Profile of JBIC

1

1

Message from the Governor

22Profile4

3

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

6

4

Outline of Operations in FY2012

12

JBIC Annual Report 20131

1· Message from the Governor

1Profile of JBIC
1. Message from the Governor

As we publish the 2013 Annual Report, I would like to express my heartfelt appreciation for your continued understanding and support for our activities.
The global economy remained sluggish during the early-to-middle part of FY2012
amid the sovereign debt crisis in Europe, the fiscal problem in the United States,
and the slowdown in emerging economies. It then began to show signs of gradual
recovery due in large part to the mild recovery of the U.S. economy and the endof the slowdown phase of emerging economies in the second half of FY2012. Theinternational economic climate surrounding Japan, however, continues to posemany challenges for the country. Global competition for natural resources remains
fierce amid the ever-growing global population. It is vital for Japan to secure stable
access to energy and mineral resources as this is directly linked to people's lives.
In the manufacturing sector as well as the infrastructure sector, which is seeing
growing demand worldwide, Japan is facing increasing competition around theworld in developed and developing countries alike. Additionally, achieving economic development in harmony with global environmental sustainability has now
come to be seen as a common global issue. Thus, there is an increasing need not
only for environmental and social considerations in individual projects, but also
for projects conducive to environmental conservation and improvement, including,among others, those seeking to cope with global warming. Moreover, as the world
economy is becoming increasingly integrated, global financial and economic crises
could have a more substantial impact on the Japanese economy than ever before.
Amid these various changes currently underway in the global economic environment, JBIC set off on a new start on April 1, 2012 as a policy-based financial
institution wholly owned by the Japanese government, pursuant to the Japan
Bank for International Cooperation Act (JBIC Act). The JBIC Act provides that we
at JBIC shall conduct operations in the following four fields, while complementing the financial transactions of private-sector financial institutions: (1) promoting
the overseas development and securement of resources which are important forJapan; (2) maintaining and improving the international competitiveness of Japaneseindustries; (3) promoting the overseas business having the purpose of preserving
the global environment, such as preventing global warming; and (4) preventing
disruptions to international financial order or taking appropriate measures withrespect to damages caused by such disruption. Contributing in this way to thesound development of Japan as well as the international economy and society is
the ultimate mission of JBIC under the JBIC Act. In these four fields, we have beenworking actively to conduct loan, guarantee and equity participation operations.

2

JBIC Annual Report 2013

1
Profile of JBIC
1. Message from the Governor

During FY2012, we focused on, among other activities, promoting the development
and securement of energy and natural resources. For example, we supported thedevelopment of natural gas and LNG projects in Australia, the acquisition of interests
in copper mines in Chile, and the import of crude oil from the United Arab Emirates
with our financial instruments. We also focused on facilitating the M&A of foreign
firms by Japanese companies and supporting exports and stable overseas operations by Japanese mid-tier enterprises as well as small and medium enterprises.
During FY2012, we also helped to maintain and improve the international competitiveness of Japanese companies. For overseas infrastructure development projects,
our support was extended to projects such as an intercity express railway projectin the U.K. and a renewable energy power generation project in Canada—each ofwhich involved a Japanese company playing a pivotal role in the project as a major
participant. We also assisted in a coal-fired power plant project in Morocco, as
well as the export of equipment and services from Japan for an oil refinery modernization project in Kazakhstan. Furthermore, we assisted Myanmar in returning
to the international financial market by extending bridge loans to the Governmentof Myanmar to help clear the arrears of past loans from the Asian Development
Bank and the World Bank Group (International Development Association). As aresult of these and other financing operations, the total amount of commitments
we made during FY2012 in loans, guarantees, and equity participations reached
JPY 4,240.9 billion. This was an all-time high since the establishment of the Japan
Export-Import Bank, the predecessor of JBIC.
We, the management and staff of JBIC will strive to execute our work efficiently asa unified body and live up to the expectations placed on us, while taking care to
devote ourselves to complementing private-sector financial institutions and ensure
financial soundness.
It is my sincere wish that our endeavors will earn your understanding and enduring
support.

August 2013

Hiroshi Okuda
Governor
Japan Bank for International Cooperation(JBIC)JBIC Annual Report 20133

1

2· Profile

Profile of JBIC

As a policy-based financial institution, JBIC has the objective of contributing to
the sound development of Japan and the international economy and society,while having the objective of supplementing the financial transactions implemented byprivate-sector financial institutions.

2. Profile Profile
Name

Japan Bank for International Cooperation (JBIC)

Office4-1, Ohtemachi 1-chome Chiyoda-ku, Tokyo 100-8144, Japan

Capital¥1,360.0 billion (wholly owned by the Japanese government)

Outstanding Loans and Equity Participations*¥10,685.3 billion

Outstanding Guarantees*¥2,400.6 billion*As of March 31, 2013

 Corporate Slogan

 The Purpose of JBICJBIC is a policy-based financial institution wholly owned by the Japanese government, which has the objective of contributing to
the sound development of Japan and the international economy and society, by conducting financial operation in the following
four fields:
 Promoting the overseas development and securement of resources which are important for Japan Maintaining and improving the international competitiveness of Japanese industries
 Promoting the overseas business having the purpose of preserving the global environment,such as preventing global warming Preventing disruptions to international financial order or taking appropriate measures with respect todamages caused by such disruption

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

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

4

JBIC Annual Report 2013

1

JBIC, as a policy-based financial institution and in accordance with the following principles, conducts speedy and well-focused
operations based on policy needs in response to economic and financial situations in Japan and abroad.
1. Supplementing the financial transactions implemented by private-sector financial institutions

2. Profile

To effectively perform the functions required for policy-based financing, JBIC shall take account of situations where
private-sector financial institutions are placed in their international finance activities and supplement their operations.

Profile of JBIC

 Operational Principles

2. Ensuring financial soundness and certainty of repayment
Pursuant to the JBIC Act, JBIC shall make efforts to maintain the financial soundness of its operations, and when making
financial decisions, to conduct adequate screening regarding the outlook for the recovery of funds.
3. Maintaining and improving international creditworthiness and confidence
In order to conduct adequate operations and effective overseas funding operations, JBIC shall maintain and improve theinternational creditworthiness and confidence gained by JBIC over the years.
4. Conducting business operations by drawing on its expertise and initiatives
JBIC shall conduct operations by drawing on its own expertise and initiatives on international finance.

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

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

April 2012

Japan Finance Corporation ( JFC)
JBIC
(International Finance Units)

October 1999

December 1950
Export-Import Bank ofJapan (JEXIM)

Japan Bank forInternational Cooperation(former JBIC)International Financial
Operations

March 1961
Overseas Economic
Cooperation Fund (OECF)

Overseas Economic
Cooperation Operations

Japan Bank forInternational
Cooperation( JBIC)(Domestic Finance Units)
Micro Business andIndividual Unit
Agriculture, Forestry, Fisheries
and Food Business Unit
Small and Medium Enterprise(SME) Unit
Operations to Facilitate
Crisis Responses and Specific
Businesses Promotion, etc.

Japan International
Cooperation Agency ( JICA)

JBIC Annual Report 20135

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

1
Profile of JBIC

Basic Principles, Backdrop and Overview
JBIC’s current Medium-Term Business Plan (FY2012-2014) aims

Plan of Operational Strategy for 6 Thematic Areas and Basic

to promote efficient and results-oriented business operations

Principles to 8 Basic Strategies, based on following JBIC mission

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

in line with the Japanese government’s policies and to ac-

and policy; 1) Realizing projects strategically with original value

complish proper accountability. To this end, it explicated highadded, while being deeply involved in the project formulation

priority business and management issues to be addressedstage, thereby contributing to economic growth in Japan and

by JBIC over the medium term, and set forth strategies andthe world, 2) Identifying precise needs of Japanese firms andaction plans to tackle these issues. JBIC also sets the Annual

seeking to strengthen “speed with flexibility,” “expertise” andBusiness Plan for each fiscal year to set specific targets JBIC

“negotiating power” to execute requisite policies, 3) Realizing

should strive to pursue this year with the action plans set insophisticated risk management as well as maintaining andthe Medium-Term Business Plan.

strengthening JBIC’s financial position in response to increas-

JBIC sets the basic principles of the Medium-Term Businessingly high risk, long-term and large-scale projects.

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

Maintaining and improving theinternational competitiveness ofJapanese industries

Promoting overseas business forpreserving the global environment

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

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

Corporate Philosophy

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

Customer‐1st Approach

Forward‐looking Action

Pioneering new value by participating at
the forefront of overseas project development, and by engaging proactively inprojects from the early stages

Offering customers one‐of‐a‐kind solutions by adopting their perspectives
and integrating their views into policy
development

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

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

Operations

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

6

JBIC Annual Report 2013

Organization

Finances

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

1Profile of JBIC

Overview of the Medium-Term Business Plan FY2012-2014

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

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

Organization

Finances

Operational Strategy for Each Thematic Area (6 Issues)

1

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

2

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

Basic Strategies (8 Issues)

7

Supporting steadfastly the area of preserving the global
environment

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

Supporting overseas development of infrastructure
projects

Effective use of a variety of tools such as equity
investment

94Enhancing support for mid-tier enterprises and SMEs

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

5

Supporting strategic overseas business activities ofJapanese firms

6Operations

Organization

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

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

Operations

10 Conducting speedy, flexible and efficient
operations

11 Efforts to strengthen expertise in the organization
12 Self-disciplined corporate management
Finances

13 Managing risks commensurate with risk exposureof strategic operations

14 Maintaining appropriate profit levels and a stable
fiscal position

Basic Principles (on Operations) and Their Backdrop
Basic
Principles

Operations

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

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

Government
Efforts:
ExamplesCollecting Information

Top sales

Supporting
the formation of
consortiums

Support financings
Policy dialogue
Being involved inproject formulation

Areas where active efforts should be made going forward

JBIC’s Efforts

Proactive involvement from the early stages ofproject formulation
Consultation withpotential Japanese
project operations

Dialogue withhost country
government

Studies for
project
feasibility

Competitive
bidding

Supporting
standardization, etc.

Areas where efforts have been
made to date
Provide financing based on the businessplan of the project operator

Awardedconcession;ordersLoanstructuring

Offering
financing

Project
supervision

JBIC Annual Report 2013

7

1
Profile of JBIC

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

Operations

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

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

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

Basic
Principle

Financesto execute requisite policies

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

Functions required for organization and finances
Speed withflexibility

Risk-assuming
capacity

Speedy, accurate collection of project information

Expertise

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

Negotiating
power

Expertise

Speed with flexibility

Sustaining
credibility

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

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

Sustaining credibility

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

Risk-assuming capacity

Offering competitive financing terms

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

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

Key Strategies

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

Agendas and Action Plans

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

Performance Indicators

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

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

Definition

Quantitative
Indicators

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

Monitoring
Indicators

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

Qualitative
Indicators

Set initially exemplified qualitative objectives for the end of
the planned period and evaluate the results actually achievedat the end of the planned period.

Set exemplified qualitative
objectives.

Tabulate actually achieved
results and evaluate them
qualitatively.

Milestone
Indicators

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

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

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

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JBIC Annual Report 2013

Initial Assignment

End Period Evaluation

Set quantitative objectives.

