Data 1

Statistics
1 Overview······················································· 84(1) Commitments·················································· 84
		 A. Commitments by Purpose of Financing······················ 84
		 B.	Commitments by Region(Loans, Equity Participations and Guarantees)··············· 84(2) Disbursements················································· 85(3) Repayments················································ ···· 85(4) Outstandings· · ············································· ···· 85

2 Commitments···················································· 86(1) Export Loans by Industry··································· ···· 86(2) Natural Resource Loans by Item···························· ···· 86(3) O verseas Investment Loans by Industry(Excluding Natural Resource Loans)························ ···· 87(4) C ommitments to Mid-tier Enterprises and SMEs to
Support their Overseas Business Activities······················ 87(5) Guarantee Commitments by Purpose· · ····················· ···· 87(6) Loan and Guarantee Commitments by Region············· ···· 88
		 A. Export Loan Commitments by Region······················· 88
		 B. Import Loan Commitments by Region··················· ···· 88
		 C. Overseas Investment Loan Commitments by Region········· 88
		 D. Untied Loan Commitments by Region··················· ···· 89
		 E. Guarantee Commitments by Region· · ··················· ···· 89
		 F. Equity Participations by Region····························· 89(7) G eographical Distribution of Loan andEquity Participation Commitments························· ···· 903	Outstandings····················································· 93(1) Outstandings by Purpose of Financing························· 93(2) Guarantee Outstandings by Purpose··························· 93(3) G eographical Distribution of Loan andEquity Participation Outstandings······························ 94

4 Others·························································· ··· 96(1) Major Buyer’s Credit and Bank-to-bank Loan Commitments· ··· 96(2) Untied Loan Commitments····································· 96(3) Special Operations········································· ···· 96

5 Standard Loan Conditions· · ···································· 97
6 Breakdown of Countries and Regions· · ······················ 98

JBIC n Annual Report 201783

1

Overview

Data1(1) Commitments

Statistics

A. Commitments by Purpose of Financing(Unit: billions of yen, %)FY2012FY2013
Share Number

Total

FY2014
Share Number

Total

FY2015
Share Number

Total

FY2016

Number

Total

Share Number

Total

Share

Export Loans

40

126.6

3

33

126.2

6

49

406.4

13

22

141.0

6

20

175.0

8

Shipping

15

23.0

1

15

34.7

2

24

24.3

1

9

33.6

1

3

10.5

0

Plant

25

103.6

2

18

91.5

4

24

381.8

12

13

107.3

4

17

164.5

7

Technical Services

—

—

—

—

—

—

1

0.2

0

—

—

—

—

—

—

4

304.3

7

5

56.2

3

—

—

—

1

252.3

11

—

—

—

Natural Resources

4

304.3

7

5

56.2

3

—

—

—

1

252.3

11

—

—

—

Overseas
Investment Loans

157

3,138.574

167

1,671.076

197

2,451.075

260

1,858.178

222

1,721.077

Natural Resources

39

1,784.2

42

18

594.7

27

20

1,059.1

33

11

236.9

10

4

250.5

11

Others118

1,354.3

32

149

1,076.2

49

177

1,391.943249

1,621.168

218

1,470.5

66

Untied Loans

10

210.5

5

7

46.0

2

5

46.7

1

4

24.8

1

4

33.7

2

Bridge Loans

2

83.2

2

—

—

—

—

—

—

—

—

—

—

—

—

Loans

Import Loans

1
Overview

Sub Total

213

3,863.391

212

1,899.686

251

2,904.289287

2,276.3

95

246

1,929.9

86

Guarantees

21

303.2

7

20

209.1

9

15

312.3

10

7

106.6

4

8

293.5

13

Equity Participations

8

74.3

2

7

97.4

4

5

32.8

1

4

14.3

1

3

16.2

1

242

4,240.9100239

2,206.1

100

271

3,249.3100

298

2,397.4100

257

2,239.7

100

Total

B. Commitments by Region (Loans, Equity Participations and Guarantees)(Unit: billions of yen, %)FY2012FY2013
Share Number

Total

FY2014
Share Number

Total

FY2015
Share Number

Total

FY2016

Number

Total

Total

Share

Asia

86

513.6

12

108

472.7

21

162

610.5

19

150

332.9

Share Number

14

125

843.2

38

Oceania17

1,005.7

24

12

292.9

13

6

173.8

5

2

6.9

0

4

11.1

1

Europe

33

660.6

16

21

350.3

16

17

228.8

7

57

598.3

25

56

525.7

23

The Middle East

12

305.9

7

9

104.8

5

14

493.6

15

9

427.6

18

8

134.2

6

Africa

7

84.3

2

5

81.1

4

7

195.6

6

2

14.9

1

—

—

—

North America

35

710.8

17

43

654.0

30

45

1,389.3

43

38

493.6

21

48

605.8

27

43

805.5

19

36

209.1

9

18

136.1

4

37

507.3

21

11

89.0

4

—

—

—

—

—

—

—

—

—

—

—

—

3

14.9

1

Latin America andthe Caribbean
International
Organizations, etc.
Others

9

154.2

4

5

40.8

2

2

21.2

1

3

15.5

1

2

15.4

1

Total

242

4,240.9100239

2,206.1

100

271

3,249.3100

298

2,397.4100

257

2,239.7

100

84

JBIC ■ Annual Report 2017

Data(2) Disbursements(Unit: billions of yen, %)FY2012
Share

Total

FY2014

Share

Total

FY2015

Share

Total

Share

Total

Share

Loans
Export Loans

143.1

5

112.5

4

112.0

4

148.8

7

227.2

10

Import Loans

162.7

6

234.5

9

21.8

1

27.6

1

230.9

10

2,144.6

75

1,928.073

2,049.4

79

1,840.3

82

1,691.5

72

Untied Loans

52.2

2

88.5

3

64.3

2

44.5

2

32.2

1

Bridge Loans

79.7

3

—

—

—

—

—

—

—

—

Overseas
Investment Loans

Sub Total

2,582.590

2,363.6

90

2,247.6

87

2,061.3

92

2,181.9

93

Guarantees

270.6

9

178.7

7

303.2

12

134.3

6

152.6

6

Equity Participations

17.2

1

85.4

3

30.9

1

42.4

2

18.5

1

2,870.4

100

2,627.8100

2,581.8100

2,238.2100

2,353.1

100

Total

(3) Repayments(Unit: billions of yen, %)FY2013

Share

Total

FY2014

Share

Total

FY2015

Share

Total

FY2016

Share

Total

Share

Loans
Export Loans

112.4

7

106.3

8

104.8

4

95.5

4

97.1

6

Import Loans

147.4

10

170.1

13

138.4

6

154.3

6

151.6

9

Overseas
Investment Loans

707.1

46

668.1

50

1,795.6

73

1,760.7

72

961.6

59

Untied Loans

161.6

11

173.5

13

158.2

6

151.7

6

186.3

11

Bridge Loans

79.7

5

—

—

—

—

—

—

—

—

Governmental Loans

2.9

0

2.9

0

2.6

0

2.5

0

2.4

0

Sub Total

1,211.3

79

1,121.184

2,199.890

2,164.9

89

1,399.1

86

Guarantees

318.1

21

204.9

15

238.2

10

205.5

8

228.2

14

Equity Participations
Total

3.0

0

5.0

0

12.4

1

64.5

3

4.5

0

1,532.4100

1,331.1100

2,450.6100

2,435.0100

1,631.9100(Note) Prepayments in FY2015 and 2016 amounted to ¥385.1billion and ¥174.9billion, respectively.

(4) Outstandings(Unit: billions of yen, %)FY2012Total

FY2013

Share

Total

FY2014

Share

Total

FY2015

Share

Total

FY2016

Share

Total

Share

Loans
Export Loans

710.3

5

740.6

5

812.4

5

844.7

5

976.7

6

Import Loans

630.2

5

731.6

5

661.6

4

525.7

3

609.7

4

Overseas
Investment Loans

8,165.962

10,183.9

67

11,970.5

69

11,342.070

12,080.8

71

Untied Loans

1,035.8

8

998.8

7

988.8

6

901.8

6

741.9

4

Governmental Loans

42.6

0

39.7

0

37.1

0

34.6

0

32.2

0

Sub Total

10,585.1

81

12,694.9

83

14,470.6

84

13,649.0

84

14,441.5

85

Guarantees

2,400.6

18

2,422.6

16

2,572.3

15

2,464.7

15

2,385.0

14

100.1

1

187.0

1

222.3

1

194.9

1

215.8

1

13,086.0100

15,304.6

100

17,265.3

100

16,308.6

100

17,042.4

100

Equity Participations
Total

JBIC ■ Annual Report 20171
Overview

FY2012
Total

1

FY2016

Statistics

Total

FY201385

2Commitments

Data

1

(1) Export Loans by Industry(Unit: billions of yen, %)Statistics

FY2015FY2016

Number

Total

Share

Number

Total

Share

Shipping

9

33.6

24

3

10.5

6

Electrical Machinery

6

45.7

32

9

71.7

41

Telecommunication Equipment

1

7.3

5

—

—

—

Other Industrial Machinery andEquipment, etc.

6

54.3

38

7

88.6

51

Precision Machinery

—

—

—

1

0.0

0

Civil Engineering and Contractors

5

12.7

9

1

3.4

2

Chemical Facilities

1

41.5

29

—

—

—

Loading Machinery

—

—

—

1

4.0

2

Oil and Natural Gas Facilities

—

—

—

3

80.7

46

Iron and Non-ferrous Metals
Manufacturing Facilities

—

—

—

1

0.4

0

Others

—

—

—

1

4.2

2

2

Total

22

141.0

100

20

175.0

100

Commitments(2) Natural Resource Loans by Item
(Unit: billions of yen, %)FY2015FY2016

Number

Total

Share

Number

Total

Share

Energy Resources

11

486.5

99

3

173.8

69

Petroleum

3

332.7

68

1

39.6

16

Natural Gas

8

153.7

31

1

131.4

52

Coal

—

—

—

1

2.7

1

—

—

—

1

76.6

31
31

Other Resources
Copper Ore and Concentrate

—

—

—

1

76.6

Others

1

2.7

1

—

—

—

Total

12

489.2

100

4

250.5

100

86

JBIC ■ Annual Report 2017

Data(3) Overseas Investment Loans by Industry (Excluding Natural Resource Loans)(Unit: billions of yen, %)FY2016

Total

Share

Number

Total

Share

124

60.8

4

92

33.7

2

Food

1

0.0

0

1

0.0

0

Textiles

6

3.7

0

4

0.9

0

Lumber and Pulp

2

0.2

0

1

0.1

0

Printing

—

—

—

3

0.5

0

Chemicals

4

1.7

0

6

1.0

0

Manufacturing Industry

Statistics

FY2015
NumberPetroleum and Coal Products

—

—

—

1

0.2

0

Ceramics, Stone and Clay

1

0.2

0

2

5.5

0

Iron and Non-ferrous Metal
Products

29

27.7

2

7

4.7

0

—

—

—

1

0.0

0

3

1.0

0

8

12.5

1

Transport Equipment

47

21.3

1

35

4.4

0

Other Manufacturing Industries

31

4.6

0

23

3.3

0

Construction

1

0.1

0

—

—

—

Electric, Gas and Heat Supply andWater Service

2

182.5

11

4

438.9

30

Telecommunications

1

7.1

0

—

—

—

Transport and Postal Services

1

1.0

0

2

1.5

0

Commerce

2

0.5

0

2

0.6

0

Service Industry

—

—

—

2

1.1

0

Others (Note)

118

1,368.8

84

116

994.5

68

Total

249

1,621.1100

218

1,470.5100

2Commitments

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

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

FY2015
Number of Projects

Loans to SMEs and Mid-tierEnterprises

FY2016
Amount133

Number of Projects

Amount

113

80.9

42.9

(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 SMEs 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 SMEs).

(5) Guarantee Commitments by Purpose(Unit: billions of yen, %)FY2015FY2016

Number

Total

Share

Number

Total

Share

Guarantee for Samurai Bonds

1

55.0

52

1

80.0

27

Guarantee for Import of Aircrafts

3

38.3

36

3

55.6

19

Guarantee for Others

3

13.3

13

4

157.8

54

Total

7

106.6

100

8

293.5

100

JBIC ■ Annual Report 2017

1

87

Data

1

(6) Loan and Guarantee Commitments by Region

Statistics

A. Export Loan Commitments by Region(Unit: billions of yen, %)FY2015
NumberAsia

FY2016
Share

Number

Total

Share

9

89.3

63

9

43.5

East Asia

1

0.2

0

1

0.0

0

Southeast Asia

6

29.0

21

7

43.0

25

South Asia

1

18.5

13

1

0.4

0

Central Asia and the Caucasus

1

41.5

29

—

—

—

5

15.6

11

3

34.7

20

Central and Eastern Europe
and Russia

—

—

—

2

28.0

16

Western Europe

5

15.6

11

1

6.7

4

Europe

2

Total

25

Commitments

The Middle East

4

6.0

4

4

92.4

53

Africa

2

14.9

11

—

—

—

2

14.9

11

—

—

—

Latin America and the Caribbean

2

15.1

11

3

0.1

0

International Organizations, etc.

—

—

—

1

4.2

2

Total

22

141.0

100

20

175.0

100

Sub-Saharan Africa

B. Import Loan Commitments by Region(Unit: billions of yen, %)FY2015FY2016

Number

Total

Share

Number

The Middle East

1

252.3

100

—

Total

—

Share

—

Total

1

252.3

100

—

—

—

C. Overseas Investment Loan Commitments by Region(Unit: billions of yen, %)FY2015
Number

Asia

Total

FY2016
Share

Number

Total

Share

135

166.7

9

111

623.5

36

East Asia

15

11.0

1

5

2.6

0

Southeast Asia

114

153.2

8

102

619.4

36

6

2.4

0

4

1.4

0

Oceania

2

6.9

0

4

11.1

1

Europe

52

582.7

31

53

490.9

29

Central and Eastern Europe
and Russia

1

50.3

3

2

4.6

0

Western Europe

28South Asia

51

532.3

29

51

486.3

The Middle East

4

169.2

9

4

41.8

2

North America

35

455.3

25

45

550.2

32

Latin America and the Caribbean

31

469.9

25

5

3.3

0

Others

1

7.1

0

—

—

—

Total

260

1,858.1

100

222

1,721.0

100

88

JBIC ■ Annual Report 2017

Data

D. Untied Loan Commitments by Region(Unit: billions of yen, %)FY2015FY2016

Total

Share

Number

Total

Share

2

13.1

53

2

25.3

75

2

13.1

53

2

25.3

75

Latin America and the Caribbean

2

11.7

47

1

2.8

8

International Organizations, etc.

—

—

—

1

5.6

17

Total

4

24.8

100

4

33.7

100

Southeast Asia

Statistics

NumberAsia

1

E. Guarantee Commitments by Region(Unit: billions of yen, %)FY2015FY2016

Total

Share

Number

Total

Share

2

57.7

54

2

149.9

51

East Asia

1

2.7

3

—

—

—

Southeast Asia

1

55.0

52

2

149.9

51

3

38.3

36

3

55.6

19

Latin America and the Caribbean

2

10.5

10

2

82.8

28

International Organizations, etc.

—

—

—

1

5.0

2

Total

7

106.6

100

8

293.5

100

Asia

North America

2Commitments

NumberF. Equity Participations by Region(Unit: billions of yen, %)FY2015FY2016

Number

Total

Share

Number

Total

2

5.9

42

1

0.8

5

East Asia

1

5.9

41

—

—

—

Southeast Asia

1

0.0

0

—

—

—

South Asia

Asia

Share

—

—

—

1

0.8

5

Others

2

8.3

58

2

15.4

95

Total

4

14.3

100

3

16.2

100

JBIC ■ Annual Report 2017

89

Data

1

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

Statistics

Region / Country

Asia

East Asia

FY2015
Number

FY2016

Total

China

12

4.0

Hong Kong2

1.0

Republic of Korea

Southeast Asia

Mongolia1

0.2

Others2

11.9

Sub Total

17

17.2

Cambodia2

0.2

Indonesia

38

53.4

Laos

1

0.2

Malaysia

1

Myanmar3

Number

Accumulated

Total

Number

Total

3

0.9

1,553
295

318.1

1

0.7

700

1,286.2

2

0.9

6

2.6

Brunei Darussalam

3,902.0

4

5.3

1,029

516.4

3,581

6,028.2

4

45.1

2

0.2
6,347.2

633.0

1,575
5

24.3

0.2

1

1.2

599

1,319.2

40.6

4

1.7

64

187.5
1,755.7

2

the Philippines

5

0.8

5

0.4

826

Singapore

10

76.9

5

10.5

486

867.2

Commitments

22

Thailand

40

18.2

45

19.7

2,587

2,778.8

Vietnam

23

4.5

29

21.0

207

491.6

36

213.9
14,031.2

OthersSouth Asia

Sub Total

123

195.4

111

687.8

6,391

Bangladesh

1

18.5

1

0.2

9

41.8

India

6

2.4

5

2.5

861

1,294.2

Pakistan

290

298.3

Sri Lanka

61

67.9

Others

17

3.6

1,238

1,705.9

Kazakhstan

25

301.8

Turkmenistan

13

284.9

Sub Total
Central Asiaand the Caucasus

Uzbekistan

7

21.0

6

2.7

1

41.5

14

106.6

8

195.0

1

41.5

60

888.4

148

275.1

123

693.2

11,27022,653.9

2

6.9

4

11.1

OthersSub Total
Total
Oceania

Australia875

3,215.2

New Zealand

147

176.8

Papua New Guinea

56

267.2

Others
Total

90

JBIC ■ Annual Report 2017

2

6.9

4

11.1

52

27.0

1,130

3,686.3

Data(Unit: billions of yen)

EuropeCentral and Eastern
Europe and Russia

FY2015
Number

FY2016

Total

Number

Accumulated

Total

Number117

134.4

Moldova1

5.3

Russia

1

50.3

4

32.6

OthersSub Total
Western Europe

1

50.3

122

1,634.9

1,035

2,277.2

4

32.6

1,275

4,051.9

1

0.2

29

159.9

Cyprus18

17.4

Denmark57

78.9

Belguim

7

7.0

22

24.2

1

0.6

1

6.0

311

648.3

Germany

11

90.0

12

93.9

295

461.4

United Kingdom

16

283.1

23

64.7

566

2,083.3

Iceland

1

4.1

5

8.2

Ireland

1

0.3

47

338.6

Italy

3

8.1

52

252.1

Luxembourg

5

85.6

9

120.5

Netherlands

5

41.5

5

23.3

Norway
Spain

4

77.7

1

6.7

4

18.7

7

180.4

107

618.5

1

6.2

249

462.4

SwedenIsle of Man

66

129.0

58

144.8

7

7.6

1

3.8

2

56.9

88

161.9

625

535.4

Sub Total

56

547.9

52

493.1

2,615

6,272.2

Total

57

598.3

56

525.7

3,890

10,324.1

Switzerland
OthersBahrain
Iran
Iraq

2

32.3

1

56.6

JordanKuwait
Oman

6

110.4

199

1,026.8

23

252.2

29

89.1

24

260.6

28

296.4

Qatar

1

152.4

37

891.1

Saudi Arabia

1

2.7

81

1,001.8

Turkey

5

7.0

4

5.5

198

706.2

United Arab Emirates

2

265.4

1

39.6

69

1,766.4

Yemen

11

35.8

Others

106

212.0

811

6,649.3

Total

9

427.6

8

134.2

JBIC ■ Annual Report 2017912
Commitments

FinlandFranceMalta

The Middle East

Total

Bulgaria

Statistics

Region / Country

1

Data

1

(Unit: billions of yen)

Statistics

Region / Country

AfricaNorthern Africa

Sub-Saharan Africa

FY2015
Number

FY2016

Total

Number

Accumulated

Total

345

971.8

Egypt

183

240.5

Morocco10

145.0

Others22108.1

Sub Total

560

1,465.5

Angola30

100.8

Equatorial Guinea

1

7.3

2

17.1

Gabon

20

33.5

Kenya

30

19.3

9

102.5

Niger

117

105.1

Nigeria51

266.5

Seychelles2

1.2

South Africa

115

328.5

21

32.2

Commitments

Tanzania
Uganda1

7.5

OthersNorth America

Latin America and the Caribbean

8.7

1,402

1,662.8

2

14.9

1,806

2,678.8

Total

2

14.9

2,366

4,144.4

2

0.8

329

764.1

United States

35

455.3

43

549.3

2,706

8,811.3

Total

35

455.3

45

550.2

3,035

9,575.5

272

564.0

CanadaArgentina
1

15.0

Bolivia
Brazil12

67.5

British Virgin Islands

1

333.6

2

2.6

Cayman Islands
Chile

1

0.3

Colombia
Ecuador

1

2.8

Panama

22

67.7

32

65.9

1,957

3,267.9

4

345.0

5

97.3

160

1,334.6

122

276.2

33

81.9

286

417.1

Paraguay

16

12.8

Peru

113

487.5

8

83.9

Trinidad and Tobago

1

57.7

Mexico

19

22.4

842

2,232.7

Venezuela

81

661.8

Others

218

230.5

Total
International Organizations, etc.

Total

Others(Note)

Total
Grand Total

35

496.8

6

0.8

9

6.2

4,171

10,227.6

2

9.8

58

1,217.9

3

15.5

2

15.4

113

1,967.3291

2,290.7249

1,946.2

26,84470,446.7(Note) Others: Two-step loans to regional ﬁnancial institutions in Japan and loans for crossborder projects, etc.

JBIC ■ Annual Report 20177

Sub Total

the Bahamas

92

Total

Algeria

Madagascar

2

Number3

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

FY2015Total

FY2016
Share

Total

Share

Loans

Export Loans

844.7

5

976.7

6

Shipping

157.9

1

184.2

1

Plant

686.5

4

792.2

5

0.2

0

0.2

0

525.7

3

609.7

4

521.5

3

607.6

4

4.1

0

2.1

0

11,342.070

12,080.871

Natural Resources

5,353.633

5,290.5

31

Others5,988.437

6,790.3

40

Untied Loans

901.8

6

741.9

4

Technical Service
Import Loans
Natural Resources
Manufactured Goods & Technologies
Overseas Investment Loans

Governmental Loans
Sub Total

Total

0

32.2

0

84

14,441.585

2,464.7

15

2,385.0

14

194.9

1

215.8

1

16,308.6

100

17,042.4

100

3
Outstandings

Guarantees
Equity Participations

34.6
13,649.0(2) Guarantee Outstandings by Purpose(Unit: billions of yen, %)FY2015
Total

Guarantee for Samurai Bonds

FY2016
Share

Total

Share

1,423.9

58

1,438.9

60

Guarantee for Import of Aircrafts

428.2

17

426.0

18

Guarantee for Others

612.5

25

520.1

22

2,464.7100

2,385.0

100

Total

JBIC ■ Annual Report 2017

1

93

Data

1

(3) Geographical Distribution of Loan and Equity Participation Outstandings(As of March 31, 2017; billions of yen)

Statistics

Region / Country

Asia

East Asia

Southeast Asia

3
Outstandings

South Asia

Central Asia andthe Caucasus

Oceania

EuropeCentral and Eastern
Europe and Russia

Western Europe

94

JBIC ■ Annual Report 2017

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

Number

Total

90

91.1

29

24.5

10

22.4

2

0.2

9

46.2

140

184.6

1

12.2

2

0.1

140

641.0

5

20.4

19

44.0

5

37.9

23

211.2

40

177.7

162

162.7

106

238.7

503

1,546.3

2

0.8

73

207.6

3

53.2

3

3.6

81

265.4

10

174.6

7

141.0

1

3.7

18

319.4

742

2,315.8

68

1,829.6

4

34.1

6

258.3

78

2,122.1

5

5.2

2

2.8

1

0.9

20

388.8

28

397.8

1

0.2

4

5.3

1

14.3

7

6.2

7

144.3

41

201.6

55

526.7

1

0.1

10

310.3

9

191.9

8

105.2

3

16.1

13

264.6

3

12.8

9

53.7

2

13.1

7

8.0

8

101.6

189

1,976.7217

2,374.6

Data(As of March 31, 2017; billions of yen)

AfricaNorthern Africa

Sub-Saharan Africa

Latin America and the Caribbean

International Organizations, etc.
Others(Note)

Number

Total

1

43.0

7

47.9

1

12.2

2

16.7

1

68.8

10

129.0

5

431.8

7

446.1

26

86.2

9

617.4

2

14.5

71

1,914.2

4

9.1

2

57.6

3

72.2

9

139.0

5

58.8

2

4.0

2

0.2

2

0.1

2

86.7

4

0.7

2

16.4

3

0.5

7

22.7

1

9.8

30

200.4

39

339.4

13

239.7

162

2,346.9

175

2,586.6

2

109.9

6

33.8

2

16.4

47

552.3

1

332.6

1

24.1

22

810.6

2

47.1

6

0.2

10

61.6

1

2.2

5

60.8

1

11.7

69

222.3

6

218.8

181

2,504.9

3

25.4

34

474.0

1,540

14,657.4

3
Outstandings

North America

Bahrain
Iran
Iraq
JordanKuwaitOman
Qatar
Saudi Arabia
TurkeyUnited Arab Emirates
Yemen
Total
Algeria
Egypt
MoroccoSub Total
AngolaEquatorial Guinea
Gabon
Kenya
Madagascar
Niger
Nigeria
Seychelles
South Africa
Tanzania
Sub Total
Total
CanadaUnited States
Total
Argentina
the Bahamas
Bolivia
BrazilBritish Virgin Islands
Cayman Islands
Chile
Colombia
EcuadorPanamaParaguay
Peru
Trinidad and Tobago
MexicoVenezuela
Total
Total
Total
Grand Total

Statistics

Region / Country

The Middle East

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

JBIC ■ Annual Report 2017

1

95

4

OthersData1(1) Major Buyer’s Credit and Bank-to-bank Loan Commitments (FY2016)
Regions/Country

Project/Transaction

BorrowerAmountStatistics

Indonesia

Export of facilities for gas-ﬁred combined cycle powerplant

PT PLN (Persero)¥ 19.0 billion

RussiaExport of facilities for liquefaction plant

JOINT STOCK COMPANY YAMAL
LNG€ 200 million

Indonesia

Export of facilities for gas-ﬁred combined cycle powerplant

PT PLN (Persero)¥ 9.2 billion

Iraq

Export of substation facilities

Government of Iraq

¥ 10.3 billion

Iraq

Export of substation facilities

Government of Iraq

US$ 193 million

Vietnam

Export of facilities for coal-ﬁred power plant

Vietnam Electricity

US$ 50 million

Export of equipment for upgrading oil reﬁneries

KUWAIT NATIONAL PETROLEUM
COMPANY K.S.C.

US$ 500 million

Kuwait(Note) A buyer’s credit and a bank loan are loan facilities directly extending to a foreign importer (buyer) or a 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 (FY2016)

4

Regions/Country

Project/Transaction

OthersBorrowerAmountCorporación Andina de Fomento

US$ 50 million (*2)

Energy efﬁciency projects (GREEN)(*1)

Government of Ecuador

US$ 25 million (*2)

Indonesia

Partial acquisition of privately placed Samurai bonds(GATE)(*3)

Government of Indonesia—

Indonesia

Partial acquisition of privately placed Samurai bonds(GATE)(*3)

Government of Indonesia—

International
Organization, etc.

Renewable energy and energy efﬁciency projects (GREEN)

Ecuador(*1)(Notes) 1. GREEN refers to the “Global action for Reconciling Economic growth and ENvironmental preservation” facility launched in April 2010. JBIC seeks to contribute to achieving both
environmental and economic sustainability through its operations.
2. 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. GATE refers to the “Guarantee and Acquisition toward Tokyo market Enhancement” facility launched in April 2010. It will enable JBIC to acquire Samurai bonds whereappropriate, in addition to providing partial guarantees for Samurai bond issues. The GATE facility will thereby support foreign governments and government agencies to raise
funds in the Tokyo market.

(3) Special Operations (FY2016)
Regions/Country

Purpose of Financing

Project/Transaction

BorrowerAmountIraq

ExportExport of substation facilities

Government of Iraq

¥ 10.3 billion

Iraq

ExportExport of substation facilities

Government of Iraq

US$ 193 million(Note) The Act for Partial Amendment of the Japan Bank for International Cooperation Act was enacted on May 11, 2016, enhancing JBIC’s functions in order to provide further support
toward Japanese companies’ overseas businesses, in accordance with the Japanese Government’s policy to promote investment in quality infrastructure, such as the “Partnership for
Quality Infrastructure.” In October 2016, as part of the enhancement of functions, JBIC launched the Special Operations, which enables ﬁnancing for a wider range of countries andinfrastructure projects.

