Data 1

Statistics
1

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
(1) Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
A. Commitments by Purpose of Financing  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
B. Commitments by Region (Loans, Equity Participations and Guarantees) . . . . . . . . . 80
(2) Disbursements .......................................................................................................................................81(3) Repayments  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
(4) Outstandings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

2

Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82(1) Export Loans by Industry ................................................................................................................. 82(2) Natural Resource Loans by Item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
(3) Overseas Investment Loans by Industry(Excluding Natural Resource Loans) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
(4) Commitments to Mid-tier Enterprises and
SMEs to Support their Overseas Business Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
(5) Guarantee Commitments by Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
(6) Loan and Guarantee Commitments by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
A. Export Loan Commitments by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
B. Import Loan Commitments by Region  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
C. Overseas Investment Loan Commitments by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
D. Untied Loan Commitments by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
E. Guarantee Commitments by Region  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
F. Equity Participations by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
(7) Geographical Distribution of Loan andEquity Participation Commitments  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86

3

Outstandings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89(1) Outstandings by Purpose of Financing ..................................................................................... 89(2) Guarantee Outstandings by Purpose  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
(3) Geographical Distribution of Loan andEquity Participation Outstandings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .90

4

Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92(1) Major Buyer’s Credit and Bank-to-bank Loan Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
(2) Untied Loan Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
(3) Debt Rescheduling Based on Paris Club Agreements  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

5Standard Loan Conditions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93

6

Breakdown of Countries and Regions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

JBIC  Annual Report 2016

79

1 Overview
Data 1 Statistics(1) Commitments
A. Commitments by Purpose of Financing
FY2011(Unit: billions of yen, %)FY2012

Number

Total

Share Number

Export Loans

40

207.9

13

40

Shipping

20

62.6

4

Plant

20

145.3

9

Technical
Services——

Import Loans

3

Total

FY2013
Share Number

Total

FY2014
Share Number

Total

FY2015
Share Number

Total

Share

Loans

1 Overview

126.6

3

33

126.2

6

49

15

23.0

1

15

34.7

2

24

24.3

1

25

103.6

2

18

91.5

4

24

381.8

12

—

—

—

—

—

—

—

1

0.2

0

172.6

11

4

304.3

7

5

56.2

3

—

—

3

172.6

11

4

304.3

7

5

56.2

3

—

84

962.0

60

157 3,138.5

74

167 1,671.0

26

607.9

38

39 1,784.2

42

18

Others

58

354.0

22

118 1,354.3

32

Untied Loans

3

23.2

1

10

210.5

5

2

83.2

2

NaturalResources
Overseas
Investment Loans
NaturalResources

Bridge Loans

6

9

33.6

1

13

107.3

4

—

—

—

—

1

252.3

11

—

—

1

252.3

11

76

197 2,451.0

75

260 1,858.1

78

594.7

27

20 1,059.1

33

11

236.9

10

149 1,076.2

49

177 1,391.9

43

249 1,621.1

68

2

5

46.7

1

—

—

—

4

24.8

1

—

—

—

287 2,276.3

95

—

—

—

86

213 3,863.3

91

212 1,899.6

86

251 2,904.2

89

Guarantees

15

228.5

14

21

303.2

7

20

2,09.1

9

15

312.3

10

7

106.6

Equity Participations

1

1.5

0

8

74.3

2

7

97.4

4

5

32.8

1

4

14.3

1

146 1,595.9

100

242 4,240.9

100

239 2,206.1

100

271 3,249.3

100

298 2,397.4

100

B. Commitments by Region (Loans, Equity Participations and Guarantees)
FY2011FY2012
Share Number

Total

FY2013
Share Number

Total(Unit: billions of yen, %)FY2014
Share Number

4

Total

FY2015

Number

Total

Total

Share

Asia

65

269.9

17

86

513.6

12

108

472.7

21

162

610.5

19

150

332.9

14

Oceania

12

170.4

11

17 1,005.7

24

12

292.9

13

6

173.8

5

2

6.9

0

Europe

15

216.6

14

33

660.6

16

21

350.3

16

17

228.8

7

57

598.3

25

The Middle East

8

232.4

15

12

305.9

7

9

104.8

5

14

493.6

15

9

427.6

18

Share Number

Africa

3

3.3

0

7

84.3

2

5

81.1

4

7

195.6

6

2

14.9

1

North America

11

113.6

7

35

710.8

17

43

654.0

30

45 1,389.3

43

38

493.6

21

26

415.5

26

43

805.5

19

36

209.1

9

18

136.1

4

37

507.3

21

3

12.3

1

—

—

—

—

—

—

—

—

—

—

—

—

3

161.5

10

9

154.2

4

5

40.8

2

2

21.2

1

3

15.5

1

146 1,595.9

100

242 4,240.9

100

239 2,206.1

100

271 3,249.3

100

298 2,397.4

100

Latin America andthe Caribbean
International
Organizations, etc.
Others
Total

80

22

—

Total

—

46.0

13

130 1,365.7

Sub Total

—

141.0

7

406.4

JBIC  Annual Report 2016

(Unit: billions of yen, %)FY2011Total

FY2012

Share

Total

FY2013

Share

Total

FY2014

Share

Total

FY2015

Share

Total

Share

Loans
Export Loans

73.9

5

143.1

5

112.5

4

112.0

4

148.8

7

Import Loans

212.2

15

162.7

6

234.5

9

21.8

1

27.6

1

Overseas
Investment Loans

700.7

50

21,44.6

75

1,928.073

2,049.4

79

1,840.3

82

Untied Loans

103.2

7

52.2

2

88.5

3

64.3

2

44.5

2

Bridge Loans

—

79.7

3

—

—

—

—

—

—

1,090.277

2,582.590

2,363.6

90

2,247.6

87

2,061.3

92

Guarantees

310.8

22

270.6

9

178.7

7

303.2

12

134.3

6

7.3

1

17.2

1

85.4

3

30.9

1

42.4

2

1,408.4100

2,870.4

100

2,627.8100

2,581.8100

2,238.2100

Equity Participations
Total

1 Overview—

Sub Total

Data 1 Statistics(2) Disbursements(3) Repayments(Unit: billions of yen, %)FY2011Total

FY2012

Share

Total

FY2013

Share

Total

FY2014

Share

Total

FY2015

Share

Total

Share

Loans
Export Loans

125.3

8

112.4

7

106.3

8

104.8

4

95.5

4

Import Loans

252.4

15

147.4

10

170.1

13

138.4

6

154.3

6

Overseas
Investment Loans

711.7

43

707.1

46

668.1

50

1,795.6

73

1,760.7

72

Untied Loans

192.4

12

161.6

11

173.5

13

158.2

6

151.7

6

Bridge Loans

—

—

79.7

5

—

—

—

—

—

—

Governmental
Loans

3.1

0

2.9

0

2.9

0

2.6

0

2.5

0

Sub Total

1,285.2

78

1,211.3

79

1,121.184

2,199.890

2,164.9

89

Guarantees

362.6

22

318.1

21

204.9

15

238.2

10

205.5

8

6.1

0

3.0

0

5.0

0

12.4

1

64.5

3

1,653.9100

1,532.4100

1,331.1100

2,450.6100

2,435.0100

Equity Participations
Total(Note) Prepayments in FY2014 and 2015 amounted to ¥247.0 billion and ¥385.1billion, respectively.

(4) Outstandings(Unit: billions of yen, %)FY2011Total

FY2012

Share

Total

FY2013

Share

Total

FY2014

Share

Total

FY2015

Share

Total

Share

Loans
Export Loans

642.9

6

710.3

5

740.6

5

812.4

5

844.7

5

Import Loans

584.4

6

630.2

5

731.6

5

661.6

4

525.7

3

Overseas
Investment Loans

5,762.955

8,165.962

10,183.9

67

11,970.5

69

11,342.0

70

Untied Loans

1,086.3

10

1,035.8

8

998.8

7

988.8

6

901.8

6

Governmental
Loans

45.6

0

42.6

0

39.7

0

37.1

0

34.6

0

Sub Total

8,122.3

77

10,585.1

81

12,694.9

83

14,470.6

84

13,649.0

84

Guarantees

2,378.3222,400.6

18

2,422.6

16

2,572.3

15

2,464.7

15

70.3

1

100.1

1

187.0

1

222.3

1

194.9

1

10,571.0

100

13,086.0100

15,304.6

100

17,265.3

100

16,308.6

100

Equity Participations
Total

JBIC  Annual Report 201681

2 Commitments
Data 1 Statistics(1) Export Loans by Industry(Unit: billions of yen, %)FY2014FY2015

Number

Total

Share

Total

Share

Shipping

24

24.3

6

9

33.6

24

Electrical Machinery

8

102.9

25

6

45.7

32

Telecommunication Equipment

1

4.4

1

1

7.3

5

14

272.2

67

6

54.3

38

1

3.0

1

5

12.7

9

Chemical Facilities

3

122.5

30

1

41.5

29

Oil and Natural Gas Facilities

5

143.4

35

—

—

—

Iron and Non-ferrous Metals
Manufacturing Facilities

4

1.6

0

—

—

—

OthersOther Industrial Machinery andEquipment, etc.
Civil Engineering andContractors

Number

2 Commitments

1

1.5

0

—

—

—

Technical Services

1

0.2

0

—

—

—

Others

1

2.1

1

—

—

—

Total

49

406.4

100

22

141.0

100

(2) Natural Resource Loans by Item
(Unit: billions of yen, %)FY2014
Total

Share

Number

Total

Share

16

992.7

94

11

486.5

99

Petroleum

6

155.8

15

3

332.7

68

Natural Gas

10

836.9

79

8

153.7

31

Other Resources

4

66.3

6

—

—

—

Iron Ore

1

26.4

2

—

—

—

Copper Ore and Concentrate

1

39.7

4

—

—

—

Wood, Wood Chips and Pulp

2

0.1

0

—

—

—

Energy Resources

82

FY2015

NumberOthers

—

—

—

1

2.7

1

Total

20

1,059.1

100

12

489.2

100

JBIC  Annual Report 2016

(Unit: billions of yen, %)FY2014FY2015

Total

Share

Number

Total

Share

101

372.3

27

124

60.8

4

Food

5

0.6

0

1

0.0

0

Textiles

3

4.0

0

6

3.7

0

Lumber and Pulp

—

—

—

2

0.2

0

Chemicals

4

59.3

4

4

1.7

0

Petroleum and Coal Products

2

238.0

17

—

—

—

Ceramics, Stone and Clay

—

—

—

1

0.2

0

Iron and Non-ferrous Metal
Products

24

25.5

2

29

27.7

2

Machinery

1

0.2

0

—

—

—

Electrical Machinery

2

0.1

0

3

1.0

0

Transport Equipment

42

39.0

3

47

21.3

1

Other Manufacturing Industries

18

5.1

0

31

4.6

0

Construction

—

—

—

1

0.1

0

Electric, Gas and Heat Supply andWater Service

7

164.8

12

2

182.5

11

Telecommunications

—

—

—

1

7.1

0

Transport and Postal Services

1

147.9

11

1

1.0

0

Commerce

2

0.5

0

2

0.5

0

Service Industry

2

3.0

0

—

—

—

Others (Note)

64

703.2

51

118

1,368.8

84

Total

177

1,391.9100249

1,621.1100

2 Commitments

NumberManufacturing Industry

Data 1 Statistics(3) Overseas Investment Loans by Industry (Excluding Natural Resource Loans)(Note) “Others” includes two-step loans to regional financial institutions in Japan. JBIC supports the overseas operations of Japanese enterprises (especially SMEs) engaged in adiverse range of manufacturing and services, such as motor vehicles and parts, electrical and electronic equipment, machinery and metals, chemicals, and wholesale andretail businesses.

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

FY2014FY2015

Number of Projects

AmountNumber of Projects

Amount

109

111.7

133

42.9

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

(5) Guarantee Commitments by Purpose(Unit: billions of yen, %)FY2014
Number

FY2015

Total

Share

Number

Total

Share

Guarantee for Samurai Bonds

3

170.0

54

1

55.0

52

Guarantee for Import of Aircrafts

6

88.5

28

3

38.3

36

Guarantee for Others

6

53.7

17

3

13.3

13

Total

15

312.3

100

7

106.6

100

JBIC  Annual Report 201683

Data 1 Statistics(6) Loan and Guarantee Commitments by Region
A. Export Loan Commitments by Region(Unit: billions of yen, %)FY2014
Number

Asia

Total

FY2015
Share

Number

Total

Share

2 Commitments

37

342.2

84

9

89.3

63

East Asia

16

15.5

4

1

0.2

0

Southeast Asia

7

76.0

19

6

29.0

21

South Asia

8

45.3

11

1

18.5

13

Central Asia and the Caucasus

6

205.1

50

1

41.5

29

3

3.7

1

5

15.6

11

Central and Eastern Europe
and Russia

1

1.3

0

—

—

—

Western Europe

11

Europe

2

2.3

1

5

15.6

The Middle East

2

32.9

8

4

6.0

4

Africa

2

22.4

6

2

14.9

11

Northern Africa

1

1.5

0

—

—

—

Sub-Saharan Africa

1

20.8

5

2

14.9

11

Latin America and the Caribbean

5

5.1

1

2

15.1

11

Total

49

406.4

100

22

141.0

100

B. Import Loan Commitments by Region(Unit: billions of yen, %)FY2014FY2015

Number

Total

Share

Number

Total

Share

The Middle East

—

—

—

1

252.3

100

Total

—

—

—

1

252.3

100

C. Overseas Investment Loan Commitments by Region(Unit: billions of yen, %)FY2014
Number

Total

Share

Number

Total

121

234.8

10

135

166.7

9

East Asia

19

28.4

1

15

11.0

1

Southeast Asia

91

182.1

7

114

153.2

8

South Asia

11

24.2

1

6

2.4

0

Oceania

6

173.8

7

2

6.9

0

Europe

14

225.0

9

52

582.7

31

Central and Eastern Europe
and Russia

—

—

—

1

50.3

3

Western Europe

29

Asia

Share

14

225.0

9

51

532.3

The Middle East

7

326.8

13

4

169.2

9

Africa

2

95.0

4

—

—

—

2

95.0

4

—

—

—

38

1,291.0

53

35

455.3

25

Latin America and the Caribbean

9

104.4

4

31

469.9

25

Others

—

—

—

1

7.1

0

Total

197

2,451.0100

260

1,858.1

100

Northern Africa
North America

84

FY2015JBIC  Annual Report 2016

(Unit: billions of yen, %)FY2014FY2015

Total

Share

Number

Total

Share

—

—

—

2

13.1

53

—

—

—

2

13.1

53

The Middle East

2

17.8

38

—

—

—

Africa

1

14.8

32

—

—

—

1

14.8

32

—

—

—

Latin America and the Caribbean

2

14.0

30

2

11.7

47

Total

5

46.7

100

4

24.8

100

Asia
Southeast Asia

Sub-Saharan Africa

2 Commitments

NumberData 1 Statistics

D. Untied Loan Commitments by Region

E. Guarantee Commitments by Region(Unit: billions of yen, %)FY2014FY2015

Number

Total

Share

Number

Total

Share

54

Asia

2

31.6

10

2

57.7

East Asia

—

—

—

1

2.7

3

Southeast Asia

1

11.6

4

1

55.0

52

South Asia

1

20.0

6

—

—

—

The Middle East

3

116.0

37

—

—

—

Africa

2

63.3

20

—

—

—

Northern Africa

1

50.0

16

—

—

—

Sub-Saharan Africa

1

13.3

4

—

—

—

6

88.5

28

3

38.3

36

North America
Latin America and the Caribbean

2

12.6

4

2

10.5

10

Total

15

312.3

100

7

106.6

100

F. Equity Participations by Region(Unit: billions of yen, %)FY2014Asia

FY2015

Number

Total

Share

Number

Total

Share

2

1.8

6

2

5.9

42
41

East Asia

—

—

—

1

5.9

Southeast Asia

1

0.7

2

1

0.0

0

South Asia

1

1.1

3

—

—

—

North America

1

9.7

30

—

—

—

Others

2

21.2

65

2

8.3

58

Total

5

32.8

100

4

14.3

100

JBIC  Annual Report 201685

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

Region / Country

Asia

East Asia

FY2014FY2015

Accumulated

Number

Total

Number

Total

Number

China

13

25.6

12

4.0

1,550

3,901.1

Hong Kong

21

18.1

2

1.0

295

318.1

699

1,285.4

1

0.2

2

4.4

Republic of Korea
Mongolia

2 Commitments

Southeast Asia

Others

1

0.2

2

11.9

1,029

516.4

Sub Total

35

43.9

17

17.2

3,575

6,025.6

4

45.1

Brunei Darussalam
Cambodia

2

0.2

2

0.2

Indonesia

28

137.9

38

53.4

1,553

5,714.1

Laos

4

24.1

1

0.2

5

24.3

Malaysia

3

1.7

1

0.2

598

1,317.9

Myanmar

1

0.7

3

40.6

60

185.8

the Philippines

3

1.1

5

0.8

821

1,755.3

Singapore

4

4.4

10

76.9

481

856.7

Thailand

31

15.0

40

18.2

2,542

2,759.0

Vietnam

25

73.6

23

4.5

178

470.6

OthersSub Total
South Asia

99

258.9

18

67.7

2

3.0

Bangladesh
India
Sri Lanka

20

70.7

5

200.7

Uzbekistan

1

4.4

18.5

8

41.5

6

2.4

856

1,291.6

290

298.3

61

67.9

17

3.6

1,232

1,703.1

25

301.8

13

284.9

14

106.6

7

21.0

1

41.5

OthersSub Total
Total
Oceania

JBIC  Annual Report 2016

8

195.0

6

205.1

1

41.5

60

888.4

160

578.8

148

275.1

11,147

21,960.6

Australia

4

138.1

2

6.9

871

3,204.1

New Zealand

2

35.6

147

176.8

Papua New Guinea

56

267.2

Others

52

27.0

1,126

3,675.2

Total

86

13,343.4

1

Kazakhstan
Turkmenistan

213.9

6,280

195.4

OthersSub Total

36
123

Pakistan

Central Asiaand the Caucasus

Total

6

173.8

2

6.9

Region / Country

EuropeCentral and Eastern
Europe and Russia

FY2015

Total

Number

Accumulated

Total

Total

3

5.6

Bulgaria

117

134.4

Moldova1

5.3

Romania

142

95.2

118

1,602.3

1

1.3

1

50.3

11

41.3

Others879

2,134.9

1,271

4,019.2

Cyprus

1

1.3

1

50.3

18

17.4

Denmark57

78.9

Finland

7

7.0

22

24.2

France

1

0.6

310

642.3

Germany

7

13.1

11

90.0

283

367.5

United Kingdom

3

178.7

16

283.1

543

2,018.5

1

4.1

5

8.2

1

0.3

47

338.6

Iceland
Ireland

6

35.5

Italy

3

8.1

48

174.3

Luxemberg

5

85.6

9

120.5

3

11.9

5

41.5

100

438.0

Norway248

456.2

Portugal

46

37.5

66

129.0

Sweden58

144.8

Isle of Man

5

5.9
105.0

Malta
Netherlands

Spain

5

Switzerland

23.3

1

3.8

86

Others607

657.7

Sub Total

16

227.4

56

547.9

2,561

5,777.4

Total

17

228.8

57

598.3

3,832

9,796.6

Bahrain
Iran
Iraq
Jordan1

9.2

Kuwait
Oman
Qatar

6

110.4

199

1,026.8

21

219.9

29

89.1

23

203.9

28

296.4

1

152.4

37

891.1

2.7

81

1,001.8

Saudi Arabia

3

295.8

1

Turkey

7

72.5

5

7.0

194

700.6

2

265.4

68

1,726.7

United Arab Emirates
Yemen

11

35.8

Others

106

212.0

803

6,515.0

Total

11

377.6

9

427.6

JBIC  Annual Report 2016

2 Commitments

UkraineSub Total

The Middle East

NumberBelarus

RussiaWestern Europe

FY2014
NumberData 1 Statistics(Unit: billions of yen)87

Data 1 Statistics(Unit: billions of yen)

Region / Country

AfricaNorthern Africa

FY2014
Number

FY2015

Total

Number

Accumulated

Total

345

971.8

Egypt

183

240.5
145.0

3

96.5

10
22

108.1

3

96.5

560

1,465.5

OthersSub Total
Angola2 Commitments

30

100.8

Equatorial Guinea

1

7.3

2

17.1

Gabon

20

33.5

Kenya

30

19.3

Liberia

1,202

1,475.0

Madagascar

9

102.5

Mozambique

17

25.3

Niger

117

105.1

Nigeria51

266.5

Seychelles
South Africa

1

14.8

Tanzania

1

20.8

Uganda1

7.5

OthersNorth America

Latin America and the Caribbean

1.2
328.5

21

32.2

7

8.7

183

162.4

2

35.7

2

14.9

1,806

2,678.8

Total

5

132.3

2

14.9

2,366

4,144.4

Canada2

50.6

United States37

1,250.1

35

Total

39

1,300.8

35

327

763.2

455.3

2,663

8,262.0

455.3

2,990

9,025.2

272

564.0

22

67.7

Argentina
1

15.0

Bolivia
Brazil2

66.4

British Virgin Islands
Chile

32

65.9

12

67.5

1,955

3,265.3

1

333.6

4

345.0

5

97.3

Cayman Islands

160

1,334.6

Colombia

1

122

276.2

Ecuador32

79.1

El Salvador

35

15.0

Jamaica

2

3.5

0.3

418.8

Panama

2

1.9

288

Paraguay

1

2.3

16

12.8

Peru

1

39.7

113

487.5

10

13.0

Trinidad and Tobago
Mexico

1

57.7

8

83.9

19

22.4

836

2,231.9

81661.8

Venezuela
OthersTotal
International Organizations, etc.

Total

Others(Note)

Total
Grand Total

181

212.0

16

123.5

35

496.8

4,164

10,223.1

56

1,208.0

2

21.2

3

15.5

111

1,951.9256

2,937.0291

2,290.7

26,59568,500.5(Note) Others: Two-step loans to regional financial institutions in Japan and loans for crossborder projects, etc.

JBIC  Annual Report 2016

2
115

Sub Total

the Bahamas

88

Total

Algeria
MoroccoSub-Saharan Africa

Number3 Outstandings(Unit: billions of yen, %)FY2014Total

FY2015
Share

Total

Share

Loans

Export Loans

812.4

5

844.7

5

Shipping

152.9

1

157.9

1

Plant

659.4

4

686.5

4

Technical Service

0

0.2

0

4

525.7

3

654.7

4

521.5

3

6.8

0

4.1

0

11,970.5

69

11,342.070

Natural Resources

5,837.3

34

5,353.6

33

Others6,133.1

36

5,988.4

37

Untied Loans

988.8

6

901.8

6

Governmental Loans

37.1

0

34.6

0

Sub Total

14,470.6

84

13,649.0

84

Guarantees

2,572.3

15

2,464.7

15

Natural Resources
Manufactured Goods & Technologies
Overseas Investment Loans

Equity Participations
Total

222.3

1

194.9

1

17,265.3

100

16,308.6

100

3 Outstandings

0.1
661.6

Import Loans

Data 1 Statistics(1) Outstandings by Purpose of Financing(2) Guarantee Outstandings by Purpose(Unit: billions of yen, %)FY2014
Total

Guarantee for Samurai Bonds
Guarantee for Import of Aircrafts
Guarantee for Others
Total

FY2015
Share

Total

Share

1,368.953

1,423.9

58

465.2

18

428.2

17

738.1

29

612.5

25

2,572.3

100

2,464.7

100

JBIC  Annual Report 201689

Data 1 Statistics(3) Geographical Distribution of Loan and Equity Participation Outstandings(As of March 31, 2016; billions of yen)

Region / Country

Asia

East Asia

Southeast Asia

3 Outstandings
South Asia

Central Asia andthe Caucasus

Oceania

EuropeCentral and Eastern
Europe and Russia

Western Europe

90

JBIC  Annual Report 2016

China
Hong Kong
Republic of Korea
Mongolia
OthersSub Total
Brunei Darussalam
Cambodia
Indonesia
Laos
Malaysia
Myanmarthe Philippines
Singapore
Thailand
Vietnam
Sub Total
India
Pakistan
Sri Lanka
Sub Total
Kazakhstan
Turkmenistan
Sub Total
Total
Australia
New Zealand
Papua New Guinea
Total
Bulgaria
SerbiaMoldova
Romania
RussiaSub Total
CyprusDenmark
FranceGermany
United Kingdom
Ireland
Italy
Luxembourg
Malta
Netherlands
NorwaySpain
SwedenIsle of Man
Switzerland
Sub Total
Total

Number

Total

106

112.5

19

14.6

9

21.9

1

0.2

8

47.6

143

196.9

1

14.5

2

0.1

144

646.7

5

14.7

20

65.6

2

37.8

19

237.3

33

171.1

124

182.3

82

214.0

432

1,584.6

91

222.3

3

55.6

4

3.8

98

281.8

10

194.0

7

42.3

17

236.3

690

2,299.870

1,804.9

4

34.4

6

278.2

80

2,117.6

5

8.6

2

2.9

1

0.9

1

0.1

24

436.3

33

449.0

4

5.7

1

15.3

5

163.3

28

122.3

31

479.0

9

339.8

4

83.1

8

107.3

3

16.1

6

103.3

2

7.4

6

54.2

4

59.3

5

6.5

5

50.7

121

1,614.1154

2,063.2

The Middle East

Northern Africa

Sub-Saharan Africa

North America

Latin America and the Caribbean

International Organizations, etc.
Others(Note)

Total

1

46.4

8

58.3

1

13.4

2

12.5

1

62.8

10

146.7

5

358.9

10

496.2

30

64.8

6

458.8

2

15.1

76

1,734.2

6

19.3

2

56.9

3

30.8

11

107.1

5

58.6

2

5.7

2

0.3

2

0.2

1

1.7

2

87.1

6

1.1

2

16.9

3

0.5

9

41.2

1

0.0

35

213.8

46

320.9

12

268.5

131

2,060.3

143

2,328.9

2

135.3

6

27.0

2

19.3

53

636.8

1

25.9

23

877.3

2

56.0

6

0.2

14

68.4

1

2.2

6

68.0

65

243.1

6

245.3

187

2,405.5

3

41.0

35

532.4

1,414

13,843.9

3 Outstandings

AfricaBahrain
Iran
Iraq
JordanKuwaitOman
Qatar
Saudi Arabia
TurkeyUnited Arab Emirates
Yemen
Total
Algeria
Egypt
MoroccoSub Total
AngolaEquatorial Guinea
Gabon
Kenya
Liberia
Madagascar
Niger
Nigeria
Seychelles
South Africa
UgandaSub Total
Total
CanadaUnited States
Total
Argentina
the Bahamas
Bolivia
BrazilCayman Islands
Chile
Colombia
EcuadorPanamaParaguay
Peru
MexicoVenezuela
Total
Total
Total
Grand Total

NumberData 1 Statistics(As of March 31, 2016; billions of yen)

Region / Country(Note) Others: Two-step loans to regional financial institutions in Japan and loans for crossborder projects, etc.

JBIC  Annual Report 201691

4 Others
Data 1 Statistics(1) Major Buyer’s Credit and Bank-to-bank Loan Commitments (FY2015)
Country
UgandaProject/Transaction

BorrowerAmount4 Others

Export of road construction machinery

Government of Uganda¥ 7.5 billion

Uzbekistan

Export of fertilizer plant facility

Joint-Stock Commercial Bank
ASAKA

¥ 41.5 billion

Bangladesh

Export of facilities for gas-fired combined cycle
power plant

Bangladesh Power
Development Board¥ 18.5 billion

Indonesia

Export of facilities for ultra-supercritical coal-fired
power plant

PT PLN (Persero)¥ 9.8 billion

Indonesia

Export of facilities for ultra-supercritical coal-fired
power plant

PT PLN (Persero)

US$ 107 million

AngolaExport of optical submarine cable system

Banco de Desenvolvimento deAngolaUS$ 65.8 million(Note) A buyer’s credit and bank loan are loan facilities directly extended to a foreign importer (buyer) or financial institution to finance imports of equipment and technologies fromJapan. A buyer’s credit is extended to an importer, while a bank loan is extended to a financial institution.

(2) Untied Loan Commitments (FY2015)
Country

Project/Transaction

BorrowerAmountUS$ 50 million(Note)
US$ 50 million(Note)

BrazilRenewable energy projects (GREEN)

Banco Nacional de
Desenvolvimento Econômico
e Social

MexicoRenewable energy and energy efficiency
projects (GREEN)

Banco Nacional de Comercio
Exterior, S.N.C.

Indonesia

Partial acquisition of privately placed Samurai
bonds (GATE)

Government of Indonesia—

Indonesia

Partial acquisition of privately placed Samurai
bonds (GATE)

Government of Indonesia—(Note) 	The figures denote loan commitments made by JBIC. Apart from them, JBIC has provided guarantees to the portion co-financed by private financial institutions.

(3) Debt Rescheduling Based on Paris Club Agreements (FY2015)
Country
Argentina

Date of Paris Club Agreement

Date JBIC signed
Rescheduling Agreement

Rescheduled
Amount2014.5.29

2015.9.16¥ 153.5 billion(Note) The Paris Club is an informal group of official creditors whose role is to find coordinated and ustainable 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. This table lists all the debt rescheduling agreements JBIC signed with debtor countries during FY2015 based on intergovernmental agreements at the Paris Club.