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

1

PDCA cycle in the Medium-Term Business Plan and the Annual Business Plan.
PDCA Cycle of Medium-Term Business Plan and Annual Business Plan

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

Medium-TermBusiness Plan
(Plan)

Feedback(Action)

PDCA Cycle for
Medium-TermBusiness Plan
(3 years)

AnnualBusiness Plan
(Plan)

Feedback(Action)Evaluation of
the Medium-TermBusiness Plan

PDCA Cycle for
Annual Business
Plan
Implementation,
Monitoring

Evaluation(Check)Profile of JBICJBIC is committed to performing its mission and roles appropriately as a policy-based financing institution by implementing the(Do)(Check)Strategies, Agendas (Action Plans) and Performance Indicators
The agendas (action plans) and performance indicators for the Operational Strategies for Each Thematic Areas (six strategies)
and Basic Strategies (eight strategies) are as below.
 Operational Strategy for Each Thematic Area

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

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

Performance Indicator

Type

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

Quantitative

Among the above commitments, the number of those contributing to securing a stablesupply of energy resources

Quantitative

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

Monitoring

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

Qualitative

2 Supporting Steadfastly the Area of Preserving the Global Environment
Agenda and Action Plan
Realizing steadfastly such environmental projects as renewable energy, energy efficiency improvement and highly efficient power generation

Performance Indicator

Type

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

Quantitative

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

3 Supporting Overseas Development of Infrastructure Projects
Agenda and Action Plan

Performance Indicator

Type

Actively supporting overseas development of
infrastructure projects by Japanese firms

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

Quantitative

Strengthening efforts to support the formulationof highly strategic projects

Implementing support for the formulation of highly strategic projects

Qualitative

JBIC Annual Report 2013

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1
Profile of JBIC

4 Enhancing Support for Mid-Tier Enterprises and SMEs
Agenda and Action Plan
Pressing forward efforts for active support

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

Increase opportunities to disseminate information such as seminars and consulting sessions

Performance Indicator

Type

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

Quantitative

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

Monitoring

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

Quantitative

5 Supporting Strategic Overseas Business Activities of Japanese Firms
Agenda and Action Plan
Supporting Japanese firms’ strategy to capture
overseas market shares and the maintenanceand strengthening of their supply chains
Supporting M&A activities based on the government policy of taking advantage of yen
appreciation

Performance Indicator

Type

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

Quantitative

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

Quantitative

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

Quantitative

The total amount of M&A deals above

Monitoring

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

Performance Indicator

Type

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

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

Quantitative

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

Monitoring Basic Strategies

Operations

7 Partnership with Private Financial Institutions (Devotion to Complementing Private Business Operations)
Agenda and Action Plan
Pressing forward strategic partnerships withprivate financial institutions, including appropriate cofinancing

Performance IndicatorType

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

Quantitative

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

Monitoring

Number of private banks with which JBIC entered into a partnership

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

8 Effective Use of a Variety of Tools Such as Equity Investment
Agenda and Action Plan

Performance Indicator

Type

Active use of equity investment

Number of investment commitments for equity investment (participation) projects

Quantitative

Effective use of guarantees and other financial
instruments

Record of effective use of guarantees and other financial instruments

Qualitative

Pressing forward efforts to finance with local
currencies

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

Monitoring

Pressing forward PF and SF* projects

Number of commitments to PF and SF projects

Quantitative* Project finance and structured finance

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

10

Agenda and Action Plan

Performance Indicator

Type

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

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

Qualitative

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

Quantitative

JBIC Annual Report 2013

1
Organization

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

Efficient corporate management with work flow
improvement and other means
Upgrading IT infrastructure

Type
Quantitative

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

Monitoring

Progress in key BPR* measures

Milestone

Average overtime work hours per employee

Monitoring

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

Milestone* Business Process Re-engineering

11 Efforts to strengthen expertise in the organization
Agenda and Action Plan
Recruiting and fostering human resources capable of providing high value-added services
Strengthening the strategic collection and dissemination of requisite information

Performance Indicator

Type

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

Quantitative

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

Quantitative

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

Quantitative

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

Enhancing strategic and flexible allocation of
given management resources

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

Profile of JBIC

 Basic Strategies

12 Self-disciplined corporate management
Agenda and Action Plan
Corporate management that meets the needsof clients

Performance IndicatorType

Customer satisfaction survey (overall level of satisfaction)

Quantitative

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

Quantitative

The average appraisal period for PF projects

Monitoring

Promoting disclosure and public relations
activity

Number of times the JBIC website and other mediums are accessed

Monitoring

Mainstreaming compliance efforts

Number of internal training sessions on compliance

Quantitative Basic Strategies

Finances

13 Managing Risks Commensurate with Risk Exposure of Strategic Operations
Agenda and Action Plan
A more improved and advanced framework
for appropriately assessing and managing major risks associated with conducting strategic
operations

Performance IndicatorType

Loan assets to be disclosed under the Financial Revitalization Act

Monitoring

The ratio of provisions made for the above assets

Monitoring

Number of meetings held by the Risk Advisory Committee

Monitoring

14 Maintaining appropriate profit levels and a stable fiscal position
Agenda and Action Plan
Securing appropriate levels of profits and losses

Performance Indicator
Overall profit margin*

Type
Monitoring

The ratio of administrative cost

Monitoring

Maintaining financial stability

Capital Adequacy Ratio (BIS basis)

Monitoring

Preparation for International AccountingStandard

State of examination with respect to introducing IFRS

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

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

JBIC Annual Report 201311

1

4· Outline of Operations in FY2012

Profile of JBIC

Operational Highlights
The total amount of commitments JBIC made during FY2012

projects for developing unconventional energy resources inin loans, guarantees, and equity participations was ¥4,240.9

North America,—coal-bed methane (CBM)1 and shale gas inbillion, an all-time high.

Canada, shale oil and tight oil2 in the U.S.—liquefied natural

4. Outline of Operations in FY2012

JBIC’s major operations in each sector for FY2012 areshown below:gas (LNG) projects in Australia and Papua New Guinea, andcoal mine projects in Australia and Canada. JBIC also providedloans to support the import of LNG and oil.

 Energy and Natural Resources Sector

In the mineral resources sector, JBIC provided loans for the

JBIC provided loans for the development and acquisition ofdevelopment of, and acquisition of interests in, an iron ore mineinterests for a number of projects in the energy sector inin Australia and a copper mine in Chile. Regarding rare metals,

which Japanese companies were involved. These include

JBIC supported a nickel/cobalt mixed sulfide production projectin the Philippines, a molybdenum smelting project in Chile, andCommitments by Purpose of Financing(FY2012. Unit: billions of yen)

Equity Participations
74.3
(2%)

Export Loans
126.6
(3%)

Guarantees
303.2
(7%)

Import Loans
304.3
(7%)

 International Infrastructure Sector
In the power sector, JBIC supported a gas-fired combined
cycle power plant project in Thailand—in which Japanesecompanies participated as an exporter or project owner—aswell as coal-fired power plant projects in Morocco and Chile.

¥4,240.9

Bridge
Loans
83.2
(2%)

a niobium development and production project in Brazil.

JBIC also supported the export of transmission and substation

billionequipment to Indonesia. JBIC’s support in the transportation
sector covered an intercity express railway project in theOverseas Investment Loans
3,138.5(74%)

Untied Loans
210.5
(5%)

U.K.—in which Japanese companies participated—and theexport of railway cars to Venezuela. In the telecommunications sector, support was provided for the export of a portion

Commitments by Region
Others154.2(4%)(FY2012. Unit: billions of yen)

the export of equipment for a seawater desalination plantin Singapore and a project for producing and selling water
treatment facilities in China.

¥4,240.9
billionNorth
America
710.8
(17%)

Singapore with Japan. In the water sector, JBIC supported both

Asia
513.6
(12%)

Latin America andthe Caribbean
805.5
(19%)

of the submarine optical fiber cable system that will connect

Europe660.6(16%)

Africa84.3 (2%)

Oceania
1,005.7(24%)

In other activities, JBIC subscribed to the new shares issued
by the Delhi Mumbai Industrial Corridor Development Corporation Limited (DMICDC) in India, the core project executing

The Middle East
305.9 (7%)

1. Coal-bed methane (CBM) is methane extracted from and near coal-beds. It is
drawing attention along with shale gas as “unconventional” natural gas.
2. Unlike conventional oil that is extracted from wells naturally stored in the stratum,tight oil exists widely through tight strata such as sandstone, limestone and shale
formations, and the methods used for its extraction are similar to those used inshale oil and gas extraction (horizontal drilling, hydraulic fracturing, etc.).

Changing Composition of Loans, Equity Participations and Guarantees (Commitments)
60.3
(98%)

FY1955

1.0
(2%)

402.8
(74%)

FY1970356.4(40%)

FY1985174.0(14%)

FY2000FY2012(Unit: billions of yen)

126.6 (3%)
304.3
(7%)

233.5
(26%)
321.4
(27%)

33.3
(6%)

68.5
(13%)

31.1 7.4(6%) (1%)

543.0 billions of yen

182.4
(21%)

14.2
101.4
(2%)
(11%)
Guarantees 0.5 (0%)

888.4 billions of yen

523.7
(43%)

67.4
(6%)

12

■ Import Loans

JBIC Annual Report 2013

118.3
(10%)

1,204.7 billions of yen

303.2
(7%)
74.3 (2%)

4,240.9 billions of yen

83.2 (2%)
3,138.5(74%)
210.5 (5%)■ Export Loans

61.3 billions of yen■ Overseas Investment Loans■ Untied Loans■ Governmental Loans■ Bridge Loans■ Guarantees■ Equity Participations

1
equity fund that is aimed at supporting Japanese companies

Industrial Corridor (DMIC) Project3. JBIC also decided to invest

in expanding their business operations into the ASEAN region,in three infrastructure funds, which target North America andmanaged by a Singapore subsidiary of Mizuho Bank, Ltd.

Europe, Southeast Asia, and India, respectively.
 Promoting Renewable Energy and

Their Products, and Manufacturing andSales Business Abroad

JBIC supported a renewable energy power generation projectin Canada in which a Japanese company participated by way

JBIC supported the export of machinery and equipment in-of project financing4 denominated in Canadian dollars. In Brazil,

cluding: oil refinery-related equipment to Kazakhstan; textile

JBIC supported a co-generation project at a refinery and a flaring

manufacturing machinery to Angola; a picking line-tandem coldgas reduction project at multiple offshore oil concessions tomill and petrochemical plant-related equipment to India; andreduce greenhouse gas (GHG) emissions. Moreover, JBIC ex-

equipment for an ethylene production plant in Turkey, as welltended export credit lines5 to several local financial institutions

as equipment needed for the infrastructure mentioned above.

in India and Turkey to finance the export from Japan of renew-

JBIC also supported the export of ships including: bulk carriers

able energy-related equipment and energy-saving equipment.

4. Outline of Operations in FY2012

Conserving the Global Environment

 Supporting Japanese Companies in Exportation ofProfile of JBIC

agency responsible for advancement of the Delhi Mumbai

to Turkey, the Bahamas, and Hong Kong; as well as Ramformvessels to the Bahamas. In addition, JBIC extended credit lines, Preventing Disruptions to International Financial

designed to support Japanese exports, to local financial institu-

Order or Taking Appropriate Measures with
Respect to Damages Caused by Such Disruptions

tions in Malaysia, India, Turkey, Russia, and South Africa.
In addition to such export assistance, JBIC also supported

In order to address the potential adverse impacts of contin-

Japanese companies in manufacturing and sales of theirued international financial market volatility on the Indonesian

products overseas in a wide range of industries, including

economy, JBIC offered a Contingent Facility to the Government

automobiles, electrical equipment, electronics, machinery, andof Indonesia as a precautionary measure to enhance its crisis

metals. JBIC also assisted Japanese companies in merging andpreparedness, in parallel financing with the World Bank, theacquiring foreign firms in various areas, including commercial

Asian Development Bank (ADB), and the Government of Aus-

motors, air-conditioners, food, medical equipment, insurance,

tralia. JBIC also extended bridge loans to the Government ofand aircraft leasing.

Myanmar to clear the arrears of past loans from the ADB and theInternational Development Association (IDA). The objective was Supporting Overseas Business Operations ofto help the country return to the international financial market.

Japanese SMEs
JBIC provided loans for Japanese SMEs to assist them with

3. The Delhi Mumbai Industrial Corridor (DMIC) Project is a Japan-India joint development project which aims to build a freight rail line to connect Delhi and Mumbai
and develop infrastructure along the line such as industrial estates, logistics parks,
power plants, roads, ports, residential areas and commercial facilities mainly bymobilizing private investments.
4. Project finance is a financing structure that relies primarily on the cash flow generated by the project for repayment. It is used for financing large projects in suchsectors as power generation and oil, gas or other natural resource development.
5. An export credit line is a form of export credit in which JBIC commits to the maximum
amount of credit to be extended to foreign banks or other entities to finance exportsof machinery, equipment and services from Japan.

their business operations overseas, particularly in Asia. JBIC
also extended investment credit lines, which are designed tosupport Japanese SMEs in expanding their business operations
overseas, to three Japanese banks: The Senshu Ikeda Bank, Ltd;
Resona Bank, Limited; and Sumitomo Mitsui Banking Corporation. Furthermore, JBIC acquired an equity stake in a private

Operational Results
Total disbursements made by JBIC in FY2012 stood at ¥2,599.8 billion.

