects. This MOU
will further deepen and develop cooperative relations between JBIC
and Masdar.
In addition, when Prime Minister Abe made a visit to the UAE in
May 2013, Japan and the UAE issued the Joint Statement that con-firmed comprehensive partnership in broad areas, including political,
economic, cultural and human exchange, as well as the importance of
the agenda in the environment sector, including clean and renewableenergy, and addressing the climate change
problem. The signing of
this MOU is consistent
with the Joint Statement
issued by both governments.

JBIC Annual Report 201457

3

5. Examples of Business Outcomes Relating to Studies, and Collaboration with

Examples of Business Outcomes in FY2013 5. Examples of Business Outcomes Relating to Studies, and Collaboration with Overseas Governmental Organizations and International Organizations

JBIC is undertaking studies and research relating to overseas
investments and international finance. In regular contact withoverseas governmental organizations, foreign and domestic
research institutions, and experts in various sectors, JBIC is
engaged in gathering and analyzing a range of informationand sharing knowledge.

Overseas Governmental Organizations and International Organizations

 urvey Report on Overseas Business Operations by
S
Japanese Manufacturing Companies
JBIC has been conducting the Survey on Overseas Business
Operations by Japanese Manufacturing Companies, a questionnaire survey, every year since 1989, and fiscal 2013 marked
the 25th survey. This annual survey attracts widespread interest because of its distinctive character and continuity in identifying the current trends and future outlook of the overseas
business operations of Japanese manufacturing companies.
JBIC compiles the results of the survey into a report andmakes this report and the information it contains widely
available in booklet form, on the JBIC website, and also throughseminars held in collaboration with chambers of commerceand regional banks throughout Japan. In fiscal 2013, JBIC
hosted the Overseas Investment Seminar: Overseas Business
Operations by Japanese Manufacturing Companies, which
was held in Tokyo, Osaka, Nagoya, Okayama, and other
cities, and also held explanatory meetings with overseas
Japanese chambers of commerce and industry as well as
foreign governments for communicating these results to theirmembers.

Panel discussion at the African Business Seminar.

Overseas Investment Seminar.

58

 ollaboration with Overseas Governmental
C
Organizations and International Organizations
In May 2013, JBIC held the African Business Seminar: Current
Situation and Issues of Japanese Companies Regarding
African Businesses. The seminar was attended by more than
120 representatives, including ambassadors from about 20
embassies of African countries in Tokyo as well as officials
from Japanese companies engaged in business operationsin Africa, reflecting a high level of interest in African business.
In June, JBIC cohosted with Korea Eximbank (KEXIM)
the second JBIC–Korea Eximbank Joint Seminar in Tokyo
to discuss and further explore the possibilities of businesscooperation and collaboration between Japanese andKorean companies. Participants discussed ways to achieve
collaboration that takes advantage of the respective strengths
of Japanese and Korean companies. They also focused on theimportance of effective financial support from JBIC, KEXIM,
and other private financial institutions.
In June and November, JBIC held a working-level meetingon public-private partnership (PPP) with the Ministry ofPlanning and Investment of the Government of Vietnam in
Hanoi. This meeting built on the agreement reached in March2013 to hold meetings to discuss, among other issues, theframework to facilitate the implementation of public-private
cooperation projects in Vietnam. JBIC will continue to workwith the Vietnamese government agencies concerned toformulate and implement such projects in Vietnam.
In November, JBIC had a working team meeting on mac-

JBIC Annual Report 2014

Participants at the JBIC–Korea Eximbank Joint Seminar.

3

India’s Political Economy Landscape and Reform Prospects, a GRIPS-JBIC joint forum.

roeconomic policy with the Ministry of Finance of the Government of Indonesia (GOI) in Jakarta, under the framework thathas been in place since 2010 between the GOI and JBIC. Under
the theme “Japan’s Experience of Current Account Deficits,”
participants, including outside experts, focused on Japan’s current account deficits in the past and the economic environmentthat surrounded them. The theme was timely for Indonesian
government officials, as Indonesia fell into current accountdeficit in 2012.
In January 2014, JBIC held a seminar titled Perspective of
the Global Economy and Trends of FDI in 2014. In this seminar,
JBIC Governor Hiroshi Watanabe put forward six points forpredicting the future of the global economy. Guest speaker Ms.
Yuko Kinoshita, Deputy Head of Office at the IMF’s Regional
Office for Asia and the Pacific, explained the outlook of the
global economy based primarily on statistical data from the
IMF’s annual World Economic Outlook.

Collaboration with Universities
In June 2013, JBIC and the National Graduate Institute for
Policy Studies (GRIPS) in Japan jointly held a forum titledIndia’s Political Economy Landscape and Reform Prospects.
The GRIPS-JBIC Joint Forum, which also invited experts
from India, came at a time when India faced growing uncertainty in the political and economic arenas in the middle- tolong-term. Such uncertainties stem largely from the risks ofescalating inflation and slowing growth on the back of inadequate infrastructure development despite the high economic
growth India has experienced in recently years.
Collaboration with Private Financial Institutions
JBIC is holding discussions and exchanging information withprivate financial institutions regarding countries that are ofparticular importance to Japan. The topics include the politicaland economic conditions in these countries and their future
prospects, as well as risk analysis and assessment.
In June 2013, JBIC invited, among others guests, officials at
private financial institutions who were in charge of sovereignrisk to a workshop titled India’s Political Economy Landscapeand Reform Prospects, where Dr. Rajiv Kumar, Senior Fellow
at the Centre for Policy Research in India, gave a speech.

The working team meeting on macroeconomic policy with the Government of Indonesia.

JBIC Annual Report 2014

Examples of Business Outcomes in FY2013 5. Examples of Business Outcomes Relating to Studies, and Collaboration with Overseas Governmental Organizations and International Organizations

A presentation by JBIC at the first meeting with the Ministry of Planning and Investmentof Vietnam.

59

Financial Instruments

41

Financial Instruments

622

Prominent Initiatives in Recent Years

72

3

Framework for Supporting Globalization
Efforts of SMEs

74

JBIC Annual Report 2014

61

4

1. Financial Instruments

Financial Instruments 1. Financial Instruments

Export Loans
Export loans are provided to overseas importers and financial
institutions to support finance exports of Japanese machinery,equipment and technology mainly to developing countries. In
particular, products such as marine vessels, power generation
facilities and other types of plant equipment incorporate a large
amount of advanced technology, and their export contributes
to enhancing the technological base of Japanese industries.
Further, Japanese shipbuilding and plant facilities industries
have a broad range of supporting industries including SMEs
producing parts and components. Export loans JBIC provides
are also expected to positively contribute to the business ofthese Japanese companies. Export loans are also available todeveloped countries in eligible sectors (see note).
Terms and conditions of export loans are determinedprivate-sector
financial
institutions

based on the Arrangement on Officially Supported Export
Credits (OECD Arrangement). In principle, the loan amountshould not exceed the value of an export contract or technicalservice contract, and excludes down payment. While local
costs cannot, in principle, be applied to the loan, such costs
may be covered provided that the amount is within the scopeprescribed by the OECD Arrangement.
(Note)
Eligible Sectors of Export Loans in Developed Countries (As of July 31, 2014)[Integrated Infrastructure System Projects]
Railways (high-speed, inter-city projects and projects in major cities), water business,
biomass fuel production, renewable energy power generation, nuclear power
generation, power transformation, transmission and distribution, highly efficientcoal-fired power generation, coal gasification, carbon capture and storage (CCS),
highly efficient gas-fired power generation and smart grid
[Other Export Transactions]Ships, satellites, aircrafts, medical positron beam therapy equipment

Loan (B/L)*2

Financial institution, etc.,
in foreign country

Loan (B/C)*1
Loan

Japanese exporter(s)Exports of plants, etc.

Importer(s) inforeign country(ies)*1. Loan to foreign importers (Buyer’s Credit or “B/C”).
*2. Loan to foreign financial institutions (Bank-to-Bank Loan or “B/L”).

Supporting the Export of Machinery and Equipment Related to Geothermal Power Generation by a Japanese Company© Toshiba Corporation

JBIC signed a contract loan agreement with
Yapi Kredi Bankasi A.S. (Yapi Kredi), a Turkishcommercial bank. This agreement was the firstof its kind under the general agreement on export credit lines1 that was signed in November
2012 regarding the renewable energy sector
and mitigation of climate change. This loan
is intended to provide Zorlu Jeotermal Enerji
Elektrik Uretimi A.S., a Turkish company, withnecessary funds through Yapi Kredi to purchase machinery and equipment related togeothermal power generation from Toshiba

Corporation, for the construction of a geothermal power plant in Turkey. The loan will
help accelerate the ongoing introduction ofrenewable energy by the Turkish government.
It is also expected to result in more business opportunities in Turkey for Japanesecompanies.
1. An export credit line is a form of export credit inwhich JBIC makes a commitment of the maximum
amount of credit to be extended to its client (foreignbanks or other entities) to finance exports ofmachinery, equipment and services from Japan.