92

JBIC  Annual Report 2016

5 Standard Loan Conditions

1— Standard Interest Rates

Data 1 Statistics

Standard loan conditions are shown below. Loan Interest rates are linked to the funding cost of JBIC, including
the rate on borrowings from the Fiscal Loan Fund Special Account, and thus they are subject to changes in
conditions of the financial market. A loan applicant should make an inquiry at the relevant loan department for
specific loan conditions.(1)(As of August 15, 2016)(2)

Type of Loans

Type of Loans

Percentage of Loan Provided by JBIC

 Fixed at commitment (Yen CIRR) (3) Fixed at tenders

60% limit

5 Standard Loan Conditions

Export Loans• 0.66% (Repayment period 5yrs or less)• 0.66% (Repayment period over 5yrs to 8.5yrs)• 0.63% (Repayment period over 8.5yrs)(3) (8)• above rate + 0.2%

Import Loans /Overseas Investment Loans /Untied Loans /(Natural Resources /International Competitiveness) (1) Japanese yen (4)• 0.425%(6) (7) Foreign Currency(5)60% limit (7)•LIBOR+0.500%(6) (7)(Notes) 1. SMEs are eligible for preferential interest rates and other favorable loan conditions.
2. Premium is added based on the type of financing such as collateral /guarantee and loan schemes.
3. Synthetic rate based on interest rates charged by JBIC and cofinancing institutions.
4. Interest rates on loans in Japanese yen are determined based on specific loan periods and the amortization schedule.
		The interest rate shown in the table is a reference rate for a 10-year loan with lump-sum repayment upon maturity. Please make an inquiry at therelevant department for interest rate on specific conditions.
5. Interest rates on loans in foreign currencies are linked to 6-month LIBOR for US dollars.
6. Special interest rates will be applied based on policy implication such as contribution to “Promoting overseas development and acquisition ofstrategically important natural resources to Japan” or“ Maintaining and improving the International competitiveness of Japanese industries.”
7. Risk premium is added based on the OECD Arrangement.
8. 70% limit for resource-related (import and overseas investment) loans.

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

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

JBIC  Annual Report 201693

6 Breakdown of Countries and Regions(As of July 1, 2016)

Data 1 Statistics

Regions

Asia

East Asia

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

Southeast Asia

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

South Asia

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

Central Asiaand the Caucasus

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

Oceania

6 Breakdown of Countries and Regions

Europe94

Countries

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

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

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

The Middle East

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

AfricaNorthern Africa

Algeria, Egypt, Libya, Morocco, Tunisia

Sub-Saharan Africa

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

North America

Canada, United States (U.S.)

Latin America and the Caribbean

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

International Organizations, etc.

International Monetary Fund (IMF),
International Bank for Reconstruction and Development (IBRD),
International Finance Corporation (IFC), Asian Development Bank (ADB),Inter-American Development Bank (IDB), African Development Bank (AfDB),
European Bank for Reconstruction and Development (EBRD),
Banco Centroamericano de Integración Económica (BCIE),
Corporación Andina de Fomento (CAF), East African Development Bank (EADB),
Eastern and Southern African Trade and Development Bank (PTA Bank),
African Export-Import Bank (Afreximbank), Islamic Development Bank (IsDB),
European Investment Bank (EIB), Caribbean Development Bank (CDB), etc.

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

JBIC  Annual Report 2016

Data 2Financial Statements
1

Statutory Financial Statements  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Statements of Changes in Net Assets  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Statements of Cash Flows ....................................................................................................................102
Notes to Financial Statements  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

2

Composition of Liabilities and Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

3

The Average Balance of Interest-earning Assets
and Interest-bearing Liabilities, Interest andEarning Yields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

4

Breakdown of Operating Expenses  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130

5Balance of Due from Banks, Receivables under
Resale Agreements and Securities—Application of Surplus Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130

6

Information on Derivative Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

7

Yield / Interest Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

8Loans Outstanding per Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

9Loans Outstanding by Industry  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

10 Write-off of Loans  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
11

Assets in Major Foreign Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

12 Administrative Expense Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
13 Balance of Loans / Borrowings, Bonds andNotes by Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

14 Information on the Quality of Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

Financial Statements in Accordance with
International Financial Reporting Standards (IFRS)
for Reference Only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137

JBIC  Annual Report 201695

1 Statutory Financial Statements
Data 2 Financial Statements

The balance sheets, statements of operations, statements of changes in net assets, and notes to the non-consolidated
financial statements of JBIC were prepared in accordance with the regulations concerning terminology, forms, and preparation
methods of financial statements set in the ordinance of the Ministry of Finance No.59 of 1963. Assets and liabilities, revenue
and expenses were classified in accordance with the ordinance of the Ministry of Finance regarding Japan Bank forInternational Cooperation Act No. 15 of 2012.
FY 2015 financial statements for the period of April 1, 2015, to March 31, 2016, were audited by Ernst & Young ShinNihon
LLC in accordance with Article 193 Paragraph 2 Item 1 of Financial Instruments and Exchange Act.
No consolidated financial statements were prepared as JBIC has no consolidating subsidiaries.

1 Statutory Financial Statements

 Balance Sheets

March 31, 2015
(In millions of yen)March 31, 2016
(In millions of yen)¥¥March 31, 2016
(In millions of
U.S. dollars)

Assets:Cash and due from banks
Cash
Due from banks
Securities

Note 3

Other securities
Loans and bills discounted

Notes 4Loans on deeds
Other assets

1,220,187$

10,829000850,496

1,220,187

10,829261,786

236,6022,100

261,786

236,6022,100

14,432,949

13,540,661

120,169

14,432,949

13,540,661

120,169

430,297

256,1882,274

Prepaid expenses

520

521

5

Accrued income

45,33149,807442

Derivatives other than for trading-assets

18,91343,357385

Cash collateral paid for financial instruments

365,250

162,230

1,440

282

273

2
247

Other
Property, plant and equipment

28,29527,804

Buildings

3,040

2,882

26

Land

24,664

24,427

217

Lease assets

22

13

0

Construction in progress

—

34

0

Other

567

446

4

Intangible assets

3,154

2,737

24

3,154

2,737

24

2,572,328

2,464,703

21,873Note 6

Software
Customers’ liabilities for acceptances and guarantees
Allowance for loan losses
Total assets

96

850,496

JBIC  Annual Report 2016

(115,492)¥

18,463,816(168,262)¥

17,580,622(1,493)$

156,023

Data 2 Financial Statements

March 31, 2016
(In millions of yen)¥¥

1 Statutory Financial Statements

March 31, 2015
(In millions of yen)March 31, 2016
(In millions of
U.S. dollars)

Liabilities:
Borrowed money
Borrowings

9,425,316

9,438,450$

83,763

9,425,316

9,438,450

83,7633,049,490

2,668,558

23,683

949,227

528,890

4,694

Accrued expenses

27,64531,815

282

Unearned revenue

63,93457,888514

Derivatives other than for trading-assets

833,744375,363

3,331

Cash collateral received for financial instruments

12,75063,380562
0Bonds payable

Note 5

Other liabilities

Lease obligations
Other
Provision for bonuses

31

16

11,121

426

5

500

516

5

Provision for directors’ bonuses

6

6

0

Provision for retirement benefits

6,395

7,090

63

Provision for directors’ retirement benefits
Acceptances and guarantees
Total liabilities

30

39

0

2,572,328

2,464,703

21,873¥16,003,296¥

15,108,255$

134,081¥

1,391,000¥

1,391,000$

12,345

Net assets:
Capital stock
Retained earnings

993,053

972,140

8,628

Legal retained earnings

865,683

929,368

8,248

Other retained earnings

127,369

42,772

380

127,369

42,772380

2,384,053

2,363,140

20,973Retained earnings brought forward
Total shareholders’ equity
Valuation difference on available-for-sale securities

12,786

4,303

38

Deferred gains or losses on hedges

63,681

104,923931

Total valuation and translation adjustments

76,467109,226

969

Total net assets¥

2,460,520¥

2,472,367$

21,942

Total liabilities and net assets¥

18,463,816¥

17,580,622$

156,023

JBIC  Annual Report 201697

Data 2 Financial Statements

 Statements of Operations

Ordinary income:March 31, 2015
(In millions of yen)March 31, 2016
(In millions of yen)¥¥Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on receivables under resale agreements

240,005$

2,130

192,973

213,806

1,897

166,130

196,859

1,747

2,030

2,682

24

1 Statutory Financial Statements

59

7

0

Interest on deposits with banks

1,479

2,787

25

Interest on interest swaps

23,116

11,250

100

156

219

1

35,90122,091

196

35,90122,091

196

4,100

141

1

3,856

117

1

244

23

0

24,276

3,965

36

13,392

—

—

101

0

0

0

1,890

17

10,633

1,914

17

148

160

2

136,755

197,276

1,751

Other interest income
Fees and Commissions
Other fees and commissions
Other ordinary income
Gain on foreign exchange transactions
Other
Other income
Reversal of allowance for loan losses
Recoveries of written-off claims
Gain on sales of stocks and other securities
Gain on investments in partnerships

Note 9Other
Ordinary expenses:
Interest expenses

116,076

123,779

1,099Interest on borrowings and rediscounts

50,48857,339509

Interest on bonds

65,56766,429

590

20

10

0

2,088

1,653

15

Other interest expenses
Fees and commissions payments
Other fees and commissions
Other ordinary expenses

2,088

1,653

15

1,585

1,310

12
6

Amortization of bond issuance cost

659

729

Expenses on derivatives other than for trading or hedging

520

145

1

Other

405

434

5

General and administrative expenses

17,004

17,631

156—

52,901

469

Provision of allowance for loan losses—

52,770468

Loss on sales of stocks and other securities

—

130

1

120,496

42,728379

Other expenses

Ordinary profit
Extraordinary income
Gain on disposal of noncurrent assets
Gain on transfer of benefit obligation relating to welfare
pension fund
Extraordinary loss
Loss on disposal of noncurrent assets
Net income

98257,252

March 31, 2016
(In millions of
U.S. dollars)

JBIC  Annual Report 2016

¥

5,707

43

1

9

43

1

5,698

—

—

16

—

—

16

—

126,187¥

42,772—$380

From April 1, 2014 to March 31, 2015
(In millions of yen)

Shareholders’ equity
Retained earnings
Other retained
earnings

Total
shareholders’equity¥911,366¥ 2,271,366

1,182

1,182

1,182

820,000

92,549912,549

2,272,549

45,683(45,683)——

Payment to national treasury(45,683)(45,683)(45,683)

Net income

126,187

126,187

126,187

Balance at the beginning of current period

Capital stock¥ 1,360,000¥

820,000

Retained earnings
brought forward¥

91,366

Cumulative effects of changes inaccounting policies
Restated balance

1,360,000

1 Statutory Financial Statements

Total retained
earnings

Legal retained
earnings

Data 2 Financial Statements

 Statements of Changes in Net Assets

Changes of items during the period
Issuance of new shares

31,00031,000

Provision of legal retained earnings

Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period

31,000¥ 1,391,000

45,683¥865,683

34,820¥127,369¥

80,504

111,504

993,053¥ 2,384,053(In millions of yen)

Valuation and translation adjustments

Balance at the beginning of current period

Valuationdifference
on available-forsale securities

Deferred gains
or losses onhedgesTotal valuationand translation
adjustments

Total net assets

¥

¥

¥

¥ 2,341,312

5,472

64,472

69,945

Cumulative effects of changes inaccounting policies

1,182

Restated balance

5,472

64,472

69,9452,342,494

Changes of items during the period
Issuance of new shares

31,000

Provision of legal retained earnings—

Payment to national treasury(45,683)

Net income

126,187

Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period

¥

7,313

(791)

6,521

6,521

7,313

(791)

6,521

118,026

76,467¥ 2,460,520

12,786¥

63,681¥JBIC  Annual Report 201699

Data 2 Financial Statements

From April 1, 2015 to March 31, 2016
(In millions of yen)

Shareholders’ equity
Retained earnings
Other retained
earnings

Balance at the beginning of current period

Capital stock

Legal retained
earnings¥ 1,391,000¥

865,683

Retained earnings
brought forward¥

127,369

Total retained
earnings

Total
shareholders’equity¥¥ 2,384,053

993,053

Changes of items during the period
Provision of legal retained earnings

63,684

1 Statutory Financial Statements(63,684)——

Payment to national treasury(63,684)(63,684)(63,684)

Net income

42,772

42,772

42,772

Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period

63,684—¥

1,391,000¥

929,368(84,597)¥

42,772(20,912)¥972,140(In millions of yen)

Valuation and translation adjustments

Balance at the beginning of current period

Valuationdifference
on available-forsale securities

Deferred gains
or losses onhedgesTotal valuationand translation
adjustments

Total net assets

¥

¥

¥

¥ 2,460,520

12,786

63,681

76,467

Changes of items during the period
Provision of legal retained earnings—

Payment to national treasury(63,684)

Net income

42,772

Net changes of items other thanshareholders’ equity(8,482)

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

100

JBIC  Annual Report 2016

(8,482)¥

4,303

32,75941,242
41,242¥

104,923¥

32,75932,75911,846109,226¥ 2,472,367(20,912)¥2,363,140

(In millions of U.S. dollars)

Shareholders’ equity
Retained earnings
Other retained
earnings

Balance at the beginning of current period

Capital stock

Legal retained
earnings$$

12,345

7,683

Retained earnings
brought forward

$

1,130

Total retained
earnings

Total
shareholders’equity

$

$

8,813

21,158Changes of items during the period
Provision of legal retained earnings——

Payment to national treasury

(565)

(565)

(565)

Net income

380

380

380

1 Statutory Financial Statements

(565)

565

Data 2 Financial Statements

From April 1, 2015 to March 31, 2016

Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period—$

12,345

565
$

8,248

(750)
$

380

(185)
$

8,628

(185)
$

20,973(In millions of U.S. dollars)

Valuation and translation adjustments

Balance at the beginning of current period

Valuationdifference
on available-forsale securities

Deferred gains
or losses onhedgesTotal valuationand translation
adjustments

Total net assets

$

$

$

$

113

565

678

21,836

Changes of items during the period
Provision of legal retained earnings—

Payment to national treasury(565)

Net income

380

Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period

$

(75)

366

291

291

(75)

366

291

106

38

$

931

$

969

$

21,942JBIC  Annual Report 2016101

Data 2 Financial Statements

 Statements of Cash Flows

March 31, 2015
(In millions of yen)March 31, 2016
(In millions of yen)¥¥March 31, 2016
(In millions of
U.S. dollars)

Cash flow from operating activities
Net income
Depreciation and amortization

126,187

42,772

$

380

1,356

1,302

12

(13,392)

52,770468

Increase (decrease) in provision for bonuses

17

15

0

Increase (decrease) in provision for directors’ bonuses

0

0

0

Increase (decrease) in provision for retirement benefits(6,673)

695

6

9

8

0

Gain on fund management(192,973)(213,806)(1,897)

Financing expenses

116,076

123,779

1,099

Loss (gain) related to securities(10,633)(3,674)

(33)

7

(43)

(0)

Net decrease (increase) in loans and bills discounted(1,777,548)

892,288

7,919

Net increase (decrease) in borrowed money

1,017,608

13,134

117

Net decrease (increase) in deposit (excluding deposit paid
to Bank of Japan)(129,022)

305,251

2,709

Net decrease (increase) in receivables under resaleagreements

202,733——  

Increase (decrease) in straight bonds-issuance andredemption

336,800(382,533)(3,395)

Increase (decrease) in allowance for loan losses

1 Statutory Financial Statements

Increase (decrease) in provision for directors’
retirement benefits

Loss (gain) on disposal of noncurrent assets

Proceeds from fund management

186,808

206,938

1,837

Payments for finance(116,172)(118,022)(1,047)

Other291,148(204,123)(1,814)

Subtotal

32,337

716,752

6,361

Net cash provided by (used in) operating activities

32,337

716,752

6,361

Purchase of securities(30,927)(55,554)(493)

Proceeds from sales of securities

12,472

67,401

598

Proceeds from redemption of securities

1,816

10,40992

Purchase of property, plant and equipment

(244)

(183)

(2)

51

332

3

Purchase of intangible assets(2,525)

(516)

(4)

Net cash provided by (used in) investing activities(19,356)

21,888194

Cash flow from investing activities

Proceeds from sales of property, plant and equipment

Cash flow from financing activities
Proceeds from issuance of common stock

31,000

—

—  

(12)

(13)

(0)

Payment to national treasury(45,683)(63,684)(565)

Net cash provided by (used in) financing activities(14,695)(63,698)

(565)

—

—

—  

Net increase (decrease) in cash and cash equivalents(1,715)674,942

5,990

Cash and cash equivalents at beginning of period

42,36740,651

Repayments of lease obligations

Effect of exchange rate change on cash and cash equivalents

Cash and cash equivalents at end of period

102

JBIC  Annual Report 2016

Note 11¥40,651¥

715,594

361
$

6,351

1.

Basis of presentation

2.

1 Statutory Financial Statements

The accompanying financial statements have been prepared from the accounting records maintained by Japan
Bank for International Cooperation (“JBIC”) in accordance with the accounting principles and practices generally
accepted in Japan, which are different in certain aspects from the application and disclosure requirements ofInternational Financial Reporting Standards.
		Consolidated financial statements are not prepared since JBIC has no subsidiaries.
		
The amounts indicated in millions of yen are rounded down by omitting figures less than one million. Totals
may therefore not add up exactly because of this rounding.
		Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of¥112.68=$1.00, the foreign exchange rate on March 31, 2016, has been used in translations. The presentation ofsuch amounts is not intended to imply that Japanese yen have been or could be readily converted, realized, orsettled in U.S. dollars at the aforementioned rates or any other rate.

Data 2 Financial Statements

 Notes to Financial Statements

Significant accounting policies(a) Securities
Held-to-maturity securities are carried at amortized cost based on the moving average method. Investments
in affiliates are carried at cost based on the moving average method. Available-for-sale securities are inprinciple stated at fair value with changes in net unrealized gains or losses included directly in Net assets.
However, available-for-sale securities whose fair value cannot be readily determined are carried at cost basedon the moving average method.
Investments in partnerships for investment, which are regarded as securities under Article 2, Clause 2 of
the Japanese Financial Instruments and Exchange Law (Act No. 25 of 1948), are recognized at an amountequivalent to JBIC’s percentage share of the net assets of such partnerships, based upon the most recent
financial statements available depending on the report date stipulated in the partnership agreement.

(b) Valuation method for derivative financial instruments
		
Derivative financial instruments are carried at fair value.
(c) Depreciation basis for fixed assets
		(i) Property, plant and equipment (except for lease assets)			Tangible fixed assets are depreciated by the declining balance method over their useful economic lives
except for buildings (excluding installed facilities) which are depreciated by the straight-line method.
			
Depreciation is based on the following range of estimated useful lives:				
Buildings:		
3 years to 50 years
				Other:			2 years to 35 years		(ii) Intangible assets (except for lease assets)			Depreciation of intangible fixed assets is computed by the straight-line method. Software used by JBIC isdepreciated over its useful life (5 years or less) at JBIC.
		(iii) Lease assets			Lease assets in “property, plant and equipment” or “intangible assets,” under finance leases that do not
involve transfer of ownership to the lessee are depreciated by the straight-line method over the lease
term. Depreciation for lease assets is calculated with zero residual value being assigned to the asset.
(d) Method of amortization for deferred charges
		
Bond issuance cost is expensed as incurred.
(e) Foreign currency translation and revaluation method
JBIC maintains its accounting records in Japanese yen. Assets and liabilities denominated in foreign currencies
are mostly translated into Japanese yen at the market exchange rate prevailing at the fiscal year end.

JBIC  Annual Report 2016103

Data 2 Financial Statements(f) Allowance for loan losses
Allowance for loan losses is maintained in accordance with internally established standards.
The allowance for claims on debtors who are legally bankrupt (“Bankrupt borrowers”) or substantiallybankrupt (“Substantially bankrupt borrowers”) is provided based on the outstanding balance after the writeoffs described as below and the deductions of the amount expected to be collected through the disposal ofcollateral and the execution of guarantees. The allowance for claims on debtors who are not legally bankrupt
but are likely to become bankrupt (“Potentially bankrupt borrowers”) is provided based on an assessment of
the overall solvency of the debtors after deducting the amount expected to be collected through the disposalof collateral and the execution of guarantees.
The allowance for claims on debtors other than Bankrupt borrowers, Substantially bankrupt borrowers
and Potentially bankrupt borrowers is provided primarily based on the default rate, which is calculated basedon the actual defaults during a certain period in the past. The allowance for possible losses on specificoverseas loans is provided based on the expected loss amount taking into consideration the political andeconomic situations of these countries.
All claims are assessed initially by the operational departments and subsequently by risk evaluation
departments based on internal rules for self-assessment of asset quality. The risk evaluation departments,
which is independent from the operational departments, review these self-assessments, and the allowance isprovided based on the results of the assessments.
With respect to claims with collateral or guarantees on debtors who are legally or substantially bankrupt(“Bankrupt borrowers and substantially bankrupt borrowers”), the residual booked amount of the claims after
deduction of the amount which is deemed collectable through the disposal of collateral or the execution ofguarantees is written off. There are no accumulated write-offs as of March 31, 2016. (There were no
accumulated write-offs as of March 31, 2015.)

1 Statutory Financial Statements(g) Provision for bonuses		The “provision for bonuses” is calculated and provided for based on the estimated amounts of future payments
attributable to the services that have been rendered by employees to the date of the balance sheets.
(h) Provision for directors’ bonuses		The “provision for directors’ bonuses” is calculated and provided for based on the estimated amounts of future
payments attributable to the services that have been rendered by directors to the date of the balance sheets.
(i) Provision for retirement benefits		The “provision for retirement benefits” represents the future payment for pension and retirement benefits toemployees, and is accrued based on the projected benefit obligations and the estimated pension plan assets
at the fiscal year end.
(i) Method of attributing the projected benefits to periods of services
In calculating the projected benefit obligation, the estimated amount of retirement benefit payments is
attributed to the period up to the end of the fiscal year based on the benefit formula.
(ii) Accounting for actuarial gains or losses and prior service costs
Actuarial gains or losses and prior service costs are expensed as they are incurred.
(j) Provision for directors’ retirement benefits		The “provision for directors’ retirement benefits,” which provides for future retirement pension payment todirectors, corporate auditors and executive officers, is recognized at the amount accrued at the end of therespective fiscal year.
(k) Accounting for hedges of interest rate risk		(i) Hedge accounting			
The deferral method is applied to derivatives used for interest risk hedging purposes		(ii) Hedging instruments and hedged items
			
Hedging instruments: interest rate swaps
			Hedged items: loans, borrowings, bonds and notes		(iii) Hedging policy

104

JBIC  Annual Report 2016

1 Statutory Financial Statements(l) Accounting for hedges of foreign exchange risks
		Hedging instruments used to hedge foreign exchange risks associated with foreign currency denominatedmonetary assets and liabilities are accounted for using the deferral method, in accordance with the standard
treatment of The Japanese Institute of Certified Public Accountants (JICPA) Industry Audit Committee Report
No. 25 of July 29, 2002.
The effectiveness of the hedges described above is assessed by comparing the foreign currency positionof the hedged loans and bills discounted, borrowings, and bonds payable denominated in foreign currencies
with that of the hedging instruments, such as currency swaps and forward foreign exchange contracts which
are used for hedging the foreign exchange risks of loans and bills discounted, borrowings, and bonds payable
denominated in foreign currencies.

Data 2 Financial Statements

			
JBIC enters into hedging transactions up to the amount of the underlying hedged assets and liabilities
		(iv) Assessment of hedge effectiveness			JBIC assesses the effectiveness of designated hedges by measuring and comparing the change of fairvalue or cumulative change of cash flows of both hedging instruments and corresponding hedged items
from the date of inception of the hedges to the assessment date.

(m) Consumption and other taxes
		Consumption taxes and local consumption taxes (“consumption taxes”) are excluded from transaction amounts.
Non-deductible consumption taxes related to property, plant and equipment are expensed as incurred.
(n) Scope of cash and cash equivalents in the statements of cash flows
		Cash and cash equivalents as stated in the Statements of Cash Flows consists of cash on hand and Depositwith the Bank of Japan in “Cash and due from banks” in the balance sheets.

3.

Equities securities of or investments in affiliates
March 31, 2015
(In millions of yen)

Equities securities
Investments in affiliates

4.

		¥

March 31, 2016
(In millions of yen)

2,061 		¥83,251March 31, 2016
(In millions of U.S. dollars)

2,061 		$82,439

18
732

Loans
(a) Bankrupt loans and non-accrual loans included in loans and bills discounted:
March 31, 2015
(In millions of yen)

Bankrupt loans
Non-accrual loans

		¥

— 		¥
120,482

March 31, 2016
(In millions of yen)March 31, 2016
(In millions of U.S. dollars)— 		$
111,407—989

		“Bankrupt loans” are loans, defined in Article 96, Paragraph 1, Item (iii), a. through e. and Item (iv) of the
Corporate Tax Law Enforcement Ordinance (Government Ordinance No. 97, 1965), on which accrued interest
income is not recognized as there is substantial uncertainty over the ultimate collectability of either principal
or interest because they have been in arrears for a considerable period of time or for other reasons.
			“Non-accrual loans” are loans on which accrued interest income is not recognized, although this excludes
Bankrupt loans and the loans on which interest payments are deferred in order to support the borrowers’
recovery from financial difficulties.
(b)	Loans with interest or principal repayments three months or more in arrears included in loans and bills
discounted:
March 31, 2015
(In millions of yen)

Loans with interest or principal
repayments three months or morein arrears		¥35,945 		¥March 31, 2016
(In millions of yen)March 31, 2016
(In millions of U.S. dollars)

44,719 		$397“Loans with interest or principal repayments three months or more in arrears” are loans whose principal orinterest payment is three months or more in arrears, and which do not fall under the category of “Bankrupt
loans” and “Non-accrual loans.”

JBIC  Annual Report 2016105

Data 2 Financial Statements(c) Restructured loans included in loans and bills discounted:
March 31, 2015
(In millions of yen)

Restructured loans

		¥73,770 		¥

March 31, 2016
(In millions of yen)March 31, 2016
(In millions of U.S. dollars)

98,714 		$876“Restructured loans” are loans whose repayment terms and conditions have been amended in favor of theborrowers (e.g. reduction of or exemption from the stated interest rate, the deferral of interest payments, theextension of principal repayments or renunciation of claims) in order to support the borrowers’ recovery fromfinancial difficulties, and which do not fall under the category of “Bankrupt loans,” “Non-accrual loans,” or“Loans with interest or principal repayments three months or more in arrears.”(d)	The total amount of bankrupt loans, non-accrual loans, loans with interest or principal repayments threemonths or more in arrears, and restructured loans:

1 Statutory Financial Statements

March 31, 2015
(In millions of yen)

Total amount		¥

230,198 		¥March 31, 2016
(In millions of yen)March 31, 2016
(In millions of U.S. dollars)

254,840 		$

2,262

The amounts of loans indicated in table (a) through (d) above are the gross amounts prior to the deduction ofallowance for possible loan losses.
(e)	JBIC, as a policy, does not pay down loans in part or in full immediately after the execution of the loan
agreements, but instead makes disbursement, in accordance with the progress of the underlying projects.
These undisbursed amounts are not included in the loans on deed in the balance sheets. The balance of unpaid
amounts is as follows:
March 31, 2015
(In millions of yen)

Balance of unpaid loans

5.

		¥

3,126,981 		¥March 31, 2016
(In millions of yen)March 31, 2016
(In millions of U.S. dollars)

2,884,178 		$25,596

Assets pledged as collateral
Pursuant to Article 34 of the Japan Bank for International Cooperation Act (“JBIC Act”), all JBIC assets are pledged
as general collateral for bonds:
March 31, 2015
(In millions of yen)

Bonds payable

6.

		¥

3,049,490 		¥

March 31, 2016
(In millions of U.S. dollars)

2,668,558 		$23,683

Accumulated depreciation of fixed assets
March 31, 2015
(In millions of yen)

Accumulated depreciation

7.

March 31, 2016
(In millions of yen)		¥

1,140 		¥March 31, 2016
(In millions of yen)March 31, 2016
(In millions of U.S. dollars)

1,507 		$13Contingent liabilities
Japan Finance Corporation (“JFC”) assumed the obligations of the JFC bonds on April 1, 2012, and JBIC is jointly
responsible for the obligations of these bonds. In accordance with Article 17 (2) of the Supplementary Provisions of
the JBIC Act, all of JBIC’s assets are pledged as general collateral for these joint obligations as follows.
March 31, 2015
(In millions of yen)

		¥

8.

710,000 		¥

March 31, 2016
(In millions of yen)March 31, 2016
(In millions of U.S. dollars)

450,000 		$

3,994

Appropriation of retained earnings
JBIC is subject to restrictions on its appropriation of retained earnings pursuant to Article 31 of the JBIC Act.
JBIC shall accumulate, as a reserve, an amount calculated in accordance with the standards prescribed by the
Cabinet Order until it reaches a certain amount stipulated by the Cabinet Order; and if there still is a surplus, JBIC
shall pay such surplus into the national treasury within 3 months after the annual closing date.
In the event that the amount of retained earnings brought forward falls below zero, a reserve shall betransferred to the retained earnings brought forward to the extent that the amount of retained earnings brought
forward becomes zero.

106

JBIC  Annual Report 2016

Income on transactions with affiliates
Income on transactions with affiliates is as follows:
March 31, 2015
(In millions of yen)

Gain on investments in partnerships

		¥March 31, 2016
(In millions of yen)

13,405 		¥March 31, 2016
(In millions of U.S. dollars)

436 		$

4

10. Changes in Net Assets(a) Issued shares and treasury stocks		
For the fiscal year ended March 31, 2015, type and number of issued shares and treasury stocks are as follows;(unit: thousands of shares)

Issued shares
Common stocks
Classified stock		TotalTreasury stock
Common stocks
Classified stock		TotalIncrease during
the fiscal year

Decrease during
the fiscal year

The number of shares atthe end of the fiscal year

1,360,000,000—
1,360,000,000

31,000,000—
31,000,000———

1,391,000,000—
1,391,000,000

—
—
—

—
—
—

—
—
—

—
—
—

Remarks

1 Statutory Financial Statements

Types

The number of shares atthe beginning of the fiscal year

Data 2 Financial Statements

9.

(Note)(Note)

		(Note) The increase is due to the issuance of 31,000,000 thousand common shares.