 Planned and Actual Lending and Investments
Plan

FY2009Actual(Unit: billions of yen)Plan

FY2010

ActualPlan

FY2011

ActualPlan

FY2012

Actual

108.0

43.8

113.0

73.6

120.0

73.9

200.0

143.1

1,010.0

2,382.8

1,080.0

1,113.9

1,113.5

913.0

1,879.0

2,307.4

Untied Loans

82.0

186.7

207.0

85.4

100.0

103.2

100.0

132.0

Equity Participations

20.0

13.6

45.5

26.8

200.0

7.3

100.0

17.2

Securitization

30.0

─

30.0

19.0

19.0

─

19.0

─

1,250.0

2,627.0

1,475.5

1,318.8

1,552.5

1,097.6

2,298.0

2,599.8

Export Loans
Import Loans and Overseas
Investment Loans

Total

JBIC Annual Report 201313

1
Profile of JBIC

Financial Results
 Principles of Accounting

attributable to JBIC’s financial support in relation to overseas(1) Separation of AccountM&A activities by Japanese companies and to overseas devel-

4. Outline of Operations in FY2012

JBIC conducted JBIC operations and Financial Operations for

opment and acquisition of strategically important resources.

Facilitating Realignment of United States Forces in Japan (USFJ)Interest expenses amounted to ¥119.5 billion, with ordinary

on separate accounts pursuant to Article 18.2 of the USFJ

expenses registering ¥153.7 billion. As a result, ordinary profit

Realignment Special Measures Act. This practice was discon-stood at ¥63.5 billion. After taking account of extraordinary

tinued during FY2012. (income, net earnings for FY2012 amounted to ¥63.5 billion.

See “Discontinuation of the Financial

Operations for Facilitating Realignment of USFJ” on page 16.)(2) Balance Sheet(2) Preparation of Financial Statements

Total assets increased to ¥14,430.2 billion from FY2011. This

Pursuant to the Companies Act and Article 26 of the Japanwas largely attributable to an increase in loans in foreign

Bank for International Cooperation Act (JBIC Act), JBIC pre-currencies. Total liabilities decreased to ¥12,083.5 billion

pares financial statements and submits them to the Ministerfrom FY2011. This was attributable to two factors. One isof Finance. The report on the final settlement of accounts

an increase of ¥1,979.1 billion in borrowed money from theis submitted to the Government of Japan, together with the

beginning of the year to ¥7,234.5 billion due in large partfinancial statements, and, after examination by the Board of

to new borrowings from the Foreign Exchange Fund Special

Auditors, to the Diet.

Account. The other factor is a decrease of ¥162.7 billion inbonds payable during the same period to ¥2,215.9 billion, Statement of Operations and Balance Sheetmainly because redemptions exceeded issuance. Total net(1) Statement of Operations

assets reached ¥2,346.7 billion, which included ¥63.3 billion

In FY2012, interest income amounted to ¥167.9 billion, with or-in net earnings and ¥69.0 billion in capital contributions, bothdinary income reaching ¥217.2 billion. These figures are largelyin the Account for JBIC Operations.

The First Term for the New JBIC (FY2012)
 Statement of Operations(April 1, 2012–March 31, 2013; millions of yen) Balance Sheet(As of March 31, 2013; millions of yen)AmountAmount217,291

Cash and Due from Banks

837,986

Borrowed Money

7,234,598

Interest Income

167,947

284,902

Bonds Payable Note 72,215,962

Fees and Commissions

23,288

Receivables under Resale
Agreements Note 5

Other Ordinary Income

9,171

122,181

Other Liabilities

Ordinary Income

Receipts from the National Budget

256

Other Income

16,627

Ordinary Expenses

153,708

Interest Expenses

119,510Fees and Commissions Payments
Other Ordinary Expenses

1,427
597

Securities Note 4Loans and Bills Discounted Note 6

10,555,128

Provision for Bonuses

338,679

Provision for Directors’ Bonuses

5

28,206

Provision for Retirement Benefits

15,595Intangible Assets

1,352

Provision for Directors’
Retirement Benefits

Customers’ Liabilities for
Acceptances and Guarantees

2,400,699

Allowance for Loan Losses(138,891) Total Liabilities

Acceptances and Guarantees

Other Expenses

14,620Capital Stock

63,583Retained Earnings

Net Income

1

Total Shareholders' Equity

63,585

Total Assets

14,430,245* See pages 102–104 for details of Notes 4 to 8

JBIC Annual Report 2013

445

Property, Plant andEquipment Note 817,551

Extraordinary Income

216,171

Other Assets

General and Administrative Expenses

Ordinary Profit

14

AmountLiabilities and Net Assets

Assets29
2,400,699
12,083,506
1,360,000
851,685
2,211,685

Valuation Difference on
Available-for-sale Securities

2,221

Deferred Gains or Losses on
Hedges132,831

Valuation and Translation
Adjustments

135,053

Total Net Assets

2,346,738

Total Liabilities and Net Assets

14,430,245

1

JBIC finances its operations through various sources, including

anteed Foreign Bond issuance, capital contributions from theborrowings from the FILP Fiscal Loan, Government-guaranteed

government, and borrowings from the Foreign Exchange Fund
Special Account constitute part of the national budget (either
as an item in the General Account budget or the Special Ac-

Foreign Exchange Fund Special Account.

count budget). Therefore, they are submitted, together withAs JBIC provides long-term financing, its operations are

the operating budget of JBIC, to the Diet for approval. Recent

financed by long-term funds to match maturities between

funding results and plans for FY2013 are shown in the table

funding and lending instruments.

below.

Borrowings from the FILP Fiscal Loan, Government-guar- Funding Sources: Actual and Planned

4. Outline of Operations in FY2012

Foreign Bond issuance, FILP Agency Bond issuance, capital
contributions from the government, and borrowings from theProfile of JBIC

Funding Sources(Unit: billions of yen)

FY2009 Actual

FY2010 Actual

FY2011 Actual

FY2012 Actual

FY2013
Planned

─

─

─

─

─

Capital Contribution from FILP Industrial Investment

20.0

35.5

200.0

69.0

─

Borrowing from FILP Fiscal Loan

906.6

690.9

201.0

400.0

600.0

Borrowing from Foreign Exchange Fund Special Account

987.4

323.5

230.4

1,744.9

1,223.1

Government-guaranteed Foreign Bonds*

626.3

463.3

423.2

205.3

660.0

FILP Agency Bonds*

70.0

50.0

50.0

─

20.0

Capital Contribution from the General Account

Other Sources of Funds, Including Repayments
Total

16.7

(244.4)

(6.9)

180.6

(192.1)

2,627.0

1,318.8

1,097.6

2,599.8

2,311.0* Figures for bonds are indicated in face value.

Funding Sources

Financial Market

FILP Bonds

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

Fiscal Loan Fund
Account

Foreign Exchange
Fund Special
Account

Loans
CapitalContribution

Governmentguaranteed
Foreign Bonds

FILP Agency
Bonds

Internal Funds**Repayments, etc.

Loans

Loans /
Investments

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

JBIC Annual Report 201315

1
Profile of JBIC

 Government-guaranteed Bonds

4. Outline of Operations in FY2012

the total outstanding borrowings and bonds. JBIC provides

JBIC raises part of its funds through government-guaranteedbond issuance in international capital markets. Outstanding
government-guaranteed bonds at the end of FY2012 amountto ¥1,528.0 billion at face value, which accounts for 16.2% offoreign currency loans when necessary for effective financing operations. Financial resources funded by governmentguaranteed bond issuance in international capital markets
are applied to such financial operations.
As Japanese companies have been recently stepping up
overseas business operations, there are rising expectations
for JBIC to provide local currency-denominated financial support. To meet such financial needs appropriately, JBIC issued
government-guaranteed foreign bonds in Canadian dollars in
March 2013.
In the FY2013 budget, JBIC plans to issue governmentguaranteed bonds in the total amount of up to ¥660.0 billion.
JBIC’s government-guaranteed bonds receive the sameratings as the Government of Japan from the rating agencies(Aa3 from Moody’s and AA- from Standard & Poor’s as of theend of July 2013). Since they are treated as assets for which
the Bank for International Settlements (BIS) assigns zero risk
weight in calculating the capital adequacy ratio for depository
institutions, these bonds provide a quality investment opportunity for investors in international capital markets.
 FILP Agency Bonds
In compliance with the government policy to reform the FILP,JBIC has issued bonds without government guarantee (FILP

Discontinuation of the Financial Operations for Facilitating Realignment of USFJJBIC continued to conduct financial operations for facilitat-

agency bonds) in the domestic capital market since FY2001,

ing realignment of United States Forces in Japan (USFJ)

thereby raising funds based on its own creditworthiness. In

in the special account for this purpose under the USFJ

the FY2013 budget, JBIC plans to issue FILP agency bonds
totaling up to ¥20.0 billion.
JBIC’s FILP agency bonds receive the same ratings as theGovernment of Japan (as of the end of July 2013) as shown
below. They are treated as assets for which BIS assigns 10%

Realignment Special Measures Act. These operations were
designed to finance projects necessary to facilitate therelocation of USFJ to the U.S. with equity investments,
loans, and other facilities.
However, JBIC decided to discontinue these operations following the announcement of the Joint Statement

risk weight in calculating the capital adequacy ratio for deposi-of the Japan-U.S. Security Consultative Committee on

tory financial institutions.

April 27, 2012. In this statement, the two governments
affirmed that Japan’s financial commitment is to be theRating & Investment Information, Inc (R&I): ...........AA+
Japan Credit Rating Agency, Ltd. (JCR): ....................AAA
Moody’s: .............................................................................Aa3
Standard & Poor’s: ..........................................................AA–

direct cash contribution as stipulated in Article 1 of theAgreement between the Government of Japan and theGovernment of the United States of America Concerning
the Implementation of the Relocation of III Marine Expeditionary Force Personnel and Their Dependents from
Okinawa to Guam. They also affirmed that other formsof Japanese financial support to Guam relocation would
not be utilized. While taking into account the wishes of
the Government of Japan, JBIC discontinued its financial
operations for facilitating realignment of USFJ by the endof September 2012. By the end of November 2012, JBIC
eliminated the special account for these operations after
turning the residual assets over to the national treasury.
During FY2012, no lending was made in this account.

16

JBIC Annual Report 2013

The Environment
Surrounding JBIC and
Its Challenges

2

1Energy, Natural Resources and Environment Finance Group18

2

Infrastructure Finance Group

22

3

Industry Finance Group

26

JBIC Annual Report 201317

2

1· Energy, Natural Resources and Environment Finance GroupThe Environment Surrounding JBIC and Its Challenges

 Increasingly Intense Scramble for Acquiring Resourcesmarkets, their oil exports to Japan have decreased.

For Japan, a country scarcely endowed with natural resources,

The situation in which Japan procures liquefied natural gas

it is imperative to secure stable supplies of overseas energy(LNG) has been changing at a fast pace in recent years. Until

and mineral resources in order to maintain and make progress

about the year 2000, Japan had a predominant share of global

in economic activity. JBIC has been providing financial support

LNG transactions, but its share has diminished to roughly 30%

to Japanese companies in developing, acquiring interests intoday. As China and India have been rapidly increasing imports

and importing overseas natural resources, thereby contribut-of LNG, it is expected that the demand would sharply climb ining to securing its stable supply to Japan.

the future. In Japan, which has found it very difficult to supply

Global competition for acquiring energy and mineral re-electricity from nuclear power stations after the Great Eastsources remains tough, posing a challenge to Japan in obtain-

Japan Earthquake, LNG is increasing its presence as a major
source of energy, as natural gas produces less greenhouse gas

ing stable and affordable energy and mineral resources.

(GHG) emissions relative to oil. In accordance with the situa Rising Risk on the Demand and Supply Sides

tion above, supplier countries are changing as well. Indonesia

Growing demand for energy in emerging market countries

and Malaysia, both of which are traditional suppliers of LNG tohas exerted significant impacts on the global demand-supply

Japan, have continued to post remarkable growth. These twobalance of energy. In particular, energy consumption in the

countries have had to cut back LNG exports to Japan as they

Asia and Oceania regions, which includes China, India andhave seen a decline in production and a sustained increase

Southeast Asia, shows much higher growth rates than otherin domestic demand for the resource.