Supporting Export of Bulk Carriers by Japanese Companies
JBIC established an export credit line for
PB Vessels Holding Limited (PBVH), basedin the British Virgin Islands, for funding thepurchase of 16 bulk carriers to be built byfour Japanese shipbuilders. PBVH is a wholly
owned subsidiary of Hong Kong’s leading
shipping operator, Pacific Basin Shipping
Limited. JBIC also signed two loan agreements for funding the purchase of two bulk
carriers to be built by TSUNEISHI GROUP(ZHOUSHAN) SHIPBUILDING, Inc., a Chinese wholly owned subsidiary of TSUNEISHI

62

JBIC Annual Report 2014

HOLDINGS CORPORATION. These loans
will support Japanese shipbuilders win moreorders and will support individual contracts
for exports from Japan in a comprehensive,
flexible, and responsive manner. Theseloans will thus contribute to maintaining andstrengthening the international competitiveness of the Japanese shipbuilding industry.

4

Import loans support imports of strategically important goods
including natural resources. They are extended to Japanese
importers or foreign exporters. As Japan is poorly endowedwith natural resources, stable imports of natural resources overthe long term are one of the key factors underpinning domestic
economic activity. Import loans finance the development andimport of energy resources, including oil and LNG, and mineral
resources, including iron ore, copper and other rare materials.
In addition to natural resources, JBIC provides a guarantee
facility for goods and services essential to the sounddevelopment of the Japanese economy, such as for the importof aircraft.

private-sector
financial
institutions

Products Eligible for Import Loans (Natural Resources)
Oil, petroleum gas, LNG, coal, uranium, metallic ore, metals,
mineral phosphate, fluorite, salt, lumber, wood chip, pulp, andother materials

Financial Instruments 1. Financial Instruments

Import Loans

Loan

Loan

Japanese Importer(s)Imports of natural resources

Foreign exporter(s)Supporting a Japanese Electric Power Company for Stable Procurement of LNG
JBIC provided a loan for Kyushu ElectricPower Co., Inc. (Kyushu Electric) toimport liquefied natural gas (LNG).
The Great East Japan Earthquake has
raised awareness that stable power
supply is an urgent issue for the livesof Japanese people and domestic
economic activity. This makes it more
important than ever to ensure stable
and sustained procurement of LNG
as a key fuel for power generation, atleast in the near term. By financing the
procurement of LNG by Kyushu Electric,

this loan will help secure stable supplyof energy resources to Japan, thereby
contributing to the stable supply ofelectric power, which is indispensablefor people’s lives.

JBIC Annual Report 2014

63

4
Financial Instruments 1. Financial Instruments

Overseas Investment Loans
Overseas investment loans support Japanese foreign direct
investments. They are extended to Japanese companies(investors), overseas affiliates including joint ventures where
Japanese companies have equity interests and governments
or financial institutions that make equity participations in or
extend loans to such overseas affiliates.
Direct loans to Japanese companies are intended for SMEs,
as well as for projects aimed at developing or securing interestsin overseas resources that are strategically important to Japan,
or for projects to assist with merger and acquisition (M&A)
activities and other agreements (including to large companies).
Moreover, JBIC is able to provide two-step loans (TSLs) to
support the overseas business deployment of Japanese
private-sector
financial
institutions
Loan

Japanese company
Loanscompanies including SMEs, as well as TSLs intended to support
their M&A activities. JBIC is also able to provide short-termloans for overseas business operations when bridge loans
are required to fill the financing gap before it offers long-termloans. JBIC is further empowered to extend investment loans
for projects in developed countries for eligible sectors (seenote).
(Note)
Eligible Sectors of Overseas Investment Loans in Developed Countries (As of July
31, 2014)
Railways (high-speed, inter-city projects and projects in major cities), water business,renewable energy power generation, nuclear power generation, power transformation,transmission and distribution, highly efficient coal-fired power generation, coalgasification, carbon capture and storage (CCS), smart grid, development oftelecommunications network, biomass fuel production, highly efficient gas-fired power
generation, aircraft maintenance and sales, M&A activities, etc.

Loan

Loan

Loans and/or equity participations

Loans

Project(s) inforeign country(ies)Government, financial
institution, etc., in foreigncountry, Japanese bank
Loans

Japanese affiliate(s)Equity participations

Joint venture partner(s)Supporting Overseas Business Deployment by Japan’s Manufacturing Industry
JBIC provided a loan for PT. G-TEKT Indonesia
Manufacturing (G-TIM), a wholly owned Indonesian subsidiary of G-TEKT CORPORATION(G-TEKT). This loan is intended to financethe procurement of facilities necessary forthe manufacturing and sales of automotive
parts and components in the industrial estateon the outskirts of Jakarta. G-TEKT has been
manufacturing and selling mainly auto body
frame components and transmission parts formore than 60 years.

Backed by robust economic growth, theautomobile market in Indonesia will likely
continue to grow. Japanese automobile
manufacturers wasted no time in boosting
their production capacity there. G-TEKT
established G-TIM to expand its business inIndonesia, the tenth country where G-TEKT
has established an overseas production base.
This loan will help to maintain and strengthen
the international competitiveness of Japanese
auto parts manufacturers.

Supporting Overseas Deployment of Steel Processing and Distribution Business by a Japanese Company
JBIC provided a loan for JSW MI Steel Service
Center Private Limited (JSWMI), a company
invested by Marubeni-Itochu Steel Inc.
(Marubeni-Itochu Steel) and a major private
steel manufacturing company in India, toestablish a coil center with facilities for steel
processing and distribution.
The needs for local procurement of highquality steel materials are expected to grow inIndia, where many Japanese automobile andelectronic manufactures are expanding their64

JBIC Annual Report 2014business and the demands of steel materials
are expected to grow. Marubeni-Itochu Steel,through the establishment of JSWMI, plans
to meet the needs of these companies inIndia including local subsidiaries of Japanesecompanies and to develop new business thereby stably supplying high quality steel products
to them. This loan will help to maintain andstrengthen the international competitivenessof Japanese industries.

4

Untied loans are financing basically to developing countries
necessary to implement projects and import goods, or forsuch countries to level their international balance of trade,or stabilize their currency. Loans are not conditional on
procurement of equipment and materials from Japan.
Capital procured from untied loans is used to: Securestable supplies of energy and mineral resources to Japan;
Promote business activities of Japanese companies; Maintainand expand trade and direct investment from Japan; Financeprojects having significant effect on global environmental
preservation; and Finance projects maintaining international
financial order.

private-sector
financial
institutions
Loan

Government,
financial institution, etc.,
in foreign country

Foreign importer(s)Project(s) in
the recipient
country(ies)
Imports ofequipment andtechnology

Exporter(s)Financial Instruments 1. Financial Instruments

Untied Loans

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

GREEN Operations
JBIC launched GREEN (Global action for Reconciling Economic
growth and ENvironmental preservation) operations in April
2010. Previously, JBIC’s financing operations had centeredmainly on projects directly aiming to maintain and improve
international competitiveness of Japanese industries, suchas projects involving Japanese companies’ investment andmachinery/equipment exports. Accordingly, projects dedicatedsolely to preservation of the global environment were so far not
eligible for JBIC support. Launching GREEN operations enabled
JBIC to focus its financing on projects seeking to preserve
the global environment, such as those that materially reducegreenhouse gas (GHG) emissions, while propagating advanced
Japanese environmental technologies across the world.

Guarantees
Equity participations/ Loans

PrivateFlows

Eligible Entity:

Foreign government, governmental agencies or local governments,
public enterprises such as utilities operating closely with government,
foreign financial institution, multilateral institution.

Eligible Projects:

1. Favorable impact on preservation of the global environment, such as significantly
reducing GHG emissions.
2. Accepting J-MRV* process on the effect of the environmental preservation.
(e.g. Energy efficiency improvement, Renewable energy, etc.)* JBIC original methodology for Measurement, Reporting and Verification.

Supporting GHG Emissions Reduction Projects in India
JBIC has signed an untied loan agreement to
set up a credit line under GREEN operations
with IDFC Limited (IDFC), an Indian development finance institution providing loans to
infrastructure and other projects. This credit
line is intended to finance renewable energy
and energy efficiency projects in India by providing funds required for environment-related
projects which will help reduce GHG emissions.
This credit line is expected to promote theIndian government’s environment policy aswell as help propagate internationally acclaimed Japanese advanced environmental
technologies in India. This is also compatible
with the Japanese government’s Actions for
Cool Earth (ACE), the proactive diplomatic
strategy for countering global warming.