		

For the fiscal year ended March 31, 2016, type and number of issued shares and treasury stocks are as follows;(unit: thousands of shares)

Types

Issued shares
Common stocks
Classified stock		TotalTreasury stock
Common stocks
Classified stock		Total11.

The number of shares atthe beginning of the fiscal year

Increase during
the fiscal year

Decrease during
the fiscal year

The number of shares atthe end of the fiscal year

1,391,000,000—
1,391,000,000

—
—
—

—
—
—

1,391,000,000—
1,391,000,000

—
—
—

—
—
—

—
—
—

—
—
—

Remarks

Cash Flows“Cash and cash equivalents” in the Statements of Cash Flows as of March 31, 2015 and 2016 reconciles to cash anddue from banks in the balance sheets as follows:
March 31, 2015
(In millions of yen)

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

		¥
		¥

850,496 		¥(809,845)
40,651 		¥March 31, 2016
(In millions of yen)March 31, 2016
(In millions of U.S. dollars)

1,220,187 		$(504,593)
715,594 		$10,829(4,478)6,351

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

JBIC  Annual Report 2016107

Data 2 Financial Statements

13. Financial instruments and related disclosure

1 Statutory Financial Statements(a) Status of financial instruments		(i) Initiatives for financial instruments
Based on the JBIC Act, JBIC is a policy-based financial institution wholly owned by the Japanese
government, which has the purpose of contributing to the sound development of Japan and theinternational economy and society, by performing the financial function to promote the overseas
development and securement of resources which are important for Japan; maintaining and improving theinternational competitiveness of Japanese industries; promoting the overseas business having the
purpose of preserving the global environment, such as preventing global warming, as well as preventing
disruptions to international financial order or taking appropriate measures with respect to damages
caused by such disruption.
JBIC’s principal operations consist of providing export loans, import loans, investment financing,financing for business development (including guarantees) and capital investment. To conduct these
operations, funds are raised through borrowing from the fiscal investment and loans and the foreignexchange fund special account, and the issuing of bonds. An ALM (asset and liability management)function has been established in respect of our financial assets and liabilities that are subject to interest
rate and currency fluctuations to assist in ensuring that such fluctuations do not have an adverse effect on
our operations. In addition, derivative transactions are entered into for the purpose of mitigating risk
inherent in foreign currency denominated transactions. Financial instruments that can be used for the
management of surplus funds are limited to safe instruments such as Japanese government bonds, etc.,
as stipulated in the JBIC Act.
The budget required for governmental financial operations is decided upon by the Diet of Japan, andbusiness plans and financial plans (borrowing from fiscal investment and loans, bonds, general accounting
investment, and loans, etc.) are appended to the budget and submitted to the Diet of Japan.
		(ii) Types of financial instruments and risks
The assets that JBIC holds mainly include loans to borrowers in Japan and overseas, and securities andliabilities mainly include borrowings and bonds. The associated risks are described below.
 Credit risk
Credit risk is the risk that JBIC will suffer losses if the financial condition of the borrower deteriorates
and the value of assets (including off-balance sheet assets) decrease or disappear.
The credit risks associated with JBIC include sovereign risk, country risk, corporate risk, andproject risk. Because of the characteristic of supports for overseas economic transactions conducted
by JBIC, much financing is provided to overseas governments, governmental institutions, andoverseas corporations; the credit risk associated with the credit provided primarily consists ofsovereign or country risk.
As a result, if the financial condition of the individual borrower significantly deteriorates due topolitical and economic trends in the borrower’s country or region, JBIC’s performance and financial
condition can be adversely affected.
				(Note)	Sovereign risk refers to risk associated with credit supplied to foreign governments, country
risk refers to risk associated with the country in which the corporation or project is located(risk, in addition to corporate risk or project risk, associated with the country in which thecorporation or the project is located) and corporate risk refers to the risk associated withcredit to corporations and project risk refers to the risk that the cash flow of an underlying
project will not perform as planned, in the case of project finance, where the repayment of
the borrowing is primarily secured by the cash flow of the project to which credit is supplied.
			 Market risk
Market risk is the risk that the value of assets and liabilities (including off-balance sheet items) willfluctuate and losses will be incurred, or profits derived from assets and liabilities (including offbalance sheet items) will fluctuate and losses will be incurred due to the fluctuation of various market
risk factors such as interest rates, exchange rates, etc.
The market risk associated with JBIC mainly consists of foreign exchange risk and interest rate risk,
and losses could be suffered from these risks from market fluctuations. However, in principle, theserisks are hedged through interest rate swaps, currency swaps, and forward foreign exchange contracts.
JBIC uses hedge accounting for interest rate hedges, where the hedging instrument is interest

108

JBIC  Annual Report 2016

1 Statutory Financial Statements

JBIC  Annual Report 2016

Data 2 Financial Statements

rate swaps to hedge the market fluctuation risk associated with loans, borrowed money and bonds.
The effectiveness of the hedges is assessed by measuring and comparing the change in fair value or
cumulative change in cash flows of both hedging instruments and corresponding hedged items fromthe date of inception of the hedges to the assessment date.
JBIC uses hedge accounting for foreign exchange hedges, where currency swaps and forward
foreign exchange contracts are used to hedge items such as loans, borrowings, and bonds for foreignexchange risk. The effectiveness of the hedging currency-swaps and forward foreign exchange
contracts, hedging the foreign exchange risks of monetary assets and liabilities denominated inforeign currencies, is assessed by comparing the foreign currency position of the hedged monetary
assets and liabilities with that of the hedging instruments.
 Liquidity risk
			Liquidity risk is the risk that losses will be incurred as a result of funding challenges due to a maturity
mismatch between financing and funding or unexpected outflow of funds, or being forced to fund at
an interest rate significantly higher than in normal circumstances (funding risk), as well as the riskthat losses will be incurred from a failure to ingenerate transactions in the market due to market
disruption or from being forced to make transactions at a significantly disadvantageous price than innormal circumstances (market liquidity risk).
Long-term and stable funds, such as fiscal loan funds, government-guaranteed bonds, and FILP
agency bonds, are secured to finance JBIC and deposits are not accepted, with the result that it
considers liquidity risk to be limited. However, financing costs could increase due to market disruption
and unexpected events.
		(iii) Risk management structure for financial instruments			
The risk management structure of JBIC is described below.
 Credit risk management
The basis of credit risk management is centered on individual credit management based on thecreditworthiness of the borrower during the credit approval process.
When a new credit application is processed, the relevant finance departments (sales promotion
department) and credit departments collect and analyze information on the borrower. The overseas
representative offices also play a part in collecting information on foreign governments andcorporations. Credit appraisal takes place based on the information that has been gathered andanalyzed, with the different departments ensuring appropriate checks throughout the process,leading to the final decision by the management.
For lending to foreign governments and corporations, JBIC makes most use of its position as apublic institution and exchanges views and information with governments and other authorities inrecipient countries, international institutions such as the IMF and the World Bank, other regional
development banks and official export credit agencies as well as private financial institutions in theindustrial countries. Using all these channels, JBIC evaluates sovereign or country risk (risk in addition
to corporate risk associated with the country in which the corporation is located) based on a broad
range of information on government and government agency borrowers as well as political andeconomic conditions in their countries.
The relevant finance departments and credit departments conduct proper credit risk
management based on the credit risk rating system for segmented risk categories and the asset self
assessment system based on the Financial Inspection Manual of the Japanese Financial Services
Agency. In addition, an Integrated Risk Management Committee is held regularly to report the statusof credit management to the management. In addition, an Integrated Risk Management Committee isheld regularly to report the status of credit management to the management. The credit management
situation is also checked by an independent auditing department.
In addition, a claims protection mechanism exists based on an international framework unique to
official creditors, that is not contained in private sector financial institutions, for official claims on
foreign governments. This mechanism consists of international financial assistance upon international
approval by the Paris Club, an international group focusing on debt, to allow the debtor country tocontinue debt repayment when the debtor country becomes temporarily unable to service its debt
due to economic conditions. As part of this international financial assistance, the debtor country
conducts an economic reform program upon agreement with the IMF in order to secure the ability to109

Data 2 Financial Statements



1 Statutory Financial Statements

sustainably service its debt. In view of JBIC’s position as a public financial institution, it will use theframework of the Paris Club to preserve its official claims on foreign governments.
Besides the individual credit management outlined above, JBIC quantifies credit risks to assess
the overall risk of the portfolio in these operations. To quantify credit risks, it is important to take into
account the characteristic of the loan portfolio, namely, that there are a significant proportion of longterm loans and loans involving sovereign risk or country risk. Also to be taken into account is themechanism of securing assets, such as the framework of international financial assistance to debtor
countries through the Paris Club, which is unique to official creditors. JBIC uses a unique model toquantify the credit risk taking account of the above explained elements and measures amount ofcredit risk, which are utilized for credit risk management.
Market risk management
ALM is used to manage foreign exchange risk and interest rate risk for these operations. Market risk
management protocols contain detailed stipulations of risk management methods and procedures,
which are used by the ALM Committee to assess and confirm the execution of ALM, and for discussions
concerning future responses. In addition, monitoring is conducted through gap analysis and interest
rate sensitivity analysis as well as Value at Risk (“VaR”) to comprehensively assess the interest andterms of financial assets and liabilities. The results are regularly reported to the ALM Committee.
The basic policy for managing foreign exchange risk and interest rate risk at JBIC is described below.
1) Foreign exchange risk
Foreign currency-denominated loans conducted in JBIC involve risks related to exchange rate
fluctuations. We have a consistent policy of managing this risk by fully hedging this risk exposure
through the use of currency swaps and forward foreign exchange contracts.
2) Interest rate risk
Interest rate risk arises from exposure to market interest rate fluctuations for yen-denominatedloan and foreign currency-denominated loan operations and the policy for managing interest raterisk is described below.
a. Yen-denominated loan operations
Funding for yen-denominated loans is mainly managed by using fixed-rate loans. However,swaps are used to hedge interest rate risk for portions of loans that are thought to have highexposures to interest rate fluctuations. Interest rate risk for denominated loans is limited.
b. Foreign currency-denominated loan operations
For foreign currency-denominated loan operations, interest rate risk is hedged through theapplication of a consistent policy of using interest rate swaps and managing the funds withfloating interest rates for both loans and related funding arrangements.
3) Status of market risk
JBIC only maintains a banking book and does not have financial instruments in a trading book.
While in principle JBIC holds derivatives only for hedging purposes, stated previously, market risk
is measured in order to, including but not limited to, assess potential risks. The following
represents an overview of the market risk exposure in the current fiscal year. Conventionally, JBIC
had measured market risk (value at risk, or “VaR”) by simply aggregating interest rate VaR andexchange rate VaR. In conjunction with further refinements of risk measurement methods,
effective as of the year ended March 31, 2016, JBIC measures market risk (VaR) by taking into
account the diversified effects of interest rate risk and foreign exchange risk.
a. Market risk (VaR) (end of this fiscal year)
March 31, 2016
(In billions of yen)

		¥

b.

c.

110

JBIC  Annual Report 2016

144.6 		$March 31, 2016
(In billions of U.S. dollars)

1.3

Market risk (VaR) measurement model
Historical model (Confidence Interval: 99%, Holding period: 1 year, Observation period:
5 years)
Risk management using VaR
VaR is a market risk measure that assesses the maximum possible profits or losses that
could be incurred based on historical market movements of interest rates or exchange rates,
etc., over a specific period in the past (or observation period) within a certain period of time(or holding period) under a certain probability (or confidence interval), that is derived

Data 2 Financial Statements
1 Statutory Financial Statements		statistically by employing the theory of possibility distribution.
This measurement assumes actual market trends and the theory of probability
distribution. Based on the possibility that future market trends could deviate from theseassumptions, a back-test is performed to cross-check the model-measured VaR with actual
profits or losses, in order to confirm the effectiveness of market risk measurements using
VaR. In addition, a stress test, which goes beyond the probability distribution of historicalmarket movements is conducted in order to capture risks from multifaceted perspectives.
The following points should generally be noted for VaR model measurement.
• VaR will differ depending on the confidence interval, holding period or observation period.
• VaR indicates the maximum amount of unrealized profits or losses at the time of
measurement. However, calculated VaR may not always be realized in the future with acertain probability because the assumptions, such as market movements, could varyduring the holding period.
• VaR indicates the maximum value based on specific assumption. As such, it isimperative to keep in mind that VaR may underestimate the potential losses whenutilizing VaR as a risk management measure.
 Liquidity risk management related to fund procurement
Long-term and stable funds such as fiscal loan funds, government-backed bonds, and FILP agency
bonds are used to finance these operations and deposits are not accepted.
Cash flows are assessed and proper measures including establishing overdraft facility accounts
with multiple private sector financial institutions are taken to maintain daily cash flows for properrisk management.
 Derivative transactions
A protocol of internal checks with separate divisions executing transactions, assessing theeffectiveness of hedges, and conducting office management has been established for derivativetransactions, and these transactions are conducted according to derivatives-related regulations.
(iv) Supplementary explanation concerning fair value of financial instruments
The fair value of financial instruments includes amounts based on market value and amounts that havebeen reasonably estimated when no market value is available. Set valuation inputs are used for the
calculation of this amount, and if different valuation inputs are used the resulting amount could vary.

(b) Fair value of financial instruments
The carrying amount in the balance sheets as of March 31, 2015 and March 31, 2016 and the related fair value,and difference is as follows. Note that unlisted securities whose fair value is extremely difficult to be
determined are not included in the following chart (refer to Note 2).
(In millions of yen)
As of March 31, 2015
Amount on balance sheet(1) Cash and due from banks(2) Securities
Available-for-sale securities(3) Loans and bills discounted
Allowance for loan losses (*1)(4) Cash collateral paid for financial instruments
Total assets(1) Borrowings(2) Bonds payable(3) Cash collateral received for financial instruments
Total liabilities
Derivative transactions (*2)
Derivative transactions not qualifying forhedge accounting
Derivative transactions qualifying forhedge accounting
Total derivative transactions¥¥

850,496

Fair value¥

850,496

Difference¥—

39,393
14,432,949(113,503)
14,319,445
365,250
15,574,586
9,425,316
3,049,490
12,75012,487,556

39,393—

14,383,432
365,250
15,638,572
9,502,290
3,128,010
12,75012,643,050

63,986—
63,98676,97478,520—155,494———(814,830)(814,830)¥(814,830)(814,830)¥——(*1) General allowance for loan losses and allowance for loan losses, and the allowance for possible loan losses on specific overseas loans have been deducted from loans.
(*2) Derivatives recorded in “other assets and other liabilities” are collectively displayed. The net values of assets and liabilities arising from derivativetransactions are displayed. The figures in parenthesis indicate net liabilities.

JBIC  Annual Report 2016111

Data 2 Financial Statements

As of March 31, 2016

(In millions of yen)Amount on balance sheet(1) Cash and due from banks(2) Securities
Available-for-sale securities(3) Loans and bills discounted
Allowance for loan losses (*1)

1 Statutory Financial Statements(4) Cash collateral paid for financial instruments
Total assets(1) Borrowings(2) Bonds payable(3) Cash collateral received for financial instruments
Total liabilities
Derivative transactions (*2)
Derivative transactions not qualifying forhedge accounting
Derivative transactions qualifying forhedge accounting
Total derivative transactions¥¥

1,220,187

Fair value¥

1,220,187
41,697—

13,483,425
162,230
14,907,541
9,536,939
2,721,958
63,38012,322,277

103,633—
103,633
98,48853,399—151,888———(332,006)(332,006)¥(332,006)(332,006)¥——(In millions of U.S. dollars)

Amount on balance sheet(4) Cash collateral paid for financial instruments
Total assets(1) Borrowings(2) Bonds payable(3) Cash collateral received for financial instruments
Total liabilities
Derivative transactions (*2)
Derivative transactions not qualifying forhedge accounting
Derivative transactions qualifying forhedge accounting
Total derivative transactions—

41,697
13,540,661(160,868)
13,379,792
162,230
14,803,907
9,438,450
2,668,558
63,38012,170,388

As of March 31, 2016
(1) Cash and due from banks(2) Securities
Available-for-sale securities(3) Loans and bills discounted
Allowance for loan losses (*1)

Difference

¥

$

$

10,829Fair value$

10,829Difference

$

—

370
120,169(1,428)
118,741
1,440
131,380
83,763
23,683562
108,008370—

119,661
1,440
132,300
84,63724,157562
109,356

920
—
920
874
474
—
1,348

—

—

—

(2,946)(2,946)$(2,946)(2,946)$——(*1) General allowance for loan losses and allowance for loan losses, and the allowance for possible loan losses on specific overseas loans have been deducted from loans.
(*2) Derivatives recorded in “other assets and other liabilities” are collectively displayed. The net values of assets and liabilities arising from derivative transactions are
displayed. The figures in parenthesis indicate net liabilities.

		(Note 1) Valuation methodologies used for estimating fair values for financial instruments
		Assets(1) Cash and due from banks
		For Due from banks that do not mature or have a maturity under 3 months, the carrying amounts are usedas fair value because the carrying amount approximates the fair value.
(2) Securities
		
The fair value of “Available-for-sale securities” is based upon the prices that are indicated from thefinancial institutions that JBIC transacts with.
(3) Loans and bills discounted		
For loans with variable interest rates an amount calculated by the floating rate note method to reflectmarket interest rates over the short term is used for fair value.
			For loans with fixed interest, the total principal and interest is discounted by a risk free rate thatincorporates the default ratio and coverage ratio to calculate fair value.
			However for obligations on bankrupt borrowers, substantially bankrupt borrowers, and potentially

112

JBIC  Annual Report 2016

1 Statutory Financial Statements

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

Data 2 Financial Statements

bankrupt borrowers a provision for bad debt is calculated based on the expected collectable amount fromthe collateral or guarantee. Fair value approximates the amount on the balance sheets on the closing dateafter a deduction has been made for the allowance for loan losses, so this amount is used for fair value.
(4) Cash collateral paid for financial instruments		For cash collateral paid for financial instruments, the carrying amount is used as fair value because thecarrying amount approximates the fair value.

Derivative transactions
Derivative transactions are discussed under “Derivative transactions.”		(Note 2) Financial instruments for which fair values are considered to be extremely difficult to be determined
are as follows. They are not included in “Assets, (2) Securities.”
Classification
March 31, 2015
(In millions of yen)

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

¥

¥

2,061

March 31, 2016
March 31, 2016
(In millions of yen) (In millions of U.S. dollars)

¥

2,061

$

18

114,893

68,998612

83,251

82,439732

22,186

41,404368

222,392¥

194,904$

1,730(*1) Since unlisted stocks do not have quoted market prices available and their fair value is extremely difficult to be determined, fair values are not stated.
(*2) For partnership investments composed of unlisted stocks that do not have quoted market prices available and for which fair value is extremely difficult tobe determined, fair values are not stated.

		(Note 3) Redemption schedule for receivables and redeemable securities with future redemption dates(In millions of yen)		March 31, 2015
Due within
one year

Due after
one year
but within
three years

Due after
three years
but within
five years

Due after
five years
but withinseven years

Due after
seven years
but within
ten years

Due after
ten years

Due from banks (*1)¥
850,496 ¥
— ¥
— ¥
— ¥
— ¥
—
Securities
Available-for-sale securities
10,417
14,401
13,900—2—
Loans and bills discounted (*2)
1,740,690
2,654,313
2,737,387
2,307,041
2,788,346
2,048,300
Total¥ 2,601,604 ¥ 2,668,715 ¥ 2,751,287 ¥ 2,307,041 ¥ 2,788,349 ¥ 2,048,300(*1) Demand deposits contained within due from banks are stated as “Due within one year.”(*2) Within loans, the figure for claims against bankrupt borrowers, substantially bankrupt borrowers, and potentially bankrupt borrowers contains an amountof ¥156,869 million that is not expected to be redeemed and not included in the tables above.
(*3) The information about cash collateral paid for financial instruments is omitted since there is no fixed maturity date for repayments.

JBIC  Annual Report 2016113

Data 2 Financial Statements

		March 31, 2016 (In millions of yen)

Due within
one year

Due after
one year
but within
three years

Due after
three years
but within
five years

Due after
five years
but withinseven years

Due after
seven years
but within
ten years

Due after
ten years

Due from banks (*1)
¥ 1,220,187 ¥
— ¥
— ¥
— ¥
— ¥
—
Securities
Available-for-sale securities
1,408
25,40014,5002——
Loans and bills discounted (*2)
1,197,980
2,762,518
2,923,967
2,241,679
2,405,068
1,827,328
Total¥ 2,419,576 ¥ 2,787,918 ¥ 2,938,467 ¥ 2,241,682 ¥ 2,405,068 ¥ 1,827,328

		March 31, 2016 (In millions of U.S. dollars)

1 Statutory Financial Statements

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

Due after
one year
but within
three years

Due after
three years
but within
five years

Due after
five years
but withinseven years

Due after
seven years
but within
ten years

Due after
ten years$

10,829 $

— $

— $

— $

— $

—

$

12
10,632
21,473 $225
24,517
24,742 $129
25,94926,078 $0
19,894
19,894 $—21,344
21,344 $—16,217
16,217(*1) Demand deposits contained within due from banks are stated as “Due within one year.”(*2) Within loans, the figure for claims against bankrupt borrowers, substantially bankrupt borrowers, and potentially bankrupt borrowers contains an amountof ¥182,118 million ($1,616 million) that is not expected to be redeemed and not included in the tables above.
(*3) The information about cash collateral paid for financial instruments is omitted since there is no fixed maturity date for repayments.

		(Note 4) R edemption schedule for borrowings, bonds and other interest-bearing liabilities with future
redemption dates(In millions of yen)		March 31, 2015
Due within
one year

Borrowings
Bond payable
Total

Due after
one year
but within
three years

Due after
three years
but within
five years¥ 1,075,048 ¥ 1,773,123 ¥ 5,647,744 ¥
638,620
918,410
1,021,317¥ 1,713,669 ¥ 2,691,533 ¥ 6,669,061 ¥Due after
five years
but withinseven years

Due after
seven years
but within
ten years

Due after
ten years

138,800 ¥ 790,600 ¥
95,679360,510
234,479 ¥ 1,151,110 ¥—20,00020,000(*1) The information about cash collateral received for financial instruments is omitted since there is no fixed maturity date for repayments.

		March 31, 2016

(In millions of yen)

Due within
one year

Borrowings
Bond payable
Total

Due after
one year
but within
three years

Due after
three years
but within
five years¥

681,156 ¥ 5,129,598 ¥ 2,487,995 ¥
500,720
1,093,005
440,516¥ 1,181,876 ¥ 6,222,603 ¥ 2,928,511 ¥Due after
five years
but withinseven years

430,800 ¥ 708,900 ¥—
639,740
430,800 ¥ 1,348,640 ¥		March 31, 2016

Due after
ten years———(In millions of U.S. dollars)

Due within
one year

Borrowings
Bond payable
Total

Due after
seven years
but within
ten years$$

6,045 $
4,444
10,489 $Due after
one year
but within
three years

45,524 $9,700
55,224 $Due after
three years
but within
five years

22,080 $3,910
25,990 $Due after
five years
but withinseven years

3,823 $—
3,823 $

Due after
seven years
but within
ten years

6,291 $
5,678
11,969 $Due after
ten years———(*1) The information about cash collateral received for financial instruments is omitted since there is no fixed maturity date for repayments.

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

114

JBIC  Annual Report 2016

Securities whose carrying amountexceeds their acquisition cost

Subtotal
Securities whose carrying
amount does not exceed theiracquisition cost

(In millions of yen)Type

Carrying Amount

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

¥

Subtotal
Total

¥

— ¥
—
—
—
38,582
38,582————
243,560
243,560
282,143 ¥		March 31, 2016
Securities whose carrying amountexceeds their acquisition cost

Subtotal
Securities whose carrying
amount does not exceed theiracquisition cost

Carrying Amount

Subtotal
Total

1,701

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

¥

StocksDebt securities
Japanese government bonds
Corporate bonds
Other¥

Acquisition cost

— ¥
—
—
—
28,771
28,771————
52,92552,925
81,697 ¥		March 31, 2016

Subtotal
Securities whose carrying
amount does not exceed theiracquisition cost

—
—
—
—
1,701
1,701
—
—
—
—
(0)
(0)

(In millions of yen)Type

Subtotal
Total

Securities whose carrying amountexceeds their acquisition cost

Difference

— ¥
—
—
—
36,88136,881————
243,561
243,561
280,442 ¥1 Statutory Financial Statements

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

Acquisition cost

Data 2 Financial Statements(c) Available-for-sale securities
		March 31, 2015

— ¥
—
—
—
28,04528,045————
53,10053,10081,145 ¥Difference

—
—
—
—
726
726
—
—
—
—
(174)
(174)
552

(In millions of U.S. dollars)

Type

Carrying Amount

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

$

StocksDebt securities
Japanese government bonds
Corporate bonds
Other$

Acquisition cost

— $
—
—
—
255
255
—
—
—
—
470
470
725 $

— $
—
—
—
249
249
—
—
—
—
471
471
720 $

Difference

—
—
—
—
6
6
—
—
—
—
(1)
(1)
5

(d) Held-to-maturity debt securities sold during the fiscal years ended March 31, 2015 and March 31, 2016
Not applicable

JBIC  Annual Report 2016115

Data 2 Financial Statements(e) Available-for-sale securities soldFiscal year ended March 31, 2015
Description omitted due to immateriality
		Fiscal year ended March 31, 2016
StocksDebt securities
Japanese government bonds
Corporate bonds
Other
Total

1 Statutory Financial Statements		(In millions of yen)¥¥Amount of sales

Total gain on sales

Total loss on sales————
62,57762,577

—
—
—
—
1,890
1,890

—
—
—
—
130
130

¥
¥

Fiscal year ended March 31, 2016
StocksDebt securities
Japanese government bonds
Corporate bonds
Other
Total

¥
¥

(In millions of U.S. dollars)$$

Amount of sales

Total gain on sales

Total loss on sales

—
—
—
—
555
555

—
—
—
—
17
17

—
—
—
—
1
1

$
$

$
$

(f) Change in classification of securities		
Not applicable(g) Impairment of securities		
Not applicable(h) Money held in trust		(i) Money held in trust for trading purposes			Not applicable		(ii) Money held in trust for holding-to-maturity purposes			Not applicable		(iii) Other money held in trust (other than investment and holding-to-maturity purposes)
			Not applicable(i) Net unrealized gains (losses) on available-for-sale securities are as follows;		

Fiscal year ended March 31, 2015 
Valuation difference
Available-for-sale securities (*)
Other money held in trust
Valuation difference on available-for-sale securities
(*)

		

		

12,786
12,786—
12,786“Available-for-sale securities” includes foreign exchange translation differences in respect of available-for-sale securities whose fair value cannot be readily
determined.

Fiscal year ended March 31, 2016 (In millions of yen)

Valuation difference
Available-for-sale securities (*)
Other money held in trust
Valuation difference on available-for-sale securities¥

Fiscal year ended March 31, 2016

(In millions of U.S. dollars)

Valuation difference
Available-for-sale securities (*)
Other money held in trust
Valuation difference on available-for-sale securities

$

(*)

116

(In millions of yen)

¥

4,303
4,303
—
4,303

38
38
—
38

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

JBIC  Annual Report 2016

Data 2 Financial Statements

15. Derivative transactions

1 Statutory Financial Statements

Notes to derivative transactions in the fiscal years ended March 31, 2015 and March 31, 2016 are as follows;(a) Derivative transactions not qualifying for hedge accounting		(i) Interest rate-related transactions
			Not applicable		(ii) Currency-related transactions
			Not applicable		(iii) Equity-related transactions
			Not applicable		(iv) Bond-related transactions
			Not applicable		(v) Commodity-related transactions
			Not applicable		(vi) Credit derivative transactions
			Not applicable(b) Derivative transactions qualifying for hedge accounting
For derivative transactions qualifying for hedge accounting, contract value as of the settlement date or notionalamount defined in agreements, and fair value and its calculation method, by hedged item and by hedge accounting
method, are as follows. Contract value does not indicate the market risk of the derivative transactions.
		(i) Interest rate-related transactions

			Fiscal year ended March 31, 2015
Hedge
accounting

TypeInterest rate swap
Basicaccounting
method(In millions of yen)

Major hedged items

Contract value

Contract value(Maturingafter one year)¥ 2,738,401
618,553
28,098¥—¥ 2,149,781
612,141
15,374¥—

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

			

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

			

Fiscal year ended March 31, 2016 
Hedge
accounting

TypeInterest rate swap
Basicaccounting
methodMajor hedged items

TypeInterest rate swap
Basicaccounting
methodReceive/fixed and pay/floating
Receive/floating and pay/fixed
Receive/floating and pay/floating
Total

			

Contract value

Contract value(Maturingafter one year)¥

59,672(51,748)17
7,941¥ 2,413,837
660,583
8,450¥—¥ 1,963,117
655,3218,450¥—

Contract value

Contract value(Maturingafter one year)$$

Fair value

Loans and bills discounted
Borrowings
Corporate bonds

Fiscal year ended March 31, 2016 
Hedge
accounting¥(In millions of yen)

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

			

Fair value

Loans and bills discounted
Borrowings
Corporate bonds¥¥

71,551(68,132)9
3,428(In millions of U.S. dollars)

Major hedged items

Fair value

Loans and bills discounted
Borrowings
Corporate bonds$

21,422
5,862
75
—

$

17,422
5,816
75
—

$

$

635
(605)
0
30

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

JBIC  Annual Report 2016117

Data 2 Financial Statements		(ii) Currency-related transactions
			Fiscal year ended March 31, 2015
Hedge
accounting

Type

Currency swap
Basicaccounting
methodForward foreign exchange
contracts
Sell
Buy
Total

(In millions of yen)Contract value(Maturingafter one year)

Major hedged items

Contract value

Loans and bills discounted
Borrowings
Corporate bonds¥ 5,122,066 ¥ 4,085,292 ¥Fair value(822,773)

Loans and bills discounted

¥

1
178
—

¥

—
—
—

¥

0
1
(822,772)

1 Statutory Financial Statements

Note 1. These are mainly accounted for using the deferred method of hedge accounting under “Accounting
and Auditing Treatment Relating to Adoption of Accounting Standard for Foreign Currency
Transactions for Banks” (JICPA Industry Audit Committee Report No. 25 of July 29, 2002).
Note 2. Calculation of fair value is based on the discounted cash flows.
			