1. Energy, Natural Resources andEnvironment Finance GroupIn the mineral resource sector, demand has been growing

regions.
Crude oil poses a significant geopolitical risk factor in viewin emerging market countries. In addition, oligopoly has sig-of the fact that roughly 50% of its reserves are concentrated innificantly disturbed the demand-supply balance. For example,

the Middle East. Japan's dependence on this region for crude

in the iron ore industry the top three companies account foroil declined at one time, but has now increased to more thanmore than half of world seaborne trade in iron ore, and the top

80% of its imports. This is attributable to rising demand for

four coal companies have created an oligopoly in the world

oil in Asian countries. As these countries have channeled themarket. There is a growing need to cope with the unevenpreviously exported oil to meet oil demand in their domestic

distribution of individual types of ore minerals and quality

Major Projects Over the Last 10 Years (Amount of loan for natural resource projects (signed): Approx US$74 Billion)
Oil

Pogo Gold Mine, US

Norwegian North Sea Oil Field✚

British North Sea Oil Field✚

Resources, etc

IGBC Shale Gas, Canada●● Cordova Shale Gas, Canada
Suska Sukunka Mine, Canada● Montney Shale Gas, Canada■ ■ Grande Cache Coal Mine, Canada
Sakhalin I, Russia
Coal-Bed Methane, Canada ●Alouette Aluminium● Sakhalin II, Russia✚ Smelter, Canada
Similco Mine, Canada ▲● Marcellus■ Neryungri Mine, Russia
West Mynkuduk Uranium

Tungsten Mine,
Portugal● Natural Gas■ Coal◆ Iron Ore▲ Copper✚ Other
MineralKashagan Field,
Kazakhstan
BTC Pipeline✚ Mine, Kazakhstan✚

Kharassan Uranium Mine, Kazakhstan

Shale Gas, US

ACG Field,
Azerbaijan● Permian Basin Tight Oil, US
Eagle Ford Shale Oil, US ●● Oil & Gas Field, US

LNG, Qatar ●Advance Payment Loan to ADNOC
Oil Field, UAE ●Advance Payment Loan to VINACOMIN, Viet Nam■

Tayan Alumina Project, Indonesia
Woodchip, Indonesia✚

Woodchip,Mozambique

Enfield Oil Field✚◆✚

Prelude FLNG

● ● Bayu Undan LNG● Ichthys LNG●●●

Gorgon LNG✚
Shark Bay Salt Field

✚
✚

◆
◆
◆

✚

Worsley Bauxite Mine &Alumina Refinery

Assmang Iron, Zinc,
Chrome Ore Mine,
South Africa

Zinc &
Lead
Mine

Cape Lambert Iron Ore Shipping Port
Ambatovy Nickel,
Madagascar

As of July 31, 201318

JBIC Annual Report 2013

Roy Hill Mine
Jimblebar Mine

San Cristobal Zinc Mine, Bolivia✚● Curtis LNG■ Rolleston Mine
■ Boggabri Mine
Rasp ✚ ■ Moolarben Mine

Purchasing oil
product fromPDVSA, Venezuela

Forestation, Brazil✚
AMAZON Alumina Refinery / Aluminum Smelter, Brazil✚
CENIBRA
Bayovar Phosphate Mine, Peru✚
Pulp,
BrazilCerro Verde Mine, Peru ▲✚●Tangguh LNG, Indonesia● PNG LNG

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

MOZAL
Aluminum Smelter,
Mozambique

METOR Methanol, Venezuela
Drummond Project, Columbia ■●Gas Fields, Malaysia✚Taganito Nickel Project, Philippine
Tiga LNG, Malaysia●●

Sierra Gorda
Copper Mine,
Chile
Esperanza Mine, Chile✚ Forestation, New Zealand■ Caval Ridge Mine
■ Isaac Plains Mine
■ Byerwen Mine
■ Kestrel Mine
■ Minerva Mine
■ Oaky Creek / NCA Mine▲
Promoly Project, Chile✚▲
Escondida Mine, Chile ▲Caserones Copper Mine, Chile ▲Los Pelambres Mine, Chile ▲Stock Acquisition of ▲Anglo American Sur, Chile
NAMISA Mine, Brazil
MUSA Mine, Brazil◆◆◆

Logistical
Support forIron Ore
Transportation,
BrazilFrade Oil Field,
Brazil2

In this way, various risks are increasing both on the demandand supply sides. This means that Japanese companies have aneed to diversify their overseas investments. JBIC will conduct
operations by focusing more than ever on strengthening relations with resource-endowed countries and suppliers.
 Efforts for Stable Procurement of Natural Gas
JBIC, especially, is striving to obtain natural gas by designating
it as one of JBIC’s top priorities. After what happened at the
Fukushima Dai-ichi Nuclear Plant, the stable supply of electric
power has become an urgent issue for Japanese people's lives
and economic activities. There are rising expectations for the
support of a stable and affordable supply of natural gas as amajor source of energy in the present.
Responding to these expectations, JBIC is actively supporting the acquisition of interests and development of LNG-

A project in Canada in which a Japanese company participatesin acquiring interests and development of shale gas

related projects as well as the import of LNG. In FY2012, JBIC
equity participation and a loan. JBIC also offered project fi-

Papua New Guinea and elsewhere, thereby contributing tonancing to the Ichthys LNG Project in Australia, the first major

the diversification of Japan’s LNG supply sources. JBIC will

LNG operatorship project for a Japanese company.

also proactively engage in the formulation of LNG projects in

1

Amid these developments, JBIC is also supporting an acqui-North America, Africa and other untapped regions.

sition of interests in “unconventional” natural gas, such as shale

JBIC has taken steps in the coal sector as well. In Marchgas and coal-bed methane (CBM)2. In FY2012, JBIC supported

2012, JBIC provided a loan for the thermal coal development

the funding of Japanese companies for acquiring interests inproject in Colombia from which Japan has imported hardly

shale gas and CBM fields in Canada for the development andany coal. Furthermore, JBIC has also diversified the targetingproduction of natural gas. JBIC also financed a project aimed

countries by approaching Mozambique and Mongolia, whichto procure LNG tankers as part of JBIC’s comprehensive sup-are expected to potentially become new major suppliers.

port for the value chain of natural gas.

In these countries, an important goal is to meet their needs

Furthermore, JBIC is making efforts to strengthen cooperative ties with natural gas-producing countries and major natu-with proposals that draw on Japanese technology and trackrecords.

ral gas developers in order to encourage Japanese businesses

Secondly, we should make use of “unconventional” re-to develop natural gas overseas. In June 2011, JBIC signed

sources that have remained untapped to date. In this area,

a memorandum of understanding (MOU) with BPMIGAS, adevelopment is underway for CBM in such countries as Aus-

government agency in Indonesia, overseeing and controlingtralia, as well as shale gas and shale oil in the United States

upstream oil and gas business activities, for the purpose ofand other countries. For shale gas, JBIC has already provided

building a business model to encourage further expansion ofloans to projects in the U.S. and Canada. In FY2012, JBIC

Indonesia’s total natural gas supply capacity and to promote

offered a loan to a shale oil project in the U.S.

gas-related business opportunities for Japanese companies.

Thirdly, the diversification of production technology

During FY2012, JBIC signed a cooperation agreement sepa-

needs to be considered. In recent years, projects are being

rately with the BG Group, a British gas major, and Woodside,planned that take advantage of floating LNG (FLNG) technol-

Australia's largest independent oil and gas company.

ogy3 whereby produced natural gas is processed into liquid Spreading Risk with Diversification

1. Project finance is a financing structure that relies primarily on the cash flow,which is generated by the project, for repayment. It is used for financing large
projects in such sectors as power generation and oil, gas or other natural resource
development.
2. Coal-bed methane (CBM) is methane extracted from and near coal-beds. It is
drawing attention, along with shale gas, as “unconventional” natural gas.
3. FLNG is a new gas development technology whereby natural gas from an offshore
gas field is processed into liquid and stored on a large vessel, which is equippedwith an LNG plant, then directly offloaded to an LNG carrier for shipment. Among
its advantages over building onshore liquefaction plants is a lower environmental
impact as there is no need to lay gas pipelines from the gas field to an onshore
facility, nor to develop the coastal area. Moreover, as the floating LNG facility
with the liquefaction plant can be moved, it is also seen as having tremendous
potential for the development of small and medium scale offshore gas fields
whose development to date has not been economically feasible.

To secure a stable supply of resources, it is important todisperse risks with diversification.
Firstly, geographical diversification needs to be considered.
As described above, Japan is heavily dependent on the Middle
East for oil. Thus, it should consider urgently exploring oil
supply sources from outside the Middle East and diversify
them within the Middle East region. Regarding LNG, JBIC has
made loans to the Sakhalin II Project and LNG projects in

1. Energy, Natural Resources andEnvironment Finance Groupsupported the Wheatstone LNG Project in Australia through

The Environment Surrounding JBIC and Its Challenges

deteriorations of the minerals of resource-rich countries.

JBIC Annual Report 201319

2
The Environment Surrounding JBIC and Its Challenges

A copper mine project in Chile involving participation of a Japanese company

1. Energy, Natural Resources andEnvironment Finance Group

offshore. During FY2012, JBIC offered a loan to support a Japa-

of FY2012. At the same time, Japan is the largest importer

nese business participating in an FLNG project in Australia.

of LNG from Qatar. This is a good example of securing a

 Strengthening Multilayered Relations withto strengthening the relationship between the two countries

stable, long-term supply of LNG to Japan, while contributing

Resource-Endowed Countries
It is also important to strengthen the multilayered and strategic relations of the resource-endowed countries and resource
suppliers with which Japan has built good, stable relations.

through continuous cooperation in the world LNG supply
chain.
Australia also accounts for about a 20% share of LNG,
60% of coal and 70% of iron ore procured by Japan. Given its

In recent years, oil-producing countries in the Middle East

geographical proximity, political stability and abundance of

have pushed forward a diversification of industries and infra-

various resources, Australia is one of the countries increasingly

structure development in their countries based on abundant

important to Japan as a resource supply source. JBIC has built

revenues generated by high oil prices. They have looked tofavorable relationships with its resource developers throughoverseas governments and companies for support in trans-

continued financing over the years. As described above, JBIC

planting technologies for these purposes. In this context,

has supported unconventional LNG projects where CBM is

economic relations between the Middle East and Japan haveused as a raw material, and in the acquisition of interests

shifted from a traditional, simple relationship between oilin coal mines by Japanese companies. Furthermore, JBIC

consumers and suppliers to “multilayered” ties through thecultivated relations with state governments in FY2011 by

support of industrial diversification from energy-related andsigning MOUs on comprehensive strategic partnerships with

infrastructure-development project cooperation, as well as

the Western Australian Government and Queensland Gov-

joint investments in third countries.

ernment. These MOUs provide for, among other things, an

For example, in Saudi Arabia in March 2006, JBIC provided

exchange of information on investments Japanese businesses

a project financing loan to one of the world's largest petro-

could make, with periodic consultations being held. Thus,

chemical plants being planned by a state-owned enterprise,

they are expected to lead the laying of the groundwork for

Saudi Arabian Oil Company (Saudi Aramco), to support job

Japanese business development.

creation and industrial promotion from the production of highIn other activities, JBIC signed an MOU with the Ministryvalue-added products. For the LNG project in Qatar, JBIC hasof Finance of Mongolia in March 2012 to enhance financial

supported a number of key links in forming the LNG supply

cooperation, including provision of export credit lines5, withchain since the early stages of its development in the 1980s,

Mongolia where mineral resources, such as coal and cop-such as natural gas field development, LNG plant constructionper, are abundant. In accordance with the MOU, the twoand loading port development. In FY2012, JBIC offered a guar-

parties are now expediting the consultation process toward

antee for the first yen-denominated foreign bonds (Samurai
bonds4) issued by Qatar Petroleum (QP), thereby strengthening relations with QP even further. Qatar is a major supplierof LNG to Japan, accounting for 18% of Japan’s imports as

20

JBIC Annual Report 2013

4. Samurai bonds are yen-denominated bonds issued by foreign issuers such as
foreign governments and foreign companies in the Japanese bond market.
5. An export credit line is a form of export credit in which JBIC commits to the
maximum amount of credit to be extended to foreign banks or other entities tofinance exports of machinery, equipment and services from Japan.

2
The Environment Surrounding JBIC and Its Challenges

the offering of such export credit lines. During FY2012, JBIC
signed an MOU for a comprehensive strategic partnershipwith Kazatomprom, a joint stock company wholly owned by
the Kazakhstan government. This MOU is aimed at identifying
future candidate projects eligible for JBIC finance, and jointly
developing rare earth and metals.
For Turkey, which has become increasingly important inrecent years with its geopolitical location that borders with
Middle Eastern, NIS (New Independent States) and Eastern
European countries, JBIC in March 2012 guaranteed its privately placed Samurai bond issue to support the country’s
effort to diversify funding sources.
In addition, although Japan and China tend to be in acompetitive relationship in the area of natural resources, JBIC
has been building up relations with the Export-Import Bank of
China and other Chinese policy-based financial institutions, as
it considers securing a channel for an exchange of information
with respect to individual projects and policy trends while also

 Toward Comprehensive Development of

A renewable energy project in India

Natural Resources
Japan has long been one of the leading buyers of various

Denizbank A.S., Turkiye Kalkinma Bankasi A.S., RHB Bank

natural resources in the world. Japan’s relative position as a

Berhad, Petróleo Brasileiro S.A. (PETROBRAS), and Banco

demand side has recently declined, however, as China andde Bogotá S.A. to support renewable energy and energy-

other emerging market countries are proceeding to engage inefficiency improvement projects in India, Turkey, Malaysia,

global competition to acquire resources against the backdrop

and the Latin American and Caribbean regions in an effort forof vigorously increasing demand.