Supporting Renewable Energy Projects in Brazil
JBIC set up a credit line for the Banco Nacionalde Desenvolvimento Econômico e Social(BNDES), Brazilian Development Bank. This
credit line follows the one JBIC establishedfor BNDES in March 2011.
The credit line is intended to financeenvironment-related projects in Brazil that
focus on renewable energy, including windand biomass power generation projects, aspart of GREEN operations. In the context of
the Brazilian government’s GHG reduction

plan, this credit line is expected to help reduce
GHG emissions in Brazil. It is also expected toprovide the opportunity to promote Japan’s
advanced environmental technologies, which
are internationally acclaimed. The credit line
is consistent with the Japanese government’s
Actions for Cool Earth (ACE), the proactive
diplomatic strategy for countering global
warming.

JBIC Annual Report 2014

65

4Financial Instruments 1. Financial Instruments

Equity Participations
Equity participations are capital contributions to companies where Japanese companies have equity stakes to undertake overseas
projects and funds where Japanese companies perform a significant role. In principle, equity participations take the following forms.

Japanese companies make equity participationin an overseas projectJapanese companies participate in fund (and perform such major roleas general partner in their management and investment decisions)
Major role

Japanesecompany(ies)

Equityparticipations

Overseas
project

Japanesecompany(ies)

Equity participation

Equityparticipations

Fund

Equityparticipations

Other
investor(s)Equity participation

Japanese companies acquire equity interests in
a foreign company to form business allianceJapanese companies form a consortium and participate in
an international fundBusiness allianceJapanesecompany(ies)

Equityparticipations

Foreigncompany

Japanesecompany(ies)

Fund

Equityparticipations

Other
investor(s)Equity participation

consortium

Equity participation

Supporting Overseas M&A by Japanese Companies
JBIC undertook equity participation in Gavilon
Agriculture Holdings, Co. (GAH), a wholly
owned subsidiary of Marubeni Corporation(Marubeni) in the United States. This equity
participation is intended to support Marubeni
in acquiring the grain and fertilizer tradingbusiness of Gavilon Holdings, LLC, one of
the major U.S. grain merchants, throughGAH and Gavilon Agriculture Investment,
Inc., the controlling company of the business.
Equity participation will thus help Marubeni tostrengthen and expand its global grain value
chain and strengthen the international competitiveness of Marubeni’s grain and fertilizer
trading business. It is also consistent withthe food policy of the Japanese government,
which calls for more agricultural investment
overseas.

Supporting Renewable Energy and Energy Efficiency Projects in Mexico
JBIC made equity participation in the Balam
Fund I, L.P. (the Fund), a private equity fundjointly managed by The Rohatyn Group, an
U.S. firm; and BK Partners, a Spanish firm. The
Fund makes investments in renewable energy

66

JBIC Annual Report 2014

and energy efficiency projects in Mexico.
Apart from JBIC, Fondo Nacional deInfraestructura (FONADIN) and the InterAmerican Development Bank also participate
in the Fund with equity investment and seniorloan, respectively. This equity participation
will help Mexico to reduce GHG emissions.
Investment information from the Fund is
expected to create more business opportunities
in Mexico for Japanese companies.

4

In addition to loans and equity participations, JBIC also provides support through its guarantee facility. Guarantees are provided
for loans extended by private financial institutions, bonds issued by governments of developing countries or overseas Japanesecompanies, and currency swap transactions. JBIC also issues reassurance for guarantees from export credit agencies in othercountries.
Guarantees for Imports of Manufactured Products

JBIC has a guarantee facility for the
borrowings made by Japanese companies to finance the import of aircraftand other manufactured products thatare important for Japan.

Private financial institution,
etc.
Guarantee
Loan
Import of products

Foreign exporter(s)Financial Instruments 1. Financial Instruments

Guarantees

Japanese importer(s)Guarantees for Corporate Bonds Issued by Japanese Affiliates

JBIC supports Japanese affiliates operating overseas by providing guarantees for the bonds they issue in local
capital markets.

Investor(s)Guarantee
Counterguarantee

Sub guarantee

Issue of bonds

Guarantees

Japanese company(Parent company, private
financial institution, etc.)

Japanese affiliate(Issuer)

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

Loans to developing countries involve,
among others, currency conversion
and transfer risks, and country risk.
Guarantees that JBIC issues to coversuch risks will enable Japanese private
financial institutions to provide medium
and long term financing for developing countries, supporting developing
countries to bring in private capital andfacilitating private companies expanding international business activities.

Investor(s)Guarantee
Guarantee

Issues of publicbonds, etc.

Loan

Private financial institution,
etc.

Loan

Government, etc.,
in foreign country

Guarantees for Currency Swaps

JBIC provides guarantees for swap
transactions to support the local
currency financing of overseas infrastructure projects, etc., undertaken by
Japanese companies.

Japanesecompany(ies)Guarantee

Swap counterpartyin overseas

Private financial
institution
Currency
swap
contract

Operation

Local
currency
loan

Investment

Overseas
infrastructure
projects,etc.

JBIC Annual Report 201467

4Financial Instruments 1. Financial Instruments

Counter Guarantees for Export Credits

In the case where Japanese companies export
machinery and equipment jointly with other country’s
companies, JBIC provides a counter guarantee forthe guarantee provided by that country’s Export
Credit Agency (ECA). This function enables JBIC toparticipate in multilateral mutual guarantee schemeswith other ECAs, which reduces the administrative
burden of exporters and expedites the arrangementof financing. Through such schemes, JBIC supports
the exports by Japanese companies in cooperation
with foreign exporters.

Japanese
Foreigncompany(ies) company(ies)

Foreign ECACounterguarantee

Guarantee

Private bank(s)LoanExportForeign importer(s)Supporting the First Issuance of Samurai Bonds by a Mongolian Institution
JBIC has provided a guarantee for yen-denominated foreign bonds (Samurai bonds)1
issued by the Development Bank of Mongolia(DBM) in the Japanese bond market. This arrangement stems from the Japan-Mongolia
Mid-term Action Plan, which was agreed on
between the leaders of the two countries in
September 2013. It builds on the Guarantee
and Acquisition toward Tokyo market Enhancement (GATE)2 facilities of JBIC. This is
the first guarantee that JBIC has provided for
Samurai bonds issued by a Mongolian institution. Providing the guarantee will help diversify

funding sources for DBM and the governmentof Mongolia. It is also expected to contributeto more vigorous Japanese business activities
through closer bilateral relations.

1. Samurai bonds are yen-denominated bonds issued
by a foreign government or company in the Tokyo
bond market.
2. GATE refers to the “Guarantee and Acquisition
toward Tokyo market Enhancement (GATE).” It
enables JBIC to acquire Samurai bonds where appropriate, in addition to providing partial guarantees
for Samurai bond issues.

Providing Phased Support for Samurai Bond Issuance by the Mexican Government
In August 2013, JBIC acquired a part of public
offered Samurai bonds that the Mexican government issued in Japan under the frameworkof the GATE facilities. This came after a seriesof guarantee provisions and partial acquisitions by JBIC of Samurai bonds issued by the
Mexican government. The partial acquisitionin August covered Samurai bonds with longer maturities, as more and more investors
recognized the Mexican government in theTokyo market as a result of JBIC’s support
for it in issuing Samurai bonds in the past.
In July 2014, the Mexican government successfully issued Samurai bonds that included

68

JBIC Annual Report 2014

long-term bonds with a maturity of up to 20
years without support from JBIC. The Mexicanpresident expressed his appreciation for JBIC
for its support to date. Such phased support
for Samurai bond issuance by the Mexican
government contributed to maintaining andincreasing the presence of Mexican sovereign
bonds in the Tokyo bond market. It also offereda wide range of investment opportunities forJapanese investors, thereby helping to invigorate the Samurai bond market.

4

JBIC provides short-term financing for governmentsof developing countries to meet their foreign
currency needs for external transactions when they
face balance-of-payment difficulties.
JBIC provided bridge loans (short-term bridging
loans) for Myanmar in January 2013 to support clear
the arrears of past loans from the Asian Development
Bank (ADB) and the International Development
Association (IDA), a member of the World Bank
Group.

Loan

Government, financial
institution, etc.,
in foreign country(Conditionality)

Loans from the IMF,
World Bank, etc.

Import orother externaltransaction(s)Financial Instruments 1. Financial Instruments

Bridge Loans

Acquisition of Loan Assets and Public and Corporate Bonds
When JBIC provides export loans, import loans, overseas
investment loans and untied loans, JBIC can also provide
credits, in addition to providing loans and guarantees, bypurchasing loan assets and acquiring public and corporate
bonds1 issued by borrowers for funding. The objective of suchoperations is to promote private financial institutions’ loans
in international finance and Japanese companies' funding ininternational capital markets.
1. The scope of assets and securities acquired includes public bonds, corporate bonds,
debt securities and trust beneficiary rights.