96

JBIC ■ Annual Report 2017

5Standard Loan Conditions
Data

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)1Statistics

1— Standard Interest Rates(As of August 15, 2017)

Standard Interest Rate(2)Type of Loans

Percentage of Loan Provided by JBIC

 Fixed at commitment (Yen CIRR) (3)Export Loans• 0.92% (Repayment period 5yrs or less)• 0.95% (Repayment period over 5yrs to 8.5yrs)• 0.99% (Repayment period over 8.5yrs)

60% limit

 Fixed at tenders (3) (8)• above rate + 0.2%
Import Loans /Overseas Investment Loans /Untied Loans /(Natural Resources /International Competitiveness) (1) Japanese yen (4)• 0.385%(6) (7)60% limit (7) Foreign Currency(5)•LIBOR+0.625%(6) (7)5Standard Loan Conditions(Notes) 1. SMEs are eligible for preferential interest rates and other favorable loan conditions.
2. Premium is added based on the type of ﬁnancing such as collateral/guarantee and loan schemes.
3. Synthetic rate based on interest rates charged by JBIC and coﬁnancing institutions.
4. Interest rates on loans in Japanese yen are determined based on speciﬁc loan periods and the amortization schedule.
The interest rate shown in the table is a reference rate for a 10-year loan with lump-sum repayment upon maturity. Please make an inquiry at the relevant department forinterest rate on speciﬁc conditions.
5. Interest rates on loans in foreign currencies are linked to 6-month LIBOR for US dollars.
6. Special interest rates will be applied based on policy implication such as contribution to “Promoting overseas development and acquisition of strategically 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 2017

97

6

Breakdown of Countries and Regions

Data

1(As of July 1, 2017)

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

EuropeCountries

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

6
Breakdown of Countries and Regions

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 (TDB),
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.

98

JBIC ■ Annual Report 2017

Data 2Financial Statements
1 Statutory Financial Statements ························· · 100
Balance Sheets ················································ ·· 100
Statements of Operations ······································ 102
Statements of Changes in Net Assets ··························· 103
Statements of Cash Flows ····································· ·· 106
Notes to Financial Statements ·································· 107

Supplementary Information on Financial Statements
by Operation Account ····································· · 133

2 Composition of Liabilities and Net Assets ················ 137
3 The Average Balance of Interest-earning Assets
and Interest-bearing Liabilities, Interest andEarning Yields ··············································· 139

4 Breakdown of Operating Expenses ···················· · 140
5 Balance of Due from Banks, Receivables under
Resale Agreements and Securities—Application of Surplus Funds ··························· 141

6 Information on Derivatives Transactions ················ · 142
7 Yield / Interest Rate ········································ · 143
8 Loans Outstanding per Employee ························ · 143
9 Loans Outstanding by Industry ··························· · 144
10 Write-off of Loans ········································· · 144
11 Assets in Major Foreign Currencies ······················· 145
12 Administrative Expense Ratio ····························· 148
13 Balance of Loans / Borrowings, Bonds andNotes by Maturity··········································· 149

14 Information on the Quality of Assets ····················· 150
Financial Statements in Accordance with
International Financial Reporting Standards (IFRS)
for Reference Only········································· · 152

JBIC ■ Annual Report 201799

1

Statutory Financial Statements

Data

2
Financial Statements

The balance sheets, statements of operations, statementsof changes in net assets, and notes to the non-consolidated
ﬁnancial statements of JBIC were prepared in accordancewith the regulations concerning terminology, forms, andpreparation methods of ﬁnancial statements set in theordinance of the Ministry of Finance No.59 of 1963. Assets andliabilities, revenue and expenses were classiﬁed in accordancewith the ordinance of the Ministry of Finance regarding Japan
Bank for International Cooperation Act No. 15 of 2012.

FY 2016 ﬁnancial statements for the period of April 1, 2016,
to March 31, 2017, were audited by Ernst & Young ShinNihon
LLC in accordance with Article 193 Paragraph 2 Item 1 ofFinancial Instruments and Exchange Act.
No consolidated ﬁnancial statements were prepared as JBIC
has no consolidating subsidiaries.

 Balance Sheets
March 31, 2017
March 31, 2016

March 31, 2017

(In millions of yen)

(In millions of yen)¥¥

(In millions of
U.S. dollars)

Assets:Cash and due from banks

1

Cash

Statutory Financial Statements

Securities

Due from banks
Note 4

Other securities
Loans and bills discounted

Note 5Loans on deeds
Other assets

1,220,187

1,526,209$

13,6040001,220,187

1,526,208

13,604

236,602281,249

2,507

236,602281,249

2,507

13,540,661

14,309,138

127,544

13,540,661

14,309,138

127,544

256,188261,790

2,333

Prepaid expenses

521

653

6

Accrued income

49,807

68,861

614

Derivatives other than for trading-assets

43,357

1,972

18

Cash collateral paid for financial instruments

162,230

189,920

1,693

273

382

2
246

Other

27,804

27,613

Buildings

2,882

2,916

26

Land

24,42724,311

217

Property, plant and equipment

Note 7

Lease assets

13

5

0

Construction in progress

34

—

—

Other

446

380

3

Intangible assets

2,737

2,711

24

Software

2,737

2,711

24

2,464,703

2,384,997

21,259Customers’ liabilities for acceptances and guarantees
Allowance for loan losses
Total assets

100

JBIC ■ Annual Report 2017

(168,262)¥

17,580,622(222,036)¥

18,571,673(1,979)$165,538

Data

2
Financial Statements

March 31, 2017
March 31, 2016

March 31, 2017

(In millions of yen)

(In millions of yen)¥¥

(In millions of
U.S. dollars)

Liabilities:
Borrowed money
Borrowings
Bonds payable

Note 6

9,908,705$

88,321

9,438,450

9,908,705

88,3212,668,558

3,301,565

29,428528,890

461,442

4,112

Accrued expenses

31,81543,592

389

Unearned revenue

57,88865,572584

Derivatives other than for trading-assets

375,363

332,906

2,967

Cash collateral received for financial instruments

63,38018,880

168

Lease obligations

16

3

0

Other

426

487

4

516

519

5

Provision for directors’ bonuses

6

6

0

Provision for retirement benefits

7,090

6,807

61

Provision for bonuses

Provision for directors’ retirement benefits
Acceptances and guarantees
Total liabilities

39

16

0

2,464,703

2,384,997

21,259¥15,108,255¥

16,064,061$

143,186¥

1,391,000¥

1,683,000$

15,001

Net assets:
Capital stock
Retained earnings
Legal retained earnings
Other retained earnings
Retained earnings brought forward
Total shareholders’ equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Total valuation and translation adjustments

972,140

842,366

7,508

929,368

800,754

7,137

42,772

41,612371

42,772

41,612371

2,363,140

2,525,366

22,509

4,303

2,468

23

104,923(20,223)(180)

109,226(17,755)(157)

Total net assets¥

2,472,367¥

2,507,611$

22,352

Total liabilities and net assets¥

17,580,622¥

18,571,673$

165,538

JBIC ■ Annual Report 2017

101

1
Statutory Financial Statements

Other liabilities

9,438,450

Data

2

 Statements of Operations

Financial Statements

March 31, 2017

Ordinary income:March 31, 2016

March 31, 2017

(In millions of yen)

(In millions of yen)¥¥Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on receivables under resale agreements

294,656$

2,626

213,806

259,250

2,311

196,859

253,672

2,261

2,682

755

7

7

—

—

Interest on deposits with banks

2,787

4,822

43

Interest on interest swaps

11,250

—

—

219

0

0

22,091

26,836239

22,091

26,836

239

141

—

—

117

—

—

Other interest income
Fees and commissions
Other fees and commissions
Other ordinary income
Gain on foreign exchange transactions

1

240,005(In millions of
U.S. dollars)

Other

23

—

—

Other income

3,965

8,570

76

Statutory Financial Statements

Recoveries of written-off claims

0

0

0

1,890

—

—

1,914

8,421

75

160

148

1

Ordinary expenses:

197,276

253,1182,256Interest expense

Gain on sales of stocks and other securities
Gain on investments in partnerships

Note 10

Other

123,779

177,433

1,582

Interest on borrowed money and rediscounts

57,33991,175813

Interest on bonds

66,42959,420530Interest on interest swaps—

26,836239

Other interest expense

10

—

—

Fees and commissions payments

1,653

1,919

17

Other fees and commissions

1,653

1,919

17

1,310

3,136

28

Loss on foreign exchange transactions

—

482

4

Amortization of bond issuance cost

729

1,662

15

Expenses on derivatives other than for trading or hedging

145

422

4

Other ordinary expenses

434

569

5

General and administrative expenses

Other

17,631

16,726

149

Other expenses

52,901

53,902

480

52,77053,855

480

130

—

—

Provision of allowance for loan losses
Loss on sales of stocks and other securities
Other

—

46

0

Ordinary profit

42,72841,537370

Extraordinary income
Gain on disposal of noncurrent assets
Net income

102

JBIC ■ Annual Report 2017

¥

43

75

1

43

75

1

42,772¥

41,612

$

371

Data

 Statements of Changes in Net Assets

2

From April 1, 2015 to March 31, 2016

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

Financial Statements(In millions of yen)

Shareholders’ equity

Changes of items during the period
Provision of legal retained earnings

63,684(63,684)——

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

Net income

42,772

42,772

42,772(84,597)(20,912)(20,912)972,140¥ 2,363,140

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¥

42,772¥

Valuation and translation adjustments

Balance at the beginning of current period

Valuationdifference
on available-forsale securities

Deferred gains orlosses on hedges

Total 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

41,242(8,482)¥

4,303

32,75941,242¥

104,923¥

32,75932,75911,846109,226¥ 2,472,367

JBIC ■ Annual Report 2017

1
Statutory Financial Statements(In millions of yen)

103

Data

2

From April 1, 2016 to March 31, 2017

Financial Statements(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¥

929,368

Retained earnings
brought forward¥

42,772

Total retained
earnings

Total
shareholders’equity¥972,140¥ 2,363,140(150,000)—

Changes of items during the period
Transfer to capital stock based on Article 3 (3)of the Supplementary Provisions of the Act
for Partial Revision of the JBIC Act

150,000

Issuance of new shares

142,000(150,000)

142,000

Provision of legal retained earnings

1

21,386(21,386)——

Payment to national treasury(21,386)(21,386)(21,386)

Net income

41,612

41,612

41,612

Statutory Financial Statements

Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period(128,613)

292,000¥ 1,683,000¥

800,754(1,159)¥41,612¥(129,773)

162,226

842,366¥ 2,525,366(In millions of yen)

Valuation and translation adjustments

Balance at the beginning of current period

Valuationdifference
on available-forsale securities

Deferred gains orlosses on hedges

Total valuationand translation
adjustments

Total net assets

¥

¥

¥

¥ 2,472,367

4,303

104,923

109,226

Changes of items during the period
Transfer to capital stock based on Article 3 (3)of the Supplementary Provisions of the Act
for Partial Revision of the Japan Bank forInternational Cooperation Act—

Issuance of new shares

142,000

Provision of legal retained earnings—

Payment to national treasury(21,386)

Net income

41,612

Net changes of items other thanshareholders’ equity(1,835)

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

104

JBIC ■ Annual Report 2017(125,146)(1,835)¥

2,468(126,982)(125,146)¥(20,223)¥(126,982)(126,982)

35,244(17,755)¥ 2,507,611

Data

2

From April 1, 2016 to March 31, 2017

Retained earnings
Other retained
earnings

Balance at the beginning of current period

Capital stock

Legal retained
earnings$$

12,3988,283

Retained earnings
brought forward$

382

Total retained
earnings

Total
shareholders’equity

$

$

8,665

Financial Statements(In millions of U.S. dollars)

Shareholders’ equity

21,063

Changes of items during the period
Transfer to capital stock based on Article 3 (3)of the Supplementary Provisions of the Act
for Partial Revision of the Japan Bank forInternational Cooperation Act

1,337

Issuance of new shares

1,266(1,337)(1,337)—
1,266

Provision of legal retained earnings

191

—

—

(191)

(191)

(191)

Net income

371

371

371

(11)

(1,157)

1,446

Net changes of items other thanshareholders’ equity
Total changes of items during the period
Balance at the end of current period(1,146)2,603$

15,001

$

7,137

$

371

$

7,508

$

22,509(In millions of U.S. dollars)

Valuation and translation adjustments

Balance at the beginning of current period

Valuationdifference
on available-forsale securities

Deferred gains orlosses on hedges

Total valuationand translation
adjustments

Total net assets

$

$

$

$

39

935

974

22,037

Changes of items during the period
Transfer to capital stock based on Article 3 (3)of the Supplementary Provisions of the Act
for Partial Revision of the Japan Bank forInternational Cooperation Act—

Issuance of new shares

1,266

Provision of legal retained earnings—

Payment to national treasury(191)

Net income

371

Net changes of items other thanshareholders’ equity(16)

Total changes of items during the period
Balance at the end of current period(1,115)

(16)
$

23

(1,131)(1,115)$(180)(1,131)(1,131)
$

(157)

315
$

22,352(Note) In accordance with a plan under Article 3 of the Supplementary Provisions of the Act for Partial Revision of the Japan Bank for International Cooperation Act (Act No. 41 of 2016)(the “Supplementary Provisions of the Act”), Due from banks and ¥150,000 million ($1,337 million) of Legal retained earnings were transferred from the “Ordinary Operations”
account to the “Special Operations” account. ¥150,000 million ($1,337 million) of Legal retained earnings transferred to the “Special Operations” account was reclassiﬁed asCapital stock in the “Special Operations” account based on Article 3 Paragraph (3) of the Supplementary Provisions of the Act.

JBIC ■ Annual Report 2017

1051
Statutory Financial Statements(191)

Payment to national treasury

Data

2

 Statements of Cash Flows

Financial Statements

March 31, 2017
March 31, 2016

March 31, 2017

(In millions of yen)

(In millions of yen)¥¥

(In millions of
U.S. dollars)

Cash flow from operating activities
Net income

41,612

$

371

1,302

1,209

11

Increase (decrease) in allowance for loan losses

52,77053,773

479

Increase (decrease) in provision for bonuses

15

2

0

Increase (decrease) in provision for directors’ bonuses

0

0

0

Increase (decrease) in provision for retirement benefits

695

(282)

(3)

8

(22)

(0)

Interest income(213,806)(259,250)(2,311)

Interest expense

123,779

177,433

1,582(3,674)(8,421)(75)

Increase (decrease) in provision for directors’ retirement benefits

Loss (gain) related to securities
Loss (gain) on disposal of noncurrent assets

1

42,772

Depreciation and amortization

Statutory Financial Statements

(43)

(75)

(1)

Net decrease (increase) in loans and bills discounted

892,288(768,476)(6,850)Net increase (decrease) in borrowed money

13,134

470,255

4,192

Net decrease (increase) in deposit (excluding deposit paid toBank of Japan)

305,251(137,099)(1,222)

Increase (decrease) in straight bonds-issuance and redemption(382,533)

631,3315,627Interest received

206,938

240,3022,142

Interest paid

(118,022)(163,993)(1,462)

Other(204,123)(191,419)(1,705)

Subtotal

716,752

86,879775

Net cash provided by (used in) operating activities

716,752

86,879775

Purchase of securities(55,554)(43,828)(391)

Proceeds from sales of securities

67,401

4,796

43

Proceeds from redemption of securities

10,409

1,389

12

(183)

(288)

(3)

Cash flow from investing activities

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

332

212

2

Purchase of intangible assets

(516)

(841)

(7)

21,888(38,559)(344)—

142,000

1,266

Net cash provided by (used in) investing activities
Cash flow from financing activities
Proceeds from issuance of new shares
Repayments of lease obligations

(13)

(12)

(0)

Payment to national treasury(63,684)(21,386)(191)

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

120,601

1,075

—

—

—

Net increase (decrease) in cash and cash equivalents

674,942

168,921

1,506

Cash and cash equivalents at beginning of period

40,651

715,594

6,378

Effect of exchange rate change on cash and cash equivalents

Cash and cash equivalents at end of period

106

JBIC ■ Annual Report 2017

Note 12¥715,594¥

884,516

$

7,884

Data

 Notes to Financial Statements

2

Basis of presentation
The accompanying ﬁnancial statements have been prepared from the accounting records maintained by Japan Bank forInternational Cooperation (“JBIC”) in accordance with the accounting principles and practices generally accepted in Japan, which
are different in certain aspects from the application and disclosure requirements of International Financial Reporting Standards.
Consolidated ﬁnancial statements are not prepared since JBIC has no subsidiaries.
The amounts indicated in millions of yen are rounded down by omitting ﬁgures less than one million. Totals may therefore
not add up exactly because of this rounding.
Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥112.19=$1.00, theforeign exchange rate on March 31, 2017, has been used in translations. The presentation of such amounts is not intended to
imply that Japanese yen have been or could be readily converted, realized, or settled in U.S. dollars at the aforementioned rate or
any other rate.

2.

Financial Statements

1.

Significant accounting policies(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 forbuildings excluding installed facilities as well as installed facilities and structures acquired on or after April 1, 2016, which
are depreciated by the straight-line method.
Depreciation is based on the following range of estimated useful lives:
Buildings: 3 years to 50 years
Other:
2 years to 35 years(ii) Intangible assets (except for lease assets)
Depreciation of intangible ﬁxed assets is computed by the straight-line method. Software used by JBIC is depreciatedover its useful life (5 years or less) at JBIC.
(iii) Lease assets
Lease assets in “property, plant and equipment” or “intangible assets,” under ﬁnance leases that do not involve transferof 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 mostlytranslated into Japanese yen at the market exchange rate prevailing at the ﬁscal year end.
(f) Allowance for loan losses
Allowance for loan losses is recognised in accordance with internally established standards.
The allowance for claims on debtors who are legally bankrupt (“Bankrupt borrowers”) or substantially bankrupt(“Substantially bankrupt borrowers”) is provided based on the outstanding balance after the write-offs described as below

JBIC ■ Annual Report 2017

107

1
Statutory Financial Statements(a) Securities
Held-to-maturity securities are carried at amortized cost based on the moving average method. Investments in afﬁliates arecarried at cost based on the moving average method. Available-for-sale securities are in principle stated at fair value withchanges in net unrealized gains or losses included directly in Net assets. However, available-for-sale securities whose fair value
cannot be readily determined are carried at cost based on the moving average method.
Investments in partnerships for investment, which are regarded as securities under Article 2, Paragraph 2 of the Japanese
Financial Instruments and Exchange Act (Act No. 25 of 1948), are recognized at an amount equivalent to JBIC’s percentage
share of the net assets of such partnerships, based upon the most recent ﬁnancial statements available depending on thereporting date stipulated in the partnership agreement.

Dataand the deductions of the amount expected to be collected through the disposal of collateral 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 disposal of collateral and the execution of guarantees.
The allowance for claims on debtors other than Bankrupt borrowers, Substantially bankrupt borrowers and Potentiallybankrupt borrowers is provided primarily based on the default rate, which is calculated based on the actual defaults during acertain period in the past. The allowance for possible losses on speciﬁc overseas loans is provided based on the expected loss
amount taking into consideration the political and economic situations of these countries.
All claims are assessed initially by the operational departments and subsequently by risk evaluation departments based oninternal 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 is provided 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 amountwhich is deemed collectable through the disposal of collateral or the execution of guarantees is written off. There are no
accumulated write-offs as of March 31, 2017. (There were no accumulated write-offs as of March 31, 2016.)

2
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.

1
Statutory Financial Statements(h) Provision for directors’ bonuses
The “provision for directors’ bonuses” is calculated and provided for based on the estimated amounts of future payments
attributable to the services that have been rendered by directors to the date of the balance sheets.
(i)

Provision for retirement benefits
The “provision for retirement beneﬁts” represents the future payment for pension and retirement beneﬁts to employees, andis 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 theperiod 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 to directors,
corporate auditors and executive ofﬁcers, is recognized at the amount accrued at the end of the respective ﬁscal year.

(k) Accounting for hedges of interest rate risk(i) Hedge accounting
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, borrowed money, bonds and notes(iii) Hedging policy
JBIC enters into hedging transactions up to the amount of the underlying hedged assets and liabilities(iv) Assessment of hedge effectiveness
JBIC assesses the effectiveness of designated hedges by measuring and comparing the change of fair value or cumulativechange of cash ﬂows of both hedging instruments and corresponding hedged items from the date of inception of thehedges to the assessment date.
(l)

108

Accounting for hedges of foreign exchange risks
Hedging instruments used to hedge foreign exchange risks associated with foreign currency denominated monetary assets
and liabilities are accounted for primarily 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 position of the hedgedloans and bills discounted and bonds payable denominated in foreign currencies with that of the hedging instruments, such

JBIC ■ Annual Report 2017

Data

as currency swaps and forward foreign exchange contracts which are used for hedging the foreign exchange risks of loans
and bills discounted and bonds payable denominated in foreign currencies.

(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 Deposit with the Bank ofJapan in “Cash and due from banks” in the balance sheets.

3.

Financial Statements(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.

2

Changes in accounting policies
In accordance with the revision of the Corporation Tax Act, JBIC adopted the “Practical Solution on a Change in Depreciation
Method due to Tax Reform 2016” (ASBJ PITF No. 32, issued on June 17, 2016) from the ﬁscal year ended March 31, 2017, andchanged the depreciation method of installed facilities and structures acquired on or after April 1, 2016 from the declining balancemethod to the straight-line method.
The impact of this change on Ordinary proﬁt and Net income as of March 31, 2017 is immaterial.

1
Equity securities of or investments in affiliates

Equity securities

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥

Investments in afﬁliates

5.

2,061
82,4394,010$

89,721

36
800

Loans
(a) Bankrupt loans and non-accrual loans included in loans and bills discounted:“Ordinary Operations” accountBankrupt loans

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥

Non-accrual loans—
111,407

—

$

3,748

—
33

“Special Operations” account
There is no applicable loan in the “Special Operations” account.
“Bankrupt loans” are loans, deﬁned in Article 96, Paragraph 1, Item (iii), a. through e. and Item (iv) of the Order for
Enforcement of the Corporation Tax Act (Cabinet Order 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 fromﬁnancial difﬁculties.
(b) Loans with interest or principal repayments three months or more in arrears included in loans and bills discounted:“Ordinary Operations” accountLoans with interest or principal repayments three months
or more in arrears

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥

44,71953,399$476“Special Operations” account
There is no applicable loan in the “Special Operations” account.
“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 2017

109

Statutory Financial Statements

4.

Data

(c) Restructured loans included in loans and bills discounted:“Ordinary Operations” account2
Financial Statements

Restructured loans

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥

98,714

182,434$

1,626“Special Operations” account
There is no applicable loan in the “Special Operations” account.
“Restructured loans” are loans whose repayment terms and conditions have been amended in favor of the borrowers(e.g. reduction of or exemption from the stated interest rate, the deferral of interest payments, the extension of principal
repayments or waiver of claims) in order to support the borrowers’ recovery from ﬁnancial difﬁculties, and which do not fallunder the category of “Bankrupt loans,” “Non-accrual loans,” or “Loans with interest or principal repayments three months
or more in arrears.”(d) The total amount of bankrupt loans, non-accrual loans, loans with interest or principal repayments three months
or more in arrears, and restructured loans:“Ordinary Operations” account1

Total amountMarch 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥

254,840

239,582$

2,136

Statutory Financial Statements“Special Operations” account
There is no applicable loan in the “Special Operations” account.
The amounts of loans indicated in table (a) through (d) above are the gross amounts before the deduction of allowance
for loan losses.
(e) JBIC, as a policy, does not extend loans to borrowers in part or in full immediately after the execution of the loan
agreements, but instead execute loans, in accordance with the progress of the underlying projects. These undrawn
amounts are not included in the loans on deed in the balance sheets. The balance of undrawn amounts is asfollows:

Balance of undrawn loans

6.

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥

2,884,178

2,447,815$

21,818Assets pledged as collateral
Pursuant to Article 34 of the Japan Bank for International Cooperation Act (“JBIC Act”), all JBIC assets are pledged as generalcollateral for bonds:

Bonds payable

7.

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥

2,668,558

3,301,565$

29,428

Accumulated depreciation of fixed assets

Accumulated depreciation

8.

March 31, 2016

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)

¥

¥

1,507

1,777

$

16

Contingent liabilities
Japan Finance Corporation (“JFC”) assumed the obligations of the JFC bonds on April 1, 2012, and JBIC is jointly responsible forthe 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.

110

JBIC ■ Annual Report 2017

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥

450,000

210,000

$

1,872

Data

9.

Appropriation of retained earnings

2
Financial Statements

JBIC is restricted in its ability to appropriate retained earnings in accordance with Article 31 of the JBIC Act.
Where the amount of retained earnings exceeds zero in respective accounts for operations deﬁned in each item of Article26-2 of the JBIC Act, JBIC accumulates, 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 pays such surplus
into the national treasury within 3 months after the ﬁsical year end.
In the event that the amount of retained earnings falls below zero in respective accounts for operations deﬁned in each itemof Article 26-2 of the JBIC Act, a reserve shall be transferred to the retained earnings to the extent that the amount of retained
earnings becomes zero.

10. Income on transactions with affiliates
Income on transactions with afﬁliates is as follows:

Gain on investments in partnerships

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)

¥

¥

436

8,151

$

73

1

11. Changes in net assets(unit: thousands of shares)

The number of sharesat the beginning of
the fiscal year

Types

Increase during
the fiscal year

Decrease during
the fiscal year

The number of sharesat the end of
the fiscal year

Remarks

Issued shares
Common stocks
Classiﬁed stock
Total

1,391,000,000——

1,391,000,000

—

—

—

—

1,391,000,000——

1,391,000,000

Treasury stock
Common stocks

—

—

—

—

Classiﬁed stock

—

—

—

—

—

—

—

—

Total

For the ﬁscal year ended March 31, 2017, the type and the number of issued shares and treasury stocks are as follows;(unit: thousands of shares)

The number of sharesat the beginning of
the fiscal year

Types

Increase during
the fiscal year

Decrease during
the fiscal year

The number of sharesat the end of
the fiscal year

Remarks

Issued shares
Common stocks

1,391,000,000

142,000,000—

1,533,000,000

Classiﬁed stock

—

—

—

—

1,391,000,000

142,000,000—

1,533,000,000

Total

Note
Note

Treasury stock
Common stocks

—

—

—

—

Classiﬁed stock

—

—

—

—

—

—

—

—

Total

(Note) The reason for an increase in shares is the issuance of 142,000,000 thousand new shares.

JBIC ■ Annual Report 2017

111

Statutory Financial Statements(a) Issued shares and treasury stocks
For the ﬁscal year ended March 31, 2016, the type and the number of issued shares and treasury stocks are as follows;

Data

2

12. Cash flows“Cash and cash equivalents” in the Statements of Cash Flows as of March 31, 2016 and 2017 reconciles to cash and due frombanks in the balance sheets as follows:

Financial Statements

Cash and due from banks

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥Time deposits and others
Cash and cash equivalents

1,220,187(504,593)¥

715,594

1,526,209$(641,692)¥

884,516

13,604(5,720)$7,884

13. Lease transactions
Finance lease transactions
Finance lease transactions that do not involve the transfer of ownership to the lessee(i) Description of lease assets
 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).