GREEN (Global action for Reconciling Economic growth andUnder these circumstances, in order to have secure andstable access to various resources, JBIC should not only sup-ENvironmental preservation) operations (1. Energy, Natural Resources andEnvironment Finance Group

exploring the possibility of cofinancing projects.

see p. 59 for detailsof this initiative). These loans are expected to contribute to theport acquisition of interests and long-term delivery contracts

reduction in greenhouse gas (GHG) emissions, and help theby Japanese companies but also like an approach to Middle

diffusion of Japan's advanced environmental technologies in

Eastern oil countries, propose comprehensive resource devel-

these countries and regions.

opment, which encompasses the development of infrastruc-(ture including railways, roads, ports, electric power systems

see pp. 49–50.)

For selected cases of environment-related operations by JBIC,

and rapidly advancing industries, in accordance with the needsof individual countries. Although this is only indirectly linked to JBIC's Efforts for Renewable Energy

resource development, if Japanese companies provide tech-As efforts are being made in other countries as well to pro-nologies for highly efficient coal-fired power generation andmote the use of renewable energy, business opportunities

reduction in environmental impact, this could contribute toare expanding for Japanese companies. JBIC is taking steps

power development and environmental measures in resource-

to support these opportunities, including project financing forendowed countries, and could furthermore help to create arenewable-energy power generation projects in Canada infavorable position for acquiring interests in resources andwhich Japanese companies participate (price negotiation for Japan.
JBIC will continue to provide financial support in various

see p. 49).

JBIC has offered export credit lines for ICICI Bank Limitedof India and four local banks in Turkey (Turkiye Is Bankasi A.S.,

sectors and thematic areas, including support for infrastruc-Yapi ve Kredi Bankasi A.S., T. Garanti Bankasi A.S. and Den-ture development in resource-endowed countries, helping toizbank A.S.) for the purchase of Japanese renewable energy

secure a stable supply of resources that are indispensable formachinery and equipment, notably those for geothermal, wind

the sound development of the Japanese economy.

and solar power generation, thereby supporting exports fromJapan.

 Efforts toward GREEN Operations
During FY2012, JBIC provided loans to ICICI Bank Limited,

JBIC Annual Report 201321

22· Infrastructure Finance GroupThe Environment Surrounding JBIC and Its Challenges 2. Infrastructure Finance GroupThe global infrastructure market
continues to expand notably inemerging market countries, driven by rapid urbanization, among
other factors. Tapping into thishuge infrastructure demand todrive growth in Japan is called
for in two recently-released policy documents, both endorsedby the Cabinet in June 2013: (i)the Japan Revitalization Strategy(“JAPAN is BACK”), and (ii) Basic
Policies for Economic and Fiscal Management and Reform,
formerly known as “Honebuto
no Hoshin.” The first document,
representing the growth strategy based on the “three-arrows”
strategy or “Abenomics,” setsout a clear goal of increasing
real gross national income (GNI).
Working for infrastructure projects overseas is one of the key

A British high-speed railway project in which a Japanese company participatedpolicies in the growth strategy
as it would help Japan to increase GNI through three major

goal of increasing GNI from both physical and non-physicalfactors: (i) increased exports, (ii) more profits from businessaspects (exports on one hand and project management andinvestment overseas, and (iii) improved procurement terms

investment on the other).

for energy and natural resources through the developmentof infrastructure related to natural resources.
JBIC will continue to proactively support Japanese com-

Exporting an infrastructure system produces not only direct
benefits resulting from receipt of the order but also indirect
benefits in the form of a new foothold for Japanese companies

panies participating in infrastructure projects overseas by

and a strengthened supply chain. On the downside, however,taking advantage of the experience in the engagement of

it entails many challenges. For one thing, it is one of the sec-such projects in a range of sectors, including electric power

tors exposed to the fiercest global competition. For another,systems, railways, seaports, roads, and water supply systems,

it involves many difficulties that may not be addressed by theas well as the trusting relationships JBIC has built with hostprivate sector alone. These include huge business risks suchcountries over the years. In this way, JBIC will conduct opera-

as long payback time, as well as the need to negotiate with

tions in accordance with Japanese government’s policies andhost country governments. In view of these challenges, thecontribute to the stabilization of the global economy and theJapanese government is pushing ahead with public-private

development of the Japanese economy.

partnerships. For example, the Infrastructure Systems Export
Strategy, adopted at the Ministerial Meeting on Strategy relat- Growing Infrastructure Demand Overseas and Japan’s“Infrastructure Systems Export”
It is expected that demand for infrastructure overseas willing Infrastructure Export and Economic Cooperation in May
2013, as well as the Japan Revitalization Strategy mentioned
earlier, set out a clear goal of tripling the total value of orders

continue to grow. Overseas infrastructure demand is pro-for infrastructure systems received by Japanese companies tojected to increase at an annual rate of around 2.2%, moresome ¥30 trillion by 2020. These two strategies call for sales

than 5%, and about 4% for the power, seaports, and ICT

pitches by the Prime Minister and other ministers.

sectors, respectively. Such demand can be met by provid-

The Infrastructure Systems Export Strategy divides emerg-

ing integrated “infrastructure systems” that involve not only

ing market countries targeted for overseas infrastructure

exporting equipment from Japanese companies with advanced

development into three groups: (i) China and ASEAN; (ii)technological capabilities but also providing expertise that

Southwest Asia, Middle East, Russia and CIS, and Latin America

1various companies and local governments have in the designing, construction, operation, and maintenance of infrastructure. Receiving orders for such systems will help meet the

22

JBIC Annual Report 2013

1. The Infrastructure Systems Export Strategy, adopted at the Ministerial Meetingon Strategy relating Infrastructure Export and Economic Cooperation on May 17,
2013.

2

North America and European Region ✚ Infrastructure FundPower

● Water■ Transport Infrastructure

RussiaMoroccoPower Transformer Manufacturing and Sales Project

Export of Gas-fired
Power Generation(ports, railways, roads, etc.)

China◆ Broadcasting, Telecommunication▼ Renewable Energy✚ Others■ Monorail Project
Korea

United Kingdom

Export of Gas-fired Power Generation Plant■ Intercity Express Programme
Egypt■ Export for Metro Construction Project

CanadaTurkey▼ TSL for Renewable Energy-Related▼

Project and Equipment Export■

Kazakhstan

Corridor (DMIC) ProjectHigh Energy Efficient
Coal-fired Power Plant
Manufacturing and Sales Project
and Equipment Export▼ TSL for Renewable
Energy-Related Project
and Equipment Export
Mexico

■
■
●

■▼

●
■
●

●
●

UAE
● IWPP Project▼

Singapore

IPP Project▼◆

The Philippines

Equity Participationin Acquiring Sharesof Senoko Power
Limited● Export of Seawater
Desalination Plant■

Portfolio Acquisition of
Existing IPP Projects

Export of Gas-fired
Power Generation Plant

Export of Hydro Power
Generation Facilities

System Operation Project

Railway Cars

■

▼

■

◆
▼ ■
◆ ■
■

■ Panama Canal Expansion Project
Colombia

Emerging Market Countries in Southeast Asia
✚ Infrastructure FundOman
■ Port Expansion Project

Emerging Market Countries in Asia

IPP Project● IWPP ProjectPower Transmission and Distribution Project

Export of High Energy
Efficient Coal-fired Power Plant
Portfolio Acquisition of
Existing IPP Projects◆ Telecommunications
Network Expansion Project▼ TSL for Renewable
Energy-Related Project▼ Funding for Renewable
Energy-Related ProjectHydroelectric Power Plant Project
Export of Water
Natural Gas-Fired▼ TSL for Renewable Energy-Related Project
Combined Cycle Power Plant Project● Water Supply and Sewerage▼ TSL for Renewable Energy-Related Project

Venezuela■ Exports of◆▼▼ThailandMaldives

South Africa

Energy-Related
Project

PanamaViet Nam

Sri Lanka■ The Port of Durban Expansion Project▼ TSL for Renewable■ Delhi-Mumbai Industrial▼● IWPP Project
IPP Project

The Latin American
and Caribbean Region

India

Export of Gas-fired
Power Generation Plant

Qatar▼ Renewable Energy-Related Project✚ Infrastructure Fund

▼ TSL for Renewable

Energy-Related Project

Brazil■ Belt Highway Project■ Railway Project■ Cargo Railway Network
Development Project◆ Equipment Export forIndonesia
Malaysia◆ Export of Telecommunication Machinery and Equipment
IPP Project
Submarine Cables Replacement Project
Export of Transmission and Substation Equipment

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

and the Caribbean; and (iii) Africa. Giving top priority to China

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

As of July 31, 2013

Bank and the World Bank.

and ASEAN, the strategy states that Japan will focus on broadbased development assistance (development assistance thattranscends national borders) for strengthening connectivity
within the ASEAN region and between the region on the one Three Challenges Japanese Companies Face inInfrastructure Projects Overseas
In implementing infrastructure projects overseas, Japanese

hand and India and Bangladesh on the other. This highlights

companies face three major challenges: (i) weak price com-the need for infrastructure development in Myanmar, a coun-

petitiveness, (ii) a shortage of versatile operators, and (iii) thetry that faces the Indian Ocean and serves as a strategiclack of schemes designed to ensure project feasibility on thenode that connects ASEAN with India. In this context, JBIC ispart of emerging and developing countries.

committed to supporting the Myanmar government in clear-

The first challenge is reflected in international comparisonsing the arrears of past loans, a problem, which stands in thein the total value of plant orders received from overseas. The

way of extending new loans to the country. JBIC took the first

figure for Japan fell about 9% in FY2012 from a year earlier.

step in January 2013 when it offered bridge loans (short-termThose for China and Korea, on the other hand, rose slightly or

bridging loans) to the Myanmar government in order to assist

remained flat over the same period. Roughly speaking, China’s

it in clearing the arrears of loans from the Asian Development

value is six times as much as Japan’s, while Korea’s figure is

JBIC Annual Report 201323

2
The Environment Surrounding JBIC and Its Challenges 2. Infrastructure Finance GroupThe export of equipment by a Japanese company for a power generation project in Morocco

three times as much.2 To boost the price competitivenessinternational alliances or buyouts of foreign businesses thatof Japanese companies, it may be one of solutions not towill help them accumulate expertise.

stick to the “All Japan” principle of mobilizing only Japanese

The third challenge is best represented by infrastructure

entities but to adopt the “Japan Initiative” strategy. Under thisprojects in emerging and developing countries that are de-strategy, the core part of a plant will be managed by Japanese

signed so that project owners have to bear excessive risks.

companies with a technological competitive edge while the

These risks include weak provisions in power purchase agree-other parts will be managed in cooperation with partners fromments regarding the duties on the part of the host country

other countries, in order to achieve the best mix of Japanese

governments and/or their agencies, as well as inadequate

and foreign products.

minimum income guarantees in transport projects. It hap-

The second challenge is most evident in water and railroad

pens sometime that, in projects that involve supervision and/sectors, in which the knowledge and expertise accumulated

or involvement by more than one competent authority andfrom experience in operations within Japan are distributed

those that cover more than one local government, it would

among different enterprises, including public corporations,be difficult for the central government to ensure coordination

due in large part to the existing institutional arrangements.

among different parties and supervise projects. In the eyes

Few Japanese companies have a track record of integrated

of prospective private contractors, this state of affairs bears

business operations ranging from “upstream” operations, such

witness to less feasible project schemes, hindering private

as the development of master plans, to “downstream” opera-

investment. An effective approach to ensuring adequately

tions, such as the operation and maintenance of facilities andfeasible project schemes in emerging market countries is forthe collection of charges and fares. For these reasons, Japa-

the public and private sectors in Japan to work together tonese companies are not always able to adequately meet the

fully communicate and cooperate with actual and potential

needs of host countries that call for integrated infrastructure
systems. In sectors where Japanese companies lack expertisein integrated business operations, it may be viable to promote

24

JBIC Annual Report 2013

2. Japan Machinery Center for Trade and Investment, 2012 Nendo Kaigai Puranto
Enjiniaringu (PE) Seiyaku Jisseki Chosa Hokoku (report on concluded contracts
for plant engineering overseas for FY2012), July 2012.