Research and Studies
JBIC conducts research and studies on individual projects
during their initial stage, as well as research and studies
focused on specific regions or industry sectors that may
have a bearing on specific projects occasionally. This is aneffective means of uncovering potentially favorable projects,
and supports to increase exports of materials and services
from Japan for that project, as well as to expand opportunities
for participation by Japanese companies. Research and studies
are conducted at each stage necessary for realization of the
project, including creation of a master plan for an individual
project, conducting of prefeasibility and feasibility studies (Pre-F/S, F/S), front end engineering design (FEED), and studies ofregions and industry sectors linked to specific projects. Afterthe research and studies are completed, follow-up reviews are
conducted at least once each year to confirm the progressof the project.
Research and studies are conducted in the following order.
1. Selection of a research and study subject
2. Selection of the contractor to conduct research and studies
3. Conduct of the research and studies
4. Completion of the research and study report
5. Follow-up

JBIC Annual Report 2014

69

4
Financial Instruments 1. Financial Instruments

Securitization, etc.
JBIC provides support for securitization, etc. in order to supplement and encourage the activities of private financial institutions.

1. Securitization (Guarantees)

2. Securitization (Acquisition of Securities)

In cases where special purpose companies (SPCs) or trust
companies issue asset-backed securities or other financial
products with loans or other assets as collateral, JBIC
guarantees the payment of such asset-backed securities toreduce country and structure risks, thereby supporting theissuance of bonds in the emerging capital markets.

JBIC supports bond issues by acquiring a portion of theasset-backed securities issued by SPCs or trust companies
with loans or other assets as collateral. JBIC’s acquisition
will contribute to the smooth issuance of bonds, as well as
stimulates the market by circulating the acquired bonds backinto the market when market conditions allow it.

Originator

Transfer of loans

Private financial
institutions, etc.

Special purpose company(SPC)
Guarantee

Issue of assetbacked security

Loans
Obligor

Purchase of assetbacked security

Investors(in Japan and overseas)

Overseas Japaneseaffiliates

The above diagrams depict the schemes where SPCs are used, but the clients can also use schemes where trusts are used or JBIC acquires or provides
guarantees for assets backed by securitization.

3. Securitization of Receivables, etc.

JBIC provides guarantees for the receivables and other monetary claims held by overseas subsidiaries of Japanese companies, in order to facilitate the purchase of such receivables

Overseas Japaneseaffiliates

by banks. JBIC is also able to provide guarantees for securities
issued by SPCs or trust companies to secure monetary claims
they have acquired from overseas Japanese subsidiaries.

Accounts receivable, etc.

Guarantee
Proceeds

Overseas Local companies
Guarantee

Assignment of account receivable

Private financial
institutions

SPC or Trust

Asset-backed securities

Investors

Proceeds

Supporting Securitization of Credit Card Receivables in Thailand
JBIC acquires a part of asset-backed securities(ABS) in a securitization transaction of thecredit card receivables originated by AEON
Thana Sinsap (Thailand) Public Company
Limited (ATS), a subsidiary of AEON Financial
Service Co., Ltd. JBIC also provides guarantee
for the remaining portion of this ABS and an
asset-backed loan funded by private investors.
This transaction is the first securitization deal
with the investors outside Thailand for ATS andthe first credit card receivables securitization
deal for JBIC. With JBIC’s partial acquisition

70

JBIC Annual Report 2014

and guarantee provision to the securitized
product, this transaction is expected tocontribute to meeting the needs of ATS for
diversification of funding as well as to providing
investment opportunities to private investors
in the market by mitigating country risk andstructuring risk.

4Growing interest in environmental conservation has led to aworldwide trend toward more rigorous environmental regulations. There are more than a few cases, especially in overseas
projects, in which insufficient risk management of possible
environmental and social impacts has seriously affected
project implementation or undermined its social reputation.
In conducting these operations, JBIC confirms whether
the borrower has made appropriate consideration for local
communities and the natural environment in all the JBICfinanced projects based on the “Japan Bank for International
Cooperation Guidelines for Confirmation of Environmental
and Social Considerations” (Environmental Guidelines).
The Environmental Guidelines set out the procedures,

criteria, and requirements that JBIC-financed projects mustmeet in confirming environmental and social considerations.
When JBIC judges that the project proponents have not madeappropriate environmental and social considerations, it willencourage them to take remedial measures. If appropriate
environmental and social considerations have not been taken,
JBIC may decide not to extend funding.
The Environmental Guidelines set forth that a comprehensive review should be conducted within five years of theirenforcement and revisions may be made as needed. JBIC iscurrently carrying out a review and revision of the current
Environmental Guidelines.

Financial Instruments 1. Financial Instruments

Japan Bank for International Cooperation Guidelines for
Confirmation of Environmental and Social Considerations

Procedure for Confirmation of Environmental and Social Considerations
Prospective projects are screened prior to funding, and classified into categories according to the degree of potential environmental impact. An
Environmental Review is then conducted to verify that the environmental and social impacts have been considered in a proper manner. After funding
has been approved, projects are monitored to assess the actual impact.

Project
Proponent

Screening form is
submitted at time offunding request.

Status report is presented on implementation of measures for environment andsocial considerations (monitoring).

For Category A projects, anenvironment impact assessment(EIA) report must be submitted.

Category A

JBIC

Information necessary
for the Environmental
Review is submitted.

Categorization

Category B

Environmental Review (Site inspections are in principle conducted for
all Category A projects)

Category FI

Environmental Review*

Funding
Commitment

Confirmation of
Monitoring(Site inspections conducted as necessary)

The Environmental
Review and Screening
Form are disclosed
on the JBIC website(with the exception of
Category C projects).

In cases where theproject proponent
discloses themonitoring report, thereport is in principle
also disclosed on the
JBIC website.

Category C

Disclosure

The project outline,
category, and EIA
report (required forCategory A) are inprinciple disclosed on
the JBIC website* For Category FI projects, JBIC confirms through the financial intermediary that the proper environmental and social considerations indicated in
the Environment Guidelines have been followed for the project.

Projects are classified into one of the following four categories in relation to the degree of environmental impact, based on the information provided
by the project proponent during the screening process.
Category A:

Project with the potential for a serious and adverse impact on the environment.

Category B: Project with the potential for an adverse impact on the environment, but less than that of Category A projects.
Category C: Project with the potential for minimal or no adverse impact on the environment.
Category FI: Project for which JBIC provides funding to a financial intermediary, and after acceptance of JBIC funding, the financial intermediaryselects and conducts screenings for specific subprojects, in cases where subprojects cannot be determined prior to acceptance of
JBIC funding, and where such subprojects are anticipated to have an impact on the environment.

JBIC Annual Report 201471

4

2. Prominent Initiatives in Recent Years

Financial Instruments 2. Prominent Initiatives in Recent Years

Efforts to Meet Local Currency Needs
Although Japanese yen, the U.S. dollar, and the Euro are
the standard currencies of JBIC’s financing, JBIC is also
responding positively to the increasing demand for financing
denominated in other currencies, including the currencies ofdeveloping countries.
11 Currencies JBIC has supported
Thai baht
Indonesian rupiah
Malaysian ringgit
Chinese yuan

Mexican pesoSouth African rand
Pound sterling
Singapore dollar

Indian rupee
Australian dollar
Canadian dollar(As of the end of June 2014)

1. Direct loans in local currency
Direct loans in currencies other than the Japanese yen, U.S.
dollar, and Euro can be considered on a case-by-case basis
by confirming the availability of funding in such currencies.
2. Two-step loans (TSLs) through local financial institutions
JBIC provides loans to local financial institutions in developing
countries, including local subsidiaries or branches of Japanese

private financial institutions, in Japanese yen or U.S. dollars;
the local financial institutions in turn extend sub-loans in local
currencies.
3. Guarantees for corporate bond issues denominated inlocal currencies
JBIC provides guarantees for bonds issued in local currencies
by Japanese subsidiaries operating overseas under the Asian
Bond Markets Initiatives (ABMI) agreed at the 6th ASEAN+3
Finance Ministers’ Meeting in August 2003, which included
the ASEAN nations along with Japan, China, and the Republicof Korea.
4. Guarantees for loans denominated in local currencies
JBIC provides guarantees for loans in local currencies provided
by private financial institutions to support local currency
financing.
5. Guarantees for currency swaps
In April 2012, JBIC started guarantee operations for crosscurrency swap transactions in order to facilitate funding of
local currencies.