1
Statutory Financial Statements

14. Financial instruments and related disclosure(a) Status of financial instruments(i) Initiatives for ﬁnancial instruments
Based on the JBIC Act, JBIC is a policy-based ﬁnancial institution wholly owned by the Japanese government, which
has the purpose of contributing to the sound development of Japan and the international economy and society while
supplementing the ﬁnancial transactions implemented by private-sector ﬁnancial institutions, by performing the ﬁnancial
function to promote the overseas development and securement of resources which are important for Japan; maintaining
and improving the international competitiveness of Japanese industries; promoting the overseas business having the
purpose of preserving the global environment, such as preventing global warming, as well as preventing disruptions tointernational 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 forbusiness development (including guarantees) and capital investment. To conduct these operations, funds are raised
through borrowings from the ﬁscal investment and loans and the foreign exchange fund special account, and the issuingof bonds. An ALM (asset and liability management) function has been established in respect of our ﬁnancial assets andliabilities that are subject to interest rate and currency ﬂuctuations to assist in ensuring that such ﬂuctuations do not havean adverse effect on our operations. In addition, derivative transactions are entered into for the purpose of mitigatingrisk inherent in foreign currency denominated transactions. Financial instruments that can be used for the managementof surplus funds are limited to safe instruments such as Japanese government bonds, etc., as stipulated in the JBIC Act.
The budget required for governmental ﬁnancial operations is decided upon by the Diet of Japan, and business plans
and ﬁnancial plans (borrowings 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 and liabilities mainly
include borrowed money and bonds. The associated risks are described below.
 Credit risk
Credit risk is the risk that JBIC will suffer losses if the ﬁnancial conditions of the borrower deteriorate and the valueof assets (including off-balance sheet assets) declines or loses.
The credit risks associated with JBIC include sovereign risk, country risk, corporate risk, and project risk. Becauseof the characteristic of supports for overseas economic transactions conducted by JBIC, much ﬁnancing is provided
to overseas governments, governmental institutions, and overseas corporations; the credit risk associated with thecredit provided primarily consists of sovereign or country risk.
As a result, if the ﬁnancial conditions of the individual borrower signiﬁcantly deteriorate due to politicaland economic trends in the borrower’s country or region, JBIC’s performance and ﬁnancial conditions can beadversely affected.
(Note) Sovereign risk refers to risk associated with credit extended 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

112

JBIC ■ Annual Report 2017

Data

113

1
Statutory Financial Statements

JBIC ■ Annual Report 2017

2
Financial Statements

project risk, associated with the country in which the corporation or the project is located) and corporate riskrefers to the risk associated with credit to corporations and project risk refers to the risk that the cash ﬂows
generated from the project fail to generate the planned cash ﬂows, in the case of project ﬁnance, where therepayment of the borrowing is primarily secured by the cash ﬂow of the project to which credit is extended.
 Market risk
Market risk is the risk that the value of assets and liabilities (including off-balance sheet items) will ﬂuctuate andlosses will be incurred, or proﬁts derived from assets and liabilities (including off-balance sheet items) will ﬂuctuate
and losses will be incurred due to changes in various market risk factors, such as interest rates and exchange rates.
The market risk borne by JBIC mainly consists of foreign exchange risk and interest rate risk, and JBIC may
suffer losses from these risks due to ﬂuctuations in the markets such as market turmoil. 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 rate swaps tohedge the risk of changes in interest rates associated with loans, borrowed money and bonds. The effectiveness ofthe hedges is assessed by measuring and comparing the change in fair value or cumulative change in cash ﬂows
of both hedging instruments and corresponding hedged items from the date of inception of the hedges to theassessment 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 and bonds, etc. for foreign exchange risk. The effectiveness ofthe hedging with currency swaps and forward foreign exchange contracts is assessed by comparing the foreign
currency position of the hedged ﬁnancial 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 difﬁculties in obtaining the necessary funds due toa maturity mismatch between ﬁnancing and funding or unexpected outﬂow of funds, or being forced to fund at aninterest rate signiﬁcantly higher than that under normal circumstances (funding risk). It is also the risk that losses will
be incurred from being unable to conduct market transactions due to market turmoil or being forced to transact at
far more unfavorable prices than those under normal circumstances (market liquidity risk).
Long-term and stable funds, such as ﬁscal loan funds, government-guaranteed bonds and FILP agency bonds,
are secured to ﬁnance JBIC and deposits are not accepted, with the result that it considers liquidity risk to be limited.
However, ﬁnancing costs could increase due to market turmoil and unexpected events.
(iii) Risk management structure for ﬁnancial instruments
The risk management structure of JBIC is described below.
 Credit risk management
The cornerstone of credit risk management at JBIC is the evaluation of an individual borrower’s creditworthiness inadvance of credit approval.
When a new credit application is processed, the relevant ﬁnance departments (sales promotion departments)
and credit departments collect and analyze information on the borrower. JBIC’s overseas representative ofﬁces also
play a part in collecting information on foreign governments and companies. Credit appraisal takes place based on
the information that has been gathered and analyzed with the different departments ensuring appropriate checks
throughout the process, leading to the ﬁnal decision by the management.
In providing credit to foreign governments and companies, JBIC takes maximum advantage of its uniqueposition as a public ﬁnancial institution. This includes exchanging views and information with governments andrelevant authorities in the recipient countries, multilateral international institutions such as the International
Monetary Fund (IMF) and the World Bank, other regional development banks such as export credit agencies, andprivate ﬁnancial institutions in developed countries. Using all these channels to exchange views and information,
JBIC evaluates sovereign and country risks (risk in addition to corporate risk associated with the country in which
the corporation is located) based on the broad range of information collected on the borrowing governments, thegovernment agencies and the political and economic 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 status of credit management to the management. In addition, an Integrated
Risk Management Committee is held regularly to report the status of credit management to the management. The
credit management situation is also checked by an independent auditing department.
In addition, a claims protection mechanism exists based on an international framework unique to ofﬁcial
creditors, that is not applied to private sector ﬁnancial institutions, for public claims on foreign governments.
This mechanism consists of international ﬁnancial assistance upon international approval by the Paris Club, an

Data

2
Financial Statements

1
Statutory Financial Statementsinternational group focusing on debt, to allow the debtor country to continue debt repayment when the debtor
country becomes temporarily unable to service its debt due to economic conditions. As part of this international
ﬁnancial assistance, the debtor country conducts an economic reform program agreed by the IMF in order to secure
the ability to sustainably service its debt. In view of JBIC’s position as a public ﬁnancial institution, it will use theframework of the Paris Club to preserve its public claims on foreign governments.
In addition to the above credit risk management related to individual borrowers, JBIC quantiﬁes credit risk witha view to evaluating the risk of the overall loan portfolio. To quantify credit risks, it is important to take into accountthe characteristics of JBIC’s loan portfolio, which are not typically seen in other private ﬁnancial institutions, namelythat JBIC holds a signiﬁcant proportion of long-term loans that entail sovereign and country risks. Also to be taken
into account are mechanisms for securing assets under an international supporting framework, such as the Paris
Club, which is unique to ofﬁcial creditors. JBIC uses a unique model to quantify the credit risk taking account of theabove factors and measures amount of credit risk, which are utilized for credit risk management.
Market risk management
JBIC manages foreign exchange risk and interest rate risk through its ALM. Market risk management protocols
contain detailed stipulations in respect of risk management methods and procedures, and JBIC established an ALM
Committee to assess and conﬁrm the execution of ALM, and to discuss future responses to market risk. In addition,
JBIC assesses and monitors the interest rate and terms of ﬁnancial assets and liabilities in detail through a gap
analysis and an interest rate sensitivity analysis as well as Value at Risk (“VaR”). The results are reported to the ALM
Committee on a regular basis.
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-denominated loan and foreign
currency-denominated loan operations and the policy for managing interest rate risk is described below.
a. Yen-denominated loan operations
Yen-denominated loan operations are mainly managed by using ﬁxed-rate loans. However, swaps are used
to hedge interest rate risk for the portion of loans that are deemed to have high exposures to interest rate
ﬂuctuations and therefore interest rate risk is limited.
b. Foreign currency-denominated loan operations
For foreign currency-denominated loan operations, interest rate risk is hedged through the application of aconsistent policy of using interest rate swaps and managing the funds with ﬂoating interest rates for bothloans 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 inprinciple JBIC holds derivatives only for hedging purposes, stated previously, market risk is measured in order
to assess potential risk exposures. The following represents the market risk exposure in the current ﬁscal year
which is an aggregate of market risks (VaR) measured in respective accounts for operations deﬁned in each
item of Article 26-2 of the JBIC Act. JBIC measures market risk (VaR) by taking into account the degree ofcorrelation between interest rate risk and foreign exchange risk.
a. Market risk (VaR)
March 31, 2017

March 31, 2017

(In billions of yen)

(In billions of U.S. dollars)

¥

b.
c.

114

152.1

$

1.4

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 ﬂuctuation of gains or losses in fairvalues that could be incurred after a certain period of time (“holding period”) based on historical market
movements of interest rates or exchange rates, etc., over a speciﬁc period in the past (or observation
period) within a given probability (conﬁdence interval), that is derived statistically by employing thetheory of possibility distribution.
The measurement assumes historical market trends and the theory of probability distribution.
Based on the possibility that future market trends could deviate from these assumptions, a back-test is

JBIC ■ Annual Report 2017

Data

Amount on balance sheet(1) Cash and due from banks¥

1,220,187

Fair value¥

Difference

1,220,187¥—(2) Securities
Available-for-sale securities

41,697(3) Loans and bills discounted

13,540,661

41,697—

13,379,792

13,483,425

103,633

162,230

162,230—

Total assets

14,803,907

14,907,541

103,633(1) Borrowed money

9,438,450

9,536,939

98,488(2) Bonds payable

2,668,558

2,721,958

53,39963,38063,380—12,170,388

12,322,277

151,888———

Allowance for loan losses (*1)(160,868)(4) Cash collateral paid for ﬁnancial instruments(3) Cash collateral received for ﬁnancial instruments
Total liabilities
Derivative transactions (*2)
Derivative transactions not qualifying for hedge
accounting
Derivative transactions qualifying for hedge accounting
Total derivative transactions(332,006)¥(332,006)(332,006)¥(332,006)—¥—(*1) General allowance for loan losses and speciﬁc 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 presented. Assets and liabilities arising from derivative transactions are presented on a net basis.
The ﬁgures in parenthesis indicate net liabilities.

JBIC ■ Annual Report 2017

115

1
Statutory Financial Statements(b) Fair value of financial instruments
The carrying amount on the balance sheets as of March 31, 2016 and March 31, 2017 and the related fair value, anddifference are as follows. Note that unlisted securities whose fair value is extremely difﬁcult to be determined are not includedin the following chart (refer to Note 2).
(In millions of yen)
As of March 31, 2016

2
Financial Statements

performed to cross-check the model-measured VaR with actual proﬁts or losses, in order to conﬁrm theeffectiveness of market risk measurements using VaR. In addition, a stress test, which goes beyond theprobability distribution of historical market movements, is carried out in order to capture risks from various
perspectives.
The following points should generally be noted in measuring VaR:
• VaR will differ depending on the choice of conﬁdence interval, holding period or observation period;• VaR indicates the maximum ﬂuctuation of gains or losses in fair values at the time of measurement.
In practice, the actual results at a point in the future may differ from the VaR calculation due tochanges in the assumptions caused by market movements during the holding period; and• VaR indicates the maximum value based on speciﬁc assumption. As such, when utilizing VaR as
a risk management measure, it is imperative to keep in mind that VaR may underestimate thepotential losses.
 Liquidity risk management related to funding
Long-term and stable funds, such as ﬁscal loan funds, government-guaranteed bonds and FILP agency bonds, areused to ﬁnance these operations and deposits are not accepted.
Cash ﬂows are assessed and proper measures, including establishing overdraft facility accounts with multiple
private sector ﬁnancial institutions, are taken to maintain daily cash ﬂows for proper risk management.
 Derivative transactions
For derivatives transactions, the internal checks and balances is established by assigning the execution of transactions,the assessment of hedge effectiveness and the management of administrative work to separate divisions. In addition,
derivative transactions are carried out in accordance with the derivatives related protocol.
(iv) Supplementary explanation concerning fair value of ﬁnancial instruments
Fair values of ﬁnancial instruments are based on their market prices or, in cases where market prices are not available,
on reasonably calculated prices. These prices have been calculated using certain assumptions, and may differ dependingon the assumptions.

Data

As of March 31, 2017

2

(In millions of yen)Amount on balance sheet(1) Cash and due from banks¥

1,526,209

Fair value¥

Difference

1,526,209¥—

Financial Statements(2) Securities
Available-for-sale securities

65,391(3) Loans and bills discounted

14,309,138

65,391—

14,095,098

14,237,483

142,384

189,920

189,920—

Total assets

15,876,619

16,019,004

142,384(1) Borrowed money

9,908,705

9,973,774

65,068(2) Bonds payable

3,301,565

3,276,524(25,041)

Allowance for loan losses (*1)(214,039)(4) Cash collateral paid for ﬁnancial instruments(3) Cash collateral received for ﬁnancial instruments
Total liabilities

18,88018,880—13,229,151

13,269,178

40,027———

Derivative transactions (*2)
Derivative transactions not qualifying for hedge
accounting
Derivative transactions qualifying for hedge accounting
Total derivative transactions

1(330,934)¥(330,934)(330,934)¥(330,934)—¥

As of March 31, 2017

(In millions of U.S. dollars)

Statutory Financial Statements

Amount on balance sheet(1) Cash and due from banks—$

13,604

Fair value$

Difference

13,604$—(2) Securities
Available-for-sale securities

583(3) Loans and bills discounted

127,544

Allowance for loan losses (*1)

583—

125,636

126,905

1,269

1,693

1,693

—

141,516

142,785

1,269(1,908)(4) Cash collateral paid for ﬁnancial instruments
Total assets(1) Borrowed money

88,321

88,901580(2) Bonds payable

29,42829,205(223)(3) Cash collateral received for ﬁnancial instruments
Total liabilities

168

168

—

117,917

118,274

357

—

—

—

Derivative transactions (*2)
Derivative transactions not qualifying for hedge
accounting
Derivative transactions qualifying for hedge accounting
Total derivative transactions(2,950)$(2,950)(2,950)$(2,950)—$—(*1) General allowance for loan losses and speciﬁc 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 presented. Assets and liabilities arising from derivative transactions are presented on a net basis.
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 have no speciﬁc maturity or have a maturity under 3 months, the carrying amounts are used as fairvalue 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 the ﬁnancial institutions that
JBIC transacts with.
(3) Loans and bills discounted
For loans with variable interest rates, since such loans reﬂect market interest rates, an amount calculated by the ﬂoating rate
note method over the short term is used for fair value.
For loans with ﬁxed interest, the total principal and interest is discounted by a risk free rate that incorporates the default
ratio and coverage ratio to calculate fair value.
However for claims on bankrupt borrowers, substantially bankrupt borrowers, and potentially bankrupt borrowers,
expected credit losses on such claims are calculated based on the expected collectable amount from the collateral or

116

JBIC ■ Annual Report 2017

Data

Liabilities(1) Borrowed money
Borrowed money with variable interest rates reﬂect short-term market interest rates and the credit conditions of JBIC havenot changed signiﬁcantly since the execution of borrowings. Therefore, the carrying amount is used as fair value because it isconsidered that the carrying amount approximates the fair value. For borrowed money with a ﬁxed interest rate, in principle,
fair value is calculated by discounting the principal and interest of the borrowings by the risk free rate (the standard Japanese
government bond rate).
(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 amountapproximates the fair value.

1(Note 2) Financial instruments whose 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, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)

¥

¥

2,061

4,010

$

35

2) Unlisted stocks (other than subsidiaries and afﬁliates) (*1)

68,99876,471

682

3) Partnership investments (subsidiaries and afﬁliates) (*2)

82,43989,721

8004) Partnership investments (other than subsidiaries andafﬁliates) (*2)

41,40445,653

407

Total

¥

194,904¥

215,857$

1,924(*1) Since unlisted stocks do not have quoted market prices available and their fair value is extremely difﬁcult to be determined, fair values are not stated.
(*2) For partnership investments composed of unlisted stocks that do not have quoted market prices available and for which fair value is extremely difﬁcult to be determined, fairvalues are not stated.

(Note 3) Redemption schedule for receivables and redeemable securities with future redemption dates
March 31, 2016

Due from banks (*1)

Due within
one year

Due after one
year but within
three years¥ 1,220,187¥—

Due after three
years but within
five years¥—

Due after five
years but withinseven years¥—(In millions of yen)

Due after sevenyears but within
ten years¥—

Due after
ten years¥—

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¥ 2,419,576¥ 2,787,918¥ 2,938,467¥ 2,241,682¥ 2,405,068¥ 1,827,328

Total(*1) Demand deposits contained within due from banks are stated as “Due within one year.”(*2) ¥182,118 million of Loans and bills discounted whose redemption is not estimable, such as claims against bankrupt borrowers, substantially bankrupt borrowers, and potentiallybankrupt borrowers, is 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.

March 31, 2017

Due from banks (*1)

(In millions of yen)

Due within
one year

Due after one
year but within
three years¥ 1,526,208¥—

Due after three
years but within
five years¥—

Due after five
years but withinseven years¥—

Due after sevenyears but within
ten years¥—

Due after
ten years¥—

Securities
Available-for-sale securities

12,90036,00016,3002——

Loans and bills discounted (*2)

1,452,472

3,071,094

2,941,694

2,377,777

2,499,593

1,896,815¥ 2,991,581¥ 3,107,094¥ 2,957,994¥ 2,377,780¥ 2,499,593¥ 1,896,815

Total

JBIC ■ Annual Report 2017

117

Statutory Financial Statements

Derivative transactions
Derivative transactions are discussed under “Derivative transactions.”

1) Unlisted stocks (subsidiaries and afﬁliates) (*1)

2
Financial Statements

guarantee. Since fair value approximates the amount on the balance sheets at the ﬁscal year end after the deduction of theallowance for loan losses, 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 the carrying amountapproximates the fair value.

Data

March 31, 2017

2
Financial Statements

Due from banks (*1)

(In millions of U.S. dollars)

Due within
one year

Due after one
year but within
three years$$

13,604—Due after three
years but within
five years$—

Due after five
years but withinseven years$

Due after sevenyears but within
ten years—$—

Due after
ten years$—

Securities
Available-for-sale securities

114

321

145

0

—

—

Loans and bills discounted (*2)

12,947

27,374

26,221

21,194

22,28016,907

Total$

26,665$

27,695$26,366$

21,194$

22,280$16,907(*1) Demand deposits contained within due from banks are stated as “Due within one year.”(*2) ¥69,689 million ($621 million) of Loans and bills discounted whose redemption is not estimable, such as claims against bankrupt borrowers, substantially bankrupt borrowers,
and potentially bankrupt borrowers, is not included in the tables above.
(*3) The information about cash collateral paid for ﬁnancial instruments is omitted since there is no ﬁxed maturity date for repayments.

(Note 4) Redemption schedule for borrowed money and bonds payable with future redemption dates
March 31, 2016

Borrowed money

Due within
one year

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

Bonds payable

1

Total

Due after five
years but withinseven years¥¥(In millions of yen)

Due after sevenyears but within
ten years

430,800¥

708,900—

639,740

430,800¥ 1,348,640

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.

Statutory Financial Statements

March 31, 2017

Borrowed money(In millions of yen)

Due within
one year

Due after one
year but within
three years

Due after three
years but within
five years¥ 1,015,293¥ 5,033,424¥ 2,381,587

366,405

1,183,852

584,389¥ 1,381,698¥ 6,217,277¥ 2,965,976

Due within
one year

Due after one
year but within
three years

Due after three
years but within
five years$$

Bonds payable
Total

Due after five
years but withinseven years¥

Due after sevenyears but within
ten years

777,000¥

620,900

112,190

1,063,367

889,190¥ 1,684,267

Due after five
years but withinseven years

Due after sevenyears but within
ten years¥

March 31, 2017

Borrowed money¥

80,500¥80,500—(In millions of U.S. dollars)

9,050

Bonds payable
Total

Due after
ten years

3,266$

12,31644,865$

10,552$

55,417

21,228$5,209$

26,437

6,926

$

1,000
$

7,926

5,535

Due after
ten years

$

718

$

718

9,478
$

15,013—(*1) The information about cash collateral received for ﬁnancial instruments is omitted since there is no ﬁxed maturity date for repayments.

15. Market value of securities
The following tables contain information relating to negotiable certiﬁcates included in “Due from banks” as well as “Other
securities” that are presented in the balance sheets.
(a) Trading securities
Not applicable(b) Held-to-maturity debt securities
Not applicable

118

JBIC ■ Annual Report 2017

Data(c) Available-for-sale securities
March 31, 2016

(In millions of yen)Type

Stocks¥—Debt securities

¥

—

¥

—

Japanese government bonds

—

—

—

Corporate bonds

—

—

—

28,771

28,045726

28,771

28,045726

Stocks———Debt securities

—

—

—

Japanese government bonds

—

—

—

Corporate bonds

—

—

—

52,925

53,100

(174)

Other
Subtotal

52,925

Total¥

53,10081,697¥(174)

81,145¥

March 31, 2017
StocksCarrying Amount¥—

Debt securities

Acquisition cost

¥

—

—

—

—

—
—

—

40,23739,904333

40,23739,904333

Stocks———Debt securities

—

—

—

Japanese government bonds

—

—

—

Corporate bonds

—

—

—

65,15465,300(145)

Subtotal

65,15465,300Total¥ 105,391¥ 105,204

Carrying Amount

Acquisition cost

March 31, 2017

187

(In millions of U.S. dollars)

Type

Stocks$—Debt securities

$

—

—

Difference

$

—

—

—

Japanese government bonds

—

—

—

Corporate bonds

—

—

—

359

356

3

359

356

3

Stocks———Debt securities

—

Other
Subtotal——

Japanese government bonds

—

—

—

Corporate bonds

—

—

—

581

582

(1)

581

582

Other
Subtotal
Total

(145)
¥

$

940

$

938

(1)
$

2

(d) Held-to-maturity debt securities sold during the fiscal years ended March 31, 2016 and March 31, 2017
Not applicable

JBIC ■ Annual Report 2017

1191
Statutory Financial Statements

—

—

Other

Securities whose carrying
amount does not exceed theiracquisition cost——

Corporate bonds
Subtotal

Securities whose carrying amountexceeds their acquisition cost

Difference¥

Japanese government bonds
Other
Securities whose carrying
amount does not exceed theiracquisition cost552

(In millions of yen)

Type

Securities whose carrying amountexceeds their acquisition cost——

Subtotal2

Difference

—

Other
Securities whose carrying
amount does not exceed theiracquisition cost

Acquisition cost

Financial Statements

Securities whose carrying amountexceeds their acquisition cost

Carrying AmountData(e) Available-for-sale securities soldFiscal year ended March 31, 2016

2
Financial Statements

Stocks(In millions of yen)Amount of sales

Total gain on sales

Total loss on sales

¥

¥

¥

—

Debt securities———

Japanese government bonds

—

—

—

Corporate bonds

—

—

Other
Total

62,577

¥

1,890

¥

130

¥

62,577

¥

1,890

¥

130

(f) Change in classification of securities
Not applicable(g) Impairment of securities
Not applicable

Statutory Financial Statements(h) Money held in trust(i) Money held in trust for trading purposes
Not applicable(ii)

Money held in trust for holding-to-maturity purposes
Not applicable(iii) Other money held in trust (other than investment and holding-to-maturity purposes)
Not applicable(i)

Net unrealized gains (losses) on available-for-sale securities are as follows;(In millions of yen)
Fiscal year ended March 31, 2016
Valuation difference¥

Available-for-sale securities (*)

4,303
4,303

Other money held in trust
Valuation difference on available-for-sale securities

—
¥

4,303

(*) “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, 2017
Valuation difference(In millions of yen)¥

Available-for-sale securities (*)—¥

Fiscal year ended March 31, 2017
Valuation difference

2,468(In millions of U.S. dollars)$

Available-for-sale securities (*)

22
22

Other money held in trust
Valuation difference on available-for-sale securities

2,468
2,468

Other money held in trust
Valuation difference on available-for-sale securities

—
$

22

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

16. Derivative transactions
Notes to derivative transactions in the ﬁscal years ended March 31, 2016 and March 31, 2017 are as follows;(a) Derivative transactions not qualifying for hedge accounting(i) Interest rate-related transactions
Not applicable

120

JBIC ■ Annual Report 2017—¥

Fiscal year ended March 31, 2017
Not applicable

1

—

—

Data

(ii)

Currency-related transactions
Not applicable

2
Financial Statements(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 at the ﬁscal year end or notional amount 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.
Interest rate-related transactions
Fiscal year ended March 31, 2016
Hedge accounting

Basic accounting
methodTypeInterest rate swap

(In millions of yen)

Major hedged items

Contract value(MaturingContract value after one year)

Fair value

Loans and bills discounted
Borrowed money
Bonds payable

Receive/ﬁxed and pay/ﬂoating¥ 2,413,837¥ 1,963,117

Receive/ﬂoating and pay/ﬁxed

660,583

655,321

Receive/ﬂoating and pay/ﬂoating

8,450

Total

¥

—

¥

71,551(68,132)

8,450
¥

—

9
¥

3,428

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

Fiscal year ended March 31, 2017
Hedge accounting

Basic accounting
methodTypeInterest rate swap

(In millions of yen)

Major hedged items

Contract value(MaturingContract value after one year)

Fair value

Loans and bills discounted
Borrowed money
Bonds payable

Receive/ﬁxed and pay/ﬂoating¥ 3,055,575¥ 2,739,170

Receive/ﬂoating and pay/ﬁxed

725,118

723,696

Receive/ﬂoating and pay/ﬂoating

58,56956,095

Total

¥

—

¥

Fiscal year ended March 31, 2017
Hedge accounting

Basic accounting
methodTypeInterest rate swap—¥

(27,861)(31,047)249¥(58,659)(In millions of U.S. dollars)

Major hedged items

Contract value(MaturingContract value after one year)

Fair value

Loans and bills discounted
Borrowed money
Bonds payable

Receive/ﬁxed and pay/ﬂoating$

Receive/ﬂoating and pay/ﬁxed

$

6,463

Receive/ﬂoating and pay/ﬂoating
Total

27,236

—

$

6,451

522
$

24,415
500

$

—

(248)
(277)
2

$

(523)

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

JBIC ■ Annual Report 2017

121

Statutory Financial Statements

(i)

1

Data

(ii)

2

Currency-related transactions
Fiscal year ended March 31, 2016

Financial Statements

Hedge accounting

Basic accounting
methodType

Currency swap

(In millions of yen)

Major hedged items

Loans and bills discounted

Contract value(MaturingContract value after one year)

Fair value¥ 4,082,376¥ 3,206,901¥ (335,430)

Sell

40

—

0

Buy

312

—

(3)

—

¥ (335,434)

Borrowed money
Bonds payable
Forward foreign exchange
contracts

Loans and bills discounted
and others

Total

¥

—

¥

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, 2017
Hedge accounting

1

Basic accounting
methodType

Currency swap

(In millions of yen)

Major hedged items

Loans and bills discounted

Contract value(MaturingContract value after one year)¥ 3,904,090

Statutory Financial Statements¥ (272,275)(6)

Bonds payable
Forward foreign exchange
contracts

Loans and bills discounted
and others

Sell

114

—

Buy

248

—

6

—

¥ (272,275)

Total

¥

—

¥

Fiscal year ended March 31, 2017
Hedge accounting

Basic accounting
methodFair value¥ 3,054,483

Type

Currency swap

(In millions of U.S. dollars)

Major hedged items

Loans and bills discounted

Contract value(MaturingContract value after one year)$

34,799$27,226

Fair value$(2,427)

Bonds payable
Forward foreign exchange
contracts

Loans and bills discounted
and others

Sell

1

—

Buy

2

—

Total

$

—

$

—

(0)
0
$

(2,427)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

17. 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 pension
fund plan effective October 1, 2014) and a lump-sum severance indemnity plan. Although JBIC’s corporate pension plan is amulti-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 the related notes are included in the following notes related tothe deﬁned beneﬁt pension plan.
Under the corporate pension plan (funded type), pension or lump-sum payments are provided based on salary and service
period. Under the lump-sum severance indemnity plan (unfunded type), lump-sum payments are provided as retirement

122

JBIC ■ Annual Report 2017

Data(b) Defined benefit pension plan(i) The changes in the projected beneﬁt obligation are as follows:

Projected beneﬁt obligation at the beginning of the ﬁscal year

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥

14,046$125

Service cost

458

494

Interest cost

74

18

0

Actuarial losses

1,008

(154)

(1)

Retirement beneﬁt paid
Projected beneﬁt obligation at the end of the ﬁscal year

(821)
¥

14,046

4(632)¥

13,772

(5)
$

123

1

The changes in the plan assets are as follows:

Pension assets at the beginning of the ﬁscal year

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)

¥

¥

6,932

6,956

$

62

Expected return on plans assets

105

106

1

Actuarial gains

17

23

0

Contributions by the employer

117

116

1

Retirement beneﬁt paid

(216)

(238)

(2)

Pension assets at the end of the ﬁscal year

¥

6,956

¥

6,964

$

62

(iii) Reconciliation of the projected beneﬁt obligation and plan assets and provision for retirement beneﬁts in the balance
sheetsFunded projected obligation

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥

Fair value of plans assets

9,013(6,956)

8,703

$

78

(6,964)

(62)
16

2,057

1,738

Unfunded Projected beneﬁt obligation

5,033

5,069

45

Unfunded pension obligation

7,090

6,807

61

Unrecognized Actuarial gains or losses

—

—

—

Unrecognized prior service costs

—

—

—

7,090

6,807

61

Net amount of assets and liabilities in the balance sheets
Provision for retirement beneﬁts
Net amount of assets and liabilities in the balance sheets

7,090
¥

7,090

6,807
¥

6,807

61
$

61

(iv) Component of retirement beneﬁt expense

Service cost

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥Interest cost

458

494

$

4

74

18

0

Expected return on plans assets

(105)

(106)

(1)

Realized Actuarial loss

991

(177)

Retirement beneﬁt expense

¥

1,418

¥

228

(1)
$

JBIC ■ Annual Report 2017

2

123

Statutory Financial Statements(ii)

13,3272
Financial Statements

beneﬁts based on salary and service period. In addition, JBIC has established a deﬁned contribution-type retirement beneﬁtplan effective October 1, 2014.
Effective April 1, 2013, JBIC has been authorized by the Minister of Health, Labour and Welfare to be exempt from theobligations to pay future amounts in respect of the portion of the welfare pension fund it manages for the government.
Subsequently on October 1, 2014, JBIC has been authorized to transfer to the government the past substitutional portion of
the aforesaid fund. On May 24, 2016, Kouko Kigyou Nenkin Kikin (Kouko corporate pension fund) which JBIC participates in
prepaid to the government ¥52,750 million ($470 million) of the transfer amount of the substitutional portion (i.e., minimum
reserve).