2
the framework of regular dialogue with the host country
government—are best represented by two schemes. One iscountry government and/or local business corporations as

equity participation in the Delhi Mumbai Industrial Corridor

early as the project formulation phase through the establish-

Development Corporation Limited (DMICDC), whose duties

ment of a business aimed at promoting project formulation

include, among other tasks, preparing development masteror within the framework of regular dialogue with the hostplans for the areas situated between Delhi and Mumbai andcountry government. This will allow the Japanese side to of-

conducting feasibility studies for individual projects there. The

fer appropriate support to the host country government inother is the Financial Policy Dialogue between JBIC and thesuch aspects as the content of major project contracts andgovernment of Indonesia and other countries.

the framework for implementing and supervising projects. It

JBIC is considering applying these two schemes to otherwill also allow for the adoption of life cycle costs and othercountries. (For the second scheme, JBIC has already put inbidding criteria that are favorable to Japanese companies.

place a similar framework for dialogue with the governments

These actions will in turn improve the prospects for projectsof Mexico and Viet Nam.) As part of efforts to ensure thethat build on the strengths of Japanese companies in meeting

feasibility of infrastructure projects with a long payout time

local needs.

and whose revenues are received in local currency, JBIC offers
loans in local currencies in order to reduce exchange risks

 Supporting “Infrastructure Systems Export” toOvercome Challenges Facing Japanese Companies
Expectations are rising for JBIC to play an important role asfor Japanese project owners associated with foreign currency
borrowing and thus support long-term operations (see p.

65).

part of government efforts to boost the exports of infrastruc-As an entity that coordinates the needs of public andture systems. JBIC is striving to help Japanese companies

private sectors, JBIC will continue to support Japanese com-overcome challenges they face.

panies in a variety of aspects so that the growing demand

JBIC’s efforts to ensure project feasibility through publicprivate partnerships—notably through the establishment offor infrastructure overseas will create and increase business
opportunities for them.

a business aimed at promoting project formulation or within

The Environment Surrounding JBIC and Its Challenges 2. Infrastructure Finance Group

partners in these countries. Such public-private partnerships
can make it possible for involvement in activities of the hostA Thai project for a natural gas-fired combined cycle power plant inwhich a Japanese company participated (above and right)

JBIC Annual Report 201325

2

3· Industry Finance GroupThe Environment Surrounding JBIC and Its Challenges

 Overview of the Japanese Economy

Figure 1 Foreign Direct Investment by Japanese Companies

While the impact of the Great East Japan Earthquake in March

14.0

2011 lingered, the Japanese economy showed a mild recovery
in the first half of FY2012. In the middle of FY2012, it began

12.0

to weaken due to the slowing global economy and the ap-

10.0

preciation of the yen. However, along with the influence of

8.0

the global economy recovery, the leveling-off of exports andindustrial production, and improved consumer and corporate
sentiments suggest that the Japanese economy was gradually heading toward a pick-up in the second half of FY2012.
The Japanese government has recently announced the Japan
Revitalization Strategy. This strategy, decided by the Cabinet
in June 2013, calls for, among other things, measures designed(Trillions of yen)

6.0
4.0
2.0
0

05

06

07

08

09

10

[Source] Ministry of Finance Japan

12

(FY)

to support Japanese companies to export their products andeven expand their operations overseas. By revitalizing Japanese companies, through the strategy, the Japanese govern-

A closer look at the trends in FY2012 shows that FDI

ment aims to put the Japanese economy on a growth track.

jumped 54.9% in the first quarter from the same period a year
earlier. It dropped 33.9% and 8.5% year-on-year in the second

3. Industry Finance Group Overview of Overseas Business Operations by

Japanese Companies

and third quarters, respectively, amid growing uncertainty surrounding the U.S. economy and the slowdown of emerging

 Overview of FDI by Japanese Companies

economies, including China. In the fourth quarter, however,Foreign Direct Investment (FDI) by Japanese companies fell

FDI rose 15.0% on a year-on-year basis as the Japanese andin both FY2009 and FY2010 after peaking in FY2008 before

global economy showed a gradual recovery trend. This is a

the Lehman Shock. In FY2011, it rose to around ¥10.1 trillion,

sign that FDI is picking up1.

a 108.2% increase from FY2010. The figure largely remained

Japanese companies have remained committed to expand-flat in FY2012, or more precisely, it dipped 0.8% year-on-year,
standing at about ¥10.0 trillion (see Figure 1).

1. Ministry of Finance, “Outward/Inward Direct Investment.”

A Japanese manufacturer and marketer of motorcycle parts and construction machinery in Indonesia (Banshu Electric Co., Ltd.)

26

11

JBIC Annual Report 2013

2
Mid-tier firms/SMEs

(611)
2.0%

(594)
0.7%

(586)
0.2%

(588)
0.9 %

(149)
0.7%

(161)
2.5%

(156)
0.6%

(163)
0.0 %

(153)
1.3%

20.1%

32.2%

16.5%

12.6%

14.8%

30.2%

44.7%

28.2%

21.5%

26.1%

69.1%

52.8%

71.2%

78.5%

72.5%

FY2008FY2009FY2010FY2011FY2012

■

(611)
0.7%
Scale back/withdraw ■Maintain present level

■

79.2%

65.8%

82.8%

87.2%

84.4%

160

(Number of cases)
FY2011FY2012120

80
FY2008FY2009FY2010FY2011FY2012(Note) 1. “Overseas operations” is defined as production, sales, and R&D activities atoverseas bases, as well as the outsourcing of manufacturing and procurement overseas.
2. The numbers in the parentheses above the bar graphs indicate the numbersof responding companies to the question.
3. Mid-tier firms/SMEs are companies whose paid-up capital is less than ¥1billion.
[Source] Results of the JBIC FY2012 Survey Report on Overseas Business Operations
by Japanese Manufacturing Companies

129

145

111

102

116

150

118

3. Industry Finance GroupStrengthen/expand

Figure 3 Number of Overseas M&As by Japanese Companies

The Environment Surrounding JBIC and Its Challenges

Figure 2 Medium-term Prospects (next 3 yrs. or so) for Overseas Operations
Total responding companies

104

40

0

1Q

2Q

3Q

4Q

[Source] RECOF DATA Corporation

ing their overseas operations over the mid-term. This viewthe yen from Fall 2012 and a rise in the total buyout volume,

is substantiated by the FY2012 Survey (the 24th) Report on

resulting from the recovery of stock prices in the U.S. market

Overseas Business Operations by Japanese Manufacturing(Figure 3). It is expected that the need for overseas M&A by

Companies, which JBIC conducted between July and Octo-

Japanese companies will remain strong as they aim to tap

ber 2012. In this survey, to which 613 companies responded,

into overseas market.

84.4% of the respondents said they would strengthen and/or
expand their overseas businesses in response to the question Exports

regarding their medium-term business prospects. The figure

Total exports by Japanese companies, which slowed in thewas 72.5% as far as mid-tier enterprises, as well as small

first half of FY2012, are now beginning to show signs of re-

and medium enterprises (collectively “SMEs”), are concerned

covery. A closer look at the trends in FY2012 shows that, the(Figure 2).

figure amounted to ¥16,443.6 billion in the first quarter, up
4.8% from the same period a year earlier, partly because the Overseas M&A by Japanese Companies

impact of the flood disaster in Thailand subsided to some

During FY2012, Japanese companies remained active in merg-

extent. Despite this sign of recovery, the figure fell in theing and acquiring foreign firms from FY2011. The number of

two consecutive quarters that followed due to the faltering

M&A cases of foreign firms by Japanese companies in FY2012

Japanese and global economy and the appreciation of theamounted to 501, an increase of 27 from a year earlier, al-yen. It stood at ¥15,714.5 billion or down 8.2% year-on-year

though the figure for the fourth quarter stood at 104, a de-in the second quarter, and ¥15,429.7 billion or down 5.5%

crease of 14 year-on-year, due in part to the depreciation of

year-on-year in the third quarter. The decrease was attrib-

JBIC Annual Report 201327

2
The Environment Surrounding JBIC and Its Challenges

Figure 4 Value of Exports by Japanese Companies (FY2012)

16.5

（%）

(Trillions of yen)

4.8%

6

Export value in 2012
Year-on-year percent change

4
1.2%

16.0

2
0
-2
-4

-5.5%

15.5

-6

-8.2%

15.0

16.4

15.7

15.4

16.3

1Q

2Q

3Q

4Q

-8
-10

[Source] Ministry of Finance JapanA Japanese manufacturer and marketer of films for disposable diapers in Indonesia(YAMATOGAWA SHIKO Co., Ltd.)

3. Industry Finance Grouputed particularly to a fall in exports both to Asian countries,

extended a Thai baht-denominated loan for the manufacturingexperiencing an economic slowdown, and to the Europeanand sales of auto parts, as well as a loan in Indonesia rupiah—

region, where countries struggled with fiscal problems. In

the first of its kind by JBIC—for the manufacturing and sales

the fourth quarter, however, the figure reached ¥16,352.6

of automobile and motorcycle parts.

billion, up 1.2% on a year-on-year basis, due to recovery in
the Japanese and global economy and the depreciation of Supporting Ship and Plant Exports

the yen. It suggests that total exports by Japanese companies

JBIC is also committed to supporting exports by Japanesebottomed out (Figure 4).

companies. During FY2012, such support was provided forthe export of ships such as bulk carriers, tankers, and seabed Overall Commitments in Loan, Equity Participation,

and Guarantee by the Industry Finance Groupin FY2012

exploring ships, as well as for plant exports involving machine
tools, compressors, and other equipment.

In view of the situation and industry trends already described,

 Supporting Overseas Business Operations by SMEs

JBIC has supported Japanese companies in their business op-

The superior technological capabilities of Japanese SMEs are

erations overseas through various aspects to maintain and im-

given high marks both at home and abroad. At the same

prove the international competitiveness of Japanese industries.

time, developing countries themselves are focusing efforts on

JBIC’s Industry Finance Group had a total of 151 commitments

attracting investment from companies that have sophisticatedconcerning loan, equity participation, or guarantee in FY2012.

technologies. However, Japanese SMEs often have only limited access to financing and information necessary for their Supporting Foreign Investment by

Japanese Companies

for such operations, JBIC in FY2012 set up at its Head Office

JBIC focuses on support for overseas investment by Japaneseand West Japan Office a unit specializing in the support ofcompanies. JBIC provides these companies with equipment

overseas business development of SMEs. During FY2012, JBIC

funding for their overseas businesses and funds for sales fi-

committed a total of 34 cases. In addition to financial support,

nancing by taking advantage of schemes as necessary, includ-such as loans, JBIC also offers information on a range of topics,

ing project financing and local currency-denominated financ-including the foreign investment climate. During FY2012, JBIC

ing. During FY2012, such loans went to projects conducted bysigned a memorandum of understanding (MOU), separately

manufacturers in chemical, automobile, electrical machinery,with three local banks in the developing world, to support

and other industries as well as engineering firms. A loan was

overseas business operations of SMEs through Japanesealso provided to support an FPSO (floating production, storage

regional financial institutions under the “three governmentand offloading system) chartering project.

offices’ joint policy2.” A total of 46 Japanese regional financial

The “Rebirth of Japan: A Comprehensive Strategy” and theinstitutions signed partnership agreements during FY2012 withJapan Revitalization Strategy, both decided by the Cabinet

local banks in developing countries based on such MOUs.

in 2012 and 2013, respectively, call for the strengthening of
local currency-denominated financial support to facilitate local currency funding for Japanese companies expanding theirbusiness operations overseas. In light of these policy developments and the needs of Japanese companies, in FY2012, JBIC

28

business operations overseas. To boost traditional support

JBIC Annual Report 2013

2. The “three government offices’ joint policy” refers to the policy that was set forthin 2010 jointly by the Financial Services Agency, the Ministry of Finance, and theMinistry of Economy, Trade and Industry. This policy is aimed at supporting SMEs
in the expansion of their business operations to Asia and elsewhere by developing
and strengthening a framework for such support through coordination among
Japanese financial institutions, the Japan External Trade Organization (JETRO),
and JBIC.

2
agriculture, aerospace, disaster control, marine infrastructure,

MOUs earlier.