Guarantee and Acquisition toward Tokyo market Enhancement (GATE) Facility
JBIC’s “Guarantee and Acquisition toward Tokyo market
Enhancement (GATE)” facility is intended to support Samurai
bond issuance and enables JBIC to acquire Samurai bonds
where appropriate in addition to providing partial guarantees
for Samurai bond issues. The GATE facility supports bondissues by foreign governments and government agencies in
the Tokyo market. It is thereby expected to help attract foreign
bond issuers to the Tokyo market; induce them to become
long-time participants in the Tokyo market; and expand anddiversify the range of investment opportunities available to
Japanese investors, which will lead to an increase in activity
in the Tokyo Samurai bond market.

Foreign Governments andGovernmental Agencies

Samurai Bond Issues

Tokyo Market

72

JBIC Annual Report 2014

Support through GATE during Fiscal 2013
Instrument

Month ofagreement

Government of Mexico

partialacquisition

July 2013

Central Bank of Tunisia

guarantee

August 2013

Development Bank of Mongolia(guaranteed by the Government ofMongolia)

guarantee

December 2013

IssuerObjectives/Effects:- Attracting foreign issuers to the Tokyo market- Expanding and diversifying investment opportunities forJapanese investors- Enhancement of the Tokyo market (Samurai bond market)

Guarantee

Acquisition

4

 ctions for Cool Earth: ACE, the Proactive Diplomatic
A
Strategy for Countering Global Warming
In November 2013, the Japanese government announced theproactive diplomatic strategy for countering global warming
known as Actions for Cool Earth (ACE). This strategy sets
forth a number of actions designed to achieve the goal of
reducing GHG emissions by half globally and by 80% in thedeveloped world, both by 2050. One of these actions is the
Joint Crediting Mechanism (JCM) Special Financing Scheme(JSF; see the column at right) where the government promotes
the formulation of projects under the JCM in collabaration
with JBIC and Nippon Export and Investment Insurance(NEXI). Another action is to provide a total of 1.6 trillion yen
for developing countries over a period of three years, from2013 to 2015, to support them in addressing climate change.
This assistance will be financed by mobilizing all kinds of public
and private funds available.

In line with this strategy of the Japanese government, JBIC
takes advantage of various financial instruments available
under the existing framework to support the formulation of
JCM projects and implement measures designed to support
developing countries in the field of climate change. Under
this strategy, JBIC supports, among other projects, renewableenergy projects in India and Brazil ( see the case studies on page65).
Joint Crediting Mechanism (JCM)
As part of the Joint Crediting Mechanism (JCM) Special
Financing Scheme (JSF) of the Japanese government, JBIC
supports projects registered for the JCM. The JCM offers
different instruments depending on whether Japanesecompanies are to be involved and what aspect is to be financed(export, investment).

JBIC Annual Report 2014

Financial Instruments 2. Prominent Initiatives in Recent Years

Supporting Developing Countries in Addressing Climate Change734

3. Framework for Supporting Globalization Efforts of SMEs

Financial Instruments 3. Framework for Supporting Globalization Efforts of SMEs

JBIC actively supports Japanese mid-tier enterprises andsmall and medium-sized enterprises (hereafter referred
to collectively as “SMEs”) promoting overseas businessdeployment in response to the advancing globalization of
the economy.
As a result of the economic growth of emerging countries,
especially in Asia, since the 2000s the number of SMEs seeking
not only to respond to the procurement needs of major
Japanese companies with overseas production operations but
also to expand their own business in emerging markets has
been increasing. As a consequence of such business patterns,
the financial needs of SMEs are diversifying as well.
In order to respond to this diversification of the financial
needs of SMEs for their overseas deployment, JBIC is further enhancing cooperation with Japanese private financial
institutions and local financial institutions in other countries
and expanding its support, including two-step loans throughprivate financial institutions, loans in cooperation with regionalbanks and credit unions (shinkin banks) and local currencydenominated loans.
Support for the Overseas Deployment of SMEs
Utilizing the know-how and experience of overseas financingthat it has accumulated so far, JBIC supports the long-term
finance required by Japanese companies, including SMEs, foroverseas investment, the export of machinery, equipment,
technology, and so on, and other activities through co-financewith private financial institutions in the form of overseas
investment loans, export loans, and other loans.
As forms of support for the overseas business deploymentof SMEs, JBIC implements the following six measures:(1) Application of preferential loan conditions: Long-termloans with preferential loan conditions (interest rates,
etc.)(2) Response to small loans of several million to several
10 million yen: In addition to new capital investment,
small loans for replacement of machinery, etc.
(3) Local currency-denominated loans: Long-term local
currency loans with fixed interest rates(4) Support for mergers and acquisitions overseas: Loansfor acquisition funds required when entering overseas
markets through M&As
(5) Coordination and cooperation with private financial
institutions (regional banks, credit unions, money
center banks): Support for the overseas businessdeployment needs of SMEs all through the country(6) Utilization of networks of JBIC overseas offices:
Information service on overseas investment environment; support for solving issues with foreign
governments ooperation with Japanese Regional Financial
C
Institutions
When SMEs seek to develop their business overseas, the74

JBIC Annual Report 2014

support of regional financial institutions, which are their main
financing banks, plays an important role.
JBIC concludes business cooperation memorandum of
understandings (MOUs) with regional financial institutions
and provides wide-ranging support to facilitate the overseas
development of local companies, such as joint seminars on
overseas business deployment.
JBIC signed an MOU with The Gunma Bank, Ltd. in April
2013 and Seibu Shinkin Bank in May 2013 with the aim ofcollaborating to support the overseas business deployment
of Japanese companies, especially SMEs, in their respective
areas.
In addition, following revision of the ordinance on enforcement of the Shinkin Bank Act in March 2013, which enabled
shinkin banks to make direct loans to the overseas subsidiariesof their customers, JBIC has strengthened cooperation withshinkin banks and provided fine-tuned response to small loans
as well.
Furthermore, in October 2013 JBIC signed an MOU with theJapan Federation of Bar Associations (JFBA) aimed at businesscooperation relating to the overseas business deployment of
SMEs. JBIC and the JFBA are cooperating closely to support
the overseas business deployment of SMEs. For example,
JBIC provides information about JFBA’s system to support
the overseas business deployment of SMEs to SMEs requiring
legal advice or other forms of support relating to overseas
business deployment.
 ooperation with Local Financial Institutions inCDeveloping Countries
It is also important for SMEs to ensure business support fromlocal financial institutions in developing countries, which havewide range of local information. Therefore, while checking theneeds of SMEs seeking to develop overseas business throughJapanese regional financial institutions, JBIC has strengthened relations with local financial institutions in developing
countries. JBIC signed MOUs with the Bank for Investment andDevelopment of Vietnam (BIDV) in July 2013 and Vietcombank(VCB) in August 2013 to set up frameworks of support forJapanese SMEs starting local operations through Japaneseregional financial institutions. Under such MOUs, JBIC encourages local financial institutions to set up and expand single

Signing ceremony with the Bank for Investment and Development of Vietnam (BIDV)

4Country

Local financial institutions in developing countries

When MOU was signed

Number of participating Japaneseregional financial institutions

ThailandKASIKORNBANK Public Company Limited

May 2011

28

Indonesia

PT. Bank Negara Indonesia

July 2011

33

India

State Bank of India

August 201245

BDO Unibank, Inc. (BDO)

March 2013

7

Metropolitan Bank and Trust Company (Metrobank)March 201345

The Philippines
VietnamBank for Investment and Development of Vietnam (BIDV)
Vietcombank (VCB)

July 2013

5

August 201344
(As of July 2014)

contact points “Japan Desks” for Japanese companies and isbuilding frameworks for consultations about specific cooperation and coordination together with the regional financial institutions, who have business relationship with SMEs in Japan.

Japanese entities, including regional banks and other regional
financial institutions, prefectural and municipal governments,and local chambers of commerce and industry. It also conducts
field studies to assess investment climates in countries where
Japanese companies are actively doing business. The findingsof these studies are compiled into guidebooks, which areavailable in book form and on JBIC’s website.
Moreover, JBIC also offers an itinerant advisory service
in many parts of Japan in cooperation with prefectural andmunicipal governments and local chambers of commerce
and industry that support local companies in expanding
their operations overseas. This service, which is available
on a regular basis in Sendai, Ota, Tokyo, and Nagoya, offers
advice on the overseas investment climate and how to obtain
long-term financing, among other topics.