Data

(v)

2

Plan assets
 Major components of Plan assets
Percentages of components to the total are as follows;

Financial Statements

March 31, 2016

March 31, 2017

Debt securities

39%

38%

Stocks12%

13%

General account of life insurance company

8%8%Cash and due from banks

41%

0%

Prepayment of the transfer amount of the substitutional portion (minimum reserve)

—

40%

100%

100%

Total



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

(vi) Principal assumptions used
Principal assumptions used in actuarial calculations

1
Statutory Financial Statements

March 31, 2016

March 31, 2017

Discount rate

0.16%

0.32%

Expected rate of return on plan assets

2.50%

2.50%

Expected rate of increase in salary

3.91%

4.36%

(c) Defined contribution plan
The amount of contribution required to be made to the deﬁned contribution plan was ¥24 million for the ﬁscal year ended
March 31, 2016 and ¥24 million ($0 million) for the ﬁscal year ended March 31, 2017.

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

19. Segment Information(a) Segment summary
JBIC’s operating segments are those for which discrete ﬁnancial information is available, and whose operating results are
regularly reviewed by JBIC’s management.
JBIC is a policy-based ﬁnancial institution wholly owned by the Japanese government, which has the purpose ofcontributing to the sound development of Japan and the international economy and society, while supplementing the ﬁnancialtransactions implemented by private-sector ﬁnancial institutions by performing ﬁnancial operations from four viewpoints: i.e.
“promotion of the overseas development and securement of resources which are important for Japan”; “maintenance andimprovement of the international competitiveness of Japanese industries”; “promotion of the overseas business having
the purpose of preserving the global environment, such as preventing global warming”; and “prevention of disruptions tointernational ﬁnancial order or implementation of appropriate measures with respect to damages caused by such disruption.”
To achieve these purposes, for business operations deﬁned under the Act on Japan Bank for International Cooperation andother acts, JBIC has two reporting segments: “Ordinary Operations” account and “Special Operations” account. Accounting
operations are separately carried out for respective accounts.
“Ordinary Operations” account covers the segments which are not included in “Special Operations” account.
“Special Operations” account includes the segments that offer ﬁnancing services such as lending to overseas infrastructurebusiness projects that generate a higher expected return in exchange for higher risk.
As JBIC has started to be engaged in the “Special Operations” from October 1, 2016, JBIC reviewed its operating
segments. Accordingly, JBIC changed its operating segments from a single reportable segment comprising of loan, guarantee
and equity participation operations to two reportable segments comprising of “Ordinary Operations” and “Special
Operations.”
The segment information for the ﬁscal year ended March 31, 2016 is prepared based on the revised segments andprovided in the subsequent paragraph (c) “Information about the amount of ordinary income, proﬁt or loss, assets, liabilities
and other items by reportable segment.”

124

JBIC ■ Annual Report 2017

Data(b) Method of calculating ordinary income, profit or loss, assets, liabilities and other items by reportable segment
Accounting treatment applied to business segments reported is the same as that disclosed in “Signiﬁcant accounting policies.”
The amount of proﬁt (or loss) of reportable segments is based on net income (or net loss).

“Ordinary Operations”

Amount reported in thefinancial statements

Ordinary income(1) Ordinary income from customers¥

240,005(2) Intersegment ordinary income
Total
Segment proﬁt (loss)¥

Financial Statements(c) Information about the amount of ordinary income, profit or loss, assets, liabilities and other items by reportablesegment(In millions of yen)
Fiscal year ended March 31, 20162

240,005——

240,005

240,005

42,772

42,772

Segment assets

17,580,622

17,580,622

Segment liabilities

15,108,255

15,108,255

Other items
Depreciation and amortization

1,302

213,806

213,806

Interest expense

123,779

123,779

43

43

43

43

Extraordinary income
Gain on disposal of noncurrent assets
Extraordinary loss——

Increase in Property, plant and equipment
and Intangible assets

683

683

52,77052,770

Provision of allowance for loan losses

1(Note) Ordinary income is disclosed in place of Sales for non-ﬁnancial companies.

Fiscal year ended March 31, 2017

(In millions of yen)“Ordinary
Operations”“Special
Operations”

Sub-total forreportablesegments

Adjustments

Amountreported in
the financial
statements

Ordinary income(1) Ordinary income from customers(2) Intersegment ordinary income
Total
Segment proﬁt (loss)¥

294,655 ¥0 ¥294,656 ¥— ¥294,656

5

—

5

(5)

—

294,661

0294,661(5)

294,656

41,693(81)

41,612—

41,612

Segment assets

18,369,251

202,432

18,571,683(10)

18,571,673

Segment liabilities

16,063,972

99

16,064,072(10)

16,064,061

Other items
Depreciation and amortization

1,209

—

1,209

—

1,209

Interest income

259,250—

259,250—

259,250

Interest expense

177,433—

177,433—

177,433

75

—

75

—

75

75

—

75

—

75

Extraordinary income
Gain on disposal of noncurrent assets

—

—

—

—

—

Increase in Property, plant and equipment
and Intangible assets

Extraordinary loss

1,129

—

1,129

—

1,129

Provision of allowance for loan losses

53,855—53,855—53,855JBIC ■ Annual Report 2017

125

Statutory Financial Statements

1,302Interest income

Data(In millions of U.S. dollars)

2
Financial Statements“Ordinary
Operations”“Special
Operations”

Sub-total forreportablesegments

Adjustments

Amountreported in
the financial
statements

Ordinary income(1) Ordinary income from customers$(2) Intersegment ordinary income
Total
Segment proﬁt (loss)

2,626 $

2,626 $

— $

0

—

0 $

0

(0)

2,626
—

2,626

0

2,626

(0)

2,626

372

(1)

371

—

371

Segment assets

163,733

1,805

165,538(0)

165,538

Segment liabilities

143,1851

143,186(0)

143,186

Other items
Depreciation and amortization

11

—

11

—

11

Interest income

2,311

—

2,311

—

2,311

Interest expense

1,582

—

1,582

—

1,582

1

—

1

—

1

1

—

1

—

1

Extraordinary income
Gain on disposal of noncurrent assets

1

Extraordinary loss

—

—

—

—

—

Increase in Property, plant and equipment
and Intangible assets

10

—

10

—

10

Provision of allowance for loan losses

480

—

480

—

480

Statutory Financial Statements

Notes 1. Ordinary income is disclosed in place of Sales for non-ﬁnancial companies. Adjustments for the difference represent adjustments related to the difference between
ordinary income and Ordinary income disclosed in the Statements of Operations.
2. The “Adjustments” above represents elimination of intersegment transactions.

(d) Related information
Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(i) Information about services
Information about services has been omitted as ordinary income from outside customers in relation to loan, 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)
Japan

¥

42,283Australia¥

27,456

Asia/Oceania
Europe/Middle East/(excluding Australia)
Africa¥54,737¥59,768

North America/
Latin America¥

55,760Total¥

240,005

Notes 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 by country or region.

Property, plant and equipment
The information about property, plant and equipment is omitted since more than 90% of property, plant equipmenton the balance sheets are located in Japan.
(iii) Information about major customers
The information about major customers is omitted since there are no transactions with a certain customer which resultin more than 10% of the ordinary income on the Statements of Operations.
Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)(i) Information about services
The information about services is omitted since ordinary income from outside customers in relation to the loan, guarantee
and equity participation operations is more than 90% of ordinary income on the Statements of Operations.
(ii) Information about geographical areas
 Ordinary income:(In millions of yen)
Japan

¥

60,117Australia¥

29,992

Asia/Oceania
Europe/Middle East/(excluding Australia)
Africa¥60,580¥72,217

North America/
Latin America¥

71,748

Total¥

294,656(In millions of U.S. dollars)

Japan

$

536

Australia$

267

Asia/Oceania
Europe/Middle East/(excluding Australia)
Africa

$

540

$

644

North America/
Latin America$

Notes 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 by country or region.

126

JBIC ■ Annual Report 2017

639

Total

$

2,626

Data



(e) Information about impairment losses of property, plant and equipment in Reportable Segments
Not applicable

2
Financial Statements

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

(f) Information about the amortization and balance of goodwill in Reportable Segments
Not applicable(g) Information about gains from the recognition of negative goodwill in Reportable Segments
Not applicable

20. Profit and loss on equity method

1(a) Affiliates
March 31, 2016

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

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)¥¥

82,43989,721$

800

82,43989,721

800

—

—

—

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

21. Related-party transactions
Related party transactions in the ﬁscal years ended March 31, 2016 and March 31, 2017 are as follows;(a) Transactions with parent company and major shareholder companies
Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
Related Party
Name

Location

Chiyoda-ku,
Principal
Ministry ofTokyoshareholder Finance(Minister ofFinance)

Capital—Business

Ratio to Relation
Total
with
VotingrelatedRights (%) parties

Transactions

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

Items

¥1,840,778 Borrowings
Receipt of Receipt ofAdministration 100
funds (Note 1)(Direct)
funds,
for policy
etc.
based
ﬁnancing
Repayment ofborrowings
Payment ofinterest on
borrowings
Guarantee forcorporatebonds (Note 2)

Balance as ofMarch 31,2016
(Note 3)¥9,438,450

1,403,938
57,339 Accrued
expense2,388,589—

18,240—Notes 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 the interest rates under the respective agreements related to foreign exchange funds special account are applied to borrowings fromforeign 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.

JBIC ■ Annual Report 2017

127

Statutory Financial Statements

Investment in afﬁliates

March 31, 2017

Data

Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)

2
Financial Statements

Related Party
Name

Location

Chiyoda-ku,
Principal
Ministry ofTokyoshareholder Finance(Minister ofFinance)

Capital—Business

Ratio to Relation
Total
with
VotingrelatedRights (%) parties(In millions of yen)Transactions

Receipt of Capital
Administration 100
subscription(Direct)
funds,
for policy(Note 1)etc.
based
ﬁnancing

Amounts oftransactions(Note 4)Items

¥ 142,000—

Balance as ofMarch 31,2017
(Note 4)¥

Receipt of funds(Note 2)

1,673,239 Borrowings

Repayment ofborrowings

1,194,214

9,908,705

91,175 Accrued
expenses

Payment ofinterest on
borrowings

3,071,586

Guarantee forcorporatebonds (Note 3)—

26,210——(In millions of U.S. dollars)

Related Party
Name

1

Location

Statutory Financial Statements

Chiyoda-ku,
Principal
Ministry ofTokyoshareholder Finance(Minister ofFinance)

Capital—Business

Ratio to Relation
Total
with
VotingrelatedRights (%) parties

Transactions

Receipt of Capital
Administration 100
subscription(Direct)
funds,
for policy(Note 1)etc.
based
ﬁnancing

Amounts oftransactions(Note 4)$

1,266

Balance as ofMarch 31,2017
(Note 4)

Items

—

$

Receipt of funds(Note 2)

14,914 Borrowings

Repayment ofborrowings

10,645

Payment ofinterest on
borrowings
Guarantee forcorporatebonds (Note 3)

813 Accrued
expenses
27,378——88,321

234—

Notes 1. Ministry of Finance subscribed new shares issued by JBIC through allotment to shareholders 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 the interest rates under the respective agreements related to foreign exchange funds special account are applied to borrowings fromforeign 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.

(b) Transactions with fellow subsidiaries and affiliates’ subsidiaries
Fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)
Corporate
nameLocation

CapitalBusiness(In millions of yen)

Ratio to Relation
Total
with
VotingrelatedAmounts ofRights (%) parties Transactions transactions

None
Chiyoda-ku, ¥7,925,375 Ofﬁcial
Japan
Companies
developmentthat had the International Tokyo
assistance
Cooperation
majority ofAgencytheir voting
rights held Japan Finance Chiyoda-ku, 3,904,645 FinanceNoneby principal
Corporation Tokyo
shareholders

Items

Balance as ofMarch 31,
2016

Joint
Joint
obligorobligations¥ 250,000(Notes 1, 4)

—

—

Joint
Joint
obligorobligations

611,570(Notes 2, 4)——

450,000(Notes 3, 4)——Notes 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 accordance with Article 46-2 (1) of Supplementary Provisions of the JFC Act (Act No. 57 of 2007). Pursuant to Article 46-2 (2) hereof, allof 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.

128

JBIC ■ Annual Report 2017

Data

Fiscal year ended March 31, 2017 (From April 1, 2016 to March 31, 2017)

Location

CapitalBusiness

Ratio to Relation
Total
with
VotingrelatedAmounts ofRights (%) parties Transactions transactions

None
Chiyoda-ku, ¥8,054,680 Ofﬁcial
Japan
Companies
developmentthat had the International Tokyo
assistance
Cooperation
majority ofAgencytheir voting
rights held Japan Finance Chiyoda-ku, 4,061,119 FinanceNoneby principal
Corporation Tokyo
shareholders

Items

Balance as ofMarch 31,
2017

Joint
Joint
obligorobligations¥ 200,000(Notes 1, 4)

—

—

Joint
Joint
obligorobligations

160,237(Notes 2, 4)——

210,000(Notes 3, 4)——

2
Financial Statements

Corporate
name(In millions of yen)

(In millions of U.S. dollars)

Corporate
nameLocation

None
71,795 Ofﬁcial
development
assistance

Joint
Joint
obligorobligations$
1,783(Notes 1, 4)——

36,199 Finance

Joint
Joint
obligorobligations

1,428(Notes 2, 4)

—

—

1,872
(Notes 3, 4)——

Business

None

Notes 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 accordance with Article 46-2 (1) of Supplementary Provisions of the JFC Act (Act No. 57 of 2007). Pursuant to Article 46-2 (2) hereof, allof 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.

22. Amounts per share
Amounts per share as of the ﬁscal years ended March 31, 2016 and March 31, 2017 are calculated as follows:

Net Assets per share of common stock

March 31, 2016

March 31, 2017

(In yen)(In yen)¥

Net income per share of common stock

1.77

¥

0.03

March 31, 2017
(In U.S. dollars)

1.63

$

0.02

0.01
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.

Net income¥

Amount not attribute to common stock

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)

42,772¥

41,612

$

371

—

—

—

42,772

41,612371

1,391,000,000
thousands of shares

1,439,241,095
thousands of shares

Net income related to common stock
Average outstanding shares of common stock(during the period)

March 31, 2016

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

Net Assets
Deductions from net assets
Net Assets related to common stockYear-end outstanding shares of common stock onwhich the calculation of net assets per share wascalculated¥

March 31, 2016

March 31, 2017

March 31, 2017

(In millions of yen)

(In millions of yen)

(In millions of U.S. dollars)

2,472,367¥

2,507,611$

22,352———2,472,367

2,507,611

22,352

1,391,000,000
thousands of shares

1,533,000,000
thousands of shares

JBIC ■ Annual Report 2017

129

1
Statutory Financial Statements

Items

Balance as ofMarch 31,2017

CapitalChiyoda-ku, $JapanCompaniesthat had the International Tokyo
Cooperation
majority ofAgencytheir voting
rights held Japan Finance Chiyoda-ku,
by principal
Corporation Tokyo
shareholders

Ratio to Relation
Total
with
VotingrelatedAmounts ofRights (%) parties Transactions transactions

Data

2

23. Fixed assets
Fixed assets as of March 31, 2017 are as follows;(In millions of yen)

Financial Statements

Class of asset

Balance at the
Increase
Decrease
Balance at the
beginning ofduring theduring theend of current
current period current period current period
periodAccumulated
depreciation

Depreciation

¥

¥

¥

Net fixed
assetsProperty, plant and equipment
Buildings
Land

3,597

¥

24,427

222

¥

—

27

¥

3,792

876

115

24,311

—

168

¥

2,916

—

24,311

Lease assets

44

—

—

44

39

8

5

Construction in progress

34

296

330

—

—

—

—

Other

1,208

Total property, plant and equipment

100

67

1,241

861

165

380

¥

29,312

¥

618

¥

540

¥

29,390

¥

1,777

¥

342

¥

27,613

¥

5,452

¥

841

¥

9

¥

6,284

¥

3,573

¥

867

¥

2,711

¥

5,452

¥

841

¥

9

¥

6,284

¥

3,573

¥

867

¥

2,711

Intangible assets
SoftwareTotal intangible assets(In millions of U.S. dollars)

Class of asset

1

Balance at the
Increase
Decrease
Balance at the
beginning ofduring theduring theend of current
current period current period current period
periodAccumulated
depreciation

Depreciation

$

$

$

Net fixed
assetsProperty, plant and equipment
Buildings

Statutory Financial Statements

Land

32

$

2

$

0

$

34

$

Lease assets

0

—

—

0

0

0

0

Construction in progress

0

3

3

—

—

—

—

11

1

1

11

—

26

1

Other

—

1

—

Total property, plant and equipment

217

8

218

8

217

2

3

$

261

$

6

$

5

$

262

$

16

$

3

$

246

$

49

$

7

$

0

$

56

$

32

$

8

$

24

$

49

$

7

$

0

$

56

$

32

$

8

$

24

Intangible assets
SoftwareTotal intangible assets

24. Bonds payable
Major components of bonds payable as of March 31, 2017 are as follows;(In millions of yen)

Description of bonds
payableDate of issuance

Balance at the end ofcurrent period

Interest
rate (%) Collateral

Maturity date

Remarks*2

Government guaranteed
JFC (JBIC) foreign
bonds 7-9th

May 18, 2011 –¥
591,367 ¥
140,134 2.125~ General May 18, 2016 –February 7, 2012 (USD 5,248,199,000)(USD1,249,078,000)
2.500 collateral
February 7,
2019Government guaranteed
JBIC foreign bonds
1st-21st

July 19, 2012 –February 24,
2017

JBIC bonds 13th, 16th,
19th, 22nd, 23rd,
27th, 29th, 30th

May 28, 2004 –May 29, 2008

249,974

199,982 1.670~ General March 17, 2017 –[99,999]2.090 collateral
December 19,
2025

*1

JFC corporate bonds 3rd

October 29, 2009

19,99519,996 1.430

General September 20,
collateral
2019

*2

Non-guaranteed JBIC
domestic bond 1st

January 27, 2015

10,00010,000 0.120

General December 20,
collateral
2019

Total

130

Balance at the
beginning of current
periodJBIC ■ Annual Report 2017—

2,931,452 [266,353] 1.125~ General July 19, 2017 –
1,797,222
3.375 collateral
November 4,(USD (USD 25,225,067,000)
2026[USD 1,999,574,000]
14,955,359,000)(GBP 424,263,000)(GBP 424,064,000)(CAD 499,959,000)(CAD 499,917,000)[CAD 499,959,000]¥

2,668,558 ¥3,301,565

—

—

—

—

Data
(In millions of U.S. dollars)

Description of bonds
payableDate of issuance

Balance at the
beginning of current
periodBalance at the end ofcurrent period

Interest
rate (%) Collateral

Maturity date

May 18, 2011 –$
5,271 $
1,249 2.125~ General May 18, 2016 –February 7, 2012 (USD 5,248,199,000)(USD1,249,078,000)
2.500 collateral
February 7,
2019Government guaranteed
JBIC foreign bonds
1st-21st

July 19, 2012 –February 24,
2017

JBIC bonds 13th, 16th,
19th, 22nd, 23rd,
27th, 29th, 30th

May 28, 2004 –May 29, 2008

2,228

JFC corporate bonds 3rd

October 29, 2009178

178 1.430

General September 20,
collateral2019

Non-guaranteed JBIC
domestic bond 1st

January 27, 201590

89 0.120

General December 20,
collateral
2019

Total

*2

26,129 [2,374] 1.125~ General July 19, 2017 –
16,0193.375 collateral
November 4,(USD (USD 25,225,067,000)
2026[USD 1,999,574,000]
14,955,359,000)(GBP 424,263,000)(GBP 424,064,000)(CAD 499,959,000)(CAD 499,917,000)[CAD 499,959,000]—$

1,783 1.670~ General March 17, 2017 –[891]
2.090 collateral
December 19,
2025

23,786 $29,428

—

—

*1

*2

—

—

(In millions of yen)

Within 1 year

Amount¥366,405¥

721,187

After 2 years
but within 3 years¥

462,665

After 3 years
but within 4 years¥

After 4 years
but within 5 years

191,724¥392,665(In millions of U.S. dollars)

After 1 year
but within 2 years

Within 1 year

Amount

$

3,266

$

6,428

After 2 years
but within 3 years

$

4,124

After 3 years
but within 4 years$

After 4 years
but within 5 years

1,709

$

3,500

25. Borrowings
Borrowings as of March 31, 2017 are as follows;
Balance at theBalance at the end
beginning of
Balance at the end of current period
current periodof current period(In millions of
Average interest(In millions of yen) (In millions of yen)
U.S. dollars)rate (%)

Borrowed money¥ 9,438,450

Borrowings¥ 9,908,705

9,438,450$

88,321

9,908,705

Due date ofpayment

1.12—

88,321

1.12

May 2017 –December 2036

Lease obligation (Due within one year)

10

3

0

—

—

Lease obligation (Due after one year)

5

—

—

—

—

63,38018,880

168

0.00

—

63,38018,880

168

0.00

—

Other interest-bearing liabilities
Cash collateral received for ﬁnancial instruments

Notes 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 these transactions.
3. There is no ﬁxed maturity date for the repayment of cash collateral received for ﬁnancial instruments.
4. Borrowings and lease obligation maturities for the next ﬁve years as of March 31, 2017 are as follows;(In millions of yen)

Borrowings

Within 1 year

After 1 year
but within 2 years

After 2 years
but within 3 years

After 3 years
but within 4 years¥ 1,015,293¥ 3,698,353¥ 1,335,070¥ 2,006,214

3

—

—

—

Lease obligations

After 4 years
but within 5 years¥

375,373—(In millions of U.S. dollars)Within 1 year

Borrowings
Lease obligations

$

9,050
0

After 1 year
but within 2 years$

32,965—After 2 years
but within 3 years$

11,900—After 3 years
but within 4 years$

17,882After 4 years
but within 5 years

$

3,346

—

JBIC ■ Annual Report 2017

—

131

1
Statutory Financial Statements

Notes 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) JBIC assumed the obligations in respect of 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 bonds payable for each of the next ﬁve years as of March 31, 2017 is as follows:

After 1 year
but within 2 years

Financial Statements

Government guaranteed
JFC (JBIC) foreign
bonds 7-9th

2

RemarksData

2

26. Reserves
Reserves as of March 31, 2017 are as follows;(In millions of yen)

Financial Statements

Balance at the
beginning ofcurrent period

Allowance for loan losses

Decrease during Decrease during
Increase during the fiscal year
the fiscal year
the fiscal year (use for purpose)(others)¥ 168,262¥ 221,989

82¥ 168,133¥ 222,036

General allowance for loan losses

96,353

216,584—

96,353

216,584

Speciﬁc allowance for loan losses

68,211

4

82

68,082

52

Allowance for possible losses on speciﬁc overseas loans

3,697

5,399

—

3,697

5,399
519

Provision for bonuses¥

Balance at theend of current
period

516

519

516

—

Provision for directors’ bonuses

6

6

6

—

6

Provision for directors’ retirement beneﬁts

39

9

32

—

16

¥ 168,824¥ 222,524

636¥ 168,133¥ 222,578

Total

¥

(In millions of U.S. dollars)

Balance at the
beginning ofcurrent period

Allowance for loan losses

1

$

1,500

Decrease during Decrease during
Increase during the fiscal year
the fiscal year
the fiscal year (use for purpose)(others)

$

1,979

$

1

$

1,499

Balance at theend of current
period$

1,979

General allowance for loan losses

859

1,931

—

859

Speciﬁc allowance for loan losses

608

0

1

607

1,931
0

Allowance for possible losses on speciﬁc overseas loans

33

48

—

33

48

Statutory Financial Statements

Provision for bonuses

5

5

5

—

5

Provision for directors’ bonuses

0

0

0

—

0

Provision for directors’ retirement beneﬁts
Total

0
$

1,505

0
$

1,984

0
$

6

—
$

1,499

0
$

1,984

Note. The main factors in the decrease during the ﬁscal year in each of the following reserves is as follows:
General allowance for loan losses: Decrease is due to reversal
Speciﬁc allowance for 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, 2017 are as follows:(a) Assets:(i) Due from banks:
Deposits with Bank of Japan (¥884,516 million ($7,884 million)) and other banks (¥641,692 million ($5,720 million))(ii) Other securities:
Foreign securities (¥281,249 million ($2,507 million))(iii) Prepaid expenses:
General and administrative expenses (¥628 million ($6 million))(iv) Accrued income:Accrued interest on loans (¥66,194 million ($590 million)), and others(v) Other:
Guarantees and others (¥208 million ($2 million)), suspense payments (¥174 million ($2 million)), and others(b) Liabilities(i) Accrued expenses:
Accrued interest on borrowings and rediscounts (¥26,210 million ($234 million)), accrued interest on bonds (¥17,018
million ($152 million)), and others(ii) Unearned revenue:
Guarantee commission (¥65,542 million ($584 million)), and others(iii) Other liabilities
Suspense receipts (¥475 million ($4 million)), and others

132

JBIC ■ Annual Report 2017

Supplementary Information on Financial
Statements by Operation AccountData

to Article 26-3 of the JBIC Act and Article 436-2(i) of theCompanies Act. Although the balance sheets and statementof operations for the accounts of the Ordinary Operations andthe Special Operations, as provided below, have been preparedbased on the above-mentioned audited ﬁnancial statements,
the statements of cash ﬂows for those operation accounts
have not been audited by the auditing ﬁrm.