Fiscal year ended March 31, 2016
Hedge
accounting

Type

Currency swap
Basicaccounting
methodForward foreign exchange
contracts
Sell
Buy
Total

			

(In millions of yen)Contract value(Maturingafter one year)

Major hedged items

Contract value

Loans and bills discounted
Borrowings
Corporate bonds¥ 4,082,376 ¥ 3,206,901 ¥Loans and bills discounted

¥

40
312
—

¥

Fiscal year ended March 31, 2016
Hedge
accounting

Type

Currency swap
Basicaccounting
methodForward foreign exchange
contracts
Sell
Buy
Total

Fair value(335,430)

—
—
—

0
(3)
¥ (335,434)(In millions of U.S. dollars)

Contract value(Maturingafter one year)

Major hedged items

Contract value

Loans and bills discounted
Borrowings
Corporate bonds$

36,230 $28,460 $Fair value(2,977)

$

0
3
—

—
—
—

0
(0)
(2,977)Loans and bills discounted$$

Note 1. These are mainly accounted for using the deferred method of hedge accounting under “Accounting
and Auditing Treatment Relating to Adoption of Accounting Standard for Foreign Currency
Transactions for Banks” (JICPA Industry Audit Committee Report No. 25 of July 29, 2002).
Note 2. Calculation of fair value is based on the discounted cash flows.
		(iii) Equity-related transactions
			Not applicable		(iv) Bond-related transactions
			Not applicable

16. Retirement benefits(a) Overview of retirement benefit plans
JBIC abolished the welfare pension fund plan effective October 1, 2014 and has established a defined benefit
corporate pension plan and a defined contribution pension plan.
JBIC has a defined benefit pension plan comprised of a corporate pension plan (transferred from a welfare

118

JBIC  Annual Report 2016

Data 2 Financial Statements
1 Statutory Financial Statements

pension fund plan effective October 1, 2014) and a lump-sum severance indemnity plan. Although JBIC’s
corporate pension plan is a multi-employer plan, the amount of the pension assets corresponding to its own
contribution can be reasonably calculated based on the ratio of the projected benefit obligations, and therelated notes are included in the following notes related to the defined benefit pension plan.
Under the corporate pension plan (funded type), pension or lump-sum payments are provided based onsalary and service period. Under the lump-sum severance indemnity plan (unfunded type), lump-sum
payments are provided as retirement benefits based on salary and service period. In addition, JBIC hasestablished a defined contribution-type retirement benefit plan effective October 1, 2014.
Effective April 1, 2013, JBIC has been authorized by the Minister of Health, Labour and Welfare to be
exempt from the obligations to pay future amounts in respect of the part of the welfare pension fund it
manages for the government. Subsequently on October 1, 2014, JBIC has been authorized to transfer to thegovernment the past substitutional portion of the aforesaid fund.
(b) Defined benefit pension plan		(i) The changes in the projected benefit obligation are as follows:
March 31, 2015
(In millions of yen)

Projected benefit obligation at the beginning of the fiscal year
Cumulative effects of changes in accounting policy¥

Restated balance
Service cost (Note)
Interest cost
Actuarial losses
Retirement benefit paid
Prior service costs
Decrease associated with the transfer of the amount of welfare
pension fund previously managed for the government
Other
Projected benefit obligation at the end of the fiscal year

			

		

¥

19,483(1,202)
18,281
433
195
985
(631)
(271)
(5,678)13
13,327

March 31, 2016
March 31, 2016
(In millions of yen) (In millions of U.S. dollars)¥¥

13,327
—  
—  
458
74
1,008
(821)
—  
—  
—  
14,046

$

$

118
—  
—  
4
1
9
(7)
—  
—  
—  
125

(Note) Employee contributions to the welfare pension fund and corporation pension fund plans have been
deducted from the service costs.

(ii) The changes in the plan assets are as follows:
March 31, 2015
(In millions of yen)

Pension assets at the beginning of the fiscal year
Cumulative effects of changes in accounting policy
Restated balance
Expected return on plans assets
Actuarial gains
Contribution by the company
Retirement benefit paid
Other
Pension assets at the end of the fiscal year

¥

¥

5,231
(19)
5,211
97
373
1,576
(340)
13
6,932

March 31, 2016
March 31, 2016
(In millions of yen) (In millions of U.S. dollars)

¥

¥

6,932
—  
—
105
17
117
(216)
—  
6,956

$

$

62
—  
—
1
0
1
(2)
—  
62

(iii) Reconciliation of the projected benefit obligation and plan assets and provision for retirement benefits inthe balance sheets
March 31, 2015
(In millions of yen)

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

¥

¥

8,329
(6,932)
1,396
4,998
6,395
—
—
6,395
6,395
6,395

March 31, 2016
March 31, 2016
(In millions of yen) (In millions of U.S. dollars)

¥

¥

9,013
(6,956)  
2,057
5033
7090
—
—
7,090
7,090  
7,090

$

$

80
(62)  
18
45
63
—
—
63
63  
63

JBIC  Annual Report 2016

119

Data 2 Financial Statements(iv) Component of retirement benefit expense
March 31, 2015
(In millions of yen)

Service cost (Note 1)
Interest cost
Expected return on plans assets
Realized Actuarial loss
Amortization of prior service cost (Note 2)
Retirement benefit expense
Decrease associated with the transfer of the amount ofwelfare pension fund previously managed for thegovernment (Note 3)

March 31, 2016
March 31, 2016
(In millions of yen) (In millions of U.S. dollars)

¥

433
195
(97)
631
(271)
891

¥

458
74
(105)
991
—
1,418

$

4
1
(1)
9
—
13

¥

(5,698)

¥

—

$

—

			
1 Statutory Financial Statements

Note 1. Employee contributions to the welfare pension fund and corporation pension fund plans havebeen deducted from the service cost.
				
2. Due to the abolishment of the welfare pension fund plan and the establishment of the defined
benefit corporate pension plan effective October 1, 2014, prior service costs of ¥271 million havebeen recognized as credit to expenses during the fiscal year ended March 31, 2015.
				
3. Recorded as a component of extraordinary income.
(v) Plan assets
 Major components of Plan assets			Percentages of components to the total are as follows;
Debt securities
StocksGeneral account of life insurance company
Cash and due from banks
Total



March 31, 2015

March 31, 2016

38%
13%
8%
41%
100%

39%
12%
8%
41%
100%

Method of determining the long-term expected rate of return on plan assets
The long-term expected rate of return on plan assets is determined based on the current andprojected pension asset allocations as well as on the current and future rates of return expected fromvarious assets that are components of plan assets.

(vi) Principal assumptions used
Principal assumptions used in actuarial calculations
Discount rate
Expected rate of return on plan assets
Expected rate of increase in salary

March 31, 2015

March 31, 2016

0.70%
2.50%
3.91%

0.16%
2.50%
3.91%

(c) Defined contribution plan
JBIC established a defined contribution-type retirement benefit plan effective October 1, 2014. The amount ofcontribution required to be made to the defined contribution plan was ¥12 million for the fiscal year ended
March 31, 2015 and ¥24 million ($0 million) for the fiscal year ended March 31, 2016.

17. Deferred tax accounting
JBIC does not apply deferred tax accounting since JBIC is a nontaxable entity classified in the Article 2, Paragraph 5 of
the Corporation Tax Act (Act No. 34 of 1965).

18. Segment Information(a) Segment summary
Segment information has been omitted as JBIC has a single reportable segment comprised of loan, guarantee
and equity participation operations.
(b) Related information
Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)

120

JBIC  Annual Report 2016

Japan¥42,978¥Asia/Oceania
Australia (excluding Australia)

Europe/Middle East/Africa

29,635¥¥55,76865,714

North America/
Latin America¥

63,154

Total¥

257,252

				Note 1. Ordinary income is disclosed in place of Sales for non-financial companies.
						 2.	Ordinary income is disclosed based on the location of the customers and is classified bycountry or region.

Data 2 Financial Statements(i) Information about services
Information about services has been omitted as ordinary income from outside customers in relation toloan, guarantee and equity participation operations comprises more than 90% of the ordinary income on
the Statements of Operations.
(ii) Information about geographical areas
 Ordinary income:
(In millions of yen)

1 Statutory Financial Statements

Property, plant and equipment
The information about property, plant and equipment is omitted since more than 90% of property,
plant equipment on the balance sheets are located in Japan.
(iii) Information about major customers
The information about major customers is omitted since there are no transactions with a certain customer
which result in more than 10% of the ordinary income on the Statements of Operations.


Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(i) Information about services
The information about services is omitted since ordinary income from outside customers in relation to theloan, guarantee and equity participation operations is more than 90% of ordinary income on theStatements of Operations.
(ii) Information about geographical areas
 Ordinary income: (In millions of yen)
Japan

¥

42,283¥

Asia/Oceania
Australia (excluding Australia)

Europe/Middle East/Africa

27,456¥¥54,73759,768

North America/
Latin America¥

55,760



Total

¥

240,005(In millions of U.S. dollars)Asia/Oceania
Australia (excluding Australia)

Japan

$

375

$

244

$

486

Europe/Middle East/Africa$

530

North America/
Latin America

$

495

Total

$

2,130

				
Note 1. Ordinary income is disclosed in place of Sales for non-financial companies.
						 2.	Ordinary income is disclosed based on the location of the customers and is classified bycountry or region.
Property, plant and equipment
The information about property, plant and equipment is omitted since more than 90% of property,
plant equipment on the balance sheets are located in Japan.
(iii) Information about major customers
		
The information about major customers is omitted since there are no transactions with a certain customer
which result in more than 10% of ordinary income on the Statements of Operations.
(c) Information about impairment losses of property, plant and equipment in Reportable Segments
Not applicable(d) Information about the amortization and balance of goodwill in Reportable Segments
Not applicable(e) Information about gains from the recognition of negative goodwill in Reportable Segments
Not applicable

JBIC  Annual Report 2016

121

Data 2 Financial Statements

19. Profit and loss on equity method(a) Affiliates

Investment in affiliates
Investment in affiliates (equity method)
Profit of Investment in affiliates (equity method)

March 31, 2015
(In millions of yen)March 31, 2016
(In millions of yen)¥¥

83,251
83,251—March 31, 2016
(In millions of U.S. dollars)

82,43982,439  
—

$

732
732  
—

			

Note: Affiliates that are not significant in terms of profit/loss, retained earnings and other items have been
excluded.
(b) Special purpose entities
Not applicable

1 Statutory Financial Statements

20. Related-party transactions
Related party transactions in the fiscal years ended March 31, 2015 and March 31, 2016 are as follows;(a) Transactions with parent company and major shareholder companies
		Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)
Corporate
nameLocation

Principal
Ministry of Chiyoda-ku,
Tokyoshareholder Finance(Ministerof Finance)

Capital Business

Ratio toRelation
Total
with
VotingrelatedRights (%) parties Transactions— Administra- 100tion for policy (Direct)
basedfinancing

Receiptoffunds,
etc.

Amounts oftransactions(Note 4)

Balance as ofMarch 31,2015
(Note 4)

Items

—

—

Receipt offunds(Note 2)

1,512,991 Borrowings

9,425,316

Repaymentof borrowing

1,321,639

Payment ofinterest on
borrowings

50,488

Accruedexpenses

14,981

Guarantee
for corporate
bonds(Note 3)2,569,535——

Underwritingof capitalincrease(Note 1)¥

(In millions of yen)

31,000		Note 1.	Ministry of Finance underwrote JBIC’s issuance of new shares through shareholder allocation for ¥1($0) per share.
				2. 	Receipt of funds represents borrowings from the FILP special account and foreign exchange funds
special account. FILP interest rates are applied in accordance with the FILP agreement, while theinterest rates under the respective agreements related to foreign exchange funds special account are
applied to borrowings from foreign exchange funds.
				3. No guarantee fee has been paid for the guarantee of bonds.
				4. Figures in the table above do not include consumption taxes.
		Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016) 
Corporate
nameLocation

Principal
Ministry of Chiyoda-ku,
Tokyoshareholder Finance(Ministerof Finance)

122

JBIC  Annual Report 2016

Capital Business

Ratio toRelation
Total
with
VotingrelatedRights (%) parties Transactions— Administra- 100tion for policy (Direct)
basedfinancing

Receipt Receipt offunds
offunds, (Note 1)
etc.

(In millions of yen)Amounts oftransactions(Note 3)

Balance as ofMarch 31,2016
(Note 3)

Items

1,840,778 Borrowings 9,438,450

Repaymentof borrowing

1,403,938

Payment
of interest on
borrowings

57,339Accruedexpenses

18,240

Guarantee
for corporate
bonds(Note 2)

2,388,589——

(In millions of U.S. dollars)

Corporate
nameLocation

Capital Business

Principal
Ministry of Chiyoda-ku,
Tokyoshareholder Finance(Ministerof Finance)

Ratio toRelation
Total
with
VotingrelatedRights (%) parties Transactions— Administra- 100tion for policy (Direct)
basedfinancingAmounts oftransactions(Note 3)

Receipt Receipt offunds
offunds, (Note 1)
etc.

Balance as ofMarch 31,2016
(Note 3)

Items

16,336 Borrowings

83,763

12,460

Payment
of interest on
borrowings

509

Accruedexpenses

162

Guarantee
for corporate
bonds(Note 2)

21,198——

1 Statutory Financial Statements

Repaymentof borrowing

Data 2 Financial Statements

		Note 1.	Receipt of funds represents borrowings from the FILP special account and foreign exchange funds
special account. FILP interest rates are applied in accordance with the FILP agreement, while theinterest rates under the respective agreements related to foreign exchange funds special account are
applied to borrowings from foreign exchange funds.
			
2. No guarantee fee has been paid for the guarantee of bonds.
			
3. Figures in the table above do not include consumption taxes.
(b) Transactions with fellow subsidiaries and affiliates’ subsidiaries		

Fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015) 

Corporate
nameLocation

Chiyoda-ku,
CompaniesJapanthat had the International Tokyo
majority of
Cooperation
their voting
Agencyrights held by
Chiyoda-ku,
Japanprincipal
Tokyoshareholders FinanceCorporation

Ratio to
Total
Relation
Voting with
Rights related(%)
parties Transactions(In millions of yen)

Items

Balance
as ofMarch 31,
2015

None
¥7,877,115 Official
development
assistanceJointobligorJoint
obligations¥ 428,110(Note 1, 4)——

3,855,086 FinanceJointobligorJoint
obligations

1,111,402(Note 2, 4)——

710,000(Note 3, 4)——

CapitalBusiness

None

Amounts oftransactions

		Note 1.	JBIC assumed the obligations of the JBIC bonds in accordance with Article 12 (1) of the
Supplementary Provisions of the JBIC Act, and the Japan International Cooperation Agency (“JICA”)
is jointly responsible for the obligations of these bonds in accordance with the provision of Article 4(1) of Supplementary Provisions of the Japan International Cooperation Agency Act (Act No. 136 of
2002). Pursuant to Article 4 (2) hereof, all of JICA assets are pledged as general collateral for thesejoint obligations.
			2.	JBIC assumed the obligations of the JFC bonds in accordance with Article 12 (1) of Supplementary
Provisions of the JBIC Act, and JFC is jointly responsible for the obligations of these bonds in accordancewith Article 46-2 (1) of Supplementary Provisions of the JFC Act (Act No. 57 of 2007). Pursuant to Article46-2 (2) hereof, all of JFC’s assets are pledged as general collateral for these joint obligations.
			3.	JBIC is jointly responsible for the obligations of JFC bonds in accordance with Article 17 (1) (ii) of
Supplementary Provisions of the JBIC Act. In accordance with Article 17 (2) hereof, all of JBIC’s assets
are all pledged as general collateral for these joint obligations.
			
4.	In relation to these joint obligations, no transactions are recognized in the Statements of Operations.
		

JBIC  Annual Report 2016123

Data 2 Financial Statements

		

Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016) 

Corporate
nameLocation

CapitalBusiness

None
Chiyoda-ku, ¥7,925,375 Official
CompaniesJapandevelopmentthat had the International Tokyo
assistancemajority of
Cooperation
their voting
Agencyrights held by Japan
Chiyoda-ku, 3,904,645 FinanceNone
principal
Financeshareholders Corporation Tokyo

1 Statutory Financial Statements		(In millions of yen)

Ratio to
Total
Relation
Voting with
Rights related(%)
parties Transactions

Items

Balance
as ofMarch 31,
2016

Joint
obligorJoint
obligations¥ 250,000(Note 1, 4)

—

—

Joint
obligorJoint
obligations

611,570(Note 2, 4)——

450,000(Note 3, 4)——

Amounts oftransactions(In millions of U.S. dollars)

Corporate
nameLocation

Chiyoda-ku,
CompaniesJapanthat had the International Tokyo
majority of
Cooperation
their voting
Agencyrights held by Japan
Chiyoda-ku,
principal
Financeshareholders Corporation Tokyo

CapitalBusiness

Ratio to
Total
Relation
Voting with
Rights related(%)
parties Transactions

None$ 70,335 Official
development
assistance
34,653 Finance

None

Items

Balance
as ofMarch 31,
2016

Joint
obligorJoint
obligations$ 2,219(Note 1, 4)

—

—

Joint
obligorJoint
obligations

5,427(Note 2, 4)

—

—

3,994
(Note 3, 4)——

Amounts oftransactions

		Note 1.	JBIC assumed the obligations of the JBIC bonds in accordance with Article 12 (1) of the
Supplementary Provisions of the JBIC Act, and the Japan International Cooperation Agency (“JICA”)
is jointly responsible for the obligations of these bonds in accordance with the provision of Article 4(1) of Supplementary Provisions of the Japan International Cooperation Agency Act (Act No. 136 of
2002). Pursuant to Article 4 (2) hereof, all of JICA assets are pledged as general collateral for thesejoint obligations.
			2.	JBIC assumed the obligations of the JFC bonds in accordance with Article 12 (1) of Supplementary
Provisions of the JBIC Act, and JFC is jointly responsible for the obligations of these bonds in accordancewith Article 46-2 (1) of Supplementary Provisions of the JFC Act (Act No. 57 of 2007). Pursuant to Article46-2 (2) hereof, all of JFC’s assets are pledged as general collateral for these joint obligations.
			3.	JBIC is jointly responsible for the obligations of JFC bonds in accordance with Article 17 (1) (ii) of
Supplementary Provisions of the JBIC Act. In accordance with Article 17 (2) hereof, all of JBIC’s assets
are all pledged as general collateral for these joint obligations.
			
4.	In relation to these joint obligations, no transactions are recognized in the Statements of Operations.

21. Amounts per share
Amounts per share as of the fiscal years ended March 31, 2015 and March 31, 2016 are calculated as follows:
March 31, 2015
(In yen)

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

¥

1.76
0.09

March 31, 2016
(In yen)¥

1.77
0.03  March 31, 2016
(In U.S. dollars)$

0.02
0.00  

Note 1. Net income per share of common stock is based on the following information.
		 Diluted net profit per share of common stock is not presented since there are no diluted stocks.
March 31, 2015
(in millions of yen)

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

124

JBIC  Annual Report 2016¥

126,187—
126,187

1,383,610,958
thousands of shares

March 31, 2016
(in millions of yen)¥

42,772—
42,772

1,391,000,000
thousands of shares

March 31, 2016
(in millions of U.S. dollars)

$

380
—
380

March 31, 2015
(in millions of yen)

Net Assets
Deductions from net assets
Net Assets related to common stock¥Year-end outstanding shares of common stock onwhich net assets per share was calculated

March 31, 2016
March 31, 2016
(in millions of yen) (in millions of U.S. dollars)

2,460,520—
2,460,520

1,391,000,000
thousands of shares¥

2,472,367—
2,472,367$

21,941—
21,941

1,391,000,000
thousands of shares

22. Subsequent Events

Data 2 Financial Statements

Note 2. Net assets per share of common stock is based on the following information.

1 Statutory Financial Statements

Establishment of the “Special Operations” account
The Act for Partial Amendment of the Act on Japan Bank for International Cooperation (Act No. 41 of 2016) wasapproved and enacted at the 190th ordinary session of the diet on May 11, 2016. Consequently, as a means of further
risk-taking by JBIC, a new “Special Operations” account will be established from which JBIC can finance overseas
infrastructure projects that offer a sufficient level of expected return commensurate with their risk profile. Activities forthis account are accounted for separately from those of the Ordinary Operations account. The date from which theaforementioned “Special Operations” account will become established is the date noted in the government ordinance.

23. Fixed assets
Fixed assets as of March 31, 2016 are as follows;Class of asset

Property, plant and equipment
Buildings
Land
Lease assets
Construction in progress
Other
Total property, plant and equipment
Intangible assets
SoftwareTotal intangible assets(In millions of yen)

Balance at the
Increase
Decrease
Balance at
beginning ofduring theduring thethe end ofcurrent period current period current period current period

Accumulated
depreciation

Depreciation

¥

¥

¥

¥

3,593
24,66444—  
1,132
29,435

¥
¥

4,952
4,952

¥

¥

62
—  
—  
255
86
404

¥
¥

500
500

¥

¥

58
237
0
221
9
527

¥
¥

—  
—  

¥

¥

3,597
24,42744
34
1,208
29,312

¥
¥

5,452
5,452

¥

714
—  
30
—  
762
1,507

¥
¥

2,715
2,715

¥

168
—  
8
—  
207
384

¥

2,882
24,4271334
446
27,804

¥
¥

918
918

¥
¥

2,737
2,737


Class of asset

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

Net fixed
assets¥(In millions of U.S. dollars)

Balance at the
Increase
Decrease
Balance at
beginning ofduring theduring thethe end ofcurrent period current period current period current period

Accumulated
depreciation

Depreciation

$

$

$

$

32
219
0
—  
10
261

$
$

44
44

$

$

1
—  
—  
2
1
4

$
$

4
4

$

$

1
2
0
2
0
5

$
$

—  
—  

$

$

32
217
0
0
11
260

$
$

48
48

$

6
—  
0
—  
7
13

$
$

24
24

Net fixed
assets

$

1
—  
0
—  
3
4

$

$

26
217
0
0
4
247

$
$

8
8

$
$

24
24

JBIC  Annual Report 2016125

Data 2 Financial Statements

24. Bonds payable
Major components of bonds payable as of March 31, 2016 are as follows;Balance at the beginning ofcurrent period(In millions of yen)

1 Statutory Financial Statements

Description of bonds
payableDate ofissuance

Government
guaranteed JBIC
bonds 13th

March 23, 2006¥

Government
guaranteed JFC(JBIC) foreign
bonds 5-9th

September 22,2010 –
February 7, 2012

990,850(USD 8,245,406,000)

Government
guaranteed JBIC
foreign bonds
1st-13th

July 19, 2012 –January 21, 2016

1,797,222 0.978~ General July 19, 2017 –
1,500,595(USD 11,464,919,000) (USD 14,955,359,000) 3.375 collateral January 21,(GBP 424,064,000)(GBP 423,865,000)
2026(CAD 499,917,000)(CAD 499,875,000)

JBIC bonds 13th,
16th, 19th, 21st23rd, 25th,27th,
29th, 30th

May 28, 2004 –May 29, 2008

349,960

249,974 [49,998] 1.580~
2.090

JFC corporate bonds
3rd, 12th, 17th

October 29,
2009 –
May 9, 2011

119,993

10,000Non-guaranteed JBIC January 27, 2015
domestic bond 1st
Total

—

¥

Balance at the end of Interest
current period rate (%)

78,090 ¥(USD 649,829,000)

3,049,490

5.250

Collateral

Maturity date

Remarks

General March 23, 2016
collateral*1

591,367 [450,676] 1.875~ General September 24,(USD 5,248,199,000) 2.500 collateral 2015 –[USD 3,999,616,000]
February 7,
2019

*2

¥

—

General September 18,
collatera 2015 –December 19,
2025

*1

19,9950.421~ General June 19, 2015 –1.430 collateral September 20,
2019

*2

10,0000.120

2,668,558

General December 20,
collateral 2019

—

—

—



—

(In millions of U.S. dollars)

Description of bonds
payableDate ofissuance

Balance at the beginning ofcurrent period

Government
guaranteed JBIC
bonds 13th

March 23, 2006$

Government
guaranteed JFC(JBIC) foreign
bonds 5-9th

September 22,2010 –
February 7, 2012

8,793
(USD 8,245,406,000)

Government
guaranteed JBIC
foreign bonds
1st-13th

July 19, 2012 –January 21, 2016

15,950 0.978~ General July 19, 2017 –
13,317(USD 11,464,919,000) (USD 14,955,359,000) 3.375 collateral January 21,(GBP 424,064,000)(GBP 423,865,000)
2026(CAD 499,917,000)(CAD 499,875,000)

JBIC bonds 13th,
16th, 19th, 21st23rd, 25th,27th,
29th, 30th

May 28, 2004 –May 29, 2008

3,106

2,218 [444] 1.580~
2.090

JFC corporate bonds
3rd, 12th, 17th

October 29,
2009 –
May 9, 2011

1,065

89

693 $
(USD 649,829,000)

Non-guaranteed JBIC January 27, 2015
domestic bond 1st
Total

—

$

Balance at the end of Interest
current period rate (%)

27,063—Collateral

Maturity date

Remarks

General March 23, 2016
collateral*1

5,248 [4,000] 1.875~ General September 24,(USD 5,248,199,000) 2.500 collateral 2015 –[USD 3,999,616,000]
February 7,
2019

*2

$

5.250

General September 18,
collatera 2015 –December 19,
2025

*1

177

0.421~ General June 19, 2015 –1.430 collateral September 20,
2019

*2

90

0.120

23,683General December 20,
collateral 2019

—

—

—

—

Note 1. The amounts of foreign currency-denominated bonds are shown in original currencies in parentheses ( ).
2. Figures indicated in brackets [ ] represent the amounts to be redeemed within one year.
3. (*1) J BIC assumed the obligations in respect of the government guaranteed JBIC bonds and the JBIC bonds
which had been issued by JBIC before JFC was established, and JBIC and JICA are jointly responsible forthese obligations in accordance with the JBIC Act.
		 (*2) JBIC also assumed from JFC the obligations concerning the government guaranteed JFC (JBIC) foreign
bonds and the JFC corporate bonds, and JBIC and JFC are now jointly responsible for these obligations
pursuant to the JBIC Act.
4. The redemption schedule of bond payable for each of the next five years as of March 31, 2016 is as follows: (In millions of yen)
Within 1 year

Amount126

JBIC  Annual Report 2016¥

500,720After 1 year
but within 2 years

After 2 year
but within 3 years

After 3 year
but within 4 years

After 4 year
but within 5 years

¥

¥

¥

¥

368,755

724,250

239,020

201,496After 2 year
but within 3 years

After 3 year
but within 4 years

After 4 year
but within 5 years

Amount

$

4,444

$

$

$

$

1,788

Averageinterest rate(%)

Due date ofpayment

83,7630.76—  May 2016 –0.76 January 2026

3,273

6,427

2,121

25. Borrowings
Borrowings as of March 31, 2016 are as follows;
Balance at the beginningof current period(In millions of yen)

Borrowed money¥

9,425,316

Borrowings

Balance at the end of
Balance at the end ofcurrent period
current period(In millions of yen) (In millions of U.S. dollars)¥

9,438,450$

9,425,316

9,438,450

83,763

Lease obligation(Due within one year)

12

10

0

—  

—  

Lease obligation(Due after one year)
Other interest-bearing liabilities

19
12,7505
63,380

0
562

—  
0.00

March 18
—  Cash collateral received forfinancial instruments

12,75063,380

562

0.00

—  

1 Statutory Financial Statements

After 1 year
but within 2 years

Within 1 year

Data 2 Financial Statements

 (In millions of U.S. dollars)Note 1. Average interest rates represent the weighted-average interest rates of debts calculated from the interest rates
and balances of debt outstanding as at the end of the current period.
2. As for the lease obligation, there is no average lease rate since the short-cut method is applied for thesetransactions.
3. There is no fixed maturity date for the repayment of cash collateral received for financial instruments.
4. Borrowed money and lease obligation maturities for the next five years as of March 31, 2016 are as follows; (In millions of yen)
After 1 year
but within 2 years

After 2 year
but within 3 years

After 3 year
but within 4 years

After 4 year
but within 5 years

¥

¥

¥

¥

Within 1 year

Borrowings
Lease obligations¥

681,15610

1,044,892
5

4,084,705—  

1,385,687—  

1,102,307—   (In millions of U.S. dollars)
After 1 year
but within 2 years

After 2 year
but within 3 years

After 3 year
but within 4 years

After 4 year
but within 5 years

$

$

$

$

Within 1 year

Borrowings
Lease obligations

$

6,045
0

9,273
0

36,250—  

12,298
—  

9,783
—  

26. Reserves
Reserves as of March 31, 2016 are as follows; (In millions of yen)
Balance at the
beginning ofcurrent period

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

¥

¥

115,492
36,82876,003
2,660
500
6
30
116,030

Increase during
the fiscal year¥¥

100,180
96,353
129
3,697
516
6
11
100,714

Decrease during
the fiscal year(use for purpose)

Decrease during
the fiscal year
(others)

¥

¥

¥

—  
—  
—  
—  
500
6
2
509

¥

47,41036,828
7,921
2,660
—  
—  
—  
47,410

Balance atthe end ofcurrent period¥¥

168,262
96,353
68,211
3,697
516
6
39
168,824JBIC  Annual Report 2016127

Data 2 Financial Statements

 (In millions of U.S. dollars)
Balance at the
beginning ofcurrent period

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

1 Statutory Financial Statements

Note.
		