Ecocity, etc.). In line with the Japan Revitalization Strategy(

and other government strategies, JBIC will address the needs

See pp. 66–67)

of Japanese companies by drawing on a range of financial
 Taking Appropriate Actions in Response to

instruments.

the Government’s Growth Strategy and
the Needs of Japanese Companies
JBIC will continue to work to maintain and improve the international competitiveness of Japanese industries by taking
actions that address challenges Japanese companies face in
expanding their operations overseas and to conduct operations in accordance with the government’s growth strategy
known as the Japan Revitalization Strategy. This strategy calls
for, among other things, encouraging Japanese companies toinitiate and expand their business operations overseas withthe aim to become global leading companies, as well as topromote the export of infrastructure systems for the purposeof tapping into foreign demand. Specific measures identified in

3. Industry Finance Groupthe strategy include assisting Japanese companies, including

The Environment Surrounding JBIC and Its Challenges

These local banks include those with which JBIC had signed

SMEs, in merging and acquiring foreign companies, developing emerging markets selectively, and supporting overseas
business development in new frontier sectors (health care,

The export of a tank built by a Japanese shipbuilder

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Examples ofBusiness Outcomesin FY2012

1

Examples of Business Outcomes by Region

2

Examples of Business Outcomes Relating to32

Support for SMEs
3

47

Examples of Business Outcomes Relating to
the Environment

4

3
49

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

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1· Examples of Business Outcomes by Region
Indonesia

Asia

Examples of Business Outcomes in FY2012

Guarantee for Privately Placed Samurai Bonds Issued by the Government of Indonesia:
Supporting Diversification of the Indonesian Government’s Funding Sources and Invigoration of the Samurai Bond Market

JBIC signed a set of agreements to provide a guarantee for
yen-denominated foreign bonds (Samurai bonds1) issued inJapan by the Government of Indonesia (GOI). This is the third
Samurai bond issuance by GOI, and the continued support
for this by JBIC will help GOI diversify its funding sources andcontribute to the stable economic management of Indonesia.
It will also further enhance the close bilateral ties between
Japan and Indonesia.

Indonesia

1. Examples of Business Outcomes by Region

Buyer’s Credit for Exporting Transmission and Substation Equipment:
Supporting the Export of Power Infrastructure Equipment by Japanese Companies

JBIC signed a buyer’s credit2 agreement with GOI. GOI will allocate the loan funds to the state-owned power company PT.
PLN (Persero) for purchasing power equipment from Marubeni
Corporation for use in establishing power substations and laying underground cables in the Indonesian capital of Jakarta. By
facilitating the introduction of highly reliable Japanese power
supply infrastructure technologies, this buyer’s credit willcontribute to a more stable power supply in Jakarta.

Indonesia

Loan for Woodchip Manufacturing and Sales Project:
Supporting Japanese Companies to Secure Long-term Stable Woodchip Supply

JBIC signed a loan agreement with PT. Korintiga Hutani (KTH),
an Indonesian subsidiary of Oji Holdings Corporation. This loan
will finance a woodchip manufacturing and sales project by
KTH using timber from plantation forests in Central Kalimantan,
Indonesia. World woodchip supply and demand is expected
to tighten over the medium to long term as demand for paper
expands with economic growth in emerging market countries.
This loan will help Japanese companies to secure a long-termand stable supply of woodchips from plantation forests.

1. Samurai bonds are yen-denominated bonds issued by foreign issuers such as foreign governments and foreign companies in the Japanese bond market.
2. A buyer’s credit is a loan JBIC directly extends to a foreign importer (buyer) to finance its import of machinery, equipment or services from a Japanese company.

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Examples of Business Outcomes in FY2012

Indonesia

Asia

Establishment of a Contingent Facility for the Government of Indonesia:
Preparation against Volatility in Global Financial Markets

JBIC signed a loan agreement with GOI establishing a contingent facility. This contingent facility is designed to strengthen
GOI’s capacity to deal with volatility in global financial markets
and support GOI measures for enhancing the stability anddurability of the Indonesian economy in cooperation with theWorld Bank, the Asian Development Bank, and the Australian
government. Enhancing Indonesia’s credit standing in global
financial markets and improving the stability of the Indonesian
economy will contribute to the financial stability in Japan andthe entire Asian region.

Contributing to the Medium to Long Term Development of Myanmar through Support for Its Return to the Global Financial Market

JBIC provided bridge loans to the Government of Myanmar
so that it could clear its debt arrears owed to the AsianDevelopment Bank (ADB), and International Development
Association (IDA), one of the World Bank Group. After clearing
the debt arrears, the Government of Myanmar received newloans from ADB and IDA for social and economic develop-

1. Examples of Business Outcomes by Region

MyanmarBridge Loans to the Government of Myanmar:

ment. The normalization of Myanmar’s relations with international organizations through these bridge loans is essential
for Myanmar’s return to the global financial market, and willcontribute to the stability and growth of Myanmar and theneighboring area.

Thailand

Project Finance for a Natural Gas-Fired Combined Cycle Power Plant Project:
Supporting Japanese Participation in a Power Infrastructure Project

JBIC signed a project finance3 loan agreement with Gulf JP UT
Co., Ltd. (GUT), a Thai subsidiary of Electric Power Development
Co., Ltd. for the Utai Natural Gas-Fired Combined Cycle Power
Plant Project. Under this project, GUT will build and operatea natural gas-fired combined cycle power plant, and sell thegenerated electricity to the Electricity Generating Authorityof Thailand. This is a significant project for local Japanesesubsidiaries as it will provide them with a stable power supply,and in addition to advancing infrastructure development inThailand, it will also make a broad-ranging contribution to theoverseas business operations of Japanese companies.

3. Project finance is a financing structure that relies primarily on the cash flow generated by the project for repayment. It is used for financing large projects in such sectors as
power generation and oil, gas or other natural resource development.

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Thailand

Asia

Examples of Business Outcomes in FY2012

Loan for Automobile Parts Manufacturing and Sales Project:
Providing Local Currency Loans to Support Japanese Company’s Operations in Thailand

JBIC signed a loan agreement with Juthawan Molitec (Thailand)Co., Ltd. (JWM), a Thai subsidiary of MOLITEC STEEL CO., LTD.
MOLITEC STEEL manufactures parts for continuously variabletransmissions at the JWM plant in Chonburi Province for sale inthe domestic Thai market and in third countries, and this loan,in Thai baht, will enable the company to expand and upgrade
its manufacturing facilities and equipment to meet the growing
demand for automobiles in emerging market countries. The
loan will also help the Japanese automobile parts industry tomaintain and improve its international competitiveness.

ASEAN

1. Examples of Business Outcomes by Region

Equity Participation in a Fund to Support Expansion of Japanese Companies into the ASEAN Region:
Supporting the Overseas Business Deployments of Japanese Companies Including Mid-tier Enterprises andSmall and Medium Enterprises

JBIC agreed to equity participation in the private equity fundMizuho ASEAN PE Fund, managed by Mizuho Asia Partners
Pte. Ltd. (Fund Manager), a wholly owned Singaporean subsidiary of Mizuho Bank, Ltd. The Fund is structured to provide
finance to local companies in the ASEAN region as a meansof supporting the expansion of mid-tier enterprises and small
and medium Japanese enterprises (collectively, “SMEs”) into
the ASEAN region. To this end, the Fund Manager will use its
networks in ASEAN to identify potential investments, while
Mizuho Bank, Ltd. and JBIC will provide cooperation and support to Japanese companies including SMEs.

India

Credit Line for India’s Largest Private Bank under the GREEN Operations:Supporting Renewable Energy and Energy Efficiency Projects

JBIC established a credit line for ICICI Bank Limited, India’s
largest private bank in total assets. The credit line is extended
under the GREEN (Global action for Reconciling Economic
growth and ENvironmental preservation) operations to provide necessary funding for environment-related projects thatcan contribute to a reduction in greenhouse gas emissions
in India, and is expected to give further momentum to theenvironmental policies adopted by the Indian government.

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Examples of Business Outcomes in FY2012

India

Asia

Buyer’s Credit for Indian Company:
Supporting the Export of Petrochemical Plant-related Equipment by Japanese Companies

JBIC signed a buyer’s credit agreement with GAIL (India)
Limited (GAIL). This loan will enable GAIL to procure plantrelated equipment from Japanese companies so that it canincrease production capacity at its petrochemical plants in
India. It will also contribute to creating business opportunities for Japanese companies in the petrochemical sector in
India, and help these companies to maintain and improve theirinternational competitiveness.

1. Examples of Business Outcomes by Region

Kazakhstan

Buyer's Credit for Oil Refinery Modernization Project:
Supporting the Export of Environment-friendly Plant Equipment by Japanese Companies

JBIC signed a buyer’s credit agreement with LLP Atyrau refinery(AR), a subsidiary of the Kazakhstan state-owned oil and gas
company JSC NC KazMunayGas. AR is modernizing the Atyrau
Oil Refinery to minimize its environmental load, and this loan
will be used by the company to purchase plant equipment
through Marubeni Corporation as a part of this modernization project. The loan will lead to the creation of business
opportunities for Japanese companies in the oil refinery andpetrochemical sectors in Kazakhstan, and through this, help
Japanese industries maintain and improve their international
competitiveness.

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Australia

Oceania

Examples of Business Outcomes in FY2012

Loan for Acquisition of Interests in and Development of an Iron Ore Mine Project:
Supporting Japanese Companies to Secure Mineral Resources and Participate in Large Scale Overseas Iron Ore Mine Development

JBIC signed a loan agreement with Marubeni Iron Ore
Australia Pty. Ltd. (MIOA), an Australian subsidiary of Marubeni
Corporation. The loan will provide the necessary funds for
MIOA to acquire interests in the Roy Hill Iron Ore Mine Project,
operated by the Australian company Roy Hill Holdings Pty
Ltd (RHH) with capital from Marubeni Corporation and otherforeign companies, and undertake mine and mine-related
infrastructure development. Roy Hill Mine produces high-gradeiron ore, so there are high expectations among Japanese steel
mills in particular that this project will eventually provide themwith a stable supply of this high-grade iron ore.

Australia

1. Examples of Business Outcomes by Region

Loan for Acquisition of Interests in and Development of a Floating LNG Project:
Supporting Japanese Company’s Participation in a Floating LNG Project

JBIC signed a loan agreement with INPEX CORPORATION(INPEX). This loan will provide the necessary funds for theAustralian subsidiary of INPEX to acquire a part interest in
the block containing Australia’s Prelude gas field from theAustralian subsidiary of Royal Dutch Shell, and to extract natural gas and process it into LNG using floating LNG technology4.
By financing participation by INPEX in the world’s leading floating LNG project, the loan will contribute to INPEX’s acquisitionof floating LNG-related know-how and expertise.

Australia

JBIC Signs an MOU on a Comprehensive Strategic Partnership with Woodside Petroleum Ltd. in Australia:
Supporting the Creation of Business Opportunities for Japanese Companies to Participate in Energy Projects by
Establishing a Partnership with Australia’s Largest Independent Oil and Gas Company

JBIC has signed a memorandum of understanding (MOU)
on a comprehensive strategic partnership with Woodside
Petroleum Ltd. (Woodside), Australia’s largest independent
oil and gas company. Having long contributed to LNG supply
to Japan, Woodside is a strategically important partner forJapan’s energy resource strategy. Close exchanges of information and views between the two parties under this MOU are
expected to create opportunities for Japanese companies toparticipate in energy projects, thus contributing to a stable
LNG supply to Japan.

4. Floating LNG (FLNG) is a new gas development technology whereby natural gas from an offshore gas field is processed into liquid and stored on a large vessel, which is equippedwith an LNG plant, then directly offloaded to an LNG carrier for shipment. Among its advantages over building onshore liquefaction plants is a lower environmental impact as there
is no need to lay gas pipelines from the gas field to an onshore facility, nor to develop the coastal area. Moreover, as the floating LNG facility with the liquefaction plant can be
moved, it is also seen as a potential tool for the development of small and medium scale offshore gas fields whose development to date has not been economically feasible.

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Examples of Business Outcomes in FY2012

Australia

Oceania

Loan for Acquisition of Coal Mine Interests:
Contributing to Japan’s Securing Energy Resources and a Stable Energy Supply

JBIC signed a loan agreement with Sumisho Coal Australia
Pty Limited (SCAP), an Australian subsidiary of Sumitomo
Corporation. This loan will provide the necessary funds for
Sumitomo Corporation to acquire an interest in Australia’s
Isaac Plains Coal Mine through its Australian subsidiary. The
coal extracted from the mine has mainly been supplied toJapanese steel mills on an ongoing basis, and the acquisitionof the interest in the mine is expected to result in an increasein the volume of coking coal and thermal coal supplied toJapanese companies from the mine.