2
Financial Statements

JBIC performs separate accounting procedures for the Ordinary
Operations and the Special Operations in accordance with
Article 26-2 of the Japan Bank for International Cooperation
Act (JBIC Act). With regards to the separate ﬁnancial
statements for those operations that are prepared pursuant
to Article 26-3 of the JBIC Act and Article 435-2 of theCompanies Act of Japan, the ﬁnancial statements have been
subject to audit by Ernst & Young ShinNihon LLC according Balance Sheet[Ordinary Operations Account]
As of March 31, 2017
Accounts(In millions of yen)Amounts

Accounts

Assets:Cash
Due from banks
Securities
Other securities
Loans and bills discounted
Loans on deeds
Other assets

1,323,789
0

9,908,705

1,323,789

Bonds payable

3,301,565

281,249

Other liabilities

461,359

281,249

Accrued expenses

43,58914,309,138

Unearned revenue

65,572Derivatives other than for trading-assets

332,821

Cash collateral received for ﬁnancial instruments

18,88014,309,138
261,788648

Accrued income

68,859Cash collateral paid for ﬁnancial instruments
Other
Property, plant and equipment

9,908,705

Borrowings

Prepaid expenses
Derivatives other than for trading-assets

Borrowed money

1,972

Lease obligations

3

Other

492

Provision for bonuses

514

189,920

Provision for directors’ bonuses

6

388

Provision for retirement benefits

6,806

27,613

Provision for directors’ retirement benefits

Buildings

2,916

Acceptances and guarantees

2,384,997

Land

24,311

Total liabilities

16,063,972

Lease assets
Other
Intangible assets
Software5

Net assets:

380

Capital stock

2,711

16

1,480,500

Retained earnings

842,448

2,711

Legal retained earnings

800,754

Customers’ liabilities for acceptances and guarantees

2,384,997

Other retained earnings

41,693

Allowance for loan losses(222,036)

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

2,468(20,137)

Total valuation and translation adjustments

18,369,251

41,6932,322,948

Deferred gains or losses on hedges

Total assets

Supplementary Information on Financial Statements by Operation AccountCash and due from banks

Amounts

Liabilities:(17,669)

Total net assets

2,305,278

Total liabilities and net assets

18,369,251

JBIC ■ Annual Report 2017

133

Data

2

[Special Operations Account]
As of March 31, 2017

Financial Statements

Accounts(In millions of yen)Amounts

Accounts

Assets:Cash and due from banks
Due from banks
Other assets
Prepaid expenses

Amounts

Liabilities:
202,419

Other liabilities

93

202,419

Accrued expenses

13

Unearned revenue

05

Derivatives other than for trading-assets

85

Accrued income

2

Other

5

Other

2

5

Provision for bonuses

4

Provision for directors’ bonuses

0

Provision for retirement benefits

1

Provision for directors’ retirement benefits

0

Total liabilities

99

Net assets:
Capital stock

Supplementary Information on Financial Statements by Operation Account

Retained earnings
Other retained earnings
Retained earnings brought forward
Total shareholders’ equity

Total assets

134

JBIC ■ Annual Report 2017

202,432

202,500
(81)
(81)
(81)
202,418

Deferred gains or losses on hedges(85)

Total valuation and translation
adjustments(85)

Total net assets

202,333

Total liabilities and net assets

202,432

Data

 Statement of Operations

2

April 1, 2016–March 31, 2017
Accounts[Special Operations Account](In millions of yen)Amounts

Ordinary income:

294,661Interest income

259,250

Interest on loans and discounts
Interest and dividends on securities
Interest on deposits with banks
Other interest income
Fees and commissions
Other fees and commissions
Other ordinary income
Recoveries of written-off claims
Gain on investments in partnerships

253,672755

7

Ordinary loss

81

8,574

Net loss

81

0
8,421
153

59,420Interest on interest swaps

26,836

Fees and commissions payments

1,912
1,912
3,136

Loss on foreign exchange transactions

482

Amortization of bond issuance cost

1,662
422
569

General and administrative expenses

16,657

Other expenses

53,902Extraordinary income
Gain on disposal of noncurrent assets
Net income

726,836

91,175

Ordinary profit

81

74

Interest on bonds

Other

Ordinary expenses:

General and administrative expenses

26,836

Interest on borrowed money and rediscounts

Provision of allowance for loan losses

0

Other fees and commissions

177,433

Other

0

Other
Fees and commissions payments

Interest expense

Expenses on derivatives other than for tradingor hedging

0

Other ordinary income

0253,042

Other ordinary expenses

Amounts

Ordinary income:

4,822

Ordinary expenses:

Other fees and commissions

Accounts(In millions of yen)Supplementary Information on Financial Statements by Operation Account

Other

October 1, 2016–March 31, 2017

Financial Statements[Ordinary Operations Account]

53,85546
41,61875
75
41,693

JBIC ■ Annual Report 2017

135

Data

2

 Statements of Cash Flows

Financial Statements[Ordinary Operations Account]
April 1, 2016–March 31, 2017
Accounts(In millions of yen)[Special Operations Account]

Amounts

October 1, 2016–March 31, 2017

41,693

Cash flow from operating activities

Accounts

Cash flow from operating activities
Net income(In millions of yen)Amounts

Depreciation and amortization

1,209

Net loss

Increase (decrease) in allowance for loan losses

53,773

Increase (decrease) in provision for bonuses

4

Increase (decrease) in provision for bonuses(1)0

Increase (decrease) in provision for directors’
bonuses

Increase (decrease) in provision for directors’
bonuses01

Increase (decrease) in provision for retirement
beneﬁts

Increase (decrease) in provision for retirement
beneﬁts(284)

0Increase (decrease) in provision for directors’
retirement beneﬁts

Increase (decrease) in provision for directors’
retirement beneﬁts(22)

Net decrease (increase) in deposit (excluding
deposit paid to Bank of Japan)(9)Interest income(259,250)

Interest expense

177,433

Supplementary Information on Financial Statements by Operation AccountLoss (gain) related to securities
Loss (gain) on disposal of noncurrent assets(8,421)(75)

Net decrease (increase) in loans and bills
discounted(768,476)

Net increase (decrease) in borrowed money

470,255

Net decrease (increase) in deposit (excluding
deposit paid to Bank of Japan)(137,089)

Increase (decrease) in straight bonds-issuance andredemption

631,331

Interest received

240,302

Interest paid

(163,993)

Other(191,414)

Subtotal

86,969Net cash provided by (used in) operating activities

86,969Cash flow from investing activities
Purchase of securities(43,828)

Proceeds from sales of securities

4,796

Proceeds from redemption of securities

1,389

Purchase of property, plant and equipment(288)

Proceeds from sales of property, plant andequipment

212

Purchase of intangible assets(841)

Net cash provided by (used in) investing activities(38,559)

Cash flow from financing activities
Proceeds from issuance of new shares
Payment to legal retained earnings based on
Article 3 (1) of the Supplementary Provisions of
the Partial Revision of the JBIC Act
Repayments of lease obligations

89,500(150,000)(12)

Payment to national treasury(21,386)

Net cash provided by (used in) ﬁnancing activities(81,898)

Effect of exchange rate change on cash andcash equivalents—

Net increase (decrease) in cash and cash
equivalents(33,488)

Cash and cash equivalents at beginning of
period715,594

Cash and cash equivalents at end of period

682,106

136

JBIC ■ Annual Report 2017

(81)

Other

(5)

Subtotal(90)

Net cash provided by (used in) operating activities(90)

Cash flow from investing activities
Net cash provided by (used in) investing activities—

Cash flow from financing activities
Proceeds from issuance of new shares

52,500

Proceeds from legal retained earnings based on
Article 3 (1) of the Supplementary Provisions of
the Partial Revision of the JBIC Act

150,000

Net cash provided by (used in) ﬁnancing activities

202,500

Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents—
202,409

Cash and cash equivalents at beginning of
period—Cash and cash equivalents at end of period

202,4092

Composition of Liabilities and Net Assets
Data[The Bank](Unit: millions of yen, %)March 31, 2016%(Note)Amount%(Note)15,108,255

85.9

16,064,061

86.5

Borrowed Money

9,438,450

53.7

9,908,705

53.4

Bonds Payable

2,668,558

15.2

3,301,565

17.8

Acceptances and Guarantees

2,464,703

14.0

2,384,997

12.8

Other

536,5433.1

468,792

2.5

Net Assets

2,472,367

14.1

2,507,611

13.5

1,391,000

7.9

1,683,000

9.1

972,140

5.5

842,366

4.5

4,303

0.0

2,468

0.0

104,923

0.6(20,223)(0.1)

17,580,622

100

18,571,673

100

Capital Stock
Retained Earnings
Valuation Difference on Available-for-sale Securities
Deferred Gains or Losses on Hedges
Total Liabilities and Net Assets

2
Financial Statements

Liabilities

March 31, 2017

Amount(Note) Ratio to Liabilities and Net Assets added.

(Unit: %, billions of yen)

Total risk-weighted capital ratio

17.12

Tier 1 risk-weighted capital ratio

15.89

Common Equity Tier 1 risk-weighted capital ratio

15.89

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

2,698.9

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

2,504.3

Common Equity Tier 1 capital

2,504.3

Risk-weighted assets

15,756.3

The amount of minimum capital requirements

1,260.5

JBIC ■ Annual Report 2017137

2
Composition of Liabilities and Net Assets(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 accordancewith “Standards for Determining Capital Adequacy of a Financial Institution in Light of Assets Held, etc. under the Provisionof Article 14-2 of the Banking Act” (2006, Financial Services Agency Notiﬁcation No. 19). JBIC applies uniform international
standards and calculate credit risk-weighted assets using the standardized approach.

Data

2

[Ordinary Operations Account](Unit: millions of yen, %)March 31, 2016

Financial Statements

Liabilities

March 31, 2017

Amount%(Note)Amount%(Note)15,108,255

85.9

16,063,972

87.5

Borrowed Money

9,438,450

53.7

9,908,705

53.9

Bonds Payable

2,668,558

15.2

3,301,565

18.0

Acceptances and Guarantees

2,464,703

14.0

2,384,997

13.0

Other

536,5433.1

468,703

2.6

Net Assets

2,472,367

14.1

2,305,278

12.5

1,391,000

7.9

1,480,500

8.1

972,140

5.5

842,448

4.6

4,303

0.0

2,468

0.0

104,923

0.6(20,137)(0.1)

17,580,622

100

18,369,251

100

Capital Stock
Retained Earnings
Valuation Difference on Available-for-sale Securities
Deferred Gains or Losses on Hedges
Total Liabilities and Net Assets(Note) Ratio to Liabilities and Net Assets added.

2[Special Operations Account](Unit: millions of yen, %)March 31, 2016

Composition of Liabilities and Net Assets

Amount%(Note)99

0.0

Borrowed Money——

Bonds Payable——

Acceptances and Guarantees

—

—

Other

99

0.0

Net Assets

202,333

100

AmountLiabilities

Capital Stock

202,500

100

Retained Earnings

(81)

(0.0)

Valuation Difference on Available-for-sale Securities——

Deferred Gains or Losses on Hedges

(85)

(0.0)

202,432

100

Total Liabilities and Net Assets(Note) Ratio to Liabilities and Net Assets added.

138%(Note)March 31, 2017

JBIC ■ Annual Report 2017

3

The Average Balance of Interest-earning
Assets and Interest-bearing Liabilities,
Interest and Earning Yields(Unit: millions of yen, %)Fiscal Year Ended March 31, 2016
Average Balance

Interest-earning Assets

Interest

Fiscal Year Ended March 31, 2017

Earning Yields

Average Balance

Interest

Earning Yields

15,924,136

213,806

1.34

14,734,753

259,249

1.76

14,369,087

196,859

1.37

13,705,266

253,672

1.85

Due from Banks

948,271

2,787

0.29

636,916

4,822

0.76

Interest-bearing Liabilities

12,732,206

123,779

0.97

12,798,740

177,433

1.39

Borrowed Money

9,585,267

57,3390.60

9,854,878

91,1750.93

Bonds Payable

3,124,115

66,4292.13

2,863,393

59,4202.08

Loans and Bills Discounted[Ordinary Operations Account](Unit: millions of yen, %)Fiscal Year Ended March 31, 2016
Average Balance

Interest-earning Assets
Loans and Bills Discounted

Interest

Fiscal Year Ended March 31, 2017

Earning Yields

Average Balance

15,924,136

213,806

1.34

14,734,753

Interest

259,249

Earning Yields

1.76

14,369,087

196,859

1.37

13,705,266

253,672

1.85

948,271

2,787

0.29

636,916

4,822

0.76

12,732,206

123,779

0.97

12,798,740

177,433

1.39

Borrowed Money

9,585,267

57,3390.60

9,854,878

91,1750.93

Bonds Payable

3,124,115

66,4292.13

2,863,393

59,4202.08[Special Operations Account]3(Unit: millions of yen, %)Fiscal Year Ended March 31, 2016
Average Balance

Interest

Earning Yields

Fiscal Year Ended March 31, 2017
Average Balance

Interest

Earning Yields

—

—

—

Loans and Bills Discounted

—

—

—

Due from Banks

—

—

—

Interest-bearing Liabilities

—

—

—

Borrowed Money

—

—

—

Bonds Payable

—

—

—

JBIC ■ Annual Report 2017

139

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

Due from Banks
Interest-bearing Liabilities

Interest-earning Assets

2
Financial Statements[The Bank]

Data

4

Breakdown of Operating Expenses

Data

2

[The Bank]

Financial Statements

Fiscal Year Ended March 31, 2017

Salaries and Other Compensations

5,259

5,332

Expenses for Retirement Beneﬁts

1,442

253

729

726

Welfare Beneﬁts
Depreciation of Property, Plant and Equipment

1,302

1,209

Leasing on Land, Buildings and Machinery

142

175

Building Maintenance

182

242

Supplies

243

153

Utilities

4(Unit: millions of yen)

Fiscal Year Ended March 31, 2016

93

81

Traveling Expenses

1,390

1,377

Communications

127

130

Advertising Expenses

32Fees, Donations and Social Expenses

13

21

Breakdown of Operating Expenses

Taxes

317

373

Other

6,380

6,646

Total

17,631

16,726

Fiscal Year Ended March 31, 2016

Fiscal Year Ended March 31, 2017

Salaries and Other Compensations

5,259

5,309

Expenses for Retirement Beneﬁts

1,442

250

[Ordinary Operations Account]

Welfare Beneﬁts(Unit: millions of yen)

729

722

1,302

1,209

Leasing on Land, Buildings and Machinery

142

174

Building Maintenance

182

240

Supplies

243

153

Utilities

93

80

Traveling Expenses

1,390

1,371

Communications

127

129

Depreciation of Property, Plant and Equipment

Advertising Expenses

32Fees, Donations and Social Expenses

13

21

Taxes

317

372

Other

6,380

6,617

Total

17,631

16,657

Fiscal Year Ended March 31, 2016

Fiscal Year Ended March 31, 2017

[Special Operations Account]Salaries and Other Compensations(Unit: millions of yen)

23

Expenses for Retirement Beneﬁts

2

Welfare Beneﬁts

4

Leasing on Land, Buildings and Machinery

6

Building Maintenance1

Supplies

0

Utilities

0

Traveling Expenses

6

Communications

0

Advertising Expenses

0Fees, Donations and Social Expenses

0

Taxes

0

Other

29

Total

74

140

JBIC ■ Annual Report 2017

5

Balance of Due from Banks, Receivables
under Resale Agreements andSecurities—Application of Surplus Funds(Unit: millions of yen)March 31, 2016

March 31, 2017

Due from Banks in Japanese Yen

90,00090,000Due from Banks in Foreign Currencies

399,030

522,113

Receivables under Resale Agreements——

Securities——

March 31, 2016

March 31, 2017

Due from Banks in Japanese Yen

90,00090,000Due from Banks in Foreign Currencies

399,030

522,113

Receivables under Resale Agreements——

Securities——

March 31, 2016

March 31, 2017

[Ordinary Operations Account]

2
Financial Statements[The Bank]

Data(Unit: millions of yen)[Special Operations Account](Unit: millions of yen)—Due from Banks in Foreign Currencies—

Receivables under Resale Agreements—

Securities—

JBIC ■ Annual Report 20175
Balance of Due from Banks, Receivables under Resale Agreements and Securities—Application of Surplus Funds

Due from Banks in Japanese Yen

141

6

Information on Derivatives Transactions

Data

2
Financial Statements(1) Basic Policy for Derivatives 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 fair value of a derivative in
conducting transaction with each counterparty, credit risk
exposure to it and its creditworthiness. Such information is thenused to assess the eligibility of the counterparty.

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

Market Risk
JBIC utilizes derivatives transactions exclusively for the purposeof hedging. Therefore, the market risk on derivatives transactions
and the risk on hedged (lending or funding) transactions, inprinciple, offset each other.

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

6
Information on Derivatives Transactions

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

(As of March 31, 2017; 100 millions of yen)Contract Amounts /Notional Amounts

Credit Risk Amounts

Market Value

Interest Rate Swaps

39,832

596(586)

Currency Swaps

39,0403,663(2,722)

Forward Exchange Contracts

3

0

0

Other Derivatives

—

—

—

Credit Risk Mitigation through Netting
Total(3,198)78,876

1,061(Note) “The credit risk amounts” are calculated under Uniform International Standards in accordance with the Banking Act of Japan and the related regulations.

142

JBIC ■ Annual Report 2017

(3,309)

7

Yield / Interest Rate
Data

[The Bank](Unit: %)Fiscal Year Ended March 31, 2017

0.22

0.22

Yields on Interest-earning Assets (A)

1.34

1.76

Costs of Interest-bearing Liabilities (B)

1.12

1.53

(A) − (B)

(Note) Yields on Interest-earning Assets = Interest / Average Balance of Interest-earning Assets
Costs of Interest-bearing Liabilities = (Interest Expenses + Bonds Payable + Expenses) / Average Balance of Interest-bearing Liabilities
Cf. Interest = Interest on Loans and Discounts + Interest and Dividends 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
and others) + 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[Ordinary Operations Account](Unit: %)Fiscal Year Ended March 31, 2016(A) − (B)Fiscal Year Ended March 31, 2017

0.22

0.23

Yields on Interest-earning Assets (A)

1.34

1.76

Costs of Interest-bearing Liabilities (B)

1.12

1.53

[Special Operations Account](Unit: %)Fiscal Year Ended March 31, 2016

Fiscal Year Ended March 31, 2017(A) − (B)—Yields on Interest-earning Assets (A)—Costs of Interest-bearing Liabilities (B)—Loans Outstanding per Employee(Unit: millions of yen)March 31, 2016

March 31, 2017

25,40425,689JBIC ■ Annual Report 2017143

8
Loans Outstanding per Employee(Note) Yields on Interest-earning Assets = Interest / Average Balance of Interest-earning Assets
Costs of Interest-bearing Liabilities = (Interest Expenses + Bonds Payable + Expenses) / Average Balance of Interest-bearing Liabilities
Cf. Interest = Interest on Loans and Discounts + Interest and Dividends 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

(Note) Yields on Interest-earning Assets = Interest / Average Balance of Interest-earning Assets
Costs of Interest-bearing Liabilities = (Interest Expenses + Bonds Payable + Expenses) / Average Balance of Interest-bearing Liabilities
Cf. Interest = Interest on Loans and Discounts + Interest and Dividends 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
and others) + 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

82
Financial Statements

Fiscal Year Ended March 31, 2016

9Loans Outstanding by Industry

Data(Unit: millions of yen)

2
Financial Statements

9March 31, 2016

Industry
Manufacturing

March 31, 2017

Number of Loans

Balance

Number of Loans

Balance114

446,781118

449,982

Mining and Quarrying of Stone and Gravel

8296,0387

292,205

Construction

1

1,071

—

—

Electricity, Gas, Heat Supply, and Water

6

334,2396

283,157

Information and Communications2

195,1841

164,409

Transport and Postal Services

523,968

4

11,710Wholesale Trade20

804,77022

731,958

Finance and Insurance

192,286,878

20

2,817,416

Goods Rental and Leasing

3

170,6173

146,959

Scientiﬁc Research, Professional and Technical Service

—

—

1

857

Accommodations

—

—

1

458

Overseas Yen Loan and Domestic Loans
Transferred Overseas

526

9,048,331

530

9,477,243

Total, Including Others

704

13,607,883

713

14,376,360

Loans Outstanding to Small andMedium-sized Enterprises

214

47,909247

55,077Loans Outstanding to Mid-tier Enterprises

151

140,841200

148,907

Loans Outstanding by Industry(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 lessemployees 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).

10

10

Write-off of Loans

Write-off of Loans[Ordinary Operations Account](Unit: millions of yen)

Fiscal Year Ended March 31, 2016

Fiscal Year Ended March 31, 2017——

[Special Operations Account]
Fiscal Year Ended March 31, 2016

(Unit: millions of yen)

Fiscal Year Ended March 31, 2017—

144

JBIC ■ Annual Report 2017

11

Assets in Major Foreign Currencies
Data[The Bank](Unit: thousands of regarding currency unit)

March 31, 2017

Cash Equivalents in Foreign Currency (USD)

3,472,424

4,436,363

Cash Equivalents in Foreign Currency (GBP)

44,616

168,317

Cash Equivalents in Foreign Currency (EUR)

24,82826,182

Cash Equivalents in Foreign Currency (ZAR)

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

7,385

10,839Cash Equivalents in Foreign Currency (INR)

1,000

1,000

1,289,197

1,383,453

Equity Investments in Foreign Currency (USD)

344,111441,264

Equity Investments in Foreign Currency (EUR)

120,000

120,035

Equity Investments in Foreign Currency (THB)

—

6,000

Equity Investments in Foreign Currency (CNY)99,791

112,637

Equity Investments in Foreign Currency (INR)

890,000

890,000

Equity Investments in Foreign Currency (SGD)

165,999

165,999

101,327,608

110,697,996

Investments in Foreign Currency (USD)

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

237,416

269,951

Loans in Foreign Currency (EUR)

1,285,028

1,830,955

749,400

686,000

Loans in Foreign Currency (AUD)

3,159,897

3,112,607

Loans in Foreign Currency (THB)

5,227,149

7,601,019

Loans in Foreign Currency (SDR)

208,133

117,363

Loans in Foreign Currency (CAD)

1,263,302

998,706

Loans in Foreign Currency (CNY)148,320

105,000

Loans in Foreign Currency (INR)

341,600

604,600

Loans in Foreign Currency (MXN)

680,700

815,700

Loans in Foreign Currency (IDR)

288,000,000

171,400,000

Loans in Foreign Currency (RUB)—

1,800,000

JBIC ■ Annual Report 201711
Assets in Major Foreign Currencies

Loans in Foreign Currency (ZAR)

2
Financial Statements

March 31, 2016

145

Data

2

[Ordinary Operations Account]

Financial Statements

March 31, 2017

Cash Equivalents in Foreign Currency (USD)

3,472,424

4,436,363

Cash Equivalents in Foreign Currency (GBP)

44,616

168,317

Cash Equivalents in Foreign Currency (EUR)

24,82826,182

Cash Equivalents in Foreign Currency (ZAR)

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

7,385

10,839Cash Equivalents in Foreign Currency (INR)

1,000

1,000

1,289,197

1,383,453

Equity Investments in Foreign Currency (USD)

344,111441,264

Equity Investments in Foreign Currency (EUR)

120,000

120,035

Equity Investments in Foreign Currency (THB)

—

6,000

Equity Investments in Foreign Currency (CNY)99,791

112,637

Equity Investments in Foreign Currency (INR)

890,000

890,000

Equity Investments in Foreign Currency (SGD)

165,999

165,999

101,327,608

110,697,996

Investments in Foreign Currency (USD)

Loans in Foreign Currency (USD)

11(Unit: thousands of regarding currency unit)

March 31, 2016

Loans in Foreign Currency (GBP)

237,416

269,951

Loans in Foreign Currency (EUR)

1,285,028

1,830,955

Assets in Major Foreign Currencies

Loans in Foreign Currency (ZAR)

749,400

686,000

Loans in Foreign Currency (AUD)

3,159,897

3,112,607

Loans in Foreign Currency (THB)

5,227,149

7,601,019

Loans in Foreign Currency (SDR)

208,133

117,363

Loans in Foreign Currency (CAD)

1,263,302

998,706

Loans in Foreign Currency (CNY)148,320

105,000

Loans in Foreign Currency (INR)

341,600

604,600

Loans in Foreign Currency (MXN)

680,700

815,700

Loans in Foreign Currency (IDR)

288,000,000

171,400,000

Loans in Foreign Currency (RUB)—

1,800,000

146

JBIC ■ Annual Report 2017

Data[Special Operations Account](Unit: thousands of regarding currency unit)

March 31, 2016

March 31, 2017

Cash Equivalents in Foreign Currency (GBP)—

Cash Equivalents in Foreign Currency (EUR)—

Cash Equivalents in Foreign Currency (ZAR)—

Cash Equivalents in Foreign Currency (THB)—

Cash Equivalents in Foreign Currency (CAD)—

Cash Equivalents in Foreign Currency (INR)—

Investments in Foreign Currency (USD)—

Equity Investments in Foreign Currency (USD)—

Equity Investments in Foreign Currency (EUR)—

Equity Investments in Foreign Currency (THB)—

Equity Investments in Foreign Currency (CNY)—

Equity Investments in Foreign Currency (INR)—

Equity Investments in Foreign Currency (SGD)—

Loans in Foreign Currency (USD)—

Loans in Foreign Currency (GBP)—

Loans in Foreign Currency (EUR)—

Loans in Foreign Currency (ZAR)—

Loans in Foreign Currency (AUD)—

Loans in Foreign Currency (THB)—

Loans in Foreign Currency (SDR)—

Loans in Foreign Currency (CAD)—

Loans in Foreign Currency (CNY)—

Loans in Foreign Currency (INR)—

Loans in Foreign Currency (MXN)—

Loans in Foreign Currency (IDR)—

Loans in Foreign Currency (RUB)—

JBIC ■ Annual Report 2017

211
Assets in Major Foreign Currencies—

Financial Statements

Cash Equivalents in Foreign Currency (USD)

147

12

Administrative Expense Ratio

Data

2

[The Bank](Units: %)Fiscal Year Ended March 31, 2016

Fiscal Year Ended March 31, 2017

0.10

0.10

Financial Statements(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)[Ordinary Operations Account](Units: %)Fiscal Year Ended March 31, 2016

Fiscal Year Ended March 31, 2017

0.10

0.10

(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)[Special Operations Account]
Fiscal Year Ended March 31, 2016

(Units: %)Fiscal Year Ended March 31, 2017
(Note2)(Note) 1. 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)
2. Administrative Expense Ratio is not calculated. Because there is no applicable loans and bills discounted, securities and customers’ liabilities for acceptances and guarantees in theSpecial Operation Account as of March 31, 2017.

12
Administrative Expense Ratio
148

JBIC ■ Annual Report 201713

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

Maturity Structure of Loans as of March 31, 2017
(Unit: 100 millions of yen)

Collection from Loans

1 Year or Less

14,524

1–2 Years

14,974(Unit: 100 millions of yen)

Maturity

Repayment of Borrowings

15,736

1 Year or Less

10,152

3–4 Years

16,674

1–2 Years

36,983

4–5 Years

12,742

2–3 Years

13,350

5–6 Years

12,869

3–4 Years

20,062

6–7 Years

10,907

4–5 Years

3,753

11,417

5–6 Years

3,019

7,990

6–7 Years

4,751

9–10 Years

5,587

7–8 Years

1,108

11-15 Years

16,103

8–9 Years

1,230

16-20 Years

2,379

9–10 Years

3,871

477

Over 10 Years

2–3 Years

7–8 Years
8–9 Years

21-25 Years
26-30 Years

7

31-35 Years—

36-40 Years

—
—
Total

805
Total

13
Maturity Structure of Bonds and Notes as of March 31, 2017

142,394(Note) The ﬁgures exclude: ¥69,689 million, the amount of loans and other credits to
debtors who are legally or substantially bankrupt, as well as those who are likely to
become bankrupt, since they have no prospect for redemption.

99,087(Unit: 100 millions of yen)

Maturity

Redemption of Bonds and Notes

1 Year or Less

3,664

1–2 Years

7,211

2–3 Years

4,626

3–4 Years

1,917

4–5 Years

3,926

5–6 Years—

6–7 Years

1,121

7–8 Years

2,243

8–9 Years

3,004

9–10 Years

5,385Over 10 Years

—
Total

33,102JBIC ■ Annual Report 2017

149

Balance of Loans / Borrowings, Bonds and Notes by Maturity

Over 40 Years

2
Financial Statements

Maturity

Maturity Structure of Borrowings from FILP Fiscal Loan
and Foreign Exchange Fund Special Account in total as ofMarch 31, 2017

14

Information on the Quality of Assets

Data

2
Financial Statements

14
Information on the Quality of Assets

Although the Banking Act and Act on Emergency Measures
for the Revitalization of the Financial Functions of 1998 (the“Financial Revitalization Act”) do not apply to JBIC, JBIC has
made a self-assessment of the quality of its assets since theﬁscal year ended March 31, 2001, in accordance with thestandards set forth in the Inspection Manual for Deposit-Taking
Institutions of the Financial Services Agency of Japan. This wasaimed at increasing 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 the governments ofdeveloping countries. Thus, when an indebted country is
temporarily unable to service debt due to economic difﬁculties,
debt rescheduling will sometimes take place—based on aninternational agreement among the creditor countries in the
Paris Club—in order to ensure sustainable debt service. A debtor
country receiving such temporary support for overcoming
the liquidity problem will implement economic restructuring
programs agreed upon with the International Monetary Fund(IMF) to acquire sustainable debt service capacity.
The loans rescheduled under the agreement in the Paris
Club have a high probability of repayment, because, unlike loans
provided by private ﬁnancial institutions, their nature as ofﬁcial
credit provides an asset-securing mechanism under the above
international framework. Nonetheless, to 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 self-assessment ofasset quality, as loan assets required to be disclosed classifying
them either as restructured loans (under the Banking Act) or
substandard loans (under the Financial Revitalization Act).
ERNST & YOUNG SHINNIHON LLC audited JBIC’s selfassessment regarding the quality of its assets, including thefollowing risk-monitored loans, loans to be disclosed under the
Financial Revitalization Act and reserves for possible loan losses,
in accordance with the Practical Guidelines for Evaluation ofInternal Control over Valuation of Assets and Audits for WriteOffs and Reserve for Possible Loan Losses of Banks and Similar
Institutions (Report No. 4 of the Ad Hoc Committee for Auditsof Banks, the Japanese Institute of Certiﬁed Public Accountants(JICPA)).