		
		

$

$

1,025
327
674
24
5
0
0
1,030

Increase during
the fiscal year

$

$

889
855
1
33
5
0
0
894

Decrease during
the fiscal year(use for purpose)

Decrease during
the fiscal year
(others)

$

$

$

—  
—  
—  
—  
5
0
0
5

$

421
327
70
24
—  
—  
—  
421

Balance atthe end ofcurrent period

$

$

1,493
855
605
33
5
0
0
1,498

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

27. Asset Retirement Obligation
Not applicable

28. Components of major assets and liabilities
Components of major assets and liabilities as of March 31, 2016 are as follows:(a) Assets:		(i) Due from banks:
			Deposits with Bank of Japan (¥715,594 million ($6,351 million)) and other banks (¥504,593 million($4,478 million))		(ii) Other securities:			
Foreign securities (¥236,602 million ($2,100 million))		(iii) Prepaid expenses:
			
General and administrative expenses (¥494 million ($4 million))		(iv) Accrued income:			
Accrued interest on loans (¥47,395 million ($421 million)), and others		 (v) Other:			
Guarantees and others (¥140 million ($1 million)), suspense payments (¥124 million ($1 million)),			and others(b) Liabilities
		(i) Accrued expenses:
			Accrued interest on borrowings and rediscounts (¥18,240 million ($162 million)), accrued interest on
bonds (¥13,224 million ($117 million)), and others		(ii) Unearned revenue:			Guarantee commission (¥57,845 million ($513 million)), and others		(iii) Other liabilities
			
Suspense receipts (¥414 million ($4 million)), and others

128

JBIC  Annual Report 2016

2 Composition of Liabilities and Net Assets(Unit: millions of yen, %)AmountLiabilities

March 31, 2016

% (Note)Amount% (Note)16,003,296

86.7

15,108,255

85.9

Borrowed Money

9,425,316

51.0

9,438,450

53.7

Bonds Payable

3,049,490

16.5

2,668,558

15.2

Acceptances and Guarantees

2,572,328

13.9

2,464,703

14.0

Other

956,160

5.2

536,543

3.1

Net Assets

2,460,520

13.3

2,472,367

14.1

Capital Stock

7.5

1,391,000

7.9

993,053

5.4

972,140

5.5

Valuation Difference on Available-for-sale Securities

12,786

0.1

4,303

0.0

Deferred Gains or Losses on Hedges
Total Liabilities and Net Assets

63,681

0.3

104,923

0.6

18,463,816

100

17,580,622

100

2 Composition of Liabilities and Net Assets

1,391,000

Retained Earnings

Data 2 Financial Statements

March 31, 2015

(Note) Ratio to Liabilities and Net Assets added.
(Information on the Capital Adequacy Ratios)
Although JBIC is not subject to Article 14-2 of the Banking Act of Japan, capital adequacy ratios have been calculated in accordance with " Criteria for Judging Whether a Financial
Institution's Own Capital Is Sufficient in Light of the Assets Held, etc. under the Provision of Article 14-2 of the Banking Act" (2006, Financial Services Agency Notification No. 19).
In addition to the application of uniform international standards, credit risk assets were calculated using the standardized approach.
(Unit: %, billions of yen)

16.04

Tier 1 risk-weighted capital ratio

15.40

Common Equity Tier 1 risk-weighted capital ratio

15.40

Total capital (Common Equity Tier 1 capital + Additional
Tier 1 capital + Tier 2 capital)

2,439

Tier 1 capital (Common Equity Tier 1 capital + Additional
Tier 1 capital)

2,342

Common Equity Tier 1 capital

2,342

Risk-weighted assets

15,203

The amount of minimum capital requirements

1,216

3

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

Total risk-weighted capital ratio

The Average Balance of Interest-earning
Assets and Interest-bearing Liabilities,
Interest and Earning Yields(Unit: millions of yen, %)Fiscal Year Ended March 31, 2015

Interest-earning Assets
Loans and Bills Discounted
Due from Banks

Fiscal Year Ended March 31, 2016

Average Balance

Interest

Earning Yields Average Balance

Interest

Earning Yields

14,616,678

192,973

1.32

15,924,136

213,806

1.34

13,415,041

166,130

1.24

14,369,087

196,859

1.37

628,700

1,479

0.24

948,271

2,787

0.29

Interest-bearing Liabilities

11,760,700

116,076

0.99

12,732,206

123,779

0.97

Borrowed Money

8,793,333

50,4880.57

9,585,267

57,3390.60

Bonds Payable

2,936,834

65,567

2.23

3,124,115

66,429

2.13

JBIC  Annual Report 2016129

4 Breakdown of Operating Expenses(Unit: millions of yen)

Data 2 Financial Statements

Fiscal Year Ended March 31, 2015

Fiscal Year Ended March 31, 2016

Salaries and Other Compensations

5,181

5,259

Expenses for Retirement Benefits

891

1,442

Welfare Benefits

4 Breakdown of Operating Expenses

675

729

Amortization of Property and Equipment

1,356

1,302

Leasing on Land, Buildings and Machinery

147

142

Building Maintenance

124

182

Supplies

213

243

Utilities

108

93

Traveling Expenses

1,351

1,390

Communications

119

127

4

3

Advertising Expenses
Fees, Donations and Social Expenses

12

13

Taxes

359

317

Other

6,457

6,380

Total

17,004

17,6315 Balance of Due from Banks, Receivables under Resale Agreements and Securities—Application of Surplus Funds

5

Balance of Due from Banks, Receivables
under Resale Agreements and Securities—Application of Surplus Funds(Unit: millions of yen)March 31, 2015

130

March 31, 2016

Due from Banks in Japanese Yen

242,750

90,000Due from Banks in Foreign Currencies

553,057

399,030

Receivables under Resale Agreements——

Securities——

JBIC  Annual Report 2016

6 Information on Derivative Transactions(4) Measures to Address These Risks

JBIC engages in derivatives transactions exclusively
for the purpose of hedging exchange rate and interest
rate 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 informationis then used to assess the appropriateness of making
transaction with it.

(2) Transactions
Derivatives transactions of JBIC include interest rate andcurrency swaps and forward exchange contracts. The
following table gives a summary of these transactions.

(3) Risks Involved in Derivatives Transactions
Derivatives transactions involve the following risks.
Counterparty Credit Risk
The potential loss from the failure of a counterparty toperform its obligations in accordance with the terms andconditions of the contract governing transactions due tobankruptcy or its deteriorating business performance.

6 Information on Derivative Transactions

Market Risk
JBIC utilizes derivatives transactions exclusively for the
purpose of hedging. Therefore, the market risk onderivatives transactions and the risk on hedged (lendingor funding) transactions, in principle, offset each other.

Data 2 Financial Statements(1) Basic Policy for Derivative Transactions

Market Risk
The potential loss from changes in the market value offinancial products due to fluctuations in interest rates or
exchange rates in the market.

(As of March 31, 2016; 100 millions of yen)Contract Amounts /Notional Amounts

Credit Risk Amounts

Market Value

Interest Rate Swaps

33,3391,012

34

Currency Swaps

40,8233,881(3,354)

Forward Exchange Contracts

3

0

0

Other Derivatives

—

—

—

Credit Risk Reductions through Netting
Total(3,312)
74,166

1,580(3,320)(Note)	“The credit risk amounts” are calculated under Uniform International Standards in accordance with the Banking Act of Japan and the related regulations.

JBIC  Annual Report 2016131

7 Yield / Interest Rate
(Unit: %)Data 2 Financial Statements

Fiscal Year Ended March 31, 2015

Fiscal Year Ended March 31, 2016(A) − (B)

0.33

0.37

Yields on Interest-earning Assets (A)

1.32

1.34

Costs of Interest-bearing Liabilities (B)

0.99

0.97

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

7 Yield / Interest Rate

8 Loans Outstanding per Employee

8 Loans Outstanding per Employee(Unit: millions of yen)March 31, 2015

March 31, 2016

27,18025,404

9 Loans Outstanding by Industry

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

Industry

March 31, 2015

March 31, 2016

Number of Loans

Balance

Number of Loans

Balance

103

640,475

114

446,781

Mining and Quarrying of Stone and Gravel

9344,8798

296,038

Construction

1

1,285

1

1,071

Electricity, Gas, Heat Supply, and Water

6375,0196

334,239

Information and Communications2

212,2612

195,184

Transport and Postal Services

427,887

5

23,968Wholesale Trade

17

917,08020

804,770

Finance and Insurance

19

2,142,810

19

2,286,878

Goods Rental and Leasing

3

199,2033

170,617

Overseas Yen Loan and Domestic Loans
Transferred Overseas

497

9,572,046

526

9,048,331

Total, Including Others

661

14,432,949

704

13,607,883

Loans Outstanding to Small andMedium-sized Enterprises

158

35,276

214

47,909Loans Outstanding to Mid-tier Enterprises

95

137,939151

140,841

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

132

JBIC  Annual Report 2016

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

Fiscal Year Ended March 31, 2016——

Data 2 Financial Statements

Fiscal Year Ended March 31, 2015

10 Write-off of Loans

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

March 31, 2016

Cash Equivalents in Foreign Currency (USD)

4,441,790

3,472,424

Cash Equivalents in Foreign Currency (GBP)

106,396

44,616

Cash Equivalents in Foreign Currency (EUR)

5,644

24,828Cash Equivalents in Foreign Currency (ZAR)—

0Cash Equivalents in Foreign Currency (THB)00Cash Equivalents in Foreign Currency (CAD)

5,298

7,385

Cash Equivalents in Foreign Currency (INR)

—

1,000

1,117,023

1,289,197

Equity Investments in Foreign Currency (USD)

217,516

344,111Equity Investments in Foreign Currency (EUR)

100,000

120,000

Equity Investments in Foreign Currency (CNY)99,791

99,791Equity Investments in Foreign Currency (INR)

890,000

890,000

Equity Investments in Foreign Currency (SGD)

165,999

165,999

99,331,849

101,327,608

Investments in Foreign Currency (USD)

Loans in Foreign Currency (USD)
Loans in Foreign Currency (GBP)

172,503

237,416

Loans in Foreign Currency (EUR)

1,115,647

1,285,028

Loans in Foreign Currency (ZAR)

752,900

749,400

Loans in Foreign Currency (AUD)

3,193,147

3,159,897

Loans in Foreign Currency (THB)

6,011,116

5,227,149

Loans in Foreign Currency (SDR)

320,208

208,133

Loans in Foreign Currency (CAD)

1,276,597

1,263,302

Loans in Foreign Currency (CNY)

174,980

148,320Loans in Foreign Currency (INR)—

341,600

Loans in Foreign Currency (MXN)

237,500

680,700

Loans in Foreign Currency (IDR)

384,600,000

288,000,000

JBIC  Annual Report 201611 Assets in Major Foreign Currencies

March 31, 2015133

12 Administrative Expense Ratio(Units: %)Data 2 Financial Statements

Fiscal Year Ended March 31, 2015

Fiscal Year Ended March 31, 2016

0.11

0.10

Administrative Expense Ratio(Note)	Administrative Expense Ratio = General and Administrative Expenses / (Average Balance of Loans and Bills Discounted + Average Balance of Securities + Average Balance ofCustomers’ Liabilities for Acceptances and Guarantees)

12 Administrative Expense Ratio

Balance of Loans / Borrowings, Bonds

13 and Notes by Maturity
Maturity Structure of Loans as of March 31, 2016
(Unit: 100 millions of yen)

Maturity

1 Year or Less

Collection from Loans

Maturity Structure of Borrowings from FILP Fiscal Loan
and Foreign Exchange Fund Special Account in total asof March 31, 2016
(Unit: 100 millions of yen)

11,97913 Balance of Loans / Borrowings, Bonds and Notes by Maturity

Maturity

1–2 Years

13,859

2–3 Years

13,766

1 Year or Less

6,811

3–4 Years

14,518

1–2 Years

10,448

4–5 Years

14,721

2–3 Years

40,847

11,258

3–4 Years

13,856

6–7 Years

11,158

4–5 Years

11,023

7–8 Years

8,191

5–6 Years

1,289

8–9 Years

9,099

6–7 Years

3,019

9–10 Years

6,759

7–8 Years

4,751

11-15 Years

15,306

8–9 Years

1,108

2,804

9–10 Years

1,230

154

Over 10 Years

5–6 Years

16-20 Years
21-25 Years
26-30 Years

7

31-35 Years—

36-40 Years—

Over 40 Years

—

Total

133,585(Note)	The figures exclude: ¥182,118 million, the amount of loans and other credits
to debtors who are legally or substantially bankrupt, as well as those who arelikely to become bankrupt, since they have no prospect for redemption.

Total

94,384

2016(Unit: 100 millions of yen)

Maturity

Redemption of Bonds and Notes

1 Year or Less

5,007

1–2 Years

3,687

2–3 Years

7,242

3–4 Years

2,390

4–5 Years

2,014

5–6 Years—

6–7 Years—

7–8 Years

1,126

8–9 Years

2,253

9–10 Years

3,017

Total

JBIC  Annual Report 2016—

Maturity Structure of Bonds and Notes as of March 31,

Over 10 Years

134

Repayment of Borrowings—
26,73914 Information on the Quality of Assets

i. Bankrupt Loans
Among loans that are placed in non-accrual status(except the portion deduced as allowance for loan
losses), when collection of either principal or interest
becomes doubtful for the reason that principal orinterest is past due for a considerable period of time orfor other reasons, those loans for which there is filing of
reorganization procedures under the Corporate
Reorganization Act rehabilitation procedures under the
Civil Rehabilitation Act, bankruptcy procedures underthe Bankruptcy Act, special liquidation procedures under
the Companies Act or other relevant laws, or there issuspension of transactions in promissory notes issued
by the debtors in the clearing house.

14 Information on the Quality of Assets(1) Risk-Monitored Loans
The following table shows the classification of riskmonitored loans based on the self-assessment of asset
quality in accordance with the disclosure standard ofrisk-monitored loans applied to commercial financial
institutions (under the Banking Act).

Each category of risk-monitored loans is defined
as follows:

Data 2 Financial Statements

Although the Banking Act and Act on Emergency
Measures for the Revitalization of the Financial Functionsof 1998 (the “Financial Revitalization Act”) do not apply
to JBIC, JBIC has made a self-assessment of the qualityof its assets since the fiscal year ended March 31, 2001,
in accordance with the standards set forth in the
Inspection Manual for Deposit-Taking Institutions of the
Financial Services Agency of Japan. This was aimed atincreasing disclosure on its asset quality and improving
the internal management of credit risks.
One characteristic of JBIC’s operations is that a
considerable portion of its loans is official credit for thegovernments of developing countries. Thus, when an
indebted country is temporarily unable to service debt
due to economic difficulties, debt rescheduling will
sometimes take place—based on an international
agreement among the creditor countries in the Paris
Club—in order to ensure sustainable debt service. A
debtor country receiving such temporary support forovercoming the liquidity problem will implement
economic restructuring programs agreed upon with theInternational Monetary Fund (IMF) to acquire sustainabledebt service capacity.
The loans rescheduled under the agreement in the
Paris Club have a high probability of repayment, because,
unlike loans provided by private financial institutions,
their nature as official credit provides an asset-securing
mechanism under the above international framework.
Nonetheless, to facilitate comparison with private
financial institutions, JBIC, in principle, discloses theloans rescheduled in the Paris Club and whose debtor
countries are categorized as “Needs Attention” in its selfassessment of asset quality, as loan assets required tobe disclosed classifying them either as restructuredloans (under the Banking Act) or substandard loans(under the Financial Revitalization Act).
ERNST & YOUNG SHINNIHON LLC audited JBIC’s
self-assessment regarding the quality of its assets,
including the following risk-monitored loans, loans to bedisclosed under the Financial Revitalization Act andreserves for possible loan losses, in accordance with thePractical Guidelines for Evaluation of Internal Control
over Valuation of Assets and Audits for Write-Offs andReserve for Possible Loan Losses of Banks and Similar
Institutions (Report No. 4 of the Ad Hoc Committee for
Audits of Banks, the Japanese Institute of Certified
Public Accountants (JICPA)).

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

Fiscal Year Ended Fiscal Year Ended
March 31, 2015
March 31, 2016

Bankrupt Loans——

Non-accrual Loans

120,482

111,407

Past Due Loans(3 months or more)

35,94544,719Restructured Loans

73,77098,714

Total (1)

230,198

254,840

14,432,949

13,540,661

1.59

1.88

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

JBIC  Annual Report 2016135

Data 2 Financial Statements(2) Loan Assets to Be Disclosed under
the Financial Revitalization Act
The following table shows the classification of loans
based on the self-assessment of asset quality inaccordance with the disclosure standard of the Financial
Revitalization Act.

14 Information on the Quality of Assets

i. Bankrupt and Quasi-bankrupt Assets“Bankrupt and Quasi-bankrupt Assets” are loans andother credits to debtors who have begun proceedings
under the Bankruptcy Act, the Corporate Reorganization
Act, the Civil Rehabilitation Act and other similar laws ofJapan and have financially failed. In the asset quality selfassessment, these loans are loans to debtors who arelegally or substantially bankrupt.
ii. Doubtful Assets“Doubtful Assets” are loans and other credits to debtors
whose financial and operational conditions havedeteriorated and who have a possibility that payment ofprincipal and / or interest will not be made on acontractual basis. In the asset quality self-assessment,these loans are loans to the debtors who are likely to
become bankrupt.
iii. Substandard Loans“Substandard Loans” are loans to debtors who are
categorized as “Needs Attention Debtor” in the asset
quality self-assessment, andA. loans whose principal and / or interest is overdue 3months or more from the date following thescheduled payment date but which are notcategorized as “Bankrupt and Quasi-bankrupt
Assets” and “Doubtful Assets” (“Past Due Loans (3months or more)”).
B. restructured loans on which the Bank granted
concessions to debtors in financial difficulties
through amending terms and conditions of theloans to assist them to recover and eventually beable to pay to creditors, but which are notcategorized as “Bankrupt and Quasi-bankrupt
Assets”, ”Doubtful Assets” or “Overdue Loans (3months or more)”. (Note)
iv. Normal Assets“Normal Assets” are loans to debtors with no particular
problem in their financial conditions, categorized in theasset quality self-assessment either as “Loans to Normal
Debtors” or “Loans to Needs Attention Debtors(excluding substandard loans)”, but which are notcategorized as “Bankrupt and Quasi-bankrupt Assets”,“Doubtful Assets” and “Substandard Loans”.

136

JBIC  Annual Report 2016

(Unit: millions of yen)

Fiscal Year Ended Fiscal Year Ended
March 31, 2015
March 31, 2016

Bankrupt and Quasibankrupt Assets

Loans

―

―

Doubtful Assets

120,482

111,415

Substandard Loans

109,716

143,433

Subtotal (1)230,198

254,849

Normal Assets

16,819,545

15,799,431

Total (2)17,049,743

16,054,280

1.35

1.59

(1) / (2) (%)

Note
In the event that a debtor country encounters temporary repayment difficulties inrespect of external public debt (sovereign debt, trade insurance institutions andexport credit institutions, etc.) due to the deteriorating balance of payments, meetingsof creditor countries (the “Paris Club”) will be held to mutually agree on debt relief
measures (rescheduling), and implementing of temporary support for overcoming
the liquidity problem (balance of payment support under an international cooperative
framework). With this temporary liquidity support, debtors carry out IMF-agreed
economic restructuring programs and continue to make debt repayments. The
principal amount of loans for which JBIC has agreed to provide debt relief pursuant
to the Paris Club agreements is ¥212,872 million as of the end of the fiscal year ended
March 31, 2016.
Loans to debtors classified under the self-assessment as “Needs Attention” (but not“Past Due Loans (3 months or more)”) that were rescheduled under the Paris Club as“Restructured loans”. The amount of such loans, included in “Restructured loans” in theabove table is ¥70,353 million, of which ¥70,353 million represents the original principal.

Financial Statements in Accordancewith International Financial ReportingStandards (IFRS) for Reference Only
The financial statements have been prepared in accordance with IFRS as adopted by the International AccountingStandards Board. Unless otherwise stated, all amounts in the financial statements are rounded down and stated inmillions of yen.
Ernst & Young ShinNihon LLC has audited the financial statements of JBIC, which comprise the statements of financial
position as of March 31, 2016 and 2015, and the income statements, statements of comprehensive income, statementsof changes in equity and statements of cash flows for the years then ended, and a summary of significant accounting
policies and other explanatory information, in accordance with International Standards on Auditing.

Data 2 Financial Statements

1. Excerpt from the financial statements in accordance with IFRSFinancial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

This document is an excerpt of JBIC’s financial statements prepared on a basis consistent with IFRS that are included
in JBIC’s annual report on Form 18-K filed with the U.S. Securities and Exchange Commission. This document does
not contain all of the information in the Form 18-K that is important to you. You should read the Form 18-K carefully toobtain a comprehensive understanding of JBIC’s financial statements under IFRS and related information.

Statement of Financial Position(Millions of yen)March 31, 2016

March 31, 2015

AssetsCash and due from banks
Derivative financial instrument assets
Securities

1,220,187

850,496237,274

174,946

154,976

173,758

Loans and other receivables

13,460,347

14,357,186

Equity method investments

106,618

115,358

Property and equipment

27,80428,295

Other assets

166,661

370,073

Total assets

15,373,870

16,070,115

Liabilities
Derivative financial instrument liabilities

570,245

991,161

Borrowings

9,438,450

9,425,316

Bonds payable

2,668,872

3,058,499

76,71084,708Financial guarantee contracts
Other liabilities

127,941

86,208

Total liabilities

12,882,220

13,645,893

Capital stock

1,391,000

1,391,000

Retained earnings

1,066,533

985,166

EquityOther reserves

34,11648,055

Total equity

2,491,649

2,424,222

Total liabilities and equity

15,373,870

16,070,115

JBIC  Annual Report 2016137

Data 2 Financial Statements

Income Statement(Millions of yen)

Financial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

March 31, 2016

March 31, 2015

Interest income

216,592

173,110

Interest expense

116,024

103,876

Net interest income

100,567

69,234

Fee and commission income

14,523

13,512

Fee and commission expense

1,653

2,088

Net income from derivative financial instruments

56,22725,760Net investment income

3,708

1,505

Other income

1,718

1,060

Income other than interest income

74,52439,749Total operating income *1

175,091

108,984

Impairment losses (reversals) on financial assets

12,320(13,176)

Net operating income *162,771

122,160

Operating expenses

16,734

9,985

2

Other expenses
Total operating expenses
Profits of equity method investments

883

419

17,618

10,404436

13,405145,589

125,161

March 31, 2016

March 31, 2015

145,589

125,161			 Remeasurement arising during the year

(537)

(642)

		 Total of items that will not be reclassified to profit or loss

(537)

(642)

Net profit*1 Aggregate of “Net interest income” and “Income other than interest income”*2 “Total operating income” less “Impairment losses (reversals) on financial assets”

Statement of Comprehensive Income(Millions of yen)

Net profit
Other comprehensive income
Items that will not be reclassified to profit or loss:
		 Remeasurement of defined benefit plans:

Items that may be reclassified to profit or loss:
		 Available -for-sale financial assets:
			 Net gains arising during the year

176

815

(2,726)(793)(3,461)(3,992)

			 Net gains (losses) arising during the year

(7,927)

14,829

		 Total of items that may be reclassified to profit or loss

(13,938)

10,859(14,476)

10,217

131,112135,378

			Reclassification adjustments
		 Deferred gains (losses) on hedges:
			Reclassification adjustments
		 Exchange differences on translation of foreign operations:

Other comprehensive income
Total comprehensive income

138

JBIC  Annual Report 2016

(Millions of yen)

Attributable to equity holders of Japan Bank for International Cooperation
Other reserves
Exchangedifferenceson translationof foreign
operations

Total

Total
equity5,315

16,664

15,21637,1952,303,527

—

—

—

—

—

125,161

—

(642)

22

(3,992)

14,82910,217

10,217—125,161(642)

22(3,992)

14,82910,217

135,378

31,000

—

—

—

—

—

—

31,000—(45,683)

—

—

—

—

—

(45,683)

Retainedearnings

1,360,000

906,331—

Net profit—

125,161

Other comprehensive
income—Total comprehensive
incomeApril 1, 2014

Issuance of newsharesPayment to nationaltreasury
Other

Remeasurement Available-forof definedsale financial
benefit plans
assets

—

(642)

642

—

—

—

642

—

1,391,000

985,166—

5,338

12,671

30,04548,0552,424,222

Net profit—

145,589

—

—

—

—

—

145,589

Other comprehensive
income

—

—

(537)

(2,550)(3,461)(7,927)(14,476)(14,476)

Total comprehensive
income—145,589(537)(2,550)(3,461)(7,927)(14,476)

131,112Issuance of newshares

—

—

—

—

—

—

—

—

Payment to nationaltreasury—(63,684)

—

—

—

—

—

(63,684)

Other

—

(537)

537

—

—

—

537

—

1,391,000

1,066,533

—

2,787

9,210

22,117

34,1162,491,649

March 31, 2015

March 31, 2016

JBIC  Annual Report 2016

Financial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

Deferred
gains(losses) onhedgesCapitalstock

Data 2 Financial Statements

Statement of Changes in Equity

139

Data 2 Financial Statements

Statement of Cash Flows(Millions of yen)March 31, 2016

March 31, 2015

145,589

125,161

Cash flows from operating activities
Net profit
Depreciation and amortization

Financial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

1,302

1,356

Increase (decrease) in liability for retirement benefits344(7,342)

Profits of equity method investments(436)(13,405)

Net decrease (increase) in loans and other receivables

896,839(1,783,913)

Net increase (decrease) in borrowings

13,134

1,017,608

Net decrease (increase) in deposits (excluding demand deposits)

171,193

230,543

Net decrease (increase) in receivables under resale agreements—

202,733

Net change of derivative financial instrument assets and liabilities(483,244)

584,362(7,997)

12,807

Net increase (decrease) in financial guarantee contracts
Net increase (decrease) in bonds payable(389,626)

324,609

Other

258,744(353,332)

Net cash provided by (used in) operating activities

605,843

341,187

Purchase of securities(55,373)(29,768)

Proceeds from sales or redemption of securities

Cash flows from investing activities
75,960

2,372

Purchase of equity method investments(181)(1,158)Proceeds from return of equity method investments

1,850

11,917

Other

(367)

(2,718)21,888(19,356)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of new shares
Payment to national treasury
Other

—

31,000(63,684)(45,683)

(13)

(12)

(63,698)(14,695)

Exchange difference on cash and cash equivalents(23,150)

50,715

Net increase (decrease) in cash and cash equivalents

540,884

357,850

Cash and cash equivalents at the beginning of the year

571,695

213,845

1,112,579

571,695

Net cash provided by (used in) financing activities

Cash and cash equivalents at the end of the year
Net cash provided by (used in) operating activities includes the following:

140

Interest received

194,052

162,226

Interest paid

(118,022)(116,172)

JBIC  Annual Report 2016

* JBIC has adopted Japanese GAAP for reporting purposes. Audited financial statements of JBIC for the fiscal year ended March 31, 2016 and 2015 prepared on a basis consistent
with IFRS are being disclosed for reference purposes in order to improve comparability with other issuers outside of Japan.