Financial Instruments 3. Framework for Supporting Globalization Efforts of SMEs

Local Financial Institutions in Developing Countries and Participating Japanese Regional Financial Institutions

Support for a project to manufacture and sell automobile engine parts with a local
currency loan

Providing Local Currency–Denominated Loans
In response to expansion of the overseas business of SMEs,
JBIC since 2012 has been offering loans in local currencies,
such as the Thai baht, Indonesian rupiah, and Chinese yuan.
When SMEs try to procure local currency funds in developing
countries, they face typically the problems of short borrowing
periods (basically up to one year) and high interest rates. In
order to solve these problems, JBIC offers long-term andfixed-rate local currency loans to which preferential measuresfor SMEs apply directly to the local subsidiaries of SMEs in
the form of co-financing with private financial institutions.
The co-financing involves JBIC providing local currencydenominated loans and private financial institutions supplying
yen-denominated loans via the parent company in Japan.
I nformation Services, Seminars, etc.
JBIC’s specialized unit for SMEs provides information relating
to overseas business deployment and, through outside
experts, offers advisory services concerning legal, accounting,and tax affairs relating to currency regulations, employment
and labor issues, contracts, company establishment, etc. in
China, India, and the 10 member states of the Association ofSoutheast Asian Nations (ASEAN).
JBIC organizes seminars and consultation sessions on
overseas business deployment in cooperation with otherSpeech at the Nikkei Business Creation Forum on “New Trends in the Creation of
Growth Opportunities and Management Support for SMEs”

The itinerary advisory
service (booth exhibit) ata Yokohama Day event(“Overseas Development
through Collaboration
between Yokohama’s
Urban Development
Experience and the
Excellent Technologies ofPrivate Companies”)

JBIC Annual Report 201475

Operational and
Administrative Policies

51

Corporate Governance78

2

Risk Management

82

3

Public Information and Disclosure

85

JBIC Annual Report 201477

5

1. Corporate GovernanceOperational and Administrative Policies 1. Corporate GovernanceFundamental Approach to Corporate Governance
JBIC is making efforts to build corporate governance structure
in conducting operations with particular attention to integrityand efficiency, as it seeks to fulfill the mission set out under
the JBIC Act (Law No. 39, 2012) and realize its corporate
philosophy.

Shareholder Meeting

Supervisory and Evaluative Function

Board of Corporate Auditors

Board of Directors

Outside Corporate
Auditors

Outside Director

Accounting Auditor

Management Advisory and
Evaluation Committee

Office of Corporate
AuditorRisk Advisory Committee

Executive
FunctionInternal Audit
Committee

Executive Committee

Credit Committee

Preliminary Credit
Committee

Corporate Risk
Management
Committee

ALM Committee

Compliance andCustomer Protection
Management Committee

Global HeadCommittee

Personnel
Committee

Internal Audit
Department[Deliberative Committees][Decision Making Committees]

How National Government is Involved in JBICAs JBIC has its shares wholly owned by the Government ofJapan, it is subject to the control of the Japanese government.
Additionally, it is subject to the national budget passed in
the Diet, inspections by the Board of Audit of Japan, by theCompetent Minister and by the Financial Services Agency
whose inspection is delegated by the Competent Minister.
Supervisory and Evaluative Function and
the Conduct of JBIC Operations
To strengthen the supervisory and evaluative function of theBoard of Directors as well as conduct flexible operations,
JBIC has established, in addition to the Board of Directors,

78

JBIC Annual Report 2014

the Board of Corporate Auditors and other organs required by
the Companies Act, the Management Advisory and Evaluation
Committee, the Risk Advisory Committee, the Internal Audit
Committee and the Executive Committee. Furthermore, avariety of committees were set up by the Executive Committeethat delegated specific tasks to them.
(1) Board of Directors
The Board of Directors consists of 5 members, of which one
is an outside director as set forth in the Companies Act. The
outside director supervises the conduct of JBIC operations
from the point of view of a corporate outsider, apart from
representative directors of JBIC. In addition, he contributes
to improving the governance of JBIC as a member of the5(2) Board of Corporate Auditors
The Board of Corporate Auditors consists of 3 auditors, ofwhich two are outside corporate auditors, as set forth in
the Companies Act. Outside corporate auditors contributeto improving the governance structure of JBIC, as they
cooperate with the full-time auditor in auditing the conductof its operations. The Office of Corporate Auditor helps them
execute their responsibilities.
(3) Management Advisory and Evaluation Committee
The Management Advisory and Evaluation Committee consistsof 3 to 7 external experts and the outside director. They makeassessment and offer advice on the matters referred to themby the Board of Directors pertaining to the business operations
and management of JBIC.
List of Members of the Management Advisory and Evaluation Committee
Name

Occupation〇 Shujiro Urata

Professor, Graduate School of AsiaPacific Studies, Waseda University

Akira Kondoh

JBIC Managing Director (Outside
Director)

Yoshikatsu Suzuki

Senior Commentator of Jiji Press Ltd.

◎ Yuzo Takagi

Chairman & Representative of Audit
Corporation GODAI, Certified Public
Accountant

Mikiko Fujiwara

CEO of Alpha Associates Co., Ltd.

Hirokazu Yoshikawa

Senior Corporate Adviser of DOWA
Holdings Co., Ltd.

◎ Chairman〇 Deputy–chairman(Listed in the order of 50 character kana syllabary, name listed without honorifics)(4) Risk Advisory Committee
The Risk Advisory Committee consists of 3 to 7 external
experts and the outside director. They offer advice on thematters referred to them by the Board of Directors pertaining
to risk management and assessment framework associatedwith large-lot debtors and risk exposure to large-scale projects.
List of Members of the Risk Advisory Committee
Name

Occupation

Shuhei Abe

President, CEO&CIO of SPARX Group Co.,Ltd.

◎ Eiji Ogawa

Professor, Graduate School of Commerceand Management, Hitotsubashi University

Akira Kondoh

JBIC Managing Director (Outside Director)

Toshiki Tomita

Professor, Faculty of Law, Chuo University

Chieko Matsuda

Professor of Management, Graduate Schoolof Social Sciences, Tokyo Metropolitan
University〇 Keisuke Yokoo(5) Internal Audit Committee
The Internal Audit Committee consists of representative
directors and the outside director. They make decisions anddeliberations concerning important matters pertaining tointernal audit, as delegated by the Board of Directors.
(6) Executive Committee
The Executive Committee consists of representative
directors, executive director and all the managing executive
officers. They make decisions and deliberations concerning
important managerial matters, thereby taking responsibility
for conducting flexible JBIC operations, as delegated by the
Board of Directors. Certain decisions such as financing to a
specific project are delegated to the following committees.
(i) Credit Committee
The Credit Committee makes decisions and deliberations
concerning important matters on loan, guarantee andequity participation by JBIC, as delegated by the Executive
Committee.
(ii) Corporate Risk Management Committee
The Corporate Risk Management Committee makes decisions
and deliberations concerning important matters pertaining to
the corporate risk management of JBIC, as delegated by the
Executive Committee.
(iii) C ompliance and Customer Protection Management
Committee
The Compliance and Customer Protection Management
Committee makes decisions and deliberations concerning
important matters pertaining to the compliance and customer
protection management of JBIC, as delegated by the Executive
Committee.
(iv) Personnel Committee
The Personnel Committee makes decisions and deliberations
concerning important matters pertaining to the personnel of
JBIC, as delegated by the Executive Committee.
(v) Preliminary Credit Committee
The Preliminary Credit Committee makes deliberations
concerning important matters pertaining to assessment
policies toward loan, guarantee and equity participation andcredit policy toward large-lot debtors, as delegated by the
Executive Committee.
(vi) ALM Committee
The ALM Committee makes deliberations concerning importantmatters pertaining to the asset-liability management (ALM)of JBIC, as delegated by the Executive Committee and the
Corporate Risk Management Committee.
(vii) Global Head Committee
The Global Head Committee makes deliberations concerning
cross-cutting matters among internal groups, including
operational policy for each country or region, as delegatedby the Executive Committee.

Operational and Administrative Policies 1. Corporate GovernanceManagement Advisory and Evaluation Committee and the
Risk Advisory Committee.

Advisor of Mizuho Securities Co., Ltd.

◎ Chairman〇 Deputy–chairman(Listed in the order of 50 character kana syllabary, name listed without honorifics)

JBIC Annual Report 201479

5
Operational and Administrative Policies 1. Corporate Governance

Adopting Mission/Sector-Specific Group Structure
JBIC reconstituted its organization and adopted mission/sector-specific group structure in July 2011. Its objective is
to strengthen the capacity to formulate projects by bringing
together know-how and expertise in each sector and area,
thereby facilitating JBIC to perform the functions in its mission
more flexibly and strategically.
Specifically, Energy and Natural Resources Finance Group;
Infrastructure and Environment Finance Group; Industry

Governor, CEO(Governor of JBIC / Responsible for Corporate Group / Responsible for Credit, Assessment, and Systems Group /Responsible for Internal Audit Department)

Executive Managing Director, COO(Governor’s support / Responsible for Industry Finance Group)

OutsideManaging
Director(Responsible forManagement
Advisory and Evaluation Committee,
and Risk Advisory
Committee)

Internal Audit
Department

Managing
Executive
Officer(Global Head ofCorporate Group)

CorporateGroup

Member of Board of Directors

80

Finance Group; Corporate Group; and Credit, Assessment,
and Systems Group were set up, with each Group having
departments with special expertise.
For each Group, the responsible board member isappointed, and the managing director or a managing executive
officer performs as its Global Head. Each Group is managed
in an integral manner under the Global Head of the Group in
an effort to conduct flexible and efficient operations.