1.

Risk-Monitored Loans

The following table shows the classiﬁcation of risk-monitoredloans based on the self-assessment of asset quality in accordancewith the disclosure standard of risk-monitored loans applied tocommercial ﬁnancial institutions (under the Banking Act).

Each category of risk-monitored loans is deﬁned as follows:i. Bankrupt Loans
Among loans that are placed in non-accrual status (except the
portion deduced as allowance for loan losses), when collectionof either principal or interest becomes doubtful for the reason
that principal or interest is past due for a considerable period oftime or for other reasons, those loans for which there is ﬁling of
reorganization procedures under the Corporate Reorganization
Act rehabilitation procedures under the Civil Rehabilitation
Act, bankruptcy procedures under the Bankruptcy Act, special
liquidation procedures under the Companies Act or otherrelevant laws, or there is suspension of transactions in promissory
notes issued by the debtors in the clearing house.
ii. Non-accrual Loans
Loans that are placed in non-accrual status except those classiﬁed
as “Bankrupt Loans” or those whose interest payments aredeferred 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 morefrom the date following the contractually scheduled payment
date and not classiﬁed as “Bankrupt Loans” or “Non-accrual
Loans”.
iv. Restructured Loans
Loans whose terms and conditions are modiﬁed in favor of the
debtors in order to expedite the debtors’ business restructuring
or support their business operations by, among others, reducing
the stated interest rate, deferring interest payments or writedowns, and that are not classiﬁed as “Bankrupt Loans”, “Nonaccrual Loans” and “Past Due Loans (3 months or more)”.(Note)[Ordinary Operations Account]
Fiscal Year Ended
March 31,2016
Bankrupt Loans——

111,407

3,748

Past Due Loans(3 months or more)

44,71953,399Restructured Loans

98,714

182,434

Total (1)

254,840

239,582

13,540,661

14,309,138

1.88

1.67

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

Not applicable

JBIC ■ Annual Report 2017

Fiscal Year Ended
March 31,2017

Non-accrual Loans[Special Operations Account]

150(Unit: millions of yen)

Data

2.

Loan Assets to Be Disclosed under the Financial
Revitalization Act[Ordinary Operations Account]

Fiscal Year Ended Fiscal Year Ended
March 31,2016
March 31,2017
Bankrupt andQuasi-bankrupt Assets
Doubtful Assets
Loans

—

—

111,415

3,748

Substandard Loans

143,433

235,834

Subtotal (1)254,849

239,582

Normal Assets

15,799,431

16,522,319

Total (2)16,054,280

16,761,902

1.59

1.43

(1) / (2) (%)

2
Financial Statements

The following table shows the classiﬁcation of loans basedon the self-assessment of asset quality in accordance with thedisclosure standard of the Financial Revitalization Act.
i. Bankrupt and Quasi-bankrupt Assets“Bankrupt and Quasi-bankrupt Assets” are loans and othercredits to debtors who have begun proceedings under the
Bankruptcy Act, the Corporate Reorganization Act, the Civil
Rehabilitation Act and other similar laws of Japan and haveﬁnancially failed. In the asset quality self-assessment, these loans
are loans to debtors who are legally or substantially bankrupt.

(Unit: millions of yen)[Special Operations Account]iii. Substandard Loans“Substandard Loans” are loans to debtors who are categorized
as “Needs Attention Debtor” in the asset quality self-assessment,
and
A. loans whose principal and / or interest is overdue 3months or more from the date following the scheduled
payment date but which are not categorized as“Bankrupt and Quasi-bankrupt Assets” and “Doubtful
Assets” (“Past Due Loans (3 months or more)”).
B. restructured loans on which the Bank granted
concessions to debtors in ﬁnancial difﬁculties throughamending terms and conditions of the loans to assist
them to recover and eventually be able to pay tocreditors, but which are not categorized as “Bankrupt
and Quasi-bankrupt Assets”, ”Doubtful Assets” or“Overdue Loans (3 months or more)”.(Note)

Not applicable
Note
In the event that a debtor country encounters temporary repayment difﬁculties in respectof external public debt (sovereign debt, trade insurance institutions and export credit
institutions, etc.) due to the deteriorating balance of payments, meetings of creditor
countries (the “Paris Club”) will be held to mutually agree on debt relief measures(rescheduling), and implementing of temporary support for overcoming the liquidity
problem (balance of payment support under an international cooperative framework).
With this temporary liquidity support, debtors carry out IMF-agreed economic restructuring
programs and continue to make debt repayments. The principal amount of loans for which
JBIC has agreed to provide debt relief pursuant to the Paris Club agreements is ¥162,008
million as of the end of the ﬁscal year ended March 31, 2017.
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 ¥109,436 million.

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

JBIC ■ Annual Report 2017

151

14
Information on the Quality of Assets

ii. Doubtful Assets“Doubtful Assets” are loans and other credits to debtors whose
ﬁnancial and operational conditions have deteriorated and who
have a possibility that payment of principal and / or interest will
not be made on a contractual basis. In the asset quality selfassessment, these loans are loans to the debtors who are likely
to become bankrupt.

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

Data

2
Financial Statements

1.

Excerpt from the financial statements in accordancewith IFRS

accounting policies and other explanatory information, in
accordance with International Standards on Auditing.

The ﬁnancial statements have been prepared in accordancewith IFRS as issued by the International Accounting Standards
Board (IASB) as of March 31, 2017. Unless otherwise stated,
all amounts are rounded down and stated in millions of yen.

This document is an excerpt of JBIC’s ﬁnancial statements
prepared in accordance with IFRS as issued by the IASB
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 informationin the Form 18-K that is important to you. You should
read the Form 18-K carefully to obtain a comprehensive
understanding of JBIC’s ﬁnancial statements under IFRS
and related information.

Ernst & Young ShinNihon LLC has audited the ﬁnancial
statements of JBIC, which comprise the statements ofﬁnancial position as of March 31, 2017 and 2016, and theincome statements, statements of comprehensive income,statements of changes in equity and statements of cash
ﬂows for the years then ended, and a summary of signiﬁcantFinancial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

Statement of Financial Position(Millions of yen)March 31, 2017

March 31, 2016

AssetsCash and due from banks

1,526,209

1,220,187

Derivative ﬁnancial instrument assets

167,277

237,274

Securities

190,155

154,976

Loans and other receivables

14,352,720

13,460,347

Equity method investments

114,204

106,618

Property and equipment

27,61327,804

Other assets

194,762

166,661

Total assets

16,572,942

15,373,870

Liabilities
Derivative ﬁnancial instrument liabilities

498,928570,245

Borrowings

9,908,705

9,438,450

Bonds payable

3,299,498

2,668,872

Financial guarantee contracts

84,912

76,710

Other liabilities

98,486

127,941

Total liabilities

13,890,532

12,882,220

EquityCapital stock

1,683,000

1,391,000

Retained earnings

969,264

1,066,533

Other reserves

30,145

34,116

Total equity

2,682,409

2,491,649

Total liabilities and equity

16,572,942

15,373,870

152

JBIC ■ Annual Report 2017

Data

Income Statement(Millions of yen)March 31, 2016

Interest income

261,372

216,592

Interest expense

150,223

116,024

Net interest income

111,148

100,567

Fee and commission income

15,542

14,523

Fee and commission expense

1,919

1,653

(149,316)

56,227—3,708

Net income (expense) from derivative ﬁnancial instruments
Net investment income
Other income

223

1,718

Income (expense) other than interest income(135,470)

74,524

Total operating income (loss)*1(24,322)

175,091

Impairment losses (reversals) on ﬁnancial assets

12,32084,317

162,771

Operating expenses

17,017

16,734

Other expenses

1,508

883

Total operating expenses

18,525

17,618Proﬁts of equity method investments

8,151

436

Net profit

73,944

145,589

March 31, 2017

March 31, 2016

73,944

145,589

173

(537)

173

(537)

*1 Aggregate of “Net interest income” and “Income (expense) other than interest income”*2 “Total operating income (loss)” 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:Remeasurement arising during the year
Total of items that will not be reclassiﬁed to proﬁt or loss
Items that may be reclassified to profit or loss:
Available-for-sale ﬁnancial assets:
Net gains arising during the year

1,070

176

Reclassiﬁcation adjustments(553)(2,726)(2,842)(3,461)

Deferred gains (losses) on hedges:
Reclassiﬁcation adjustments
Exchange differences on translation of foreign operations:
Net gains (losses) arising during the year
Total of items that may be reclassiﬁed to proﬁt or loss
Other comprehensive income
Total comprehensive income(1,645)(7,927)(3,971)(13,938)(3,797)(14,476)

70,146

131,112JBIC ■ Annual Report 2017

153

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

(108,639)

Net operating income*22
Financial Statements

March 31, 2017

Data

2

Statement of Changes in Equity(Millions of yen)

Attributable to equity holders of Japan Bank for International Cooperation

Financial Statements

Other reserves
Capital stock

April 1, 2015

Retainedearnings

Exchange
Remeasurement Available-forDeferreddifferencesof defined sale financial gains (losses) on translation
benefit plans
assetson hedgesof foreign
operations

1,391,000

985,166—

5,338

12,671

30,045

Net proﬁt—

145,589———

Other comprehensive income

—

—

(537)

(2,550)(3,461)

Total comprehensive income—

145,589(537)(2,550)(3,461)(7,927)

Total equity
Total

48,0552,424,222——

145,589(7,927)(14,476)(14,476)(14,476)

131,112Issuance of new shares

—

—

—

—

—

—

—

—

Payment to national treasury—(63,684)

—

—

—

—

—

(63,684)

Other

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

—

(537)

537

—

—

—

537

—

1,391,000

1,066,533

—

2,787

9,210

22,117

34,1162,491,649

Net proﬁt—

73,944

—

—

—

—

—

73,944

Other comprehensive income

—

—

173

516

(2,842)(1,645)(3,797)(3,797)—73,944173

516(2,842)(1,645)(3,797)

70,146

Transfer to capital stock based on
Article 3 (3) of the
Supplementary Provisions of
the Act for Partial Revision of
the Japan Bank forInternational Cooperation Act

150,000(150,000)

—

—

—

—

—

—

Issuance of new shares

142,000

—

—

—

—

—

—

142,000—(21,386)

—

—

—

—

—

(21,386)

—

173

(173)

—

—

—

(173)

—

1,683,000

969,264

—

3,304

6,368

20,47130,1452,682,409

March 31, 2016

Total comprehensive income

Payment to national treasury
Other
March 31, 2017

(Note) In accordance with a plan under Article 3 of the Supplementary Provisions of the Act for Partial Revision of the Japan Bank for International Cooperation Act (Act No. 41 of 2016) (the“Supplementary Provisions of the Act”), due from banks and ¥150,000 million of legal retained earnings were transferred from the “Ordinary Operations” account to the “Special
Operations” account. ¥150,000 million of legal retained earnings transferred to the “Special Operations” account was reclassiﬁed as Capital stock in the “Special Operations” accountbased on Article 3 Paragraph (3) of the Supplementary Provisions of the Act.

154

JBIC ■ Annual Report 2017

Data

Statement of Cash Flows(Millions of yen)March 31, 2017

March 31, 2016

Financial Statements

Cash flows from operating activities
Net proﬁt

73,944

145,589

Depreciation and amortization

1,209

1,302

Increase (decrease) in liability for retirement beneﬁts

(188)

344

(8,151)(436)

Net decrease (increase) in loans and other receivables(892,373)

896,839

Net increase (decrease) in borrowings

470,255

13,134

Net decrease (increase) in deposits (excluding demand deposits)(336,276)

171,193

Net change of derivative ﬁnancial instrument assets and liabilities(1,319)(483,244)

Net increase (decrease) in ﬁnancial guarantee contracts

8,201(7,997)

Net increase (decrease) in bonds payable

630,625(389,626)

Other(48,695)

258,744

Net cash provided by (used in) operating activities(102,768)

605,843(41,726)(55,373)

Proceeds from sales or redemption of securities

4,975

75,960Purchase of equity method investments(2,101)(181)

Proceeds from return of equity method investments

1,210

1,850

Proﬁts of equity method investments

2

Cash flows from investing activities

Other
Net cash provided by (used in) investing activities

(917)

(367)

(38,559)

21,888Financial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only

Purchase of securities

Cash flows from financing activities
Proceeds from issuance of new shares

142,000—

Payment to national treasury(21,386)(63,684)

Other
Net cash provided by (used in) financing activities
Exchange difference on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

(12)

(13)

120,601(63,698)(9,528)(23,150)(30,254)

540,884

Cash and cash equivalents at the beginning of the year

1,112,579

571,695

Cash and cash equivalents at the end of the year

1,082,325

1,112,579

Net cash provided by (used in) operating activities includes the following:
Interest received

240,874

194,052

Interest paid

(137,157)(118,022)

JBIC ■ Annual Report 2017

155

Data

2

2.

Financial Statements

Reconciliation of assets, liabilities, and equity as of March 31, 2017 and 2016, and reconciliation of net profit
for the fiscal years ended March 31, 2017 and 2016, between accounting principles generally accepted in Japan(“Japanese GAAP”) and IFRS as issued by the IASB, and non-GAAP financial information calculated and presented
on the basis of methodologies other than in accordance with generally accepted accounting principles.** JBIC has adopted Japanese GAAP for reporting purposes. Audited ﬁnancial statements of JBIC for the ﬁscal years ended March 31, 2017 and 2016 prepared in accordance withIFRS 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, 2017
(Millions of yen)Accounts under Japanese GAAP

Differences inJapanese GAAP Reclassifications recognition andmeasurement

IFRS

Notes

Assets

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

Cash and due from banks
Securities
Loans and bills discounted

1,526,209——

1,526,209—

167,277—

167,277

Cash and due from banks
A

281,249(93,732)

2,638

190,155

B, F

Securities

14,309,138(154,268)

197,851

14,352,720

C, E

Loans and other receivables

F

Equity method investments—

93,732

20,471

114,204

Property, plant and equipment

27,613——

27,613

Intangible assets

2,711(2,711)——

261,790(67,028)—

194,762

A, C

2,384,997—(2,384,997)—

E
C

Other assets
Customers’ liabilities for
acceptances and guarantees
Allowance for loan losses
Total assets(222,036)

222,036——

18,571,673

165,304(2,164,035)

16,572,942

Property and equipment

Liabilities—

498,211

Borrowed money

9,908,705——

9,908,705

Bonds payable

3,301,565—(2,067)

3,299,498

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

717

498,928

A

Derivative ﬁnancial instrument
liabilities

D

Bonds payable
Financial guarantee contracts

Borrowings——

84,912

84,912E

6,807(6,807)

—

—

G

16

(16)

—

—

G

461,442(325,556)(37,399)

98,486

A, G

519

(519)

—

—

6

(6)

—

—

Acceptances and guarantees

2,384,997—(2,384,997)—

Total liabilities

16,064,061

165,304(2,338,833)

13,890,532

Total liabilities
Equity1,683,000——

1,683,000

842,366—

126,897969,264—(17,755)

47,90030,145

Valuation difference on
available-for-sale securities

2,468(2,468)——Deferred gains or losses onhedges(20,223)

20,223——Retained earnings

Other liabilities

E

Net assets
Capital stock

Other assets

Total assets

Liabilities

Provision for retirement beneﬁts

Derivative ﬁnancial instrument assets

Capital stock
Retained earnings
A

Other reserves

Total net assets

2,507,611—

174,798

2,682,409

Total equity

Total liabilities and net assets

18,571,673

165,304(2,164,035)

16,572,942

Total liabilities and equity

156

JBIC ■ Annual Report 2017

Data

Reconciliation of assets, liabilities, and equity as of March 31, 2016
(Millions of yen)

IFRS

Notes

AssetsCash and due from banks
Securities
Loans and bills discounted
Property, plant and equipment
Intangible assets

Assets1,220,187——

1,220,187—

237,336(62)

237,274

Cash and due from banks
A

236,602(84,500)

2,874

154,976

B, F

Securities(119,355)

39,041

13,460,347

C, E

Loans and other receivables—

84,50022,117

106,618

F

27,804——27,804(2,737)——(89,527)—

166,661

A, C

Customers’ liabilities for
acceptances and guarantees

2,464,703—(2,464,703)—

E

Allowance for loan losses(168,262)

168,262——C

17,580,622

193,979(2,400,731)

15,373,870

9,438,450

Bonds payable

2,668,558

Other liabilities
Provision for bonuses
Provision for directors’ bonuses

570,245——9,438,450—

314

2,668,872

D

Bonds payable——

76,71076,710E

Financial guarantee contracts

7,090(7,090)

—

—

G

39

(39)

—

—

G

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

127,941

A, G

516

(516)

—

—

6

(6)

—

—

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

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)——

Borrowings

Retained earnings

Other liabilities

E
Total liabilities

Net assets
Capital stock

Derivative ﬁnancial instrument
liabilities

902

Acceptances and guarantees

A

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

Borrowed money

Provision for directors’
retirement beneﬁts

Other assets

Liabilities
569,343

Provision for retirement beneﬁts

Equity method investments

Total assets

Liabilities—

2

Property and equipment

2,737

Total assets

Derivative ﬁnancial instrument assets

13,540,661

256,188

Other assets

Accounts under IFRSFinancial Statements

Accounts under Japanese GAAP

Differences inJapanese GAAP Reclassifications recognition andmeasurement

EquityCapital stock
Retained earnings
A

Other reserves

Total net assets

2,472,367—

19,282

2,491,649

Total equity

Total liabilities and net assets

17,580,622

193,979(2,400,731)

15,373,870

Total liabilities and equity

JBIC ■ Annual Report 2017

157

Data

2

Reconciliation of net profit for the year ended March 31, 2017
(Millions of yen)

Financial Statements

Accounts under Japanese GAAP

Differences inJapanese GAAP Reclassifications recognition andmeasurement

IFRS

Notes

Accounts under IFRSInterest income

259,250

02,121

261,372

C

Interest income

Interest expense

177,433(26,836)(372)

150,223

DInterest expense

Fees and commissions

26,836—(11,293)

15,542Fees and commissions payments

1,919

—

—

1,919

—

27,259122,057

149,316

111,148

—

493

(269)

223

Other income *1

148

(148)

—

—

Extraordinary income

75

(75)

—

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

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

Net interest income
CA—
135,470

Expense other than interest income

24,322

Total operating loss

(53,855)

162,495

108,639

B, C

0

(0)

—

—

C

53,855(53,855)——

C

84,317

16,726

Other ordinary expenses

46

Other*2—

290

17,017—2,760(1,252)

1,508

3,136

(3,136)

—

—

(46)

—

G

Operating expenses
Other expenses

D

—

—

8,151

—

8,151

Gain on investments inpartnerships*1

8,421(8,421)——

Net income

41,612—32,33173,944*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 2017

Reversal of impairment losses on
ﬁnancial assets

Net operating income

18,525158

Net expense from derivative ﬁnancial
instruments
Other income—

General and administrative
expenses

Fee and commission income
Fee and commission expense

Total operating expenses
F

Proﬁts of equity method investments

Net profit

Data

Reconciliation of net profit for the year ended March 31, 2016
(Millions of yen)

IFRS

Notes

Accounts under IFRSInterest income

213,806(13,355)

16,141

216,592

C

Interest income

Interest expense

123,779—(7,755)116,024

DInterest expense

Fees and commissions

22,091—(7,567)

14,523

Fees and commissions payments

1,653

—

—

1,653

—

11,104

45,12356,227

—

3,865

(157)

3,708

1,890

(1,890)——100,567

Gain on sales of stocks andother securities *1

1,823

(105)

1,718

141

(141)

—

—

Other income*1

160

(160)

—

—

Extraordinary income

43

(43)

—

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

A

Other ordinary expenses
Loss on sales of stocks and othersecurities*2

Net income from derivative ﬁnancial
instruments
Net investment income

Other income—
74,524

Income other than interest income

175,091

Total operating income—

52,770(40,450)

12,320

B, C

0

(0)

—

—

C

52,770(52,770)——

C

162,771
General and administrative
expenses

Fee and commission income
Fee and commission expense

17,631—(897)

16,734

—

1,164

(280)

883

1,310

(1,310)

—

—

130

(130)

—

—

Net operating income

G

—

436

—

436

1,914

(1,914)——

Net income

42,772—

102,817

145,589

Operating expenses
Other expenses

D

17,618Gain on investments inpartnerships*1

Impairment losses on ﬁnancial assets

Total operating expenses
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 2017

159

Financial Statements in Accordance with International Financial Reporting Standards (IFRS) for Reference Only—
Other ordinary income

Net interest income
C

2
Financial Statements

Accounts under Japanese GAAP

Differences inJapanese GAAP Reclassifications recognition andmeasurement

Data

2

Notes to the reconciliation of assets, liabilities, and equity as of March 31, 2017 and 2016, and the reconciliation of
net profit for the fiscal years ended March 31, 2017 and 2016

Financial Statements

A. Derivative financial instrument assets and liabilities
JBIC presents derivative ﬁnancial instrument assets and derivative ﬁnancial instrument liabilities as separate line items under IFRS, not as “Other assets”
or “Other liabilities” under Japanese GAAP. While JBIC offsets derivative ﬁnancial instrument assets and liabilities under Japanese GAAP, JBIC presents
those assets and liabilities not qualifying for offsetting criteria under IFRS on a gross basis.
Under IFRS, JBIC determines fair values of derivative ﬁnancial instrument assets and liabilities by considering the counterparty credit risk or own
credit risk derived from observable market data.
JBIC does not apply hedge accounting under IFRS, which is applied under Japanese GAAP. At the date of transition, JBIC applied International
Accounting Standard (IAS) 39 Financial Instruments: Recognition and Measurement to the hedges to which hedge accounting was applied underJapanese GAAP. JBIC reclassiﬁed deferred gains or losses on hedges whose hedging relationships did not qualify for IAS 39 to retained earnings. For thehedges which did not meet the conditions for hedge accounting under IAS 39, JBIC discontinued hedge accounting by the types of hedges according to
IFRS 1 First-time Adoption of International Financial Reporting Standards as follows:i. Cash flow hedges
JBIC reclassiﬁes deferred gains or losses on hedges from equity to proﬁt or loss according to cash ﬂows from the hedged transactions.

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

ii. Fair value hedges
JBIC reclassiﬁed deferred gains or losses on hedges under Japanese GAAP to retained earnings at the date of transition and adjusted carrying
amounts of the hedged items at the lower of the following (a) and (b). JBIC amortizes the adjusted amounts of the hedged items using the effective
interest method and recognizes them in proﬁt or loss.
a. cumulative changes in fair values of the hedged items attributable to designated hedged risks and not recognized under Japanese GAAP; andb. cumulative changes in fair values of the hedging instruments attributable to designated hedged risks and either not recognized or deferred inequity in the balance sheet under Japanese GAAP.

B. Securities
JBIC presents investments in associates as “Equity method investments” under IFRS, not as “Securities” under Japanese GAAP. For the differences in themeasurement method between the accounting standards, see “F. Equity method investments.”
Under Japanese GAAP, JBIC measures unlisted stocks in securities at cost. Under IFRS, JBIC classiﬁes them as available-for-sale ﬁnancial assets andmeasures principally at fair value. JBIC recognizes changes in fair values in “Other comprehensive income” and impairment losses as necessary.
Under Japanese GAAP, JBIC measures investments in partnerships included in securities at net amounts equivalent to its interest in their most recent
ﬁnancial statements available at the reporting date deﬁned in the partnership agreement. Under IFRS, JBIC measures them at fair value in principle andrecognizes changes in fair values in “Other comprehensive income” and impairment losses as necessary.

C. Loans and other receivables
JBIC includes accrued interest income on loans included in “Other assets” under Japanese GAAP and ﬁnancial assets associated with ﬁnancial guarantee
contracts described in “E. Financial guarantee contracts” in “Loans and other receivables” under IFRS.
Under IFRS, JBIC measures loans and other receivables at fair value plus direct transaction costs at initial recognition and subsequently at amortizedcost using the effective interest method. JBIC amortizes loan origination fees which are considered indispensable to the origination using the effective
interest method. As described in “A. ii. Fair value hedges,” JBIC adjusted the carrying amounts of loans for which hedge accounting was discontinued
at the date of transition and amortizes them accordingly.
Under Japanese GAAP, JBIC recognizes general allowance as well as speciﬁc allowance for loan losses.
Adopting the incurred loss model under IFRS, JBIC recognizes impairment losses when it concludes 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 of ﬁnancial assets that can be reliably measured after its assessment at the reporting date. JBIC
recognizes collectively evaluated impairment losses such as incurred but not reported losses by applying historical loss experience to a group of loans
and other receivables with similar credit risk characteristics. The carrying amount of loans and other receivables is reduced by the amount of impairment
losses through allowance for loan losses.

D. Bonds payable
Under Japanese GAAP, JBIC expenses bond issuance costs as incurred. Under IFRS, JBIC measures bonds payable initially at fair value less transaction
costs directly attributable to bond issuance, such as fees paid to underwriters and discounts at issuance, and subsequently at amortized cost using theeffective interest method. As described in “A. ii. Fair value hedges,” JBIC adjusted the carrying amounts of bonds payable for which hedge accounting
was discontinued at the date of transition and amortizes them accordingly.

E. Financial guarantee contracts
Under Japanese GAAP, JBIC records the same contractual amounts of ﬁnancial guarantee obligations in both “Customers’ liabilities for acceptances andguarantees” as assets and in “Acceptances and guarantees” as liabilities. Under IFRS, JBIC initially measures “Financial liabilities associated with ﬁnancial
guarantee contracts” at fair value as well as ﬁnancial assets associated with ﬁnancial guarantee contracts, and subsequently measures ﬁnancial liabilities
associated with ﬁnancial guarantee contracts 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.

160

JBIC ■ Annual Report 2017

Data

F. Equity method investments

G. Liability for retirement benefits
Under Japanese GAAP, JBIC expenses actuarial gains or losses on deﬁned beneﬁt plans in proﬁt or loss as incurred.
Under IFRS, JBIC recognizes directly remeasurement of deﬁned beneﬁt plans in “Other comprehensive income” as incurred and reclassiﬁes
immediately to retained earnings. JBIC remeasures retirement beneﬁt obligations according to applicable IFRS and recognizes the remeasurement
difference due to such as the period allocation method as “Operating expenses.” JBIC includes a liability for retirement beneﬁts in “Other liabilities.”

2
Financial Statements

JBIC’s investments in associates and joint ventures are comprised mainly of investments in partnerships. Under Japanese GAAP, JBIC does not prepare
consolidated ﬁnancial statements and does not adopt the equity method for separate ﬁnancial statements. JBIC measures those investments at net
amounts equivalent to its interest in their most recent ﬁnancial statements available at the reporting date deﬁned in the partnership agreement.
Under IFRS, JBIC adopts the equity method to those investments. JBIC presents proﬁts or losses of those investments, which are included in “Gainon investments in partnerships” under Japanese GAAP, as “Proﬁts of equity method investment”, and exchange differences on translation of foreign
operations from adopting the equity method as “Other comprehensive income.”

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

JBIC ■ Annual Report 2017

161

Data

2

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 with generally accepted
accounting principles)

Financial Statements

JBIC uses derivatives exclusively to hedge interest rate risk and foreign exchange risk. Under Japanese GAAP, JBIC applies hedge accounting in order to
not recognize net gains (losses) from the valuation of derivatives deferred by hedge accounting in net proﬁt. As JBIC discloses its ﬁnancial statements
under IFRS for reference purposes and does not apply hedge accounting under IAS 39, “Net gains (losses) from the valuation of derivative ﬁnancial
instruments” and “Net gains from hedge accounting discontinued at the date of transition” are recognized in net proﬁt in accordance with IFRS*.
As JBIC uses these derivatives for hedging purposes, these derivatives will not be canceled for realizing temporal net gains (losses) from valuation before
their maturity dates. However, depending on market conditions, these net gains (losses) from valuation might have a substantial impact on net proﬁt inaccordance with IFRS. Therefore, “Adjusted net proﬁt in accordance with IFRS before IFRS adjustments for hedge accounting” calculated by excluding
temporal net gains (losses) from valuation from net proﬁt in accordance with IFRS is useful for the users of JBIC’s ﬁnancial statements under IFRS tounderstand its ﬁnancial performance and disclosed as a supplementary explanation for the reconciliation between Japanese GAAP and IFRS.
Adjusted net proﬁt in accordance with IFRS before IFRS adjustments for hedge accounting is reconciled from net proﬁt in accordance with IFRS byexcluding the temporary gains or losses from the valuation of derivatives as follows:(Billions of yen)

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

Net proﬁt in accordance with IFRS (A)March 31, 2017

March 31, 2016

73.9

145.5

Net gains (losses) from the valuation of derivative ﬁnancial instruments(124.6)

41.6

Net gains from hedge accounting discontinued at the date of transition

2.8

10.8

(121.8)

52.5

195.7

93.0

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, 2017 and 2016
(Billions of yen)

195.7

200

145.5

150

93.0

100
73.9
50

42.7

41.6

0
March 31, 2017
IFRS

March 31, 2016

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 regarding the accounting policies for derivative ﬁnancial instruments.