Reconciliation of assets, liabilities, and equity as of March 31, 2016

IFRS

Notes

AssetsCash and due from banks

Securities
Loans

Property and equipment
Intangible assets
Other assets
Customers’ liabilities for
acceptances and guarantees
Allowance for loan losses
Total assets

Accounts under IFRS

AssetsCash and due from banks

1,220,187——

1,220,187—

237,336(62)

237,274A

236,602(84,500)

2,874

154,976

B, F

Securities

Derivative financial
instrument assets

13,540,661(119,355)

39,041

13,460,347

C, E

Loans and otherreceivables—

84,50022,117

106,618F

Equity method
investments

27,804——27,804

Property and equipment

2,737(2,737)——

256,188(89,527)—

166,6612,464,703—(2,464,703)—

EC(168,262)

168,262——

17,580,622

193,979(2,400,731)

15,373,870

A, C Other assets

Total assets

Liabilities

Liabilities
A

Derivative financial
instrument liabilities

2,668,872

D

Bonds payable

76,71076,710E

Financial guarantee
contracts(7,090)

—

—

G

39

(39)

—

—

G

528,890(367,710)(33,238)

127,941

516

(516)

—

—

6

(6)

—

—

Acceptances and guarantees

2,464,703—(2,464,703)—

Total liabilities

15,108,255

193,979(2,420,014)

12,882,220

1,391,000——

1,391,000—

569,343902

570,245

Borrowed money

9,438,450

Bonds payable

2,668,558——

9,438,450

—

314

—

—

Provision for retirement
benefits

7,090

Provision for directors’
retirement benefits
Other liabilities
Provision for bonuses
Provision for directors’ bonuses

Borrowings

A, G Other liabilities

E
Total liabilities

EquityCapital stock
Retained earnings

Financial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

Differences in
Accounts under Japanese GAAP Japanese GAAP Reclassifications recognition andmeasurement(Millions of yen)

Data 2 Financial Statements

2. Reconciliation of assets, liabilities, and equity as of March 31, 2016 and 2015, and reconciliation of net
profit for the fiscal years ended March 31, 2016 and 2015, between accounting principles generally
accepted in Japan (Japanese GAAP) and IFRS as adopted by the International Accounting Standards
Board, and non-GAAP financial information calculated and presented on the basis of methodologies
other than in accordance with generally accepted accounting principles.*EquityCapital stock
Retained earnings

972,140—

94,392

1,066,533—

109,226(75,110)

34,116

Valuation difference on
available-for-sale securities

4,303(4,303)——

Deferred gains or losses onhedges104,923(104,923)——

Total equity

2,472,367—

19,282

2,491,649

Total equity

Total liabilities and equity

17,580,622

193,979(2,400,731)

15,373,870

Total liabilities and equity

A

Other reserves

JBIC  Annual Report 2016141

Data 2 Financial Statements

Reconciliation of assets, liabilities, and equity as of March 31, 2015
(Millions of yen)

Differences in
Accounts under Japanese GAAP Japanese GAAP Reclassifications recognition andmeasurement

IFRS

Notes

AssetsCash and due from banks

Securities
Loans

AssetsCash and due from banks

850,496——

850,496—

174,967(20)

174,946A

261,786(85,313)(2,715)

173,758

B, F

Securities

Financial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

14,432,949(71,027)(4,735)

14,357,186

C, E

—

85,31330,045

115,358

F

Equity method
investments

28,295——28,295Intangible assets

3,154(3,154)——

Property and equipment
A, C Other assets

430,297(60,223)—370,073

Customers’ liabilities for
acceptances and guarantees

2,572,328—(2,572,328)—

E

Allowance for loan losses(115,492)

115,492——

C

18,463,816

156,053(2,549,754)

16,070,115

Total assets

Total assets

Liabilities

Liabilities
A

Derivative financial
instrument liabilities

3,058,499

D

Bonds payable

84,70884,708E

Financial guarantee
contracts(6,395)

—

—

G

30

(30)

—

—

G

949,227(826,810)(36,208)

86,208

500

(500)

—

—

—

989,798

1,363

991,161

Borrowed money

9,425,316

Bonds payable

3,049,490——

9,425,316

—

9,009

—

—

Provision for retirement
benefits

6,395

Provision for directors’
retirement benefits
Other liabilities
Provision for bonuses
Provision for directors’ bonuses

6

(6)

—

—

Acceptances and guarantees

2,572,328—(2,572,328)—

Total liabilities

16,003,296

156,053(2,513,456)

13,645,893

1,391,000——

1,391,000

993,053—(7,886)985,166—

76,467(28,412)48,055

Valuation difference on
available-for-sale securities

12,786(12,786)——

Deferred gains or losses onhedges

63,681(63,681)——

Borrowings

A, G Other liabilities

E
Total liabilities

EquityCapital stock
Retained earnings

142

Derivative financial
instrument assets
Loans and otherreceivables

Property and equipment
Other assets

Accounts under IFRS

EquityCapital stock
Retained earnings
A

Other reserves

Total equity

2,460,520—(36,298)

2,424,222

Total equity

Total liabilities and equity

18,463,816

156,053(2,549,754)

16,070,115

Total liabilities and equity

JBIC  Annual Report 2016

(Millions of yen)Accounts under Japanese GAAP

Differences inJapanese GAAP Reclassifications recognition andmeasurement

IFRS

Notes

Accounts under IFRSInterest income

213,806(13,355)

16,141

216,592

C

Interest income

Interest expenses

123,779—(7,755)116,024

DInterest expense

100,567

Net interest incomeC

Fee and commission
income22,091—(7,567)

14,523

Fees and commissions
payments

1,653

—

—

1,653

—

11,104

45,12356,227

—

3,865

(157)

3,708

Gains on sales of stocks
and other securities*1

1,890(1,890)

—

—

—

1,823

(105)

1,718

Other ordinary income

141

(141)

—

—

Other (income)*1

160

(160)

—

—

Extraordinary income

43

(43)

—

—

Recoveries of written-off
claims*1
Provision of allowance for loan
losses *2

Fee and commission
expenseOther ordinary expenses
Losses on sales of stocks andother securities *2

Net income fromderivative financial
instruments

A

Net investment income

Other income

74,524

Income other thaninterest income

175,091

Total operating income—

52,770(40,450)

12,320

B, C

0

(0)

—

—

C

52,770(52,770)——

C

Impairment losses on
financial assets

Net operating income

162,771

General and administrative
expenses

17,631—(897)

16,734

G

Operating expenses

—

1,164

(280)

883

D

Other expenses

1,310(1,310)

—

—

130

(130)

—

—

Total operating expenses

17,618

—

436

—

436

Gain on investments inpartnerships*1

1,914(1,914)——

Net income

42,772—

102,817

145,589

Financial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

Fees and commissions

Data 2 Financial Statements

Reconciliation of net profit for the year ended March 31, 2016

F

Profits of equity method
investments

Net profit*1 The sum of these amounts is included in “Other income” in the income statement prepared under Japanese GAAP.
*2 The sum of these amounts is included in “Other expenses” in the income statement prepared under Japanese GAAP.

JBIC  Annual Report 2016143

Data 2 Financial Statements

Reconciliation of net profit for the year ended March 31, 2015
(Millions of yen)Accounts under Japanese GAAP

Differences inJapanese GAAP Reclassifications recognition andmeasurement

IFRS

Notes

Interest income

192,973(24,581)

4,718

173,110C

Interest income

Interest expenses

116,076—(12,200)

103,876

DInterest expense

69,234

Net interest incomeC

Fee and commission
incomeFinancial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

Fees and commissions

35,901—(22,389)

13,512Fees and commissions
payments

2,088

—

—

2,088

—

22,596

3,164

25,760

—

1,465

39

1,505

Gains on sales of stocks
and other securities*

0

(0)

—

—

—

7,286

(6,225)

1,060

Other ordinary income

4,100(4,100)——

Other (income)*
Extraordinary income

148

(148)

—

—

5,707

(5,707)——

Fee and commission
expenseA

Other income

39,749

Income other thaninterest income

108,984

Total operating income—(13,392)

216(13,176)

B, C

Recoveries of written-off
claims*

101

(101)

—

—

C

Reversal of allowance forloan losses *13,392(13,392)——

C

General and administrative
expenses

17,004

Other ordinary expenses

16

Extraordinary loss

Impairment losses(reversals) on financial
assetsNet operating income—(7,019)9,985

GOperating expenses

—

1,081

(662)

419

D

Other expenses

1,585(1,585)

—

—

(16)

—

—

Total operating expenses

10,404—

13,405—

13,405Gain on investments inpartnerships*

10,633(10,633)——

Net income

126,187—(1,026)125,161* The sum of these amounts is included in “Other income” in the income statement prepared under Japanese GAAP.

JBIC  Annual Report 2016

Net income fromderivative financial
instruments
Net investment income

122,160

144

Accounts under IFRSFProfits of equity method
investments

Net profit

A. Derivative financial instrument assets and liabilities

Financial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

Under Japanese GAAP, derivative financial instrument assets are included in “Other assets” and derivative financial instrument liabilities
are included in “Other liabilities.” Under IFRS, they are presented in a separate line item. In addition, derivative financial instrument assets
and liabilities offset Japanese GAAP do not meet the offsetting criteria under IFRS; accordingly, they are presented on a gross basis in thestatement of financial position.
Under IFRS, the fair value of derivative financial instrument assets and liabilities is determined using observable market dataconsidering the counterparty’s and JBIC’s credit risk.
JBIC applies hedge accounting under Japanese GAAP but it is not applied under IFRS. For hedges in hedging relationships of types
that qualify for hedge accounting under Japanese GAAP but that do not qualify under International Accounting Standards (“IAS”) 39
Financial Instruments: Recognition and Measurement , deferred gains or losses on hedges under Japanese GAAP have been transferred toretained earnings at the date of transition. Further, in respect of hedges that qualify for hedge accounting under Japanese GAAP but that
do not meet the conditions for hedge accounting under IAS 39, JBIC discontinued hedge accounting in accordance with the following
method for each hedge category:

Data 2 Financial Statements

Notes to the reconciliation of assets, liabilities, and equity as of March 31, 2016 and 2015, and thereconciliation of net profit for the fiscal years ended March 31, 2016 and 2015

i. Cash flow hedges
Deferred gains or losses on hedges are recognized in profit or loss based on cash flows arising from the hedged transactions.
ii. Fair value hedges
Deferred gains or losses on hedges under Japanese GAAP are transferred to retained earnings at the transition date, and the carrying
amount of the hedged item is adjusted to the lower of the following. Such adjustments are recorded in retained earnings and thenamortized using the effective interest method and recognized in profit or loss.
a. the portion of the cumulative change in the fair value of the hedged item that reflects the designated hedged risk and was notrecognized under Japanese GAAP; orb. the portion of the cumulative change in the fair value of the hedging instrument that reflects the designated risk and was either notrecognized or deferred in the statement of financial position as an asset or a liability under Japanese GAAP.

B. Securities
Under Japanese GAAP, investments in equity securities of affiliates are included in “Securities” but they are presented separately as “Equity
method investments” under IFRS. See F. “Equity method investments” for differences in measurement methods.
Unlisted stocks included in securities are carried at cost under Japanese GAAP, but under IFRS, they are categorized as available-forsale financial assets and measured, in principle, at fair value and the changes in fair value are recognized in other comprehensive income.
Impairment losses are also recognized, as necessary.
Under Japanese GAAP, investments in partnerships included in securities are recognized at an amount equivalent to JBIC’s share of
the net assets of the partnership, which is determined based on the most recent financial statements of the partnership available as of thereporting date as defined in the partnership agreement. Under IFRS, they are measured, in principle, at fair value and the changes in fairvalue are recognized in other comprehensive income. Impairment losses are also recognized, as necessary.

C. Loans and other receivables
Under Japanese GAAP, accrued interest income on loans is included in “Other assets.” Under IFRS, it is presented in a separate line item
under “Loans and other receivables.” Under IFRS, loans and other receivables are measured at fair value plus directly attributabletransaction costs at initial recognition and subsequently measured at amortized cost using the effective interest method. Loan origination
fees are amortized as part of the effective interest method when they are considered an integral part of originating the related loans.
Under Japanese GAAP, a general allowance for loan losses is recorded, in addition to a specific allowance for loan losses.
On the other hand, IFRS uses an incurred loss model and an impairment loss is recognized if, and only if, JBIC assesses at thereporting date that there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of
the asset (a loss event), and that loss event (or events) has an impact on the estimated cash flows of the financial asset or a group offinancial assets that can be reliably estimated. Impairment losses in respect of a group of loans and other receivables that are collectively
evaluated for impairment, such as impairment losses for incurred but not reported losses, are recognized on the basis of historical loss
experience for assets with credit risk characteristics similar to those in the group. The carrying amount of loans and other receivables isreduced by the impairment loss through an allowance for loan losses account.
For loans in hedging relationships designated as fair value hedges under Japanese GAAP but which no longer meet the conditions forhedge accounting under IAS 39, the carrying amounts are adjusted at the transition date in accordance with IFRS 1 in light of the
discontinuance of hedge accounting.
“Loans and other receivables” include financial assets associated with financial guarantee contracts as described in “E. Financial
guarantee contracts.”

D. Borrowings and Bonds payable
Under Japanese GAAP, bond issuance costs are expensed as incurred. Under IFRS, bonds payable are initially measured at fair value lessthe transaction costs that are directly attributable to bond issuance, such as fees paid to underwriters and discounts at issuance, andsubsequently measured at amortized cost using the effective interest method. In addition, borrowings and bonds payable are amortized,
after considering adjustments to their carrying amounts related to discontinuing associated fair value hedges.

JBIC  Annual Report 2016145

E. Financial guarantee contracts
Data 2 Financial Statements

Under Japanese GAAP, the contractual amounts of financial guarantee obligations are recorded as assets in “Customers’ liabilities for
acceptances and guarantees” and liabilities in “Acceptances and guarantees” on the statement of financial position in the same amount.
Under IFRS, both financial assets and financial liabilities associated with financial guarantee contracts are initially measured at fair value
and are subsequently measured at the higher of (a) the amount initially recognized less cumulative amortization recognized and (b) theamount of estimated expenditure required to settle the guarantee obligation at the reporting date.

F. Equity method investments

Financial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

JBIC’s investments in associates and joint ventures primarily comprise investments in partnerships. Under Japanese GAAP, JBIC does not
use the equity method in its separate financial statements as it does not prepare any consolidated financial statements and, therefore,such investments are recognized at an amount equivalent to JBIC’s share of the net assets of the partnership, which is determined basedon the most recent financial statements of the partnership available as of the reporting date as defined in the partnership agreement.
Certain of JBIC’s share of the “Gain on investments in partnerships” under Japanese GAAP are accounted for using the equity method
under IFRS. Such gains or losses are presented as “Profits of equity method investments.” Exchange differences on translation of foreign
operations resulting from the application of the equity method are recognized in other comprehensive income.

G. Liability for retirement benefits
Under Japanese GAAP, actuarial gains and losses in respect of defined benefit plans are expensed and included in profit or loss in the
period in which they arise. However, under IFRS, remeasurement of defined benefit plans is recognized directly in other comprehensive
income as incurred and immediately transferred to retained earnings. Retirement benefit obligations are remeasured in accordance withapplicable IFRS, and gains and losses arising from the application of the period allocation method are recognized as adjustments toretained earnings. Liabilities for retirement benefits are included in “Other liabilities” in the statement of financial position.

146

JBIC  Annual Report 2016

JBIC undertakes derivative financial instruments exclusively to hedge interest rate risks and foreign exchange risks. Under Japanese GAAP,
hedge accounting is applied in the financial statements and net gains or losses from the valuation of derivative financial instruments are
not recognized in net profit. In the financial statements under IFRS disclosed for reference purposes, JBIC does not apply hedge
accounting under IAS39. Accordingly, net gains or losses from the valuation of derivative financial instruments and net gains or losses fromthe amortization of deferred gains or losses on hedges from discontinued hedge accounting at the date of transition are recognized in net
profit in accordance with IFRS*.

Financial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

As these derivative financial instruments are entered into for hedging purposes, they are not cancelled before the maturity dates. Although
the net gains or losses arising from the valuation of derivative financial instruments are temporal and not yet realized, such temporary net
gains or losses arising from the valuation of such derivative financial instruments have a substantial impact on net profit in accordancewith IFRS when there is a significant change in the relevant market factors. In order to enhance the understanding of the results ofoperations of JBIC, “adjusted net profit in accordance with IFRS before IFRS adjustments for hedge accounting” is calculated by excluding
the temporary net gains or losses from the valuation under IFRS as a non-GAAP financial measure in order to supplement thereconciliation between Japanese GAAP and IFRS.

Data 2 Financial Statements

Adjusted net profit in accordance with IFRS before IFRS adjustments for hedge accounting (Non-GAAP
information calculated and presented on the basis of methodologies other than in accordance withgenerally accepted accounting principles)

Adjusted net profit in accordance with IFRS before IFRS adjustments for hedge accounting is reconciled from net profit in accordance withIFRS by excluding the temporary gains or losses from the valuation of derivative financial instruments as follows:(Billions of yen)March 31, 2016

March 31, 2015

Net profit in accordance with IFRS (A)

145.5

125.1

Net gains (losses) from the valuation of derivative financial instruments

41.6

(0.8)

Net gains from the amortization of deferred gains or losses on hedges
from discontinued hedge accounting at the date of transition

10.8

15.4

52.5

14.7

93.0

110.4

Sub-total (B)Adjusted net profit in accordance with IFRS before IFRS adjustments forhedge accounting (A) − (B)Net profit in accordance with IFRS, adjusted net profit in accordance with IFRS before IFRS adjustments for hedge
accounting and net profit in accordance with Japanese GAAP for the fiscal years ended March 31, 2016 and 2015

(Billions of yen)

160.0

145.5

140.0

126.1

125.1

120.0

110.4
93.0

100.0
80.0
60.0

42.7

40.0
20.0
0.0
March 31, 2016
IFRS

March 31, 2015

Adjusted IFRS before IFRS adjustments for hedge accounting

Japanese GAAP

* See “A. Derivative financial instrument assets and liabilities” for the difference between Japanese GAAP and IFRS about the accounting policies for derivative financial instruments.

JBIC  Annual Report 2016

147

148

JBIC  Annual Report 2016

Data 3

Corporate Data
1

Organizational Chart  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150

2

Overseas Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

3

History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152

4

Japan Bank for International Cooperation Act . . . . . . . . . . . . . . . . . . 153

5

Fundamental Policy on Internal Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161

6

Security Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163

7

Privacy Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164

JBIC  Annual Report 2016149

1 Organizational Chart
Data 3 Corporate Data

JBIC is constituted by six business groups: four mission/sector-specific finance groups (Energy and Natural
Resources Finance Group; Infrastructure andEnvironment Finance Group; Industry Finance Group; andEquity Finance Group) and the Corporate Group and theCredit, Assessment, and Systems Group which support
these finance groups.
This organizational structure was intended tostrengthen the capacity to formulate projects by bringing
together know-how and expertise in each sector andCorporate Group

1 Board of Directors and Auditors

Global Head of Corporate GroupManaging Executive Officer: Kenichiro Hayashi(As of October 1, 2016)

area, thereby creating an institution that can execute thefunctions in its mission more flexibly and strategically:
the mission directly linked to Japan’s economic policy. In
the network of overseas representative offices,
Singapore, London and New York are assigned as coreregional headquarters to supervise business andadministrative activities as well as support project
formulation in Asia and Pacific; Europe, the Middle East
and Africa, and the Americas respectively.

Corporate Planning Department

Legal Affairs and Compliance Office

Risk Management Department

Policy and Strategy Office for Financial
Operations

Director General: Masaaki Yamada

Director General: Mitsuru Sato

Treasury Department

Director General: Tsuyoshi Nishitani

Director General: Naoya Komatsu

Director General: Kazuhisa Yumikura

Human Resources Management OfficeDirector General: Kazuhiko Tanaka

Administration and General Services
Department
Energy and Natural Resources
Finance Group

Global Head of Energy and Natural Resources
Finance GroupManaging Executive Officer: Kazuhiko Amakawa

Director General: Yasushi Sunouchi

Oil and Gas Finance Department
Director General: Masayuki Tanimoto

Mining and Metals Finance Department
Director General: Yusuke Izeki

Infrastructure and Environment
Finance Group

Global Head of Infrastructure and Environment
Finance GroupManaging Executive Officer: Hideo Naito

New Energy and Power Finance
Department I
Director General: Yutaka Inaba

New Energy and Power Finance
Department II
Director General: Kazunori Ogawa

Social Infrastructure Finance
Department
Director General: Yosuke Watanabe

Industry Finance Group

Global Head of Industry Finance GroupManaging Executive Officer: Shigeki Kimura

Corporate Finance Department
Director General: Shigeto Hashiyama

Finance Office for SMEs

Director General: Manabu Homma

Marine and Aerospace Finance
Department
Director General: Koichi IsobeWest Japan Office

Executive Officer for West Japan: Yoshimasa Ohashi

Equity Finance Group

Global Head of Equity Finance GroupManaging Executive Officer: Shinji Fujino

Credit, Assessment, and Systems
Group

Global Head of Credit, Assessment, and Systems
Group
Managing Executive Officer: Kuninori Kuroishi

Equity Investment Department
Director General: Makoto Uchida

Credit Department

Director General: Kenichi Aso

Environmental Assessment OfficeDirector General:Noriko Nasu

Country Credit Department
Director General: Yo Kikuchi

IT Planning and Operations
Administration Department
Director General: Hideto Usuyama

Internal Audit Department
Director General: Zenko Shinoyama

Singapore

Office of Corporate Auditor

Beijing
Hanoi
ManilaOverseas Representative Offices

LondonRegional Headquarters for Asia and Pacific

Executive Officer for Asia and Pacific: Munetaka
Horiguchi
Executive Officer for Europe, the Middle East
and Africa: Moriyuki Aida

150

Executive Officer for the Americas: Yutaka Funada

JBIC  Annual Report 2016

BangkokJakarta
New Delhi

Regional Headquarters for Europe, the Middle East andAfricaMoscow
Dubai

Paris

New York

Regional Headquarters for the Americas

Washington, D.C.
Mexico City

Buenos Aires
Rio de Janeiro

2 Overseas Network(As of October 1, 2016)

●
Paris

★New York●
Washington, D.C.

Beijing●
New Delhi●
Dubai●

Hanoi●●Manila

Bangkok●●
Mexico City

Data 3 Corporate Data

●Moscow
London★

Singapore★
Jakarta●

2 Overseas Network●
Rio de Janeiro●
Buenos Aires★Regional Headquarters

 REPRESENTATIVE OFFICE IN

 REPRESENTATIVE OFFICE IN
NEW DELHI
1st floor, The Metropolitan Hotel New
Delhi, Bangla Sahib Road,New Delhi, 110001, India
Tel. 91-11-4352-2900
Fax. 91-11-4152-5294

 REPRESENTATIVE OFFICE IN

 REPRESENTATIVE OFFICE IN BEIJING
2102, Tower C Office Building,YINTAI Center, No.2 Jianguomenwai
Avenue, Chaoyang District,
Beijing 100022, P.R.C.
Tel. 86-10-6505-8989
Fax. 86-10-6505-3829

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

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

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

SINGAPORE(Regional Headquarters for Asia and Pacific)

9 Raffles Place, #51-02 Republic Plaza,
Singapore 048619
Tel. 65-6557-2806
Fax. 65-6557-2807

 REPRESENTATIVE OFFICE IN HANOI
3rd Floor, Sun City,
13 Hai Ba Trung Street,
Hoan Kiem District, Hanoi, Vietnam
Tel. 84-4-3824-8934, 8935, 8936
Fax. 84-4-3824-8937
 REPRESENTATIVE OFFICE IN JAKARTA
Summitmas II 5th Floor,
Jl. Jenderal Sudirman, Kav. 61-62,
Jakarta Selatan, Indonesia
Tel. 62-21-5220693
Fax. 62-21-5200975
 REPRESENTATIVE OFFICE IN MANILA
11/F, Tower 1, The Enterprise Center,
6766 Ayala Avenue corner Paseo deRoxas, Makati City, Philippines
Tel. 63-2-856-7711, 7712, 7713, 7714
Fax. 63-2-856-7715, 7716

(Regional Headquarters for Europe, the Middle
East and Africa)

7th Floor, 80 Cheapside,
London, EC2V 6EE, U.K.
Tel. 44-20-7489-4350
Fax. 44-20-7489-4351

 REPRESENTATIVE OFFICE IN PARIS
21, Boulevard de la Madeleine,
75038 Paris Cedex 01, France
Tel. 33-1-4703-6190
Fax. 33-1-4703-3236
 REPRESENTATIVE OFFICE IN DUBAI
9th floor, West, The Gate Dubai
International Financial Centre,
P.O. Box 121300, Dubai, U.A.E.
Tel. 971-4-363-7091
Fax. 971-4-363-7090

NEW YORK(Regional Headquarters for the Americas)

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

 REPRESENTATIVE OFFICE IN
BUENOS AIRES
Av.Del Libertador No.498, Piso19,
1001, Capital Federal,
Buenos Aires, Argentina
Tel. 54-11-4394-1379, 1803
Fax. 54-11-4394-1763
 REPRESENTATIVE OFFICE IN
MEXICO CITY
Paseo de la Reforma 222-900B,
Col. Juárez, Del. Cuauhtémoc,México D.F., C.P. 06600, México
Tel. 52-55-5525-6790
Fax. 52-55-5525-3473
 REPRESENTATIVE OFFICE IN
RIO DE JANEIRO
Praia de Botafogo, 228, Sala 801B,
Setor A, Botafogo, Rio de Janeiro,
RJ, CEP 22250-906, Brazil
Tel. 55-21-2554-2305
Fax. 55-21-2554-8798

JBIC  Annual Report 2016151

3 History
Data 3 Corporate Data

Events related to The Export-Import Bank of Japan (JEXIM)
December 1950

The Japan Export Bank Act promulgated and enforced; The Japan Export Bank established

April 1952

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

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

3 History

April 1999

The Japan Bank for International Cooperation Act promulgated and enforced

September 1999

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

October 1999

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

Events related to the Japan Finance Corporation
June 2006

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

May 2007The Japan Finance Corporation Act promulgated and enforced

April 2008

Order for the Japan Finance Cooperation Act promulgated and enforced

October 2008

The Japan Finance Corporation establishedMarch 2010

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

April 2010

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

The Japan Bank for International Cooperation Act promulgated and partially enforced

July 2011

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

April 2012

The Japan Bank for International Cooperation (JBIC) established

November 2012

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

May 2016

The Act for Partial Amendment of the Japan Bank for International Cooperation Act promulgated and partially enforced
The Cabinet Order for Revising Part of the Order for Enforcement of the JBIC Act promulgated and enforced

October 2016152

The account for the Special Operations created

JBIC  Annual Report 2016

4 Japan Bank for International
Cooperation Act

(2)

(3)

Article 3: Holding of Shares by Government
The Government shall, at all times, hold the total number of outstanding
shares of JBIC.
Article 4: Government’s Contribution
1. The Government may, when it finds it to be necessary, makecontributions to JBIC within the amount appropriated in the budget.
2. When a contribution is made by the Government pursuant to theprovisions of the preceding Paragraph, JBIC shall, notwithstanding
the provisions of Paragraph 2 of Article 445 of the Companies
Act (Act No. 86 of 2005), be allowed not to record the amountexceeding half of such contribution amount as the capital. In thiscase, “this Act” referenced in Paragraph 1 of the same Article
shall be deemed to be replaced with “this Act or Japan Bank forInternational Cooperation Act (Act No. 39 of 2011).”
3. When a contribution is made by the Government pursuant to theprovisions of Paragraph 1, JBIC shall allocate the capital andreserves increased thereby, to the accounts related to theoperations listed in each Item of Article 26-2, in accordance withthe separation of accounting set forth in Article 26-2.

(4)

Article 5: Limitation, etc. on Use of Name
1. No person other than JBIC shall use the words “Japan Bank forInternational Cooperation” in its name.
2. The provisions of Paragraph 2 of Article 6 of the Banking Act shallnot be applied to JBIC.
(5)Article 6: 
Resolution for Appointment and Removal, etc. of
Officers, etc.
1. The resolution for the appointment and removal of the Officers,etc. (meaning Directors, Executive Officers and Auditor(s); thesame shall apply hereinafter) of JBIC shall not take effect unlessthe authorization of the Minister of Finance is granted.
2. The resolution for selection and displacement of a Representative
Director or Representative Executive Officer of JBIC shall not takeeffect unless the authorization of the Minister of Finance is granted.
Article 11: Scope of Operations
JBIC shall, for attaining its purpose, engage in the operations
listed below:(1) The loan of funds necessary for the Export of Equipment,
etc., the acquisition by assignment of loan receivables related
to such funds, the Guarantee, etc. of Liabilities related tosuch funds, in the case where the Foreign Financial Institutions,(6)etc. or the Foreign Governments, etc. provide the Guarantee,
etc. of Liabilities with respect to such funds, the Guarantee,
etc. of Liabilities related to such Guarantee, etc. of Liabilities,
or the acquisition of the Public/Corporate Bonds, etc. issued
in order to procure such funds by certain measures, such as
acquisition through subscription;
The loan of funds necessary to ensure the reliable andtimely Import of Important Goods, etc., the acquisition by
assignment of loan receivables related to such funds, theGuarantee, etc. of Liabilities related to such funds or theacquisition of the Public/Corporate Bonds, etc. to be issued
in order to procure such funds by certain measures, such as
acquisition through subscription;
The loan of funds to be used directly or indirectly for the business
which the Juridical Persons, etc. of Japan, Foreign Governments,
etc. or Foreign Juridical Persons, etc. Invested in conduct
outside Japan, the acquisition by assignment of loan receivables
related to such funds, the Guarantee, etc. of Liabilities related
to such funds, in the case where the Juridical Persons, etc. ofJapan, Foreign Juridical Persons, etc. Invested in, Foreign
Financial Institutions, etc. or Foreign Governments, etc. provide
the Guarantee, etc. of Liabilities to the Juridical Persons, etc.
of foreign countries with respect to such funds, the Guarantee,
etc. of Liabilities related to such Guarantee, etc. of Liabilities,
or the acquisition of the Public/Corporate Bonds, etc. to beissued in order to procure such funds by certain measures,such as acquisition through subscription;(i) The loan to the Foreign Governments, etc., Foreign Financial
Institutions, etc. or international organizations, such as theInternational Monetary Fund, of long-term funds (meaning
the funds required to be provided for more than one (1) year)
required for their overseas business or the import of goods
or introduction of technologies by the foreign country
concerned, or funds required to attain the internationalbalance of payments or achieve the stability of the currencyof the foreign country concerned, (ii) the acquisition by
assignment of loan receivables related to such funds or the
Guarantee, etc. of Liabilities related to such funds or (iii) the
acquisition of the Public/Corporate Bonds, etc. issued inorder to procure such funds by certain measures, such as
acquisition through subscription;
When it is found remarkably difficult for a foreign government
or foreign resident to conduct overseas transactions, suchas import by reason of the international balance of paymentsof the foreign country concerned, and it is found urgently
necessary, the loan to the governments, governmental
agencies or banks of the foreign country concerned, of theshort-term funds (meaning the funds required necessary to
be provided for one (1) year or less than one (1) year; thesame shall apply hereinafter) necessary to facilitate overseas
transactions, such as import, until the International Monetary
Fund, etc. (meaning international organizations, such as theInternational Monetary Fund, or governments, governmental
agencies or banks of more than two (2) countries other thanthat foreign country concerned; the same shall apply
hereinafter) provides funds to assist the development of theeconomy of the foreign country concerned (hereinafterreferred to as the “Funds for Economic Assistance”);
The provision of contributions to persons who are carrying
on business outside Japan (including those Juridical Persons,

JBIC  Annual Report 2016

4 Japan Bank for International Cooperation Act

Article 1: Purpose
Japan Bank for International Cooperation shall be a Kabushiki-Kaisha,
which has the purpose of contributing to the sound development ofJapan and the international economy and society, by taking
responsibility for the financial function to promote the overseas
development and securement of resources which are important forJapan, to maintain and improve the international competitiveness ofJapanese industries and to promote the overseas business having
the purpose of preserving the global environment, such as preventing
global warming, also providing the financial services that are necessary
to prevent disruptions to international financial order or to takeappropriate measures with respect to damages caused by suchdisruption, while having the objective of supplementing the financialtransactions implemented by ordinary financial institutions.

Data 3 Corporate Data

Excerpt of the Japan Bank for International Cooperation Act (Act No. 39 of 2011)153

Data 3 Corporate Data

etc. of Japan whose sole purpose is to make overseas
investments and who make contributions to those carrying
on the aforesaid business) to contribute funds required fortheir business;(7) The carrying out of the necessary studies related to theoperations listed in each of the preceding Items;(8) The provision of information to the users of operations
provided by JBIC that pertains to such operations; and(9) Any other operations incidental to those listed in each of thepreceding Items (excluding those listed in Item (7)).