1. Examples of Business Outcomes by Region

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United Kingdom

EuropeExamples of Business Outcomes in FY2012

Project Finance for an Intercity Express Programme:
First Project Finance Loan by JBIC in the Railway Sector

JBIC signed a project finance loan agreement with the U.K.
company Agility Trains West Limited, a consortium led by
Hitachi, Ltd., to fund the Intercity Express Programme (Great
Western Main Line). This is one of the major projects of the
British government, and is expected to make a significant
contribution to the long-term and stable provision of railway
services in the U.K.

Ireland

1. Examples of Business Outcomes by Region

Loan for Acquisition of an Overseas Aircraft Leasing Business:
Supporting Overseas M&A by Japanese Companies

JBIC signed a loan agreement with the Irish company SMBC
Aviation Capital Limited, Sumitomo Mitsui Finance and Leasing
Company, Limited (SMFL), and Sumitomo Corporation toprovide funds for the joint acquisition by the three Japanesecompanies of SMFL, Sumitomo Mitsui Banking Corporation and
Sumitomo Corporation of an aircraft leasing business operated under the Royal Bank of Scotland (RBS), a British bank.
Through this acquisition, the three Japanese companies plan
to tackle the expanding demand for commercial aircraft with
the increasing volume of air travelers following the growth inemerging markets and the rise of low-cost carriers.

NorwayBuyer's Credit for Ship Export to Norwegian Company:
Supporting the Export of 3D Marine Seismic Data Acquisition Vessels Built at a Japanese Shipyard

JBIC signed two buyer’s credit agreements for ship export withPGS Titans AS (PGS TITANS), a wholly owned ship-holding
subsidiary of the leading Norwegian seismic service provider,
Petroleum Geo-Services ASA. The loans are provided for thepurchase of two 3D marine seismic data acquisition vessels5
to be built at the Nagasaki Shipyard of Mitsubishi Heavy
Industries, Ltd. With the continuing constraints on ship financing throughout the world, these loans will help the Japanese
shipbuilding industry to maintain and improve its international
competitiveness.

5. 3D marine seismic data acquisition vessels are equipped for 3D geological stratum analysis. The vessels receive pressure wave reflections from the ocean floor or sub-surface
region through sensors in towed cables for 3D analysis of the geological structure of the ocean floor.

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Stimulating the Samurai Bond Market and Strengthening Multilayered Ties with a Resource-Supplying Country

JBIC has signed a set of agreements to provide a guarantee for the yen-denominated foreign bonds issued by Qatar
Petroleum (QP) in the Japanese bond market (Samurai bonds).
This arrangement is part of JBIC’s efforts to support the issuance of Samurai bonds by foreign issuers in the Tokyo bondmarket and thereby revitalize the Samurai bond market. Thisis the first issue of Samurai bonds by the state-owned oil

Qatar

company of Qatar. The guarantee provided by JBIC will support QP’s ability to diversify its funding sources. It will also
further strengthen bilateral relations with Qatar, an importantenergy resource supplier for Japan.

Examples of Business Outcomes in FY2012

Qatar

The Middle East

JBIC Guarantees Privately Placed Samurai Bonds Issued by Qatar Petroleum:

1. Examples of Business Outcomes by Region

TurkeyCredit Line for Turkiye Kalkinma Bankasi A.S. under GREEN Operations:Supporting Renewable Energy and Energy Efficiency Projects

JBIC established a credit line for Turkiye Kalkinma Bankasi
A.S. (TKB), a policy-based financial institution in Turkey. The
credit line is extended under the GREEN (Global action for
Reconciling Economic growth and ENvironmental preservation) operations to provide necessary funding through TKB
for environment-related projects in Turkey. The expanded
cooperative relationship between the two banks reinforcedby this credit line is expected to provide broader ranging
support for infrastructure projects in Turkey in which Japanesecompanies participate.

United Arab Emirates

JBIC Signs a Loan Agreement with Abu Dhabi National Oil Company (ADNOC):
Securing Long-Term Supply of Crude Oil and Strengthening a Strategic Partnership with the UAE

JBIC has signed a loan agreement with Abu Dhabi National Oil
Company (ADNOC), a state-run oil company wholly ownedby the Emirate of Abu Dhabi, United Arab Emirates (UAE).
ADNOC conducts oil and gas business in Abu Dhabi, which
produces most of the oil and gas in the UAE. This agreement
is designed to finance ADNOC to expand their oil and gas
development. The loan will help to secure a stable supply ofenergy resources to Japan as well as to strengthen bilateralties with the UAE, a strategically important country for Japan’s
resource strategy.

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United Arab Emirates

The Middle East

Examples of Business Outcomes in FY2012

Loan for Renewal of an Oil Field Interest in Abu Dhabi:
Supporting a Japanese Company in the Stable Holding of an Oilfield Interest

JBIC signed a loan agreement with Abu Dhabi Oil Co., Ltd.
to provide the necessary funds for Abu Dhabi Oil Co., Ltd. torenew its interest in the Mubarraz and other oilfields in the
Emirate of Abu Dhabi. All of the crude oil Abu Dhabi Oil Co.,
Ltd. produces in Abu Dhabi is shipped to Japan. Providing thisloan to support the renewal of the oilfield interest held by
Abu Dhabi Oil Co., Ltd. is expected to contribute to securing

United Arab Emirates

a long-term stable supply of independently developed crudeoil, which, in turn, will contribute to Japan’s energy security.

MoroccoAfrica

1. Examples of Business Outcomes by Region

Buyer’s Credit for a Coal-Fired Power Generation Project:
JBIC’s First Project Finance Support in Morocco

JBIC signed a project finance based buyer’s credit agreementwith the Moroccan company Jorf Lasfar Energy Company 5& 6 S.A. Under the project, a consortium in which MITSUI &CO., LTD. is participating provides the principal equipment forthe coal-fired power plant expansion in the Jorf Lasfar district,and this loan will be used as a part of the construction costfor this power plant (the steam turbines are manufactured by
Mitsubishi Heavy Industries, Ltd., and the boilers are manufactured by IHI Corporation). This loan will help to create business opportunities for Japanese companies in Morocco, where
electricity demand is expected to increase in the years ahead.

Tunisia

Guarantee for Privately Placed Samurai Bonds Issued by the Central Bank of Tunisia:
JBIC’s First Guarantee for Samurai Bonds Issued by an African Country

JBIC provided a guarantee for yen-denominated foreign bonds(Samurai bonds) issued in Japan by the Central Bank of Tunisia.
This guarantee is a part of the support provided to countries
in the Middle East and North Africa under the Deauville Part-

Tunisianership6, and is also JBIC’s first guarantee for Samurai bonds
issued by a government of an African country. This guarantee
will help the Tunisian government diversify its funding sources,and by stimulating the Samurai bond market and deepening
bilateral relations with Tunisia. It is also expected to give
added momentum to the business operations of Japanesecompanies.

6. The Deauville Partnership is a framework for supporting historical change in Middle East and North African nations agreed upon at the G8 Deauville Summit in May 2011.

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Examples of Business Outcomes in FY2012

AngolaAfricaBuyer’s Credit for Exporting Textile Manufacturing Machinery:Supporting Japanese Exports of Textile Manufacturing Machinery

JBIC signed a buyer’s credit agreement with the Government of the
Republic of Angola. The loan will provide the necessary funds forthe purchase of necessary textile manufacturing machinery (madeby Toyota Industries Corporation, Murata Machinery, Ltd., etc.)from Marubeni Corporation under the project implemented by theAngolan Ministry of Industry for rebuilding state-run textile manufacturing plants in Angola. The Angolan government is currently
pushing ahead with post-war reconstruction following the end of
the prolonged civil war, and rebuilding the textile industry, which
relies on imports for the majority of its textile products, as a key
government platform. The loan will also help the Japanese textile
industry to maintain and improve its international competitiveness.

1. Examples of Business Outcomes by Region

African Region

Export Credit Line for The Development Bank of Southern Africa:
Supporting Japanese Exports to the African Region

JBIC established an export credit line7 for The Development
Bank of Southern Africa to provide funds for local companies
in Southern Africa and other regions of Africa to purchasemachinery and equipment from Japanese companies. Many
Southern African countries have an abundance of resources,
and their economic growth fueled by resources development
continues to reinforce the need to develop the local infrastructure. Against this backdrop, Japanese companies are looking
toward these countries for opportunities to export machineryand equipment, and therefore have rising expectations on therole that JBIC can play in this region.

7. An export credit line is a form of export credit in which JBIC commits to the maximum amount of credit to be extended to foreign banks or other entities to finance exportsof machinery, equipment and services from Japan.

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CanadaNorth America

Examples of Business Outcomes in FY2012

Loan for Acquisition of Interests in and Development of Coal-Bed Methane:
Supporting Japanese Participation in a Coal-bed Methane Project

JBIC signed a loan agreement with Toyota Tsusho Corporation.
This loan will provide the necessary funds to Toyota Tsusho
Corporation to enable its wholly owned Canadian subsidiary—Toyota Tsusho Wheatland Inc.—to acquire a part interest in the coal-bed methane (CBM)8 fields in Canada from
Encana Corporation, Canada’s largest natural gas producer,
for CBM development. This loan will help to improve Japaneseknow-how on CBM development and raise the ratio of Japan’s
independently developed energy resources, which, in turn, is
expected contribute to Japan’s energy security.

Canada

1. Examples of Business Outcomes by Region

Loan for Acquisition of Interests in and Development of Shale Gas:
Supporting Japanese Acquisition of Interests in and Development of Shale Gas

JBIC signed a loan agreement with INPEX CORPORATION(INPEX). This loan will provide the necessary funds to INPEX
to enable the Canadian company jointly established by INPEX
and JGC CORPORATION to acquire a part interest in Canadianshale gas fields held by the Canadian oil and natural gas
development company NEXEN Inc., and develop and produce
shale gas. This loan will help to improve Japanese know-how
on shale gas development and raise the ratio of Japan’s independently developed energy resources.

United States

Loan for Acquiring Equity in an Oil and
Gas Development Company:
Supporting Overseas Resources Development by Japanese Companies

JBIC signed a loan agreement with JD Rockies Resources
Limited (JDR), a wholly owned U.S. subsidiary of ITOCHU
Corporation. The loan provides the necessary funds for
ITOCHU Corporation to acquire equity in the U.S. oil andgas development company Samson Investment Company(Samson) through JDR. Samson produces the largest volume
of oil and gas among unlisted oil and gas development companies in the U.S., and over the past several years, it has also
been developing unconventional natural resources. This loan
will also help to expand opportunities for Japanese companies
to participate in unconventional natural resources development projects.

8. Coal-bed methane (CBM) is methane extracted from and near coal-beds. It is drawing attention along with shale gas as “unconventional” natural gas.

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Examples of Business Outcomes in FY2012

United States

North America

Loan for Acquisition of Interests in and Development ofTight Oil Reserves:
Supporting Japanese Participation in a Tight Oil Development Project

JBIC signed a loan agreement with Sumitomo Corporation andits U.S. subsidiary Summit Discovery Resources III LLC (SDR
III). This loan will provide the necessary funds for Sumitomo
Corporation to acquire through SDR III a part interest in U.S.
tight oil9 reserves held by the U.S. oil and gas development
company Devon Energy Corporation, and to develop andproduce tight oil. The know-how on tight oil development
gained by Japanese companies through this project will leadto greater opportunities for Japanese participation in shale oiland gas development projects, and help to raise the ratio ofJapan’s independently developed oil resources through theholding of tight oil interests.

1. Examples of Business Outcomes by Region

United States

Loan for Shale Oil Development:
Supporting Japanese Participation in a Shale Oil Development Project

JBIC signed a loan agreement with JGC Exploration Eagle Ford
LLC (JEEF), a wholly owned U.S. subsidiary of JGC Corporation.
This loan will provide the necessary funds for JGC Corporation
to develop and produce shale oil in the U.S. Eagle Ford shale oilfields, of which JGC Corporation holds a part interest throughJEEF. In view of the projected rise in shale oil production in theyears ahead, the know-how on shale oil development gainedby Japanese companies through this loan will lead to greater
opportunities for Japanese participation in overseas shale oil
development projects.

9. Unlike conventional oil that is extracted from wells naturally stored in the stratum, tight oil exists