162

JBIC ■ Annual Report 2017

Data 3

Corporate Data
1 Organizational Chart........................................ 164
2 Overseas Network ........................................... . 165
3 History ......................................................... . 166
4 Japan Bank for International Cooperation Act .......... 167
5 Basic Policy for the Internal Control System .............. 175
6 Security Policy ................................................ . 177
7 Privacy Policy ................................................. . 178

JBIC ■ Annual Report 2017

163

1

Organizational Chart(As of September 1, 2017)

Data

3
Corporate Data

JBIC is constituted by four mission/sector-specific financegroups (Energy and Natural Resources Finance Group;
Infrastructure and Environment Finance Group; Industry
Finance Group; and Equity Finance Group) and the Corporate
Planning Group, the Credit, Assessment and Risk Management
Group and the Treasury and Systems Group which support
these finance groups.
This organizational structure was intended to strengthen
the capacity to formulate projects by bringing together

know-how and expertise in each sector and area, thereby
creating an institution that can execute the functions in its
mission more flexibly and strategically: the mission directly
linked to Japan’s economic policy. In the network of overseas
representative offices, Singapore, London and New York areassigned as core regional headquarters to supervise businessand administrative activities as well as support project
formulation in Asia and Pacific; Europe, the Middle East andAfrica, and the Americas respectively.

Corporate Planning Group

Corporate Planning Department(Managing Executive Officer
Global Head of Corporate Planning Group:
Kazuhiko Amakawa)

Legal Affairs and Compliance Office(Executive Officer, Director General: Shigeto Hashiyama)(Director General: Susumu Ushida)

Policy and Strategy Office for Financial Operations (Executive Officer, Director General: Masayuki Tanimoto)
Human Resources Management Office

1(Executive Officer, Director General: Koichi Isobe)

Credit, Assessment and Risk
Management Group

Credit Department(Director General: Noriyasu Matsuda)(Managing Executive Officer
Global Head of Credit, Assessment and Risk
Management Group: Yutaka Funada)

Environmental Assessment Office(Director General: Toshiaki Kitajima)

Country Credit Department(Director General: Yo Kikuchi)

Organizational Chart

Risk Management Department(Director General: Mitsuru Sato)

Treasury and Systems Group

Treasury Department(Managing Executive Officer
Global Head of Treasury and Systems Group:
Kuninori Kuroishi)

Administration and General Services Department(Executive Officer, Director General: Kazunori Ogawa)(Director General: Nagayoshi Motokawa)

IT Planning and Operations Administration Department(Executive Officer, Director General: Noriko Nasu)

Energy and Natural Resources
Finance GroupOil and Gas Finance Department(Director General: Kenichi Aso)

(Managing Executive Officer
Global Head of Energy and Natural Resources
Finance Group: Masaaki Yamada)Mining and Metals Finance Department(Director General: Yusuke Iseki)

Infrastructure and Environment
Finance GroupNew Energy and Power Finance Department I(Director General: Yutaka Inaba)(Managing Executive Officer
Global Head of Infrastructure and Environment
Finance Group: Kazuhisa Yumikura)

New Energy and Power Finance Department II(Director General: Fumio Suzuki)

Industry Finance Group

Corporate Finance Department(Managing Executive Officer
Global Head of Industry Finance Group:
Kazuhiko Tanaka)

Finance Office for SMEs

Social Infrastructure Finance Department

Marine and Aerospace Finance Department
West Japan Office

Equity Finance Group

Equity Investment Department(Director General: Yosuke Watanabe)(Director General: Satoshi Sasaki)(Director General: Toshiyuki Suzuki)(Director General: Hiroko Yano)(Executive Officer for West Japan: Hideto Usuyama)(Director General: Makoto Uchida)(Managing Executive Officer
Global Head of Equity Finance Group: Shinji Fujino)Internal Audit Department(Director General: Zenko Shinoyama)

Office of Corporate Auditor

Overseas Representative Offices(Regional Head for Asia and Pacific:
Tsuyoshi Nishitani)

Singapore* (Regional Headquarters for Asia and Pacific), Beijing, Bangkok, Hanoi, Jakarta,
Manila, New Delhi(Regional Head for Europe, the Middle East
and Africa: Yoshimasa Ohashi)

London* (Regional Headquarters for Europe, the Middle East and Africa), Moscow, Paris, Dubai(Regional Head for the Americas:
Shinya Miyake)

New York* (Regional Headquarters for the Americas), Washington, D.C., Buenos Aires, Mexico
City, Rio de Janeiro* Singapore, London and New York are assigned as core regional headquarters to supervise business and administrative activities and support project formulation in Asia and Pacific;
Europe, the Middle East and Africa; and the Americas, respectively.

164

JBIC ■ Annual Report 2017

2

Overseas Network(As of September 1, 2017)

Data

3
Corporate Data

●Moscow
London★
●Paris★New York●
Washington, D.C.

Beijing●
New Delhi●
Dubai●●
Mexico City

Hanoi●
Bangkok●●ManilaSingapore★
Jakarta●●
Rio de Janeiro●
Buenos Aires★Regional Headquarters2

 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 BANGKOK
14th Floor, Nantawan Bldg.,
161 Rajdamri Road, Bangkok, 10330,
Thailand
Tel. 66-2-252-5050
Fax. 66-2-252-5514
 REPRESENTATIVE OFFICE IN HANOI
3rd Floor, Sun City,
13 Hai Ba Trung Street,
Hoan Kiem District, Hanoi, Vietnam
Tel. 84-24-3824-8934, 8935, 8936
Fax. 84-24-3824-8937
 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 NEW DELHI
306, 3rd Floor, World Mark2, Asset
No. 8, Hospitality District, Aerocity,
New Delhi-110037, India
Tel. 91-11-4352-2900
Fax. 91-11-4352-2950

 REPRESENTATIVE OFFICE IN NEW YORK(Regional Headquarters for theAmericas)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 LONDON(Regional Headquarters for Europe,
the Middle East and Africa)
7th Floor, 80 Cheapside,
London, EC2V 6EE, U.K.
Tel. 44-20-7489-4350
Fax. 44-20-7489-4351

 REPRESENTATIVE OFFICE IN
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 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

 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 PARIS
21, Boulevard de la Madeleine,
75038 Paris Cedex 01, France
Tel. 33-1-4703-6190
Fax. 33-1-4703-3236

 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 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

 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

 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

JBIC ■ Annual Report 2017

165

Overseas Network

 REPRESENTATIVE OFFICE IN
SINGAPORE(Regional Headquarters for Asia andPacific)
9 Raffles Place, #51-02 Republic Plaza,
Singapore 048619
Tel. 65-6557-2806
Fax. 65-6557-2807

3

History

Data

3

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

Corporate Data

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)
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 theExport-Import Bank of Japan and those of the Overseas Economic Cooperation Fund)

3

Events related to the Japan Finance Corporation

History

June 2006

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

May 2007The Japan Finance Corporation Act promulgated and enforced

April 2008

Order for the Japan Finance Cooperation Act promulgated and enforced

October 2008

The Japan Finance Corporation establishedMarch 2010

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

April 2010

The Account for Facilitating Realignment of United States Forces in Japan createdEvents related to the Japan Bank for International Cooperation (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 the Japan Finance Corporation Act promulgated and enforced (The scope of operations was
expanded, including the rule on export financing to developed countries)

April 2012

The Japan Bank for International Cooperation (JBIC) established

November 2012

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

May 2016

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

October 2016166

The account for the Special Operations created

JBIC ■ Annual Report 2017

4

Japan Bank for International
Cooperation Act
Data

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

Article 4: Government’s Contribution
1. The Government may, when it finds it to be necessary, makecontributions to JBIC within the amount appropriated in thebudget.
2. When a contribution is made by the Government pursuant
to the provisions of the preceding Paragraph, JBIC shall,
notwithstanding the provisions of Paragraph 2 of Article 445of the Companies Act (Act No. 86 of 2005), be allowed not
to record the amount exceeding half of such contribution
amount as the capital. In this case, “this Act” referenced
in Paragraph 1 of the same Article shall be deemed to be
replaced with “this Act or Japan Bank for International
Cooperation Act (Act No. 39 of 2011).”
3. When a contribution is made by the Government pursuant to
the provisions of Paragraph 1, JBIC shall allocate the capitaland reserves increased thereby, to the accounts related to theoperations listed in each Item of Article 26-2, in accordancewith the separation of accounting set forth in Article 26-2.
Article 5: Limitation, etc. on Use of Name
1. No person other than JBIC shall use the words “Japan Bankfor International Cooperation” in its name.
2. The provisions of Paragraph 2 of Article 6 of the Banking
Act shall not be applied to JBIC.
Article 6: Resolution for Appointment and Removal, etc. of
Officers, etc.
1. The resolution for the appointment and removal of the
Officers, etc. (meaning Directors, Executive Officers andAuditor(s); the same shall apply hereinafter) of JBIC shallnot take effect unless the authorization of the Minister ofFinance is granted.
2. The resolution for selection and displacement of a
Representative Director or Representative Executive Officer
of JBIC shall not take effect 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:

JBIC ■ Annual Report 2017

167

4
Japan Bank for International Cooperation Act

Article 3: Holding of Shares by Government
The Government shall, at all times, hold the total number ofoutstanding shares of JBIC.

(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 to such funds, in the case where the Foreign
Financial Institutions, etc. or the Foreign Governments,
etc. provide the Guarantee, etc. of Liabilities with respect
to such funds, the Guarantee, etc. of Liabilities related
to such Guarantee, etc. of Liabilities, or the acquisitionof the Public/Corporate Bonds, etc. issued in orderto procure such funds by certain measures, such as
acquisition through subscription;(2) The loan of funds necessary to ensure the reliable andtimely Import of Important Goods, etc., the acquisition
by assignment of loan receivables related to such funds,
the Guarantee, etc. of Liabilities related to such funds
or the acquisition of the Public/Corporate Bonds, etc.
to be issued in order to procure such funds by certain
measures, such as acquisition through subscription;(3) The loan of funds to be used directly or indirectly forthe 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. of Japan,
Foreign Juridical Persons, etc. Invested in, Foreign Financial
Institutions, etc. or Foreign Governments, etc. provide
the Guarantee, etc. of Liabilities to the Juridical Persons,etc. of foreign countries with respect to such funds, theGuarantee, etc. of Liabilities related to such Guarantee,
etc. of Liabilities, or the acquisition of the Public/Corporate
Bonds, etc. to be issued in order to procure such funds bycertain measures, such as acquisition through subscription;(4) (i) The loan to the Foreign Governments, etc., Foreign
Financial Institutions, etc. or international organizations,such as the International Monetary Fund, of long-term
funds (meaning the funds required to be provided formore than one (1) year) required for their overseas
business or the import of goods or introduction oftechnologies by the foreign country concerned, or
funds required to attain the international balance of
payments or achieve the stability of the currency of
the foreign country concerned, (ii) the acquisition by
assignment of loan receivables related to such funds or
the Guarantee, etc. of Liabilities related to such fundsor (iii) the acquisition of the Public/Corporate Bonds,
etc. issued in order to procure such funds by certain
measures, such as acquisition through subscription;(5) When it is found remarkably difficult for a foreign
government or foreign resident to conduct overseas
transactions, such as import by reason of the internationalbalance of payments of the foreign country concerned,
and it is found urgently necessary, the loan to thegovernments, governmental agencies or banks of theforeign country concerned, of the short-term funds(meaning the funds required necessary to be provided forone (1) year or less than one (1) year; the same shall apply
hereinafter) necessary to facilitate overseas transactions,such as import, until the International Monetary Fund,etc. (meaning international organizations, such as

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Article 1: Purpose
Japan Bank for International Cooperation shall be a KabushikiKaisha, which has the purpose of contributing to the sounddevelopment of Japan and the international economy andsociety, by taking responsibility for the financial function topromote the overseas development and securement of resources
which are important for Japan, to maintain and improve theinternational competitiveness of Japanese industries and topromote 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 take appropriate
measures with respect to damages caused by such disruption,
while having the objective of supplementing the financialtransactions implemented by ordinary financial institutions.

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(6)

(7)
(8)
(9)

4

the International Monetary Fund, or governments,
governmental agencies or banks of more than two (2)countries other than that foreign country concerned;
the same shall apply hereinafter) provides funds to assist
the development of the economy of the foreign country
concerned (hereinafter referred to as the “Funds for
Economic Assistance”);
The provision of contributions to persons who are carrying
on business outside Japan (including those Juridical
Persons, etc. of Japan whose sole purpose is to makeoverseas investments and who make contributions tothose carrying on the aforesaid business) to contribute
funds required for their business;
The carrying out of the necessary studies related to theoperations listed in each of the preceding Items;
The provision of information to the users of operations
provided by JBIC that pertains to such operations; andAny other operations incidental to those listed in eachof the preceding Items (excluding those listed in Item
(7)).

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. destined for any area other than developing overseas
areas (hereinafter referred to as the “Developing Areas”)
may be conducted only in the cases listed below:(1) when necessary countermeasures are taken in accordancewith multilateral arrangements in the case where theForeign 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 the Ordinance of the Ministry of
Finance as having an economic nature similar to aninterest; the same shall apply hereinafter in Paragraph
2 of Article 16) support with more favorable conditions
than usual in order to promote the export from suchforeign 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 maintenanceor improvement of the international competitivenessof Japanese industries.
2. Among the operations listed in Item (1) of the preceding
Article, those relating to the funds provided to the Juridical
Persons, etc. of Japan may be conducted only in the cases
listed below:(1) where Banks, etc. provide Foreign Juridical Persons, etc.
with the loan of funds with respect to the Export ofEquipment, etc. necessary for the business with respect tothe development of infrastructure and other foundation
for socioeconomic activities overseas, and JBIC provides
the loan 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 to disruptions to international financial order andthe Minister of Finance determines that the exceptionsof 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 importantfor Japan, only those relating to the funds listed below thatare the Guarantee, etc. of Liabilities may be conducted:

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JBIC ■ Annual Report 2017(1) funds necessary to import the products, such as aircraft,specified by the Minister of Finance, with respect towhich the products made in Japan are not sufficient
to replace and the 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 andthe introduction 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 only in the case where JBIC has agreed to makeloan of funds (excluding short-term funds) set forth in thesame Item for the execution of business conducted by the
Juridical Persons, etc. of Japan and the Foreign Juridical
Persons, etc. Invested in and such loan of funds is recognizedespecially necessary in order to execute such business.
5. Among the operations listed in Item (3) of the preceding
Article, the loan of funds necessary for the overseas businessto be conducted by the Juridical Persons, etc. of Japan, otherthan those listed in Item (2) of the following Paragraph, may
be conducted only if such loan is provided directly to such
Juridical Persons, etc.
6. Among the operations listed in Item (3) of the preceding
Article (excluding those conducted in order to promote
overseas development and securement of resources importantfor Japan), loans to the Juridical Persons, etc. of Japan, otherthan the loans to the Small and Medium Enterprises, etc.
(meaning the Small and Medium Enterprises or medium
enterprises specified by the Minister of Finance; hereinafter
the same shall apply) may be conducted only in the cases
listed below.
(1) When the Juridical Persons, etc. of Japan begin or expand
overseas business, or improve the efficiency thereof bycontributing to the foreign juridical persons or accepting
the assignment of all or part of the business of theforeign juridical persons (hereinafter referred to as“Contributions, etc.” in this Item), in the case where
the loan of funds necessary for such Contributions, etc. isprovided (only when it is prescribed by a Cabinet Orderas being a case recognized especially necessary in orderto promote the policies of the Government concerning
the maintenance or improvement of the international
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 forsuch 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 tothe contribution of 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 thoseprescribed by the Cabinet Order set forth in the same
Item); orc. 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 businesswith respect to the development of infrastructure
and other foundation for socioeconomic activities
overseas).
(3) When the loan of necessary funds is provided to
the Juridical Persons, etc. of Japan for such Juridical

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the preceding Article in foreign currency, in the casewhere 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 conductedby 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 those related to the Public/Corporate Bonds, etc.) andthe acquisition of the Public/Corporate Bonds, etc. may be
conducted only in the cases listed below (with respect tothe operations listed in Items (1) through (3) of the same
Article, the cases listed in Items (2) through (7) below shallapply):(1) where part of the Public/Corporate Bonds, etc. (limited
to those with a redemption period of more than one(1) year; the same shall apply in the following Itemand 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
the Specific Purpose Company, etc. within the period
specified by the Minister of Finance or where the SpecificTrust is established, the Public/Corporate Bonds, etc. are
entrusted to the Trust Company, etc. as assets of suchSpecific Trust, and then all or part of beneficial interestsin such Specific Trust is assigned;(3) where the Public/Corporate Bonds, etc. to be issued by
the 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 internationalorganizations, such as the International Monetary Fund,is provided;(5) where the Guarantee, etc. of Liabilities related to suchloan receivables, Public/Corporate Bonds, etc. or themonetary claims, which constitute such underlying assets,or the Public/Corporate Bonds, etc. to be issued by theSpecific 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, thePublic/Corporate Bonds, etc. or the monetary claims set
forth in Item (3) of the preceding Paragraph;(6) where the Guarantee, etc. of Liabilities related to theborrowing of funds by the Specific Purpose Company,
etc. for the purpose of acquiring by assignment, or
acquiring, such loan receivables or Public/Corporate
Bonds, etc., which constitute such underlying assets, isprovided when the Specific Purpose Company, etc. issues
the Public/Corporate Bonds, etc., which are secured byloan receivables or the Public/Corporate Bonds, etc.; or(7) where corporate bonds, any equivalent bond certificatesor beneficial interests in trust (limited to those with aredemption period of more than one (1) year) that were
issued by Juridical Persons, etc. in order to procure thefunds necessary for the business with respect to the

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Persons, etc. to conduct a business of leasing equipment
made in Japan to overseas market (limited to thoseprescribed by a Cabinet Order as being a case recognizedespecially necessary in order to promote the policiesof the Government concerning the maintenance or
improvement of the international competitiveness ofJapanese 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, inthe case where the Minister of Finance determines thatthe exceptions of operations of JBIC are necessary inorder 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 importantfor Japan), with respect to the business in any area otherthan the Developing Areas may be conducted only when it
is prescribed by a Cabinet Order as being a case recognizedespecially necessary in order to promote the policies of theGovernment concerning the maintenance or improvementof the international competitiveness of Japanese industries.
8. The loan to the governments, governmental agencies orbanks of foreign countries listed in Item (5) of the preceding
Article may be conducted by obtaining the authorization of
the Minister of Finance 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 thefunds related to the loan, the redemption is expected
to be secured; or(2) where adequate underlying assets are secured for theloan.
9. Among the operations listed in Items (1) through (4) of thepreceding Article, the Guarantee, etc. of Liabilities related to
the liabilities of any person other than the Juridical Persons,etc. of Japan (excluding those related to the Public/Corporate
Bonds, etc.) may be provided only in the cases listed below:(1) When the Banks, etc., Foreign Financial Institutions, etc.
or Foreign Governments, etc. provide the loan of suchfunds set forth in Items (1) through (4) of the preceding
Article, in the case where the Guarantee, etc. of Liabilities
related to such loan is provided (including the case inwhich the loan receivables related to such loan are
assigned to the persons specified by the Minister ofFinance);(2) In the case where the Guarantee, etc. of Liabilities related
to the Guarantee, etc. of Liabilities set forth in Items(1) and (3) of the preceding Article is provided;(3) When, among the Guarantee, etc. of Liabilities related
to the funds set forth in Item (3) of the preceding Article,
the Juridical Persons, etc. of Japan or the Foreign Juridical
Persons, etc. Invested in assign the monetary claims
related to the overseas business to be conducted by the
Juridical Persons, etc. of Japan or the Foreign Juridical
Persons, etc. Invested in to the Banks, etc. or Foreign
Financial Institutions, etc. and use the proceeds fromthe assignment for such business, in the case where the
Guarantee, etc. of Liabilities related to such monetaryclaims is provided; or(4) When the Banks, etc. or Foreign Financial Institutions,etc. provide the loan of funds set forth in Item (3) of

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Japan Bank for International Cooperation Act

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 theoperations listed in Item (1) below, in the case where it
is recognized that it is remarkably difficult for the Banks,etc. to provide a loan of funds together with JBIC and theloan from JBIC is urgently necessary to attain the purposeof such loan, or if the case falls under any of the cases listed
in Item (1) of Paragraph 2 or Item (2) of Paragraph 6 hereof,
with respect to the operations listed in Item (2) below, inthe case where the loan receivables to the Foreign Juridical
Persons, etc. Invested in with a redemption period of morethan one (1) year are acquired by assignment within the
period specified by the Minister of Finance for the purposeof assigning the same to the Specific Purpose Company, etc.
or for the purpose of establishing the Specific Trust, withrespect to the same, in the Trust Company, etc. and assigning
all or part of the beneficial interest in such Specific Trust:(1) loan of funds pursuant to the provisions of Items (1)through (3) of the preceding Article made to the Juridical
Persons, etc. of Japan; or(2) acquisition by assignment of the loan receivables pursuant
to the provisions of Items (1) through (4) of the preceding
Article.
12. The operations listed in Item (7) of the preceding Article
may be conducted only if they are the minimum necessary
to promote the performance of the operations listed in Items(1) through (6) of the same Article smoothly and effectively.
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 ofcontributions pursuant to the provisions 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 performanceof the liabilities so guaranteed, etc. or the realization of
profits that enable the payment of dividends resulting
from business so contributed is recognized as being
certain; or(2) when the conditions, such as the interest rates (including
those prescribed by the Ordinance of the Ministry of
Finance as having an economic nature similar to interest
rates; the same shall apply hereinafter in the following
Paragraph) of loans (including those prescribed by theOrdinance of the Ministry of Finance as having an
economic nature similar to a loan; the same shall apply
hereinafter in the following Paragraph and Paragraph 2
of Article 16) and yield on loan receivables related to suchloan (excluding loan of funds pursuant to the provisionsof Items (2) and (5) of Article 11), such acquisition by
assignment (excluding acquisition by assignment ofloan receivables pursuant to the provisions of Item (2)of the same Article), such acquisition (excluding theacquisition 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

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JBIC ■ Annual Report 2017contribution (for all such operations, limited to thoserelated to the businesses with respect to the developmentof infrastructure and other foundation for socioeconomic
activities overseas), are recognized as being appropriate,
in light of the risks, etc. of such loans, such assigned
loan receivables and other assets becoming irrecoverable(excluding the cases listed in the preceding Item).
2. The conditions, such as the interest rates of loans and yieldon assigned loan receivables related to the operations listed
in Items (1) through (6) of Article 11, shall be determinedin light of usual conditions for transactions by the Banks,etc. or the trends of financial markets, so that revenue ofeach of the accounts of the respective operations listed ineach of the Items of Article 26-2 will be sufficient to cover
the expenses therefor.
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
11 that 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 tothe operations 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, acquisitionof the Public/Corporate Bonds, etc., the Guarantee, etc.
of Liabilities or conducting the contributions related to
the Special Operations;(2) Matters regarding appropriate financial managementof the Special Operations;(3) Matters regarding supplement of financial transactions
implemented by ordinary financial institutions in respectof the Special Operations;(4) Matters regarding the system for conducting evaluationand monitoring with respect to the status of theimplementation of the Special Operations;(5) Matters regarding reports to the Minister of Financewith respect to the status of the implementation of theSpecial Operations; and(6) Other matters necessary to ensure appropriate
implementation of 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 theimplementation of matters regarding the Special Operationsas prescribed by the Ordinance of the Ministry of Finance,
pursuant to the Special Operations Guidelines, and obtain
the authorization of the Minister of Finance. The same shallapply if JBIC intends to make any changes thereto.
2. When the Minister of Finance determines that the Special
Operations Basic Policy, approved pursuant to the provisions

Dataof the preceding Paragraph, has become inappropriate for
JBIC to conduct the Special Operations appropriately, theMinister of Finance may order JBIC to change it.

Article 26: Submission of Financial Statements
1. JBIC shall prepare the list of assets every business year.
2. JBIC shall, within three (3) months after the end of every
business year, submit to the Minister of Finance the balance
sheets, statements of operations and list of assets (hereinafterreferred to as the “Balance Sheets, etc.”) and business report(including the Electro-Magnetic Record (which means therecord specified by the Minister of Finance as a record which
is produced by electronic, magnetic, or any other means
unrecognizable by human perception and which is used
for data-processing by a computer; the same shall apply
hereinafter) which has recorded the matters to be describedin such Balance Sheets, etc. and its business report) for eachbusiness year.
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
to in Article 33 as “Ordinary Operations”); and(2) Special Operations.
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
through 443, 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

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Article 16: Budget
1. JBIC shall prepare the budget for revenues and expendituresand submit it to the Minister of Finance for each businessyear.
2. The revenues set forth in the preceding Paragraph meaninterest on loans (including those prescribed by the Ordinanceof the Ministry of Finance as having an economic naturesimilar to an interest), interest on the Corporate/Public
Bonds, etc., dividends on contributions, debt guarantee
fees and other incomes related to asset management andmiscellaneous incidental income, and the expenditures set
forth in the same Paragraph mean expense of operations,business entrustment fees, interest on borrowings (including
those prescribed by the Ordinance of the Ministry of Financeas having an economic nature similar to a borrowing; thesame shall apply hereinafter in Paragraphs 1 and 3 of Article33), interest on bonds and notes and incidental expenses.
3. Upon receipt of the budget submitted pursuant to theprovisions of Paragraph 1 above, the Minister of Finance shall
examine such budget 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 suchbudget to the Diet together with the national budget.
5. The form and content of the budget and procedures forthe preparation and submission thereof shall be specified
by the Minister of Finance.

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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.

preceding Paragraph. In such case, the term, “of a Stock
Company”, referenced in Article 446 of the same Act, shallbe deemed to be replaced with “that belongs to the accountestablished under the provision of Article 26-2 of Japan Bankfor International Cooperation Act (Act No. 39 of 2011)”;the term, “the amounts listed in item (v) through (vii) fromthe sum”, also referenced therein, shall be deemed to be
replaced with “the amounts listed in item (v) through (vii),
which is recorded in the account to which the said surplus
belongs to, from the sum which is recorded in the accountto which the said surplus belongs to”; and the term, “statedcapital”, referenced in Paragraphs 1 and 2 of Article 447 of
the same Act, shall be deemed to be replaced with “statedcapital belonging to the account established 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 be deemed to be
replaced with “reserves belonging to the account establishedpursuant to the provision of the same Article”; and theterm, “and the reserves”, also referenced therein, shall bedeemed to be replaced with “and such reserves”; the term“the stated capital”, referenced in Paragraph 3 of the same
Article, shall be deemed to be replaced with “the statedcapital belonging to the account established pursuant to
the provision of Article 26-2 of Japan Bank for International
Cooperation Act”; and the term, “the stated capital”, also
referenced therein, shall be deemed to be replaced with“the stated capital belonging to the account establishedpursuant to the provision of the same Article”; and any othernecessary technical replacement of terms shall be specified
by a Cabinet Order.
2. The provisions of Article 448, 449, and Paragraphs 1 (limited
to the portions related to Item 5 thereof) and 2 (limited
to the portions related to Item 5 thereof) of Article 828of the Companies Act shall apply mutatis mutandis to theaccounting practices implemented by JBIC by separating it
pursuant to the provisions of 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 andthe case where such reserve is drawn down pursuant to theprovision of Paragraph 2 of Article 31 hereof. In this case,the term “the reserves”, referenced in Paragraphs 1 and 2 ofArticle 448 of the same Act, shall be deemed to be replacedwith “the reserves belonging to the account establishedpursuant to the provision of Article 26-2 of Japan Bankfor International Cooperation Act”; the term “the statedcapital”, referenced in Item 2 of Paragraph 1 of the same
Article shall be deemed to be replaced with “the statedcapital that shall belong to the account established pursuant
to the provision of the same Article”; the term, “and thestated capital”, also referenced therein, shall be deemed tobe replaced with “and such stated capital”; the term, “thereserves”, 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 CooperationAct”; and the term, “the reserves”, also referenced thereinin the same Paragraph, shall be deemed to be replacedwith “the reserves belonging to the account establishedpursuant to the provision of the same Article”; and any othernecessary 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Data

JBIC’s stated capital shall be the sum of the amounts ofstated capital belonging to all the accounts of JBIC after
the implementation of such increase or reduction; and in
the case where JBIC increases or reduces the amount of its
reserves belonging to the account established pursuant to theprovision 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 suchincrease or reduction. In this case, the provisions of Articles
447 through 449, 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.