4 Japan Bank for International Cooperation Act

Article 12:
1. Among the operations listed in Item (1) of the preceding Article,
those which are related to the Export of Equipment, etc. destinedfor any area other than developing overseas areas (hereinafterreferred to as the “Developing Areas”) may be conducted only inthe cases listed below:(1) when necessary countermeasures are taken in accordancewith multilateral arrangements in the case where the Foreign
Governments, etc., in which exporters conduct the export
destined for the said area, grant credit, underwrite insurance
or provide an interest(including those prescribed by theOrdinance of the Ministry of Finance as having an economic
nature similar to an interest; the same shall apply hereinafterin Paragraph 2 of Article 16) support with more favorable
conditions than usual in order to promote the export fromsuch foreign countries; or(2) when it is prescribed by a Cabinet Order as being a caserecognized especially necessary in order to promote thepolicies of the Government concerning the maintenance or
improvement of the international competitiveness ofJapanese industries.
2. Among the operations listed in Item (1)of the preceding Article,
those relating to the funds provided to the Juridical Persons, etc.
of Japan may be conducted only in the cases listed below:(1) where Banks, etc. provide Foreign Juridical Persons, etc. withthe loan of funds with respect to the Export of Equipment,
etc. necessary for the business with respect to thedevelopment of infrastructure and other foundation forsocioeconomic activities overseas, and JBIC provides theloan of necessary funds for such loan to the Banks, etc.; or(2) where the execution of the export by the Juridical Persons,etc. of Japan has become remarkably difficult due todisruptions to international financial order and the Ministerof Finance determines that the exceptions of operations of
JBIC are necessary in order to deal therewith.
3. Among the operations listed in Item (2) of the preceding Article,
other than those conducted in order to promote overseas
development and securement of resources important for Japan,
only those relating to the funds listed below that are the Guarantee,
etc. of Liabilities may be conducted:(1) funds necessary to import the products, such as aircraft,specified by the Minister of Finance, with respect to which
the products made in Japan are not sufficient to replace andthe import to Japan is essential; or(2) funds necessary to introduce such technologies specified
by the Minister of Finance, with respect to which thetechnologies of Japan are not sufficient to replace and theintroduction to Japan is essential.
4. Among the operations listed in Item (3) of the preceding Article,
those relating to the short-term loans may be conducted onlyin the case where JBIC has agreed to make loan of funds (excluding
short-term funds) set forth in the same Item for the executionof business conducted by the Juridical Persons, etc. of Japanand the Foreign Juridical Persons, etc. Invested in and such

154

JBIC  Annual Report 2016

loan of funds is recognized especially necessary in order to executesuch business.
5. Among the operations listed in Item (3) of the preceding Article,
the loan of funds necessary for the overseas business to be
conducted by the Juridical Persons, etc. of Japan, other than thoselisted in Item (2) of the following Paragraph, may be conducted
only if such loan is provided directly to such Juridical Persons, etc.
6. Among the operations listed in Item (3) of the preceding Article(excluding those conducted in order to promote overseas
development and securement of resources important for Japan),loans to the Juridical Persons, etc. of Japan, other than the loans
to the Small and Medium Enterprises, etc. (meaning the Smalland Medium Enterprises or medium enterprises specified by the
Minister of Finance; hereinafter the same shall apply) may be
conducted only in the cases listed below.
(1) When the Juridical Persons, etc. of Japan begin or expand
overseas business, or improve the efficiency thereof bycontributing to the foreign juridical persons or accepting theassignment of all or part of the business of the foreign juridical
persons (hereinafter referred to as “Contributions, etc.” inthis Item), in the case where the loan of funds necessary forsuch Contributions, etc. is provided (only when it is prescribedby a Cabinet Order as being a case recognized especiallynecessary in order to promote the policies of the Government
concerning the maintenance or improvement of theinternational competitiveness of Japanese industries).
(2) When the Banks, etc. provide the loan of funds listed below,
in the case where the loan of funds necessary for such loan
by such Banks, etc. is provided to such Banks, etc.:		a. loan of funds set forth in Item (3) of the preceding Article
to the Small and Medium Enterprises, etc. or the Foreign
Juridical Persons, etc. Invested in related to the contributionof the Small and Medium Enterprises, etc.;
		b. loan of funds set forth in the preceding Item to the Juridical
Persons, etc. of Japan (limited to those prescribed by the
Cabinet Order set forth in the same Item); or		
c. loan of funds set forth in Item (3) of the preceding Article
to the Juridical Persons, etc. of Japan, Foreign Governments,
etc., or Foreign Juridical Persons, etc. Invested in (limited
to those related to the business with respect to thedevelopment of infrastructure and other foundation forsocioeconomic activities overseas).
(3) When the loan of necessary funds is provided to the Juridical
Persons, etc. of Japan for such Juridical Persons, etc. toconduct a business of leasing equipment made in Japan tooverseas market (limited to those prescribed by a Cabinet
Order as being a case recognized especially necessary inorder to promote the policies of the Government concerning
the maintenance or improvement of the international
competitiveness of Japanese industries).
(4) When the execution of overseas business of the Juridical
Persons, etc. of Japan has become remarkably difficult due
to disruptions to international financial order, in the casewhere the Minister of Finance determines that the exceptionsof operations of JBIC are necessary in order to deal therewith.
7. Among the operations listed in Item (3) of the preceding Article(excluding those conducted in order to promote overseas
development and securement of resources important for Japan),with respect to the business in any area other than the Developing
Areas may be conducted only when it is prescribed by a Cabinet
Order as being a case recognized especially necessary in orderto promote the policies of the Government concerning themaintenance or improvement of the international competitivenessof Japanese industries.
8. The loan to the governments, governmental agencies or banks

JBIC  Annual Report 2016

4 Japan Bank for International Cooperation Act

Specific Purpose Company, etc. or the Trust Company, etc.
which are secured by loan receivables or the Public/Corporate
Bonds, etc. are acquired;(4) where the Guarantee, etc. of Liabilities relating to the Public/
Corporate Bonds, etc. to be issued by the Foreign Juridical Persons,etc. Invested in, the Foreign Financial Institutions, etc., the Foreign
Governments, etc. or international organizations, such as theInternational Monetary Fund, is provided;(5) where the Guarantee, etc. of Liabilities related to such loan
receivables, Public/Corporate Bonds, etc. or the monetaryclaims, which constitute such underlying assets, or the Public/
Corporate Bonds, etc. to be issued by the Specific Purpose
Company, etc. or the Trust Company, etc. is provided(excluding the Guarantee, etc. of Liabilities related to the
Public/Corporate Bonds, etc. to be issued by the Banks, etc.)
when the Specific Purpose Company, etc. or the Trust
Company, etc. issues the Public/Corporate Bonds, etc. which
are secured by loan receivables, the Public/Corporate Bonds,
etc. or the monetary claims set forth in Item (3) of thepreceding Paragraph;(6) where the Guarantee, etc. of Liabilities related to the borrowingof funds by the Specific Purpose Company, etc. for the purposeof acquiring by assignment, or acquiring, such loan receivables
or Public/Corporate Bonds, etc., which constitute such
underlying assets, is provided when the Specific Purpose
Company, etc. issues the Public/Corporate Bonds, etc., which
are secured by loan receivables or the Public/Corporate
Bonds, etc.; or(7) where corporate bonds, any equivalent bond certificates orbeneficial interests in trust (limited to those with a redemption
period of more than one (1) year) that were issued by Juridical
Persons, etc. in order to procure the funds necessary for thebusiness with respect to the development of infrastructure
and other foundation for socioeconomic activities overseas,
are acquired.
11. Among the operations listed in Items (1) through (4) of thepreceding Article, those listed below shall be conducted only
when the loan thereof or the loan related to the loan receivables
to be assigned is the Co-financing; provided, however, that
this shall not apply, with respect to the operations listed in
Item (1) below, in the case where it is recognized that it isremarkably difficult for the Banks, etc. to provide a loan offunds together with JBIC and the loan from JBIC is urgently
necessary to attain the purpose of such loan, or if the casefalls under any of the cases listed in Item (1) of Paragraph 2
or Item (2) of Paragraph 6 hereof, with respect to theoperations listed in Item (2) below, in the case where theloan receivables to the Foreign Juridical Persons, etc. Invested
in with a redemption period of more than one (1) year are
acquired by assignment within the period specified by the
Minister of Finance for the purpose of assigning the same to
the Specific Purpose Company, etc. or for the purpose of
establishing the Specific Trust, with respect to the same, in
the Trust Company, etc. and assigning all or part of thebeneficial interest in such Specific Trust:(1) loan of funds pursuant to the provisions of Items (1) through(3) of the preceding Article made to the Juridical Persons,etc. of Japan; or(2) acquisition by assignment of the loan receivables pursuant to
the provisions of Items (1) through (4) of the preceding Article.
12. The operations listed in Item (7) of the preceding Article may be
conducted only if they are the minimum necessary to promote
the performance of the operations listed in Items (1) through (6)of the same Article smoothly and effectively.

Data 3 Corporate Dataof foreign countries listed in Item (5) of the preceding Article may
be conducted by obtaining the authorization of the Minister ofFinance only when the provision of the Funds for Economic
Assistance from the International Monetary Fund, etc. is expected
to be certain and only in the cases listed below:(1) where, by appropriating all or part of the Funds for Economic
Assistance from the International Monetary Fund, etc.
(excluding JBIC) for the redemption of the funds related to
the loan, the redemption is expected to be secured; or(2) where adequate underlying assets are secured for the loan.
9. Among the operations listed in Items (1) through (4) of thepreceding Article, the Guarantee, etc. of Liabilities related to theliabilities of any person other than the Juridical Persons, etc. ofJapan (excluding those related to the Public/Corporate Bonds,etc.) may be provided only in the cases listed below:(1) When the Banks, etc., Foreign Financial Institutions, etc. or
Foreign Governments, etc. provide the loan of such funds
set forth in Items (1) through (4) of the preceding Article, inthe case where the Guarantee, etc. of Liabilities related tosuch loan is provided (including the case in which the loan
receivables related to such loan are assigned to the persons
specified by the Minister of Finance);(2) In the case where the Guarantee, etc. of Liabilities related to
the Guarantee, etc. of Liabilities set forth in Items (1) and (3)of the preceding Article is provided;(3) When, among the Guarantee, etc. of Liabilities related to thefunds set forth in Item (3) of the preceding Article, the Juridical
Persons, etc. of Japan or the Foreign Juridical Persons, etc.
Invested in assign the monetary claims related to the overseas
business to be conducted by the Juridical Persons, etc. ofJapan or the Foreign Juridical Persons, etc. Invested in to the
Banks, etc. or Foreign Financial Institutions, etc. and use theproceeds from the assignment for such business, in the casewhere the Guarantee, etc. of Liabilities related to suchmonetary claims is provided; or(4) When the Banks, etc. or Foreign Financial Institutions, etc.
provide the loan of funds set forth in Item (3) of the preceding
Article in foreign currency, in the case where the Guarantee,
etc. of Liabilities related to swap transactions (transactions
listed in Item 5 of Paragraph 22 of Article 2 of the Financial
Instruments and Exchange Act (Act No. 25 of 1948)) related
to such funds conducted by such Banks, etc. or Foreign
Financial Institutions, etc., is provided.
10. Among the operations listed in Items (1) through (4) of thepreceding Article, the Guarantee, etc. of Liabilities (limited to thoserelated to the Public/Corporate Bonds, etc.) and the acquisitionof the Public/Corporate Bonds, etc. may be conducted only inthe cases listed below (with respect to the operations listed in
Items (1) through (3) of the same Article, the cases listed in Items(2) through (7) below shall apply):(1) where part of the Public/Corporate Bonds, etc. (limited tothose with a redemption period of more than one (1) year;
the same shall apply in the following Item and Item (3) below)that were issued by the Foreign Financial Institutions, etc.,
the Foreign Governments, etc. or international organizations,such as the International Monetary Fund, are acquired;(2) where the Public/Corporate Bonds, etc. are acquired andthen such Public/Corporate Bonds, etc. are assigned to theSpecific Purpose Company, etc. within the period specified
by the Minister of Finance or where the Specific Trust isestablished, the Public/Corporate Bonds, etc. are entrusted
to the Trust Company, etc. as assets of such Specific Trust,and then all or part of beneficial interests in such SpecificTrust is assigned;(3) where the Public/Corporate Bonds, etc. to be issued by the155Data 3 Corporate Data

Article 13: Practice of the Operation
1. The loan of funds, the acquisition by assignment of loan receivables,
the acquisition of the Corporate/Public Bonds, etc., the Guarantee,
etc. of Liabilities or the provision of contributions pursuant to theprovisions of Items (1) through (6) of Article 11 hereof may be
conducted only in the cases listed below:(1) when the repayment of the funds so loaned, the collectionof loan receivables so acquired, the redemption of Corporate/
Public Bonds, etc. so acquired, the performance of theliabilities so guaranteed, etc. or the realization of profits thatenable the payment of dividends resulting from business socontributed is recognized as being certain; or(2) when the conditions, such as the interest rates (including
those prescribed by the Ordinance of the Ministry of Financeas having an economic nature similar to interest rates; thesame shall apply hereinafter in the following Paragraph) ofloans (including those prescribed by the Ordinance of the
Ministry of Finance as having an economic nature similar toa loan; the same shall apply hereinafter in the following
Paragraph and Paragraph 2 of Article 16) and yield on loan
receivables related to such loan (excluding loan of funds
pursuant to the provisions of Items (2) and (5) of Article 11),such acquisition by assignment (excluding acquisition by
assignment of loan receivables pursuant to the provisionsof Item (2) of the same Article), such acquisition (excluding
the acquisition of the Public/Corporate Bonds, etc. pursuant
to the provisions of the same Item), such Guarantees, etc.
of Liabilities (excluding guarantee, etc. of liabilities pursuant
to the provisions of the same Item) or such contribution (forall such operations, limited to those related to the businesses
with respect to the development of infrastructure and otherfoundation for socioeconomic activities overseas), arerecognized as being appropriate, in light of the risks, etc. ofsuch loans, such assigned loan receivables and other assets
becoming irrecoverable(excluding the cases listed in thepreceding Item).
2. The conditions, such as the interest rates of loans and yield on
assigned loan receivables related to the operations listed in Items(1) through (6) of Article 11, shall be determined in light of usual
conditions for transactions by the Banks, etc. or the trends offinancial markets, so that revenue of each of the accounts of therespective operations listed in each of the Items of Article 26-2
will be sufficient to cover the expenses therefor.

4 Japan Bank for International Cooperation Act

Article 13-2: Special Operations Guidelines
1. The Minister of Finance shall prescribe and make public theguidelines (hereinafter referred to as the “Special Operations
Guidelines” in the following Paragraph and Paragraph 1 of
the following Article) that JBIC shall follow upon conducting
the operations listed below (hereinafter referred to as the“Special Operations”):(1) Operations listed in Items (1), (3), (4) and (6) of Article 11that are conducted in the cases listed in Item (2), Paragraph
1 of the preceding Article;(2) Operations listed in Item (7) of Article 11 related to theoperations listed in the preceding Item;(3) Operations listed in Item (8) of Article 11 related to theoperations listed in the preceding two (2) Items; or(4) Operations listed in Item (9) of Article 11 related to theoperations listed in the preceding three (3) Items (excluding
operations listed in Item (2)).
2. The Special Operations Guidelines shall set forth thefollowing matters:(1) Standards to follow upon conducting the loan of funds, theacquisition by assignment of loan receivables, acquisition of

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(2)
(3)

(4)

(5)

(6)

the Public/Corporate Bonds, etc., the Guarantee, etc. of
Liabilities or conducting the contributions related to theSpecial Operations;
Matters regarding appropriate financial management of theSpecial Operations;
Matters regarding supplement of financial transactions
implemented by ordinary financial institutions in respect of
the Special Operations;
Matters regarding the system for conducting evaluation andmonitoring with respect to the status of the implementationof the Special Operations;
Matters regarding reports to the Minister of Finance withrespect to the status of the implementation of the Special
Operations; andOther matters necessary to ensure appropriate implementationof the Special Operations.

Article 13-3:Basic Policy concerning the Special Operations
1. JBIC shall set forth a basic policy concerning the Special Operations(hereinafter referred to as the “Special Operations Basic Policy”
in the following Paragraph) with respect to the implementationof matters regarding the Special Operations as prescribed by theOrdinance of the Ministry of Finance, pursuant to the Special
Operations Guidelines, and obtain the authorization of the Ministerof Finance. The same shall apply if JBIC intends to make anychanges thereto.
2. When the Minister of Finance determines that the Special
Operations Basic Policy, approved pursuant to the provisions of
the preceding Paragraph, has become inappropriate for JBIC to
conduct the Special Operations appropriately, the Minister ofFinance may order JBIC to change it.
Article 15: Business YearThe business year of JBIC shall begin on April 1 of each year and end
on March 31 of the following year.
Article 16: Budget
1. JBIC shall prepare the budget for revenues and expenditures andsubmit it to the Minister of Finance for each business year.
2. The revenues set forth in the preceding Paragraph mean interest
on loans (including those prescribed by the Ordinance of the
Ministry of Finance as having an economic nature similar to aninterest), interest on the Corporate/Public Bonds, etc., dividends
on contributions, debt guarantee fees and other incomes related
to asset management and miscellaneous incidental income, andthe expenditures set forth in the same Paragraph mean expenseof operations, business entrustment fees, interest on borrowings(including those prescribed by the Ordinance of the Ministry of
Finance as having an economic nature similar to a borrowing; thesame shall apply hereinafter in Paragraphs 1 and 3 of Article 33),
interest on bonds and notes and incidental expenses.
3. Upon receipt of the budget submitted pursuant to the provisionsof Paragraph 1 above, the Minister of Finance shall examine suchbudget and make any necessary adjustments thereto, and obtain
the Cabinet’s decision thereon.
4. After the Cabinet’s decision is made pursuant to the provisionsof the preceding Paragraph, the Cabinet shall submit such budget
to the Diet together with the national budget.
5. The form and content of the budget and procedures for the
preparation and submission thereof shall be specified by the
Minister of Finance.
Article 26: Submission of Financial Statements
1. JBIC shall prepare the list of assets every business year.
2. JBIC shall, within three (3) months after the end of every businessArticle 26-3: Mutatis Mutandis Application of the Companies Act,etc. in respect of Separate Accounting
1. The provisions of Article 295, 337, 374, 396, Articles 431 through443, and Articles 446 and 447 of the Companies Act shall apply
mutatis mutandis to the separate accounting implemented by
JBIC pursuant to the provisions of the preceding Paragraph. In
such case, the term, “of a Stock Company”, referenced in Article
446 of the same Act, shall be deemed to be replaced with “thatbelongs to the account established under the provision of Article26-2 of Japan Bank for International Cooperation Act (Act No. 39
of 2011)”; the term, “the amounts listed in item (v) through (vii)from the sum”, also referenced therein, shall be deemed to be
replaced with “the amounts listed in item (v) through (vii), whichis recorded in the account to which the said surplus belongs to,from the sum which is recorded in the account to which the said
surplus belongs to”; and the term, “stated capital”, referenced
in Paragraphs 1 and 2 of Article 447 of the same Act, shall bedeemed to be replaced with “stated capital belonging to the accountestablished pursuant to the provision of Article 26-2 of Japan
Bank for International Cooperation Act”; the term, “reserves”,
referenced in Item 2 of Paragraph 1 of the same Article, shall bedeemed to be replaced with “reserves belonging to the accountestablished pursuant to the provision of the same Article”; andthe term, “and the reserves”, also referenced therein, shall bedeemed to be replaced with “and such reserves”; the term “thestated capital”, referenced in Paragraph 3 of the same Article,
shall be deemed to be replaced with “the stated capital belonging
to the account established pursuant to the provision of Article26-2 of Japan Bank for International Cooperation Act”; and theterm, “the stated capital”, also referenced therein, shall be deemed
to be replaced with “the stated capital belonging to the accountestablished pursuant to the provision of the same Article”; andany other necessary technical replacement of terms shall be
specified by a Cabinet Order.
2. The provisions of Article 448, 449, and Paragraphs 1 (limited tothe portions related to Item 5 thereof) and 2 (limited to the portions
related to Item 5 thereof) of Article 828 of the Companies Act
shall apply mutatis mutandis to the accounting practices
implemented by JBIC by separating it pursuant to the provisionsof the preceding Article, except for the case where any surplus
is accumulated as a reserve under the provisions of Paragraph 1
of Article 31 hereof and the case where such reserve is drawn
down pursuant to the provision of Paragraph 2 of Article 31 hereof.
In this case, the term “the reserves”, referenced in Paragraphs 1
and 2 of Article 448 of the same Act, shall be deemed to be replacedwith “the reserves belonging to the account established pursuant

4 Japan Bank for International Cooperation Act

Article 26-2: Separate Accounting
JBIC shall separate the accounting for each category of operations
listed below and allocate it by establishing the respective accounts
for each category:(1) Operations other than the Special Operations (referred toin Article 33 as “Ordinary Operations”); and(2) Special Operations.

to the provision of Article 26-2 of Japan Bank for International
Cooperation Act”; the term “the stated capital”, referenced in
Item 2 of Paragraph 1 of the same Article shall be deemed to be
replaced with “the stated capital that shall belong to the accountestablished pursuant to the provision of the same Article”; theterm, “and the stated capital”, also referenced therein, shall bedeemed to be replaced with “and such stated capital”; the term,“the reserves”, referenced in Paragraph 3 of the same Article,
shall be deemed to be replaced with “the reserves belonging to
the account established pursuant to the provision of Article 26-2
of Japan Bank for International Cooperation Act”; and the term,“the reserves”, also referenced therein in the same Paragraph,shall be deemed to be replaced with “the reserves belonging to
the account established pursuant to the provision of the same
Article”; and any other necessary technical replacement of terms
shall be specified by a Cabinet Order.
3. In the case where JBIC increases or reduces the amount of its
stated capital belonging to the account established pursuant to
the provisions of the preceding Article, an amount of JBIC’s statedcapital shall be the sum of the amounts of stated capital belonging
to all the accounts of JBIC after the implementation of such increaseor reduction; and in the case where JBIC increases or reduces
the amount of its reserves belonging to the account establishedpursuant to the provision of the same Article, the amount of JBIC’s
reserves shall be the sum of the amounts of the reserves belonging
to all the accounts of JBIC after the implementation of such increaseor reduction. In this case, the provisions of Articles 447 through449, and Paragraphs 1 (limited to the portions related to Item 5)
and 2 (limited to the portions related to Item 5)of Article 828 of
the Companies Act shall not apply.

Data 3 Corporate Data

year, submit to the Minister of Finance the balance sheets,
statements of operations and list of assets (hereinafter referred
to as the “Balance Sheets, etc.”) and business report (including
the Electro-Magnetic Record (which means the record specified
by the Minister of Finance as a record which is produced byelectronic, magnetic, or any other means unrecognizable by humanperception and which is used for data-processing by a computer;the same shall apply hereinafter) which has recorded the mattersto be described in such Balance Sheets, etc. and its business
report) for each business year.

Article 27: Preparation and Submission of Report on Settlementof Accounts
1. After submitting the Balance Sheets, etc. pursuant to the provisionsof Paragraph 2 of Article 26, JBIC shall, every business year, preparea report on the settlement of accounts for the relevant businessyear (including the Electro-Magnetic Record which has recorded
the matters to be described in such report on the settlement ofaccounts; the same shall apply hereinafter) and submit it to the
Minister of Finance, without delay, by attaching the opinion of the
Auditor(s), Audit and Supervisory Committee or Audit Committee
concerning such report on the settlement of accounts, together
with such submitted Balance Sheets, etc.
2. Upon receiving the report on the settlement of accounts pursuant
to the provisions of the preceding Paragraph, the Minister ofFinance shall send it to the Cabinet, together with the Balance
Sheets, etc. referenced in the same Paragraph.
3. Upon making the submission pursuant to the provisions ofParagraph 1 of this Article, JBIC shall, without delay, keep thereport on the settlement of accounts and the document stating
the opinion of the Auditor(s), Audit and Supervisory Committeeor Audit Committee at its head office and branch offices and makethem available for public inspection during the period prescribedby the Ordinance of the Ministry of Finance.
4. The form and content of the report on the settlement of accounts
shall be specified by the Minister of Finance.
Article 28: S ending of Report on Settlement of Accounts toBoard of Audit of Japan
Upon receiving JBIC’s report on the settlement of accounts pursuant
to the provisions of Paragraph 2 of the preceding Article, the Cabinet
shall send it, together with the Balance Sheets, etc. set forth inParagraph 1 of the same Article, to the Board of Audit of Japan nolater than November 30 of the following business year.

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Data 3 Corporate Data

Article 29: Submission of Report on Settlement of Accounts
to DietThe Cabinet shall submit JBIC’s report on the settlement of accounts
for which the Board of Audit of Japan has finished its inspection, tothe Diet, by attaching the Balance Sheets, etc. set forth in Paragraph
1 of Article 27 hereof, together with the settlement of accounts fornational revenues and expenditures.

4 Japan Bank for International Cooperation Act

Article 31: Payment to National Treasury
1. In each of the accounts related to the operations listed in each
Item of Article 26-2, in the event that the amount of the surplus
recorded in the settlement of accounts for each business year
exceeds zero, JBIC shall accumulate, as a reserve, the amountcalculated in accordance with the standards prescribed by a
Cabinet Order, among such surplus, until it reaches the amountprescribed by the Cabinet Order, and if there is still a surplus,
JBIC shall pay the amount of such surplus into the National Treasury
within three (3) months after the end of such business year.
2. In the event that the amount of the surplus recorded in thesettlement of accounts for each business year falls below zero in
the respective accounts set forth in the preceding Paragraph,
JBIC shall allocate such surplus by drawing down the reserve set
forth in the same Paragraph until the amount of such surplus
becomes zero.
3. The procedures for the payment into the National Treasury
pursuant to the provisions of Paragraph 1 of this Article, the accountinto which such payment is to be made and other necessary mattersconcerning the payment to the National Treasury shall beprescribed by a Cabinet Order.
4. The reserves set forth in Paragraph 1 shall be allocated for eachcategory of the accounts related to the operations listed in each
Item of Article 26-2.
5. JBIC shall not be allowed to make any appropriation of its surplus,
such as dividend of its surplus, nor any appropriation of its surplus
belonging to the accounts related to the operations listed in each
Item of Article 26-2, such as dividends of such surplus, unlesssuch disposition is made pursuant to the provisions of Paragraphs
1 and 2 of this Article.

3.
4.

5.

6.

7.
Article 32: Provision of Loans by Government
The Government may provide monetary loans to JBIC.
Article 33: Borrowings and Corporate Bonds
1. Borrowing of funds (including those prescribed by the Ordinanceof the Ministry of Finance as having an economic nature similar
to a borrowing; the same shall apply hereinafter in this Article,
Paragraph 1 of Article 35 and Item 5 of Article 46) made in order
to meet JBIC’s fund requirements for the performance of its
operations shall be limited to the borrowings of short-term loans(including those prescribed by the Ordinance of the Ministry of
Finance as having an economic nature similar to short-term loans;the same shall apply hereinafter in the following Paragraph andParagraph 6), or long-term loans in foreign currency (meaning aborrowing of an amount in foreign currency with a repayment
period of more than one (1) year; the same shall apply hereinafterin this Article and Paragraph 1 of Article 35), from financial
institutions, such as banks, or the borrowings related to themonetary loans obtained from the Government pursuant to theprovisions of the preceding Article.
2. The short-term loans (excluding those in foreign currency) set
forth in the preceding Paragraph shall be repaid during the businessyear in which these borrowings are made; provided, however,that in cases where repayment cannot be made due to shortageof funds, JBIC may reborrow (including those prescribed by theOrdinance of the Ministry of Finance as having an economic nature

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JBIC  Annual Report 20168.

9.

similar to an act of reborrowing; the same shall apply hereinafterin the following Paragraph and Paragraph 7) only the amountwhich cannot be so repaid, with the authorization of the Ministerof Finance.
Loans reborrowed pursuant to the proviso of the preceding
Paragraph shall be repaid within one (1) year.
Pursuant to the provisions of a Cabinet Order, JBIC shall, every
business year, prepare a basic policy concerning the issuance ofcorporate bonds and the borrowing of long-term loans in foreign
currency made in order to meet fund requirements for the
performance of its operations and obtain the authorization of the
Minister of Finance. When JBIC intends to make any change tothe policy, the same shall apply.
When JBIC has issued corporate bonds or borrowed the long-termloans in foreign currency pursuant to the provisions of preceding
Paragraph, it shall, without delay, make a notification of suchfact to the Minister of Finance pursuant to the provisions prescribedby a Cabinet Order; provided, however, that this shall not apply
if JBIC issues the certificates of corporate bonds, as prescribedby a Cabinet Order, in order to deliver to anyone who has
lost such certificates of corporate bonds and, as a result of theissuance of such certificates of corporate bonds, JBIC assumes
new liabilities.
The total amount of (i) the outstanding amounts of the short-termloans, the long-term loans in foreign currency and the borrowings
related to the monetary loans obtained from the Government as
set forth in Paragraph 1 of this Article that are made in order tomeet JBIC’s fund requirements for the performance of its Ordinary
Operations, and (ii) the outstanding amount of liabilities relating
to the principal amount of corporate bonds set forth in Paragraph
4 of this Article that are issued in order to meet JBIC’s fundrequirements for the performance of its Ordinary Operations shallnot exceed the amount (hereinafter referred to as the “Limitation
Amount Related to Ordinary Operations” in this Article) equivalent
to ten (10) times the total amount of the capital and reserves
belonging to the account related to the Ordinary Operations of
JBIC (hereinafter referred to as the “Base Amount Related toOrdinary Operations” in this Article).
Notwithstanding the provisions of the preceding Paragraph, when
the issuance of new bonds is necessary to reborrow the issued
corporate bonds with respect to corporate bonds set forth inParagraph 4 of this Article that were issued in order to meet JBIC’s
fund requirements for the performance of its Ordinary Operations,the corporate bonds may be issued in excess of the Limitation
Amount Related to Ordinary Operations only within the period
necessary to make such reborrowing.
Among the Ordinary Operations, the total amount of the outstanding
amounts of (i) monetary loans, (ii) acquisition of the receivables
related to assignment and the Corporate/Public Bonds, etc., (iii)liabilities relating to the Guarantee, etc. of Liabilities and (iv)contributions, all of which are made pursuant to the provisions ofItems (1) through (6) of Article 11 hereof, shall not exceed theaggregate amount of the Base Amount Related to Ordinary Operations
and the Limitation Amount Related to Ordinary Operations.
The provisions set forth in the preceding three (3) paragraphs shallapply mutatis mutandis to the Special Operations. In this case, theterm, “Base Amount Related to Ordinary Operations”, referenced
in Paragraphs 6 and the preceding Paragraph, shall be deemed tobe replaced with “Base Amount Related to Special Operations”;
the term,“ Limitation Amount Related to Ordinary Operations”,
referenced in the preceding three (3) paragraphs, shall be deemed
to be replaced with “Limitation Amount Related to Special
Operations”; and the term, “through (6)”, referenced in the preceding
Paragraph, shall be deemed to be replaced with“, Item (3),(4) and (6)”.