JBIC Annual Report 2014

Managing
Director(Global Head ofEnergy and Natural
Resources
Finance Group)

Energy andNaturalResources
Finance Group

SeniorManaging
Director(Responsible forInfrastructure andEnvironment
Finance Group)

Infrastructure
andEnvironment
Finance Group

Member of Internal Audit Committee

Managing
Executive
Officer(Executive
Officer forWest Japan)

Managing
Executive
OfficerManaging
Executive
Officer(Global Head ofIndustry FinanceGroup)(Global Head of
Credit,Assessment, andSystems Group)

Industry
FinanceGroup

Member of Executive Committee

Credit,Assessment,
and Systems
Group(As of July 1, 2014)

5(

appropriate remedial action.
Protection of Private Information
JBIC has drawn up and disclosed its Privacy Policy ( seep. 160) which stipulates appropriate management of private
information held by JBIC pursuant to the provisions of the Act
on the Protection of Personal Information Held by Independent
Administrative Agencies, etc.

See p. 157 for the Fundamental Policy on Internal Control)

Maintenance and Control of Information Assets
JBIC sets forth its fundamental “Security Policy” concerning
the use and management of information assets ( see p. 159)
in order to secure high standard information security andimplement proper and efficient operations. Based on thestandard, JBIC properly handles, manages, protects andmaintains information assets.

Operational and Administrative Policies 1. Corporate GovernanceFundamental Policy on Internal Control
As an internal control system for overall operations, JBIC has
appropriate internal audit procedures to review, as well as
evaluate their appropriateness and effectiveness and makerecommendations to improve them. For these purposes,
JBIC has the Internal Audit Committee, which includes theoutside director, as a decision-making body independent of
the Executive Committee that is responsible for conducting
operations. There is also the Internal Audit Department
independent of the line departments and directly reportingto the Governor.
The Internal Audit Department exchanges relevant
information and cooperates with Corporate Auditors and an
Accounting Auditor for executing efficient internal audit.

Compliance
JBIC has set forth in its Code of Conduct to “Maintain highethical standards and a law-abiding spirit. Observe our moral
code as a JBIC member at all times.” Its management andstaff members are keenly aware of the public missions andsocial responsibilities called for in the international community
and in civil society. It is also well recognized that any act inviolation of laws, regulations or rules by its management andstaff will lead to denigrating confidence in JBIC as a whole andhave a materially adverse effect on its operations. Attentive
to these needs, JBIC is constantly striving toward complianceand operational integrity.
JBIC makes positive efforts to improve compliance,
primarily through the Compliance and Customer Protection
Management Committee, and has established the Legal
Affairs and Compliance Office as an integrated compliancemanagement unit.
Each group and overseas representative office serving asa regional headquarter has an Integrated Compliance Officer,
while each department and overseas representative office has
a Compliance Officer for making positive efforts in compliance,such as fostering such awareness among JBIC employees.
To foster in-depth understanding of compliance, JBIC
makes good use of its Compliance Manual and provides
training sessions for its management and staff members. It
also develops a compliance program every fiscal year as abasis for making necessary compliance arrangements andproviding relevant training.
In addition to the reporting procedures in its ordinary lineof business, JBIC has put in place and is properly operating
an internal reporting system such that it is capable of finding
significant compliance issues at an early stage and taking

JBIC Annual Report 201481

5

2. Risk Management

Operational and Administrative Policies 2. Risk Management

In general, the operations of financial institutions involve
various risks, including credit risk, market risk (such as interest
rate and exchange rate risk, etc.), liquidity risk and operationalrisk. As a policy-based financial institution, JBIC conducts
financial operations to achieve policy objectives. Thus, JBIC
differs from private financial institutions in its nature as wellas the extent of risks involved in its operations and ways todeal with them. Nonetheless, recognizing the importance ofappropriate risk management as a financial institution, JBIC
has put in place an institutional system for risk management
commensurate with different types of risks and for addressing integrated risk management.
More specifically, JBIC defines the objective of risk
management as identifying, measuring and monitoring
various risks JBIC is exposed to in the process of conducting
operations to ensure the soundness and integrity ofCredit Risk
Credit risk refers to the potential loss from a decline or loss ofthe value of credit assets due to deterioration in the financial
conditions of a debtor. This risk is inherent in JBIC’s operations
as it primarily engages in lending activities. Credit risk exposure
to JBIC may be classified into: sovereign risk, which involves
financing foreign governments; corporate risk, which involves
financing business firms; project risk, which occurs when aproject financed in project financing—a financing structure inwhich a loan is primarily secured on the cash flow generated
from the project—fails to generate the planned cash flow;
and country risk, which involves financing foreign firms aswell as projects located in foreign countries (a risk added
to corporate risk and project risk arising from the country
where the debtor resides and the project is located). Given thevery nature of financial support JBIC provides for promoting
overseas development and securement of strategicallyimportant resources to Japan, for maintaining and improving
the international competitiveness of Japanese industries,
and for promoting the overseas business for preserving the
global environment, such as preventing global warming, JBIC
frequently extends loans to foreign governments, government
agencies and companies. Therefore, sovereign and country
risks account for a considerable share of the credit risks
accompanying JBIC’s operations.
Managing Credit Risk
The cornerstone of credit risk management at JBIC is theevaluation of an individual borrower’s creditworthiness in theprocess leading to credit approval. When a new loan application
is being processed, the relevant finance department and theCredit Department collect and analyze information on the
borrower. The overseas representative offices also play apart in collecting information on foreign governments andcompanies. It is based on this information and its analysis
that credit appraisal takes place, with checks and balances

82

operations and increase transparency. For this purpose,
JBIC has designated the staff responsible for managing
various risks and has a department working on the overallrisk management. In addition, there are the Corporate Risk
Management Committee and the ALM Committee that makediscussions and considerations for the effective functioningof risk management. JBIC has also set up the Risk Advisory
Committee, which consists of external experts, to provide the
JBIC Board of Directors with advice on the risk management
and assessment system with respect to large-lot debtors
and on issues referred to by the JBIC board of directors withrespect to risks associated with large-scale projects.
The following sections describe how JBIC manages
representative risks JBIC is facing, among various otheroperational risks, in conducting operations as a policy-based
financial institution.

JBIC Annual Report 2014

at work between these different departments throughout thisprocess, leading to the final decision by management.
In providing credit for foreign governments and companies, JBIC makes the most of its unique position as an official financier, as it exchanges views and information withthe governments and relevant authorities in the recipient
countries, multilateral institutions such as the International
Monetary Fund (IMF) and the World Bank, other official export credit agencies and, furthermore, with private financial
institutions in developed countries. Using all these channels,
JBIC evaluates sovereign and country risks based on a broad
range of information collected on borrowing governments,
government agencies and political and economic conditionsin their countries.
In providing credit for domestic and foreign companies,
there is a need to evaluate their creditworthiness and theappropriateness of the collateral they offer. In particular, forcredit provision related to overseas projects, credit evaluation
involves checking and examining the certainty of conducting
transactions to be financed, feasibility studies of the projects
and the industry in which the borrower operates.
Internal Credit Rating
JBIC has established an internal credit rating system which
covers, in principle, all the borrowers. Internal credit ratings
are the cornerstone of credit risk management, being used
for conducting individual credit appraisals and quantifying
credit risks.
Internal Assessment of Asset Portfolio
Japanese private financial institutions undertake the internal
assessment of asset portfolios in accordance with Inspection Manual for Deposit-Taking Institutions (the “Financial
Inspection Manual”) of Japan’s Financial Services Agency.
JBIC is similarly undertaking the internal assessment of its

5
Quantifying Credit Risk
In addition to individual credit risk management, JBIC is
working on quantifying credit risks with a view to evaluating
the risk of the overall loan portfolio. To quantify credit risks, it
is important to take into account the characteristics of JBIC’sloan portfolio, which holds a significant proportion of longterm loans and loans involving sovereign and country risks.
Also to be taken into account are mechanisms for securingassets, such as the Paris Club1 a unique framework for debt
management by official creditor countries. The credit risk
quantification model incorporating these factors is measuringcredit risks and is utilized for internal control.