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Article 27: Preparation and Submission of Report on Settlementof Accounts
1. After submitting the Balance Sheets, etc. pursuant to theprovisions of Paragraph 2 of Article 26, JBIC shall, every
business year, prepare a report on the settlement of accounts
for the relevant business year (including the Electro-Magnetic
Record which has recorded the matters to be described in suchreport on the settlement of accounts; the same shall apply
hereinafter) and submit it to the Minister of Finance, without
delay, by attaching the opinion of the Auditor(s), Audit andSupervisory Committee or Audit Committee concerning suchreport 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, theMinister of Finance 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
the report on the settlement of accounts and the document
stating the opinion of the Auditor(s), Audit and Supervisory
Committee or Audit Committee at its head office and branch
offices and make them available for public inspection during
the period prescribed by the Ordinance of the Ministry of
Finance.
4. The form and content of the report on the settlement ofaccounts shall be specified by the Minister of Finance.
Article 28: Sending 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 in Paragraph 1 of the same Article, tothe Board of Audit of Japan no later than November 30 of thefollowing business year.
Article 29: Submission of Report on Settlement of Accounts
to DietThe Cabinet shall submit JBIC’s report on the settlement ofaccounts for which the Board of Audit of Japan has finished
its inspection, to the Diet, by attaching the Balance Sheets, etc.
set forth in Paragraph 1 of Article 27 hereof, together with thesettlement of accounts for national revenues and expenditures.
Article 31: Payment to National Treasury
1. In each of the accounts related to the operations listed ineach Item of Article 26-2, in the event that the amount of
the surplus recorded in the settlement of accounts for eachbusiness year exceeds zero, JBIC shall accumulate, as a reserve,
the amount calculated in accordance with the standards
prescribed by a Cabinet Order, among such surplus, until it

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2.

3.

4.

5.

reaches the amount prescribed by the Cabinet Order, andif there is still a surplus, JBIC shall pay the amount of suchsurplus into the National Treasury within three (3) months
after the end of such business year.
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 amountof such surplus becomes zero.
The procedures for the payment into the National Treasury
pursuant to the provisions of Paragraph 1 of this Article, theaccount into which such payment is to be made and othernecessary matters concerning the payment to the National
Treasury shall be prescribed by a Cabinet Order.
The reserves set forth in Paragraph 1 shall be allocated foreach category of the accounts related to the operations
listed in each Item of Article 26-2.
JBIC shall not be allowed to make any appropriation of its
surplus, such as dividend of its surplus, nor any appropriationof its surplus belonging to the accounts related to theoperations listed in each Item of Article 26-2, such as dividendsof such surplus, unless such disposition is made pursuant to
the provisions of Paragraphs 1 and 2 of this Article.

Article 32: Provision of Loans by Government
The Government may provide monetary loans to JBIC.
Article 33: Borrowings and Corporate Bonds
1.
Borrowing of funds (including those prescribed by
the Ordinance of the Ministry of Finance as having an
economic nature similar to a borrowing; the same shallapply hereinafter in this Article, Paragraph 1 of Article 35
and Item 5 of Article 46) made in order to meet JBIC’s fundrequirements for the performance of its operations shallbe limited to the borrowings of short-term loans (including
those prescribed by the Ordinance of the Ministry of Financeas having an economic nature similar to short-term loans;the same shall apply hereinafter in the following Paragraphand Paragraph 6), or long-term loans in foreign currency(meaning a borrowing of an amount in foreign currency
with a repayment period of more than one (1) year; thesame shall apply hereinafter in this Article and Paragraph
1 of Article 35), from financial institutions, such as banks,or the borrowings related to the monetary loans obtained
from the Government pursuant to the provisions of thepreceding Article.
2. The short-term loans (excluding those in foreign currency) set
forth in the preceding Paragraph shall be repaid during thebusiness year in which these borrowings are made; provided,
however, that in cases where repayment cannot be made due
to shortage of funds, JBIC may reborrow (including thoseprescribed by the Ordinance of the Ministry of Finance as
having an economic nature similar to an act of reborrowing;
the same shall apply hereinafter in the following Paragraphand Paragraph 7) only the amount which cannot be so repaid,with the authorization of the Minister of Finance.
3. Loans reborrowed pursuant to the proviso of the preceding
Paragraph shall be repaid within one (1) year.
4. Pursuant to the provisions of a Cabinet Order, JBIC shall,every business year, prepare a basic policy concerning theissuance of corporate bonds and the borrowing of longterm loans in foreign currency made in order to meet fundrequirements for the performance of its operations andobtain the authorization of the Minister of Finance. When

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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
Paragraph shall be next to the general liens prescribed by
the provisions of the Civil Code (Act No. 89 of 1896).

Article 36: Investment of Surplus Funds
JBIC shall not invest any surplus funds of its business except
by means of:(1) Acquisition of national government bonds, local
government bonds or government-guaranteed bonds(which mean the bonds for which the redemptionof its principal and payment of interest thereon are
guaranteed by the Government) and other securities
designated by the Minister of Finance;(2) Deposit with the Fiscal Loan Fund;(3) Deposit with banks or other financial institutions
designated by the Minister of Finance;(4) Holding of negotiable deposit certificates;(5) Money trust to the financial institutions engaging in trust
business (which mean the financial institutions that haveobtained 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
Finance as the means equivalent to the means listed ineach of the preceding Items.

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Japan Bank for International Cooperation Act

Article 35: Government Guarantee
1. Notwithstanding the provisions of Article 3 of the Act
Concerning Restrictions on Financial Assistance by theGovernment to Corporations (Act No. 24 of 1946), theGovernment may execute a guarantee agreement withrespect to the liabilities related to JBIC’s corporate bonds(excluding the liabilities with respect to which the Government
may execute a guarantee agreement under Paragraph 2 ofArticle 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 thefollowing Paragraph and Paragraph 1 of Article 16 of the
Supplementary Provisions)) or the liabilities related to thelong-term loans in foreign currency, within the scope of theamount fixed by the budget.
2. Among the amount fixed by the budget set forth in thepreceding Paragraph, the amount of liabilities related to thecorporate bonds issued in a foreign country and denominatedin Japanese currency may be fixed by adding up to theamount fixed by the budget as set forth in Paragraph 2 ofArticle 2 of the Foreign Capital Acceptance Act, when it isdifficult to fix the said amount of liabilities separately fromthe 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 ofParagraph 1 of this Article, execute a guarantee agreementwith respect to the liabilities related to the certificates ofcorporate bonds or coupons thereof, which are issued by JBIC,
pursuant to the provisions prescribed by a Cabinet Order, inorder to deliver to a person who has lost the certificates ofcorporate bonds or coupons thereof.

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Corporate Data

JBIC intends to make any change to the policy, the same
shall apply.
5. When JBIC has issued corporate bonds or borrowed the longterm loans in foreign currency pursuant to the provisionsof preceding Paragraph, it shall, without delay, make a
notification of such fact to the Minister of Finance pursuant
to the provisions prescribed by a Cabinet Order; provided,
however, that this shall not apply if JBIC issues the certificatesof corporate bonds, as prescribed by a Cabinet Order, inorder to deliver to anyone who has lost such certificatesof corporate bonds and, as a result of the issuance of suchcertificates of corporate bonds, JBIC assumes new liabilities.
6. The total amount of (i) the outstanding amounts of the shortterm loans, the long-term loans in foreign currency and theborrowings related to the monetary loans obtained fromthe Government as set forth in Paragraph 1 of this Article
that are made in order to meet 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 ofthis Article that are issued in order to meet JBIC’s fundrequirements for the performance of its Ordinary Operations
shall not 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 toas the “Base Amount Related to Ordinary Operations” inthis Article).
7. Notwithstanding the provisions of the preceding Paragraph,when the issuance of new bonds is necessary to reborrow theissued corporate bonds with respect to corporate bonds set
forth in Paragraph 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.
8. Among the Ordinary Operations, the total amount of theoutstanding amounts of (i) monetary loans, (ii) acquisitionof 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 madepursuant to the provisions of Items (1) through (6) of Article
11 hereof, shall not exceed the aggregate amount of the BaseAmount Related to Ordinary Operations and the Limitation
Amount Related to Ordinary Operations.
9. The provisions set forth in the preceding three (3) paragraphs
shall apply mutatis mutandis to the Special Operations. In
this case, the term, “Base Amount Related to Ordinary
Operations”, referenced in Paragraphs 6 and the preceding
Paragraph, shall be deemed to be 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 theterm, “through (6)”, referenced in the preceding Paragraph,shall be deemed to be replaced with“, Item (3), (4) and (6)”.
10. The monetary funds financed through the borrowing offunds or the issuance of the corporate bonds pursuant to theprovisions of 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 ineach Item of the same Article.

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Article 38: Supervision
1. The Minister of Finance shall supervise JBIC in accordancewith the provisions of this Act.
2. With respect to the management or administration of
JBIC, in the case where the Minister of Finance finds that
there is a violation of laws and regulations or the Articles
of Incorporation or any grossly unjust matter exists and inother cases where they find it necessary for the enforcementof this Act, the Minister of Finance may issue JBIC orders
concerning its operations as are necessary for the supervision.

Japan Bank for International Cooperation Act

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 to enter 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, suchaction shall be limited to the scope of operations delegatedto 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
the provisions of Paragraph 1 above shall not be construed
to be that given for the investigation of a criminal offense.
Article 40: Delegation of Authority
1. The Minister of Finance may, as prescribed by a Cabinet
Order, delegate part of the authority to carry out an on-site
inspection pursuant to the provisions of Paragraph 1 of thepreceding Article to the Prime Minister.
2. If the Prime Minister has carried out an on-site inspection
pursuant to the provisions of Paragraph 1 of the preceding
Article on the basis of the delegation pursuant to theprovisions of the preceding Paragraph, he/she shall promptly
submit a report of the results of the inspection to the Ministerof Finance.
3. The Prime Minister shall delegate both the authority
delegated pursuant to the provisions of Paragraph 1 above
and the authority set forth in the provisions of the preceding
Paragraph to the Commissioner of Financial Services Agency.
4. The Commissioner of Financial Services Agency may, asprescribed by a Cabinet Order, delegate all or part of theauthority delegated pursuant to the provisions of thepreceding Paragraph, to Director-General 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 thisAct (excluding that delegated to the Prime Minister pursuant
to the provisions of Paragraph 1 above) may, as prescribedby 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 thematters listed in each of the Items of Article 27 of theCompanies Act, matters relating to the procedures andrequirements for the appointment of a person to assume
management responsibility from among the Representative
Directors or Representative Executive Officers shall be
described or recorded.

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2. With respect to the matters related to the requirements
for the appointment of a person to assume management
responsibility set forth in the preceding Paragraph, theprovisions that the requirements listed below be satisfied
shall be incorporated:(1) A person who has discernment and the capability
recognized as necessary in light of the purposes set
forth in Article 1 hereof and the operations set forthin Article 11 hereof shall be 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 ofIncorporation of JBIC shall not take effect unless theauthorization of the Minister of Finance is granted.
Article 42: Merger, Company Split, Share Exchange, Assignment
and Acceptance of Assignment of Business andDissolution
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 andacceptance of assignment of all or part of business, to which JBIC
becomes a party, and dissolution of JBIC shall be provided forseparately 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 andExchange Act pursuant to the provisions of Article 11, theprovisions of Article 29 of the same Act shall not apply.
2. In the case set forth in the preceding Paragraph, JBIC shallbe deemed as the Financial Instruments Business Operator
defined in Paragraph 9 of Article 2 of the Financial Instruments
and Exchange 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 provisionsof Chapters VIII and VIII-II of the same Act relating to suchprovisions shall apply.
3. When JBIC performs the actions listed in each of the Items
of Paragraph 1 of Article 63 of the Financial Instruments
and Exchange Act pursuant to the provisions of Article 11
hereof, the provisions of Paragraph 2 of the said Article 63
shall not apply.
4. In the case set forth in the preceding Paragraph, JBIC shallbe deemed as the Financial Instruments Business Operator
defined in Paragraph 9 of Article 2 of the Financial Instruments
and Exchange Act, and the provisions of Article 38 (limited
to the portions relating to Item (1)) and Article 39 of thesame Act and the 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 officialtranslation of the Japan Bank for International Cooperation Act
or any authorities of Japanese Government.

5

Basic Policy for the Internal Control
SystemData

Article 3. Rules and Structures for Managing Risk of Loss
1. In recognition of the importance of risk management
practices throughout its entire organization, JBIC and its
subsidiaries shall individually control various risks in an
appropriate manner by establishing the integrated risk
management regulations and other internal rules for risk
management, which stipulate the management of various
risks that should be recognized in the course of business
operations at the JBIC Group as well as the organizational
structure that is needed for integrated risk management.
2. JBIC shall set up a department responsible for risk
management and appoint a risk management officer. In
addition, JBIC shall establish a committee chaired by theGovernor to conduct deliberations and considerations on

Article 4. Ensuring Efficient Execution of Directors’ Duties
1. The Board of Directors shall establish business plans andproperly manage business of the JBIC Group.
2. JBIC shall establish the Executive Committee to whichauthority is delegated by the Board of Directors for approvalof certain matters. In addition to making decisions on thosespecific matters by exercising the delegated authority, theExecutive Committee shall deliberate matters requiring
approval of the Board of Directors prior to Board of Directors
meetings, in order to aid decision-making among the Boardof Directors. Moreover, JBIC shall establish an advisory bodyto the Executive Committee or other various committees towhich authority is delegated by the Executive Committee
for approval of certain matters.
3. JBIC shall establish the internal rules for organizational
structure stipulating the roles and responsibilities of theBoard of Directors, for the purpose of efficiently executing
matters approved by a Board of Directors meeting.
4. To expedite the decision-making process, JBIC shall introduce
a function-based organization and an executive officer system
in which authority is delegated by management for approvalof specific matters in accordance with the organization rules,
authority rules and other related internal rules.
Article 4 (2). Structures for Ensuring Proper Operations of JBIC
Group’s Business
1. JBIC shall take appropriate measures for business management
and operations in its subsidiaries, to ensure proper operationsof JBIC Group’s business.
2. JBIC shall establish a structure where its subsidiaries report
to JBIC, in a proper manner, the important matters that
their Board of Directors execute.
Article 5. Internal Audit for Ensuring Proper Operations of
JBIC’s Business
1. JBIC shall establish the internal audit regulations and otherinternal rules for internal audit to ensure the appropriatenessand soundness of its operations.
2. JBIC shall set up the Internal Audit Committee to makedecisions or deliberations on important matters related tointernal audit for the JBIC Group.
3. JBIC shall set up the Internal Audit Department, separated
from the departments subject to audit, to supervise theoperations of internal audit.
4. The Internal Audit Department shall conduct an internal
audit for JBIC and its subsidiaries as necessary, and reportto the director responsible for internal audit on the results,
pursuant to the internal rules for internal audit.
5. The Internal Audit Department shall periodically and asnecessary, as well as upon request of a director or a corporate
auditor of JBIC (“Corporate Auditor”), report the results ofinternal audits to the Board of Directors, other bodies orcommittees.

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Basic Policy for the Internal Control System

Article 2. Retention and Management of Information concerning
Performance of Duties by Directors
1. JBIC shall establish the information asset management
regulations and other internal rules for retention andmanagement of information in order that information
concerning the performance of duties by directors, customer
information and other information handled by JBIC can beappropriately retained and managed.
2. JBIC shall retain and manage the minutes of Board of
Directors meetings and other documents relating to theperformance of duties by directors, in accordance with laws,
regulations, or internal rules for retention and managementof information.
3. Directors and employees shall retain and manage informationin an appropriate manner according to the internal rules
for retention and management of information.

implementing effective risk management practices.
3. JBIC and its subsidiaries shall strive to create a crisis
management structure in preparation for disasters andother crisis situations, by individually establishing the crisis
management regulations and other internal rules for crisis
management.
4. In the case where normal business operations of the JBIC
Group are disrupted or might be affected by crisis situations,
JBIC shall set up an emergency response office as necessary,in accordance with the internal rules for crisis management,
to restore operations in a prompt and efficient manner.

Corporate Data

Article 1. Ensuring Compliance with Laws, Regulations, andArticles of Incorporation in Performance of Duties
by Directors and Employees
1. The Japan Bank for International Cooperation (“JBIC”) andits subsidiaries (both collectively called “JBIC Group”) shallestablish a corporate philosophy, code of conduct, as wellas the policy for compliance with laws and regulations andother internal rules for compliance, and notify directors andemployees of those principles and rules, for the purpose of
ensuring that directors and employees including temporary
workers (this definition is applied throughout this document)
perform their duties in compliance with laws, regulations,and the articles of incorporation (“Laws and Regulations”).
2. Directors and employees of the JBIC Group shall abide by
the internal rules for compliance.
3. JBIC shall set up a department responsible for complianceand appoint a compliance officer in order to establish
and reinforce a framework for compliance with Laws andRegulations within the JBIC Group.
4. JBIC shall establish a committee chaired by the Governor todeliberate important matters related to compliance within
the JBIC Group and monitor the status of compliance withLaws and Regulations.
5. JBIC shall establish an effective internal anonymous reporting
system and implement it in an appropriate manner so thatimportant facts related to compliance within the JBIC Groupcan be detected earlier and necessary corrective measures
can be taken.
6. The JBIC Group shall not have any connections whatsoever
with antisocial forces. It shall adopt an uncompromising
attitude, throughout its organization, toward antisocial
forces, and decisively reject all improper demands fromsuch forces.

Data

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Corporate Data

5

6. The Internal Audit Department shall strive to perform aninternal audit in an efficient manner by collaborating andexchanging necessary information with Corporate Auditors
and accounting auditors.
Article 6. Assignment of Employees who Assist Corporate
Auditors in Performing Their Duties
1. JBIC shall set up the Office of Corporate Auditor and assign
employees to assist Corporate Auditors in performing theirduties.
2. Those employees shall perform their duties in accordancewith the instructions from the Corporate Auditors.
3. When deemed necessary, the Corporate Auditors may
assign employees other than those stipulated in the above
paragraph 1, on a temporary basis, to assist in conducting
audit work, by obtaining prior approval from the Governor.

Basic Policy for the Internal Control System

Article 7. Securing Effectiveness of Instructions to Employees
Assisting Audit Work and Independence ofInstructions from the Director of Organization where
They Concurrently Work
1. JBIC shall obtain prior approval of the full-time Corporate
Auditor on the personnel evaluation and transfer of, andother personnel matters relating to employees who assist
Corporate Auditors in auditing (“the auditor’s office staff”),
before making decisions on those matters.
2. JBIC shall make the auditor’s office staff engaged in audit
work only as per the instructions given by corporate
auditors, to secure the effectiveness of their instructions
to the auditor’s office staff. However, in the case where theauditor’s office staff need to concurrently works in anotherdepartment/office, JBIC shall obtain prior approval of the fulltime Corporate Auditor on their duties in another position,by clearly stating the following points in writing:(1) There is a rational reason why the auditor’s office staff
need to concurrently serve in another organization.
(2) In assisting with the duties of the Corporate Auditors,
the auditor’s office staff shall follow the instructions
from the Corporate Auditors and not the instructions
from a director in an organization 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 Office ofCorporate Auditor shall be expressly limited.
(4) The auditor’s office staff shall not share, with others inanother department/office where he/she concurrently
serves, the information obtained from performing theirduties at the Office of Corporate Auditor.
(5) The auditor’s office staff shall always give priority to
the duties of assisting the Corporate Auditors aheadof the duties in another organization where the staff
serve concurrently, to ensure the effectiveness of audits
by the Corporate Auditors.
(6) When deemed necessary, the full-time Corporate Auditor
may withdraw his/her approval of the auditor’s office
staff’s duties in another position while working at the
Office of Corporate Auditor.
Article 8. Internal Reporting by Directors and Employees to
Corporate Auditors and Preventing Unfair Treatment
of Individuals who Reported to Corporate Auditors
1. Directors and employees of the JBIC Group, as well as
corporate auditors of JBIC’s subsidiaries shall, directly or
indirectly, report the status of performance of their duties

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to the Corporate Auditors when required, in an accurate
manner.
2. In the event that any fact that has the potential to inflict
substantial harm upon the JBIC Group, or material factsof wrongdoing or violations of Laws and Regulations aredetected, both directors and employees of the JBIC Group,
as well as corporate auditors of JBIC’s subsidiaries shall,
directly or indirectly, report the fact to the Corporate Auditors
without any delay.
3. JBIC Group shall ensure that an individual who reports
unlawful, improper conduct or activity pursuant to thepreceding paragraph shall be protected from being treatedunfairly as a result of reporting such information.
Article 9. Securing Effectiveness in Auditing by Corporate
Auditors
1. The Corporate Auditors shall be allowed to request directors
and employees of the JBIC Group, as well as the corporate
auditors of JBIC’s subsidiaries, to report the status of
performance of their duties, whenever they determine
such reports are necessary to conduct audits in an effective
manner. A director or employee of the JBIC Group as well as
the corporate auditors of JBIC’s subsidiaries who receive sucha request shall promptly submit a report to the Corporate
Auditors.
2. The Corporate Auditors may express their opinions asnecessary at the Board of Directors meetings, Executive
Committee meetings and other important committee
meetings. The Corporate Auditors shall also be allowed toreview the minutes of those committee meetings and otherrelated 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 responsible
for compliance matters.
5. The Corporate Auditors may seek advice on audits fromlawyers and certified public accountants when they consider it
necessary for conducting audits in an effective manner.
Article 10. Procedures for Advance Payment and Payment ofFees, and Treatment of Other Fees and Liabilities
Incurred by Corporate Auditors in Executing Their
DutiesIn the case where Corporate Auditors seek advice from lawyers
and/or certified public accountants regarding audits pursuant
to the provision of the preceding article, JBIC shall pay fees,
expenses and liabilities arising from the execution of their duties
based on the advice received from those specialists.

6

Security Policy
Data(1) Basic Principles
JBIC shall use and manage information assets in line with thebasic principles set forth hereunder while complying with allapplicable laws, regulations, and rules.
A. Information assets shall be used appropriately and only for
their intended purposes.
B. Authority concerning the management of information assets
shall be granted only after careful consideration of thenature of the work and necessity.
C. When adopting and implementing information security
measures, the following matters shall be taken into
consideration, based on the nature of the work:(a) Clarification of responsibilities and roles within
implementation structures(b) Timely and prompt implementation of necessary,
sufficient, effective, and efficient measures(8) Responses to Incidents Concerning Information 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.
(9) Evaluation and Review
JBIC shall evaluate and review this policy, as necessary, to makeflexible responses to changes in the external environment, suchas the enactment, amendment, or repeal of applicable laws
and regulations, 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.

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.

6
Security Policy(2) Proper Management of Information Assets
Information assets refer to information and information systems.
JBIC classifies them according to such factors as their degreeof confidentiality, completeness, usability, and importance,and manages them appropriately in accordance with theirclassification.
(3) Information Asset Management Structures
JBIC shall establish a structure for ensuring the security of
information assets.
(4) Protection of Personal Information
JBIC shall protect and manage personal information by
establishing and making public our Privacy Policy and pursuant
to the provisions of the Act on the Protection of Personal
Information Held by Independent Administrative Agencies(Law No. 59 of 2003).
(5) Protection of Client Information
JBIC shall establish the basic policy for protecting its clients andincreasing their convenience for the purpose of appropriate
protection and management of information pertaining to themin accordance with this basic policy.
(6) Training on Information Asset Management
JBIC shall provide necessary training to all officers and employees
who handle information assets to ensure that they understandrequirements in the applicable laws and regulations, as wellas in this policy and other applicable rules, and prevent theoccurrence of information security problems.
(7) Outsourcing WorkIn the event that JBIC engages persons other than its officers
and employees to manage its information assets by outsourcing
such work, it shall verify that information security is ensured
and that appropriate measures have been taken in accordancewith the content of the information assets.

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Privacy Policy

Data

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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”),
the Guidance concerning the Measures to Properly Manage
the Personal Information held by Independent Administrative
Agencies, etc. and so forth.
(1) Acquisition of Personal Information
JBIC will acquire our clients’ personal information through properand lawful means. When we acquire personal information fromour clients directly in writing, we will specify in advance thepurposes for its use that are within the necessary scope of JBIC’soperations.

7
Privacy Policy(2) Use of Personal Information
JBIC will specify the purposes for use in obtaining the necessary
personal information of our clients as listed below, and will use
it within the scope that is necessary to achieve such purposes:
A. Loan, equity participation, and guarantee operations, andtheir related due diligence exercise and research (or their
supplementary work)
B. Execution of agreements with JBIC, and exercise of rights
and performance 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 fromits clients to third parties except in the following cases:
A. It is required by law.
B. It is provided within the scope of the purposes for use asprescribed above.
C. Consent is obtained from the clients.
D. There are convincing reasons why executive agencies,
independent administrative agencies, local municipal entities
or local independent administrative agencies would use
it to the necessary extent to carry out the law-stipulated
operations.
E. It is used for statistics compilation or academic research.
F. It is clearly beneficial to the clients or there exist special
reasons to provide personal information.
(4) Subcontract
JBIC may subcontract the handling of our clients’ personal
information to conduct such operations more smoothly. In suchcases, JBIC will attempt to select a trustworthy subcontractor,
enter into a confidentiality agreement, adequately supervise
the handling and administering of the personal information,
and assure the protection of personal information.

178

JBIC ■ Annual Report 2017(5) Personal Information Management (PIM)
A. JBIC will attempt to keep our clients’ personal information
correct and updated, and take prevention and safetymeasures against unauthorized access, leakage, loss, damage,and alteration of personal information.
B. JBIC will constantly educate its employees about theprotection and proper management of our clients’ personal
information to thoroughly make sure of its proper handlingin its daily operations.
C. JBIC will audit and inspect whether the protection andmanagement of personal information is undertaken properly.
(6) Disclosure, Correction, and Disuse
If a client wishes to make a request to disclose, correct 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 whensuch disclosure etc. could be made out of the procedure ofdisclosure etc. stipulated in the Act, for which please contact
our Head Office or West Japan Office.
(7) Inquiries about Personal Information Management (PIM)
For inquiries or complaints about the clients’ personal information
management (PIM) at JBIC, please contact 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 thisPrivacy Policy shall not include Specific Personal Information,and it is not contemplated that JBIC will obtain our clients’Specific Personal Information, etc.

Access to JBIC Head Office and West Japan Office
JBIC Head OfficeWest Japan Office

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

10th floor, Umeshin Daiichi Seimei Building,
3-5, Sonezaki 2-chome, Kita-ku, Osaka city,
Osaka 530-0057, Japan

Nishikichogashi

Hitotsubashigashi

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JBIC

Exit 3b
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Sonezaki-Higashi

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Sonezaki Police Station(UMESHIN DAI-ICHI SEIMEI BUILDING 10F)

Osaka ekimae-Minami

KDDI
Corp.

HiltonOsaka
Umeda 1

EkimaeExit 8
Building No. 4 (F54)*

Umeda 1 Higashi

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

ta.

Exit
F-82

Exit F-92

Umeshin-Higashi
Umedashinmichi

Route 1suji
Midoachi sYotsubashisujita.

achi sOtem

Sakurabashi

Otem

Ex
xit 7 (H82)*
Exit
Umeda
OS HotelTsuyuten
Shrine (Ohatsu
Tenjin Shrine)

Shin-Midosuji

ri
orido
Uchib

OtemachiFinancial City
Grand Cube

Osaka
Marubiru

ta.
da s
Ume
shiHiga

Kandabashi
Ramp

Keidanren
Nikkei JA
Inc. Building Kaikan

Exit C2b

sta.
eda
Hanshin-mae
Um
hin
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n
Ha
Hanshin
Osaka ekimae-Nishi Department Store
Osaka ekimaeayOtemachi Joint
Government
Office Bldg, No. 3

Daimaru

Nishi-Umeda sta.

Tokyo Fire
Defense Agency

Midosuji Line
HankyuDepartment
Store
Hankyu-mae

po

Japan
Meteorological
AgencyKishochomae

Imperial Palace

ta.
da s
Ume

Hitotsubashi
Ramp* From the Umeda Underground shopping mall

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/

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