Article 35: Government Guarantee
1. Notwithstanding the provisions of Article 3 of the Act Concerning
Restrictions on Financial Assistance by the Government to
Corporations (Act No. 24 of 1946), the Government may executea guarantee agreement with respect to the liabilities related to
JBIC’s corporate bonds (excluding the liabilities with respect towhich the Government may execute a guarantee agreement underParagraph 2 of Article 2 of the Act on Special Measures Pertaining
to the Acceptance of Foreign Capital from the International Bankfor Reconstruction and Development, etc. (Act No. 51 of 1953)(referred to as the “Foreign Capital Acceptance Act” in the following
Paragraph and Paragraph 1 of Article 16 of the Supplementary
Provisions)) or the liabilities related to the long-term loans in foreign
currency, within the scope of the amount fixed by the budget.
2. Among the amount fixed by the budget set forth in the preceding
Paragraph, the amount of liabilities related to the corporate bonds
issued in a foreign country and denominated in Japanese currency
may be fixed by adding up to the amount fixed by the budget as
set forth in Paragraph 2 of Article 2 of the Foreign Capital
Acceptance Act, when it is difficult to fix the said amount of liabilities
separately from the said amount fixed by the budget set forth in
the same paragraph of the Foreign Capital Acceptance Act.
3. The Government may, in addition to the provisions of Paragraph
1 of this Article, execute a guarantee agreement with respect tothe liabilities related to the certificates of corporate bonds or coupons
thereof, which are issued by JBIC, pursuant to the provisions
prescribed by a Cabinet Order, in order to deliver to a person who
has lost the certificates of corporate bonds or coupons thereof.
Article 36: Investment of Surplus Funds
JBIC shall not invest any surplus funds of its business except bymeans of:(1)	Acquisition of national government bonds, local government
bonds or government-guaranteed bonds (which mean thebonds for which the redemption of its principal and payment
of interest thereon are guaranteed by the Government) andother securities designated by the Minister of Finance;(2) Deposit with the Fiscal Loan Fund;(3)	Deposit with banks or other financial institutions designatedby the Minister of Finance;(4) Holding of negotiable deposit certificates;(5) Money trust to the financial institutions engaging in trust
business (which mean the financial institutions thathave obtained the authorization set forth in Paragraph
1 of Article 1 of the Act on Provision, etc. of Trust Businessby Financial Institutions);(6) Lending of call funds; or(7) Means prescribed in the Ordinance of the Ministry of Financeas the means equivalent to the means listed in each of thepreceding Items.

Article 39: Report and Inspection
1. If the Minister of Finance finds it necessary for the enforcementof this Act, the Minister of Finance may cause JBIC or the Juridical
Person Delegated to submit reports or may cause its officials toenter the facilities of JBIC or of the Juridical Person Delegated,such as the offices to inspect the accounting books, documents
and other necessary objects; provided, however, that, with respect
to the Juridical Person Delegated, such action shall be limited tothe scope of operations delegated to it by JBIC.
2. When an official of the Minister of Finance carries out an on-site
inspection pursuant to the provisions of the preceding Paragraph,he/she shall carry with him/her identification certifying his/her
status and present it to parties concerned.
3. The authority to carry out the on-site inspection pursuant to theprovisions of Paragraph 1 above shall not be construed to be thatgiven for the investigation of a criminal offense.

4 Japan Bank for International Cooperation Act

Article 34: Statutory Lien
1. A holder of JBIC’s corporate bonds shall, with respect to theproperty of JBIC, have the right to have his/her receivables satisfied
in preference to other creditors.
2. The order of the statutory lien set forth in the preceding Paragraphshall be next to the general liens prescribed by the provisions of
the Civil Code (Act No. 89 of 1896).

Article 38: Supervision
1. The Minister of Finance shall supervise JBIC in accordance withthe provisions of this Act.
2. With respect to the management or administration of JBIC, in thecase where the Minister of Finance finds that there is a violationof laws and regulations or the Articles of Incorporation or any
grossly unjust matter exists and in other cases where they findit necessary for the enforcement of this Act, the Minister of Financemay issue JBIC orders concerning its operations as are necessary
for the supervision.

Data 3 Corporate Data

10. The monetary funds financed through the borrowing of funds orthe issuance of the corporate bonds pursuant to the provisionsof this Article shall, in accordance with the separate accounting
set forth in Article 26-2 hereof, be allocated to the respective
accounts relevant to the operations listed in each Item of thesame Article.

Article 40: Delegation of Authority
1. The Minister of Finance may, as prescribed by a Cabinet Order,delegate part of the authority to carry out an on-site inspection
pursuant to the provisions of Paragraph 1 of the preceding Article
to the Prime Minister.
2. If the Prime Minister has carried out an on-site inspection pursuant
to the provisions of Paragraph 1 of the preceding Article on thebasis of the delegation pursuant to the provisions of the preceding
Paragraph, he/she shall promptly submit a report of the resultsof the inspection to the Minister of Finance.
3. The Prime Minister shall delegate both the authority delegatedpursuant to the provisions of Paragraph 1 above and the authority
set forth in the provisions of the preceding Paragraph to theCommissioner of Financial Services Agency.
4. The Commissioner of Financial Services Agency may, as prescribedby a Cabinet Order, delegate all or part of the authority delegatedpursuant to the provisions of the preceding Paragraph, to DirectorGeneral of the Local Finance Bureau or the Director-General of
the Local Finance Branch Bureau.
5. Part of the authority of the Minister of Finance set forth in this Act(excluding that delegated to the Prime Minister pursuant to theprovisions of Paragraph 1 above) may, as prescribed by a Cabinet
Order, be delegated to the Director-General of the Local Finance
Bureau or the Director-General of the Local Finance Branch Bureau.
Article 41: Articles of Incorporation
1. In the Articles of Incorporation of JBIC, in addition to the matterslisted in each of the Items of Article 27 of the Companies Act,matters relating to the procedures and requirements for theappointment of a person to assume management responsibility
from among the Representative Directors or Representative
Executive Officers shall be described or recorded.
2. With respect to the matters related to the requirements for theappointment of a person to assume management responsibility
set forth in the preceding Paragraph, the provisions that therequirements listed below be satisfied shall be incorporated:(1) A person who has discernment and the capability recognized

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Data 3 Corporate Data

as necessary in light of the purposes set forth in Article 1
hereof and the operations set forth in Article 11 hereof shallbe appointed; and(2) Due consideration shall be required in order to avoid
automatically appointing such persons who have held certain
specific governmental positions.
3. The resolution for the amendment of the Articles of Incorporationof JBIC shall not take effect unless the authorization of the Ministerof Finance is granted.

4 Japan Bank for International Cooperation Act

Article 42: Merger, Company Split, Share Exchange, Assignment
and Acceptance of Assignment of Business and Dissolution
Notwithstanding the provisions of Part II, Chapters VII and VIII and Part
V, Chapters II, III and IV, Section I of the Companies Act, the merger,
company split, share exchange, assignment and acceptance ofassignment of all or part of business, to which JBIC becomes a party,
and dissolution of JBIC shall be provided for separately by an Act.
Article 43: Exclusion from Application, etc. of Financial Instruments
and Exchange Act
1. When JBIC performs the actions listed in each of the Items of
Paragraph 8 of Article 2 of the Financial Instruments and Exchange
Act pursuant to the provisions of Article 11, the provisions of Article
29 of the same Act shall not apply.
2. In the case set forth in the preceding Paragraph, JBIC shall bedeemed as the Financial Instruments Business Operator definedin Paragraph 9 of Article 2 of the Financial Instruments andExchange Act, and the provisions of Chapter III, Section I,
Subsection V and Section II (excluding Article 35, Article 35-2,
Articles 36-2 through 36-4, Item (2) of Paragraph 1 of Article 37,
Item (2) of Paragraph 1 of Article 37-3, Article 37-7 and Item (7)of Article 38) of the same Act and the provisions of Chapters VIII
and VIII-II of the same Act relating to such provisions shall apply.
3. When JBIC performs the actions listed in each of the Items of
Paragraph 1 of Article 63 of the Financial Instruments and Exchange
Act pursuant to the provisions of Article 11 hereof, the provisionsof Paragraph 2 of the said Article 63 shall not apply.
4. In the case set forth in the preceding Paragraph, JBIC shall bedeemed as the Financial Instruments Business Operator definedin Paragraph 9 of Article 2 of the Financial Instruments andExchange Act, and the provisions of Article 38 (limited to the
portions relating to Item (1)) and Article 39 of the same Act andthe provisions of Chapters VIII and VIII-II of the same Act related
to such provisions shall apply.

This English version of the Act has been prepared purely for information
purpose, and should not be considered as an official translation of
the Japan Bank for International Cooperation Act or any authorities
of Japanese Government.

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5 Fundamental Policy on Internal Control

Article 3. R e g u l a t i o n s a n d O t h e r S y s t e m s r e l a t i n g t oManagement of Loss Exposure
1.	In recognition of the importance of risk management, JBIC shalladopt Comprehensive Risk Management Regulations and otherrules relating to risk management, with respect to risk
management specific to different types of risks that should berecognized in the performance of operations, as well as theorganizational structure, etc., for comprehensive risk
management. JBIC shall apply appropriate risk management
tools to control various types of risks.
2.	JBIC shall appoint persons responsible and departments thatoversee risk management matters for the management ofvarious types of risks and establish a committee with theGovernor as its chairman to conduct reviews and examinations
to ensure effective risk management.
3.	JBIC shall adopt Crisis Management Regulations and other rules
relating to crisis management and establish crisis management
systems to prepare for the occurrence of disasters and other

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

5 Fundamental Policy on Internal Control

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

critical events.
4.	If a critical event occurs that either disrupts or is feared todisrupt normal operations, JBIC shall establish a response
headquarters as necessary and take measures for the speedy
and efficient restoration of operations in accordance withvarious rules concerning crisis management.

Data 3 Corporate Data

Article 1. S ystems for Ensuring Compliance with L aws,
Regulations, and the Articles of Incorporation in the
Performance of Duties by Directors and Employees
1.	JBIC shall adopt Corporate Philosophy, Code of Conduct, andinternal rules concerning compliance, including Regulations
Concerning Compliance with Laws and Regulations, to ensurethat the performance of duties by directors and employees,
including temporary workers (this definition applies to theremainder of this document), comply with laws, regulations, and
the Articles of Incorporation of JBIC (hereinafter referred to as“Laws and Regulations”). Furthermore, JBIC shall make suchinternal rules known to all directors and employees.
2.	Directors and employees shall abide by all such internal rules
concerning compliance.
3.	JBIC shall appoint persons responsible for compliance anddepartments that oversee compliance matters so as to establish
and reinforce structures relating to compliance with Laws
and Regulations.
4.	JBIC shall establish a committee with the Governor as its
chairman to review key matters relating to compliance and tomonitor the status of compliance with the Laws and Regulations.
5.	JBIC shall establish effective internal reporting systems andoperate them appropriately so that material matters relating tocompliance can be discovered promptly and necessary
corrective measures can be introduced.
6.	JBIC shall not maintain any relationships whatsoever with
antisocial forces. It shall maintain an uncompromising attitude
throughout the organization toward antisocial forces, anddecisively reject all improper demands from such forces.

Article 5. Internal Audit Systems for Ensuring Proper Operations
1.	JBIC shall adopt Internal Audit Regulations and other rules
relating to internal audits to ensure the appropriateness andsoundness of its operations.
2.	JBIC shall establish the Internal Audit Committee to makedecisions and deliberations concerning important mattersrelating to internal audits.
3.	JBIC shall establish the Internal Audit Department, independentof the departments being audited, to handle matters relating tointernal audits.
4.	The Internal Audit Department shall undertake internal audits
based on internal regulations related to internal audits, and reportto the director responsible for internal audits about the results.
5.	The Internal Audit Department shall periodically and asnecessary, as well as upon request of a director or a corporate
auditor, report the results of internal audits to the Board of
Directors or other organizations or bodies.
6.	The Internal Audit Department shall exchange information asnecessary and collaborate with the corporate auditors andaccounting auditors, in order to perform internal audits efficiently.
Article 6. M atters relating to Employees Assigned to Assist
Corporate Auditors in Performing their Duties upon
Request by Corporate Auditors
1.	JBIC shall establish the Office of Corporate Auditor and assign
full-time employees to assist the corporate auditors in
performing their duties.
2.	Those full-time employees shall perform their duties in line with
instructions from the corporate auditors.
3.	When deemed necessary, the corporate auditors may assign
employees other than the full-time employees referred to above toassist in the performance of audits with the approval of the Governor.

JBIC  Annual Report 2016161

Data 3 Corporate Data

Article 7. M atters relating to Securing the Effectivenessof Instructions to and Independence from Corporate
Directors of Employees Assigned to Assist
Corporate Auditors
1.	JBIC shall secure prior approval of the full-time corporate
auditors on any decision concerning personnel evaluations,transfers, or other personnel matters relating to employees
assisting with the performance of duties by the corporate
auditors (hereinafter “the auditor’s office staff”).
2.	JBIC shall have the auditor’s office staff engage in the duties
following only the instructions of the auditor, to secure theeffectiveness of auditor’s instructions to the auditor’s office
staff. However, when the auditor’s office staff concurrently
serves in a position other than the auditor’s office, JBIC shallobtain prior approval of the full-time corporate auditors by
clearly explaining each of the following points in writing.
	(1)	The rational reason shall be clearly stated that the auditor’s
office staff need to concurrently serve in that position.
	(2)	In assisting with the duties of the corporate auditors, theauditor’s office staff shall follow the instructions of thecorporate auditors and not the instructions of the position
where the auditor’s office staff serve concurrently.
	(3)	The scope of duties of and instructions to the auditor’s
office staff in the position other than the auditor's officeshall be expressly limited.
	(4)	The auditor’s office staff shall not share with others theinformation obtained from performing the duties of theauditor’s office while serving in that position.
	(5)	The auditor’s office staff shall always give priority to theduties of assisting the corporate auditors more than theduties at the office where the staff serve concurrently inorder not to hamper the effectiveness of audits by the
corporate auditors.
	(6)	When the full-time corporate auditors deem it necessary, it ispossible for them to withdraw the approval that the auditor’s
office staff may serve concurrently in any other office.

5 Fundamental Policy on Internal Control

Article 8. System of Reporting by Directors and Employees to
Corporate Auditors and System of Preventing
Adverse Treatment of Reporter
1.	The representative director and other directors who perform
operational duties shall make accurate reports concerning thestatus of performance of their duties from time to time at theBoard of Directors meetings and other important meetings
attended by corporate auditors.
2.	In the event that a director or an employee discovers any factthat has the potential of inflicting substantial harm upon JBIC,
or improper conduct or serious violations of Laws andRegulations, said director or employee shall promptly report thefact to the corporate auditors.
3.	JBIC shall never treat adversely the directors and employees
who reported based on the preceding paragraph, on the groundsof such reporting.
Article 9. System for Ensuring Effective Performance of Audits
by Corporate Auditors
1.	The corporate auditors shall be entitled to request reports fromdirectors and employees concerning the status of performanceof their duties whenever they determine such reports arenecessary for the effective performance of audits. A director or
employee who receives such a request shall promptly furnish areport in line with the request.
2.	The corporate auditors may attend important meetings,
including the Board of Directors meetings and the Executive
Committee meetings, to express their opinions as necessary.

162

JBIC  Annual Report 2016

Corporate auditors may also request to review minutes andother related documents.
3.	The Governor shall hold periodic meetings with the corporate
auditors to exchange opinions.
4.	The corporate auditors may request the cooperation of theInternal Audit Department and departments that oversee
compliance matters.
5.	The corporate auditors may seek the advice of attorneys, certified
public accountants, and other professionals concerning audits
when deemed necessary for the effective performance of audits.
Article 10. Matters Concerning Policies Relating to Proceduresfor Advance Payment and Repayment of Costs andOther Treatment of Costs and Liabilities That Arisein the Execution of Auditor’s Duties
JBIC shall bear the costs and liabilities that arise in the execution ofauditor’s duties, when the corporate auditors seek the advice of
attorneys and/or certified public accountants concerning audits,pursuant to the provision of the preceding article.

6 Security Policy

6 Security Policy(1) Basic Principles
JBIC shall use and manage information assets in line with the basic
principles set forth hereunder while complying with all applicablelaws, regulations, and rules.
A.	Information assets shall be used appropriately and only for
their intended purposes.
B.	Authority concerning the management of information assets
shall be granted only after careful consideration of the natureof the work and necessity.
C.	When adopting and implementing information security
measures, the following matters shall be taken into
consideration, based on the nature of the work:(a)	C l a r i f i c a t i o n of re s p o n s i b i l i t i e s a n d ro l e s w i t h i n
implementation structures(b)	Timely and prompt implementation of necessary,
sufficient, effective, and efficient measures(9) Evaluation and Review
JBIC shall evaluate and review this policy, as necessary, to makeflexible responses to changes in the external environment, such as
the enactment, amendment, or repeal of applicable laws andregulations, as well as innovations in information security
technology, and to changes in the internal environment, includingorganizational and operational changes and updates to JBIC’s
information systems.

Data 3 Corporate Data

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

(2) Proper Management of Information Assets
Information assets refer to information and information systems.
JBIC classifies them according to such factors as their degree ofconfidentiality, completeness, usability, and importance, andmanages them appropriately in accordance with their classification.
(3) Information Asset Management Structures
JBIC shall establish a structure for ensuring the security of
information assets.
(4) Protection of Personal Information
JBIC shall protect and manage personal information by establishingand making public our Privacy Policy and pursuant to the provisionsof the Act on the Protection of Personal Information Held by
Independent Administrative Agencies (Law No. 59 of 2003).
(5) Protection of Client Information
JBIC shall establish the basic policy for protecting its clients andincreasing their convenience for the purpose of appropriate
protection and management of information pertaining to them inaccordance with this basic policy.
(6) Training on Information Asset Management
JBIC shall provide necessary training to all officers and employees
who handle information assets to ensure that they understandrequirements in the applicable laws and regulations, as well as inthis policy and other applicable rules, and prevent the occurrence of
information security problems.
(7) Outsourcing WorkIn the event that JBIC engages persons other than its officers andemployees to manage its information assets by outsourcing such
work, it shall verify that information security is ensured and thatappropriate measures have been taken in accordance with thecontent of the information assets.
(8) R esponses to Incidents Concerning Information Assets
In the event of improper disclosure of personal or client
information or other incidents causing a problem on information
security, JBIC shall promptly take appropriate measures.

JBIC  Annual Report 2016163

7 Privacy Policy
Data 3 Corporate Data

Japan Bank for International Cooperation (hereinafter “JBIC”)
positions the trust of our clients as our first priority, deeply
recognizes the importance of our clients’ personal information,and believes that it is our duty to our clients to properly manageand protect their personal information.
With a view to protecting our clients’ personal information,
JBIC will conduct our operations in a manner whereby we observe
the Act on the Protection of Personal Information Held by
Independent Administrative Agencies, etc. (hereinafter “Act”), theGuidance concerning the Measures to Properly Manage the
Personal Information held by Independent Administrative
Agencies, etc. and so forth.

7 Privacy Policy(1) Acquisition of Personal Information
JBIC will acquire our clients’ personal information through properand lawful means. When we acquire personal information from ourclients directly in writing, we will specify in advance the purposes
for its use that are within the necessary scope of JBIC’s operations.
(2) Use of Personal Information
JBIC will specify the purposes for use in obtaining the necessary
personal information of our clients as listed below, and will use it
within the scope that is necessary to achieve such purposes:
A. Loan, equity participation, and guarantee operations, and theirrelated due diligence exercise and research (or their
supplementary work)
B. Execution of agreements with JBIC, and exercise of rights andperformance of obligations under laws, etc.
C. Confirmation of personal identity as per such laws as Foreign
Exchange and Foreign Trade Act (Act No. 228, 1949)
D. Invitation to events (such as seminars) organized by JBIC
E. Delivery of various JBIC-related materials
F. Issuance and collection of surveys and questionnaires, andstatistical processing and analysis of such outcomes
G. Operations necessary for responding to questions andinquiries, and for dealing with transactions including queries
from JBIC, in a proper and smooth manner(3) Provision of Personal Information to Third Parties
JBIC will not provide the personal information acquired from its clientsto third parties except in the following cases:
A. It is required by law.
B. It is provided within the scope of the purposes for use asprescribed above.
C. Consent is obtained from the clients.
D. There are convincing reasons why executive agencies,
independent administrative agencies, local municipal entities
or local independent administrative agencies would use it to
the necessary extent to carry out the law-stipulated operations.
E. It is used for statistics compilation or academic research.
F. It is clearly beneficial to the clients or there exist special
reasons to provide personal information.
(4) Subcontract
JBIC may subcontract the handling of our clients’ personal
information to conduct such operations more smoothly. In suchcases, JBIC will attempt to select a trustworthy subcontractor,
enter into a confidentiality agreement, adequately supervise thehandling and administering of the personal information, and assure
the protection of personal information.
(5) Personal Information Management (PIM)
A. JBIC will attempt to keep our clients’ personal information
correct and updated, and take prevention and safety measuresagainst unauthorized access, leakage, loss, damage, and164

JBIC  Annual Report 2016

alteration of personal information.
JBIC will constantly educate its employees about theprotection and proper management of our clients’ personal
information to thoroughly make sure of its proper handling in
its daily operations.
C. JBIC will audit and inspect whether the protection andmanagement of personal information is undertaken properly.
B.

(6) Disclosure, Correction, and Disuse
If a client wishes to make a request to disclose, correct or disuse
the clients’ personal information held by JBIC, we will deal withsuch a request by following the procedure of disclosure etc.
stipulated in the Act. Meanwhile, there are some cases when suchdisclosure etc. could be made out of the procedure of disclosure
etc. stipulated in the Act, for which please contact our Head Officeor West Japan Office.
(7) Inquiries about Personal Information Management (PIM)
For inquiries or complaints about the clients’ personal information
management (PIM) at JBIC, please contact our Head Office orWest Japan Office.
(8) Continuous Improvement
JBIC will continuously improve the clients’ personal information
management (PIM) as necessary.

JBIC separately stipulates its basic policy on the safe managementof Individual Numbers and Personal Information that includes
Individual Numbers (hereinafter "Specific Personal Information";
Individual Number and Specific Personal Information shallhereinafter be collectively referred to as "Specific Personal
Information, etc."). "Personal information" as used in this Privacy
Policy shall not include Specific Personal Information, and it is notcontemplated that JBIC will obtain our clients' Specific Personal
Information, etc.

H2

H3

JBIC 2016
Japan Bank forInternational Cooperation
Annual Report1

Profile of JBIC

Access to JBIC Head Office and West Japan Office

1

1 Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2 Interview with the Governor  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

JBIC Head OfficeWest Japan Office

4-1, Ohtemachi 1-chome, Chiyoda-ku,
Tokyo 100-8144, Japan

3-5, Sonezaki 2-chome, Kita-ku, Osaka city,
Osaka 530-0057, Japan

3 Directors, Managing Executive Officers and Corporate Auditors  . . . . . . . . . . . . . . . 8
4 Medium-term Business Plan (FY2015–2017)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
5 Amendment of the Japan Bank for International Cooperation Act  . . . . . . . . . 14
6 Outline of Operations in FY2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Nishikichogashi

Hitotsubashigashi

1 Energy and Natural Resources Finance Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

KKR

Hirakawa-

eba

shi

Exit 3b

sta

.

35

a.

Keidanren
Nikkei JA
Inc. Building Kaikan

KDDI
Corp.

Kishochomae
Tokyo Fire
Defense Agency

nE

Daimaruxp

Kandabashi
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Osaka ekimaeayOtemachi Joint
Government
Office Bldg, No.3

Osaka ekimae-Nishi

Keidanren
Nikkei JA
Inc. Building Kaikan

Exit C2b

OtemachiFinancial City
Grand Cube

KDDI
Corp.

sta.
eda
Hanshin-mae
UmDaimaru
Sonezaki Police Station

HiltonOsaka
Umeda 1

EkimaeExit 8
Building No. 4 (F54)*

Umeda 1 Higashi

Exit F-92

ta.

* From the Umeda Underground shopping mall.

Umeda 155

Enterprises and SME  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
69

1 Corporate Governance  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
2 Risk Management  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
3 Public Information and Disclosure  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Data 1

Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Data 2Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Data 3

Corporate Data .......................................................................................................149

Numerical figures in this report
1. Numerical figures, other than percentages, in this report are truncated to the nearest whole number. (Figures prior to FY2008 were rounded off.) Percentage
figures are rounded off. Thus numerical and percentage figures may not add up to the totals given. Amounts denominated in foreign currencies are treatedas follows. Commitments are converted into yen at the Basic Rate of Exchange (revised semi-annually by the Minister of Finance, based on the prevailingmarket rates during the preceding six months) at the time financing contracts are concluded. Disbursements, repayments, and outstanding balances arecalculated based on book value.
2. Numerical figures less than the specified units are denoted by “0”; “—” denotes that data is not available.
3. Until FY1998, the data of the Export-Import Bank of Japan (JEXIM) was used. Data in FY1999 is the sum of the data from JEXIM in the first half and thatfrom the International Financial Account of the then-JBIC in the second half. From FY2000 to FY2007, data came from the International Financial
Account of the then-JBIC. Data for FY2008 is the sum of the data from the International Financial Account of then-JBIC in the first half and the data fromthe Account for JBIC operations under the Japan Finance Corporation in the second half. From FY2009 to FY2011, data came from the Account for JBIC
operations under the Japan Finance Corporation. Data for FY2012 and after is that of the Japan Bank for International Cooperation.

EkimaeExit 8
Building No. 4 (F54)*

Umeda 1 Higashi* From the Umeda Underground shopping mall.

2 Framework for Supporting Globalization Efforts of Mid-tierOperational and Administrative Policies

(UMESHIN

Exit 7 (H8
Umeda
OS Ho
Tsuyu
Shrine (OTenjin S

EkimaeEkimaeEkimaeBuilding No. 1 Building No. 2 Building No. 3 Exit
F-82
Umeshin-Higashi
Exit 7B
Kitashinchi Sta.
Route 1
Umedashinmichi
Sakurabashi
Exit F-92 Umed

Exit
F-82

1 Financial Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

5Sonezaki Po

JBIC Head Office
4-1, Ohtemachi 1-chome, Chiyoda-ku,
Tokyo 100-8144, JapanFor further information, please contact
Press and External Affairs Division at the JBIC Head OfficeTel: (+81-3) 5218-3100
Fax: (+81-3) 5218-3955
Annual reports, news releases and bulletins, etc. areavailable on the JBIC website.
Website (URL) http://www.jbic.go.jp/en/

suji
Mido

ta.

Exit 7 (H82)*
Osaka
Umeda
Marubiru
OS HotelTsuyuten
HiltonShrine (Ohatsu
Tenjin Shrine)Osaka

EkimaeEkimaeEkimaeBuilding No. 1 Building No. 2 Building No. 3
Exit 7B
Kitashinchi Sta.

Sakurabashi

achi sHankyu-mae

sta.

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Um
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Hanshin
Osaka ekimae-Nishi Department Store(UMESHIN DAI-ICHI SEIMEI BUILDING 10F)
Osaka ekimae-Minami

Hanshin
Department Store

Osaka
Marubiru

Midosuji Line
HankyuDepartment
Store

Osaka ekimae

Yotsubashisuji
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Otem

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Japan
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Grand Cubepo

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ta.
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Kandabashi
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i stOtemachi Joint
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4

Tak
ay ebashsw

achi sand Collaboration with Overseas Governmental Organizations
and International Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

res

Me

Exit 3b

Otem

Imperial Palace

xp

Otem

5 Examples of Business Outcomes Relating to Studies,Tokyo Fire
Defense AgencynE

Midosuji Line

Nishi-Umeda sta.

Enterprises and SME  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
4 Examples of Business Outcomes Relating to Environment . . . . . . . . . . . . . . . . . . . . . . . . 51

Kishochomae

lita

KKR
HirakawaJBIC
mon
Kandabashi

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3 Examples of Business Outcomes Relating to Support for Mid-tierJapan
Meteorological
Agency

ri
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2 Examples of Business Outcomes by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

poNishi-Umeda sta.

1 Overview of Business Outcomes by Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

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Examples of Business Outcomes in FY2015

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JBIC

 . . . . . . . . 26
2 Infrastructure and Environment Finance Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .mon
3 Industry Finance Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .T . .a .k . . . . 30

3

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21
The Environment Surrounding JBIC and Its ChallengesHitotsubashi

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2

Nishikichogashi

Hitotsubashigashi

H4

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JBIC Annual Report 2016

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2 0 16 Annual Report