Market Risk
Market risk refers to the potential loss from changes in thevalue of assets and liabilities as a result of fluctuations ininterest rates and foreign exchange rates. JBIC manages
specific market risks as follows.
Exchange Rate Risk
Foreign currency-denominated loans involve the risk associatedwith exchange rate fluctuations. JBIC has a consistent policyof hedging the full amount of such exposure through currency
swaps and forward exchange transactions.
Interest Rate Risk
Funding for yen-denominated loans is mainly managed atfixed-rate interest. Interest rate risk for yen-denominatedloans, however, is limited since derivative transactions suchas interest rate swaps are used to hedge interest rate risk for
portions of loans that are thought to have high exposures tointerest rate fluctuation risk. Interest rate risks associated withforeign currency-denominated loan operations and relevant
fundings are generally hedged by managing the funds withfloating interest rates with the use of interest rate swap transactions. In addition, JBIC carefully calculates and analyzes
projections of its future asset/liability structure and profits
and losses.
Derivatives Transactions(1) Basic Policy for Derivatives Transactions
JBIC engages in derivatives transactions exclusively for the
purpose of hedging exchange rate and interest rate risks.
(2) Transactions
Derivatives transactions of JBIC include interest rate andcurrency swaps and forward exchange contracts. The following
table gives a summary of these transactions as of March 31,
2014.

Credit Risk of Derivatives, etc.
(As of March 31, 2014; 100 millions of yen)Contract Amounts /Notional Amounts

Credit Risk Amounts

Interest Rate Swaps

29,621

708

Currency Swaps

48,665

4,324

Forward Exchange
Contracts

17

0

Other Derivatives──Credit Risk Reductions
through Netting
Total

Operational and Administrative Policies 2. Risk Management

loan portfolio, based on the Financial Inspection Manual sothat the characteristics of its loan assets will be accuratelyreflected on its assessment. In this process, the first-stage
assessment is conducted by the relevant financing departments, while the second-stage assessment is conducted by
the Credit Department and the Country Credit Department,
which is then inspected by the Audit Department. The resultsof internal assessment conducted on the portfolio are not
only used internally for the continuous reviews of the loan
portfolio but are also reflected in the disclosure of asset quality to enhance the transparency of JBIC’s financial position.

(3,026)78,3042,006(Note) “The credit risk amounts” are calculated under Uniform International Standardsin accordance with the Banking Act of Japan and the related regulations.

(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.
(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.

1. An informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor nations. Since the first meeting
took place in 1956 to resolve the debt problem of Argentina, the meeting has been held in Paris, with the French Treasury acting as its secretariat. Hence, it has come to be called
the Paris Club.

JBIC Annual Report 201483

5
Operational and Administrative Policies 2. Risk Management

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.

Liquidity Risk
Liquidity risk refers to the potential loss resulting fromdifficulties in funding due to a maturity mismatch between
financing and funding caused by unexpected cash-outs or frombeing forced to fund at an interest rate significantly higher
than in normal circumstances, as well as the potential loss
resulting from a failure to make transactions in the market due
to market turmoil or from being forced to make transactions
at a significantly disadvantageous price compared to normal

circumstances.
JBIC is minimizing liquidity risk through effective cash flow
management and the diversification of its funding sources,
including borrowings under the Fiscal Investment and Loan
Program (FILP), government-guaranteed bond issues ininternational capital markets and FILP agency bond issues
in the domestic capital market.

Operational Risks
Operational risk refers to the potential loss resulting frominadequate or failed internal processes, people and systems
or from external events. Apart from administrative andcomputer system risks, JBIC recognizes that its operations
involve various direct and indirect risks. JBIC will proactively
identify, assess and manage such risks.
Administrative Risk
Administrative risk is the risk of a financial institution incurring
losses from the neglect by officers and employees to conduct
administrative work properly, accidents caused by them,and violation of laws and regulations caused by them, etc.,
conducted in the course of the administrative work process.
JBIC has been minimizing this risk by ensuring soundoperations through scrupulous checks on work processes,
creating operational manuals, improving training programs,
and streamlining and adopting systematic procedures. In
addition, the Audit Department, independent from otherdepartments and reporting directly to the Governor & CEO,
conducts internal auditing of JBIC.

84

JBIC Annual Report 2014

Computer System Risk
Computer system risk refers to the potential loss from a
breakdown or malfunction in computer systems as well
as from their misuse. JBIC has been minimizing computer
system risk by increasing readiness to respond effectively toemergency situations. Specifically, (a) measures have beentaken to prevent system malfunctions and leakage of client
information; and (b) contingency plans have been prepared torespond to system malfunctions caused by accidents and othercauses, and disaster-response drills have been conducted.

3. Public Information and Disclosure

Publications
JBIC publishes its annual operations and activities as well as its
financial conditions in various disclosure materials, including
annual reports, business reports, financial statements, andForm 18-K, submitted to the U.S. Securities and Exchange
Commission.
Other publications available to the public include “JBIC
Today,” a public information magazine that reports on JBIC’slatest activities and topics on its operations and other relevant
issues; “JBIC Profile: Role and Function,” a brochure describing
JBIC operations; and “JBIC’s Activities for Environmental
Sustainability.”

WebsiteThe website provides access to JBIC information, including its
financial instruments, press releases, invitations to seminars,
reports on various studies, activities on environmental issues,
annual reports, various brochures, IR information for investors,
and various other types of information.
JBIC has reworked its website effective on November 1,
2013. In this revision, the search function has been strengthened for easier and faster operation, along with a revision ofpage design for easier viewing. Also, the contents have been
expanded to better present JBIC operations. JBIC continues
to provide updates with the latest information.
Quick access

Enhanced search function

The pull-down menu that appears
when you touch the global menu allows quick access to the information
viewers are looking for.

Searches by keyword and category(region, sector, etc.) are now possible
for Press Releases, Reports, JBIC’s
Activities, and other types of content.

Operational and Administrative Policies 3. Public Information and Disclosure

JBIC is providing and disseminating information to a broad
range of the domestic and overseas public in an effort topromote further understanding of its operations and activities.
The JBIC Information Center at the Head Office and theWest Japan Office make various brochures, annual reports,
public relations magazines, and other materials available to
the general public. In addition, a variety of information about
JBIC is provided publicly in Japan and overseas through the
JBIC website (http://www.jbic.go.jp/en/).

5

JBIC Today

JBIC’s Activities for Environmental
Sustainability

New content at a glance
A list of new content appears on every
page. The tab menu for ‘What’s New’on the home page provides a list of
new content by category.

JBIC Profile: Role and Function

JBIC’s Activities on a map
The map for JBIC’s Activities on thehome page allows access to project
information by region and sector.

JBIC website

JBIC Annual Report 201485

5
Operational and Administrative Policies 3. Public Information and Disclosure

Information Dissemination for the Media
Aside from information disseminated through various
publications, the website, and other means, JBIC informs thenews media about its operations and activities through press
conferences, meetings, etc.

Participating in Various Events
JBIC participates in various events both in Japan and overseas
to introduce its functions, role, and support activities inenvironmental and other sectors. In December 2013, JBIC
participated in the Eco-Products 2013 exhibition, held inTokyo, by setting up its own booth. In March 2014, JBIC helda Water Business Seminar at its headquarters on recent
developments in the water business market and Japanesecompanies’ engagement in it. Outside Japan, JBIC gave aseminar on Islamic finance at its Dubai Representative Office inNovember 2013. In February 2014, JBIC attended the Investingin African Mining Indaba 2014 conference, one of the world’s
largest mining conferences, held in Cape Town, South Africa.
More information on these and other events that JBIC has
participated in is available on the JBIC website.

Governor Watanabe at the press conference isseminating Information from Overseas Representative
D
Office
JBIC’s overseas representative offices are actively contributing
reports and articles to the news media to provide informationfrom overseas. They have also appeared in TV news programs
to provide timely topics that can only be reported on at the
local grassroots level, such as individual consumption andinformation on taxation, etc.
Promoting International Exchange
Since 1976, JBIC has held annual JBIC Seminars in Japan topromote mutual understanding with its overseas business
partners and relevant organizations by inviting officials
from foreign governments, government agencies, privatecompanies, financial institutions, etc. The cumulative numberof seminar participants is approximately 620 so far.

Eco-Products 2013

Disclosure
JBIC discloses to the public its operational and financial
information to promote further understanding of its current
activities, as follows.
(Principal) Materials for Providing Information
Source of Information

Report on Settlement of
Accounts

Annual Report
Public Relations Magazine,
etc.

Participants at the JBIC Seminar

86

JBIC Annual Report 2014

Website:Type of Business
Operations, Operational
Results, Overview ofOrganization, Financial
Composition, etc.

AccessAvailable at the Head Office andthe West Japan OfficeDistributed to the National
Diet Library and economic
organizations, etc.
Available at the Head Office,the West Japan Office andRepresentative Offices
Distributed to interested
persons/institutions

On the internet
Address:
http://www.jbic.go.jp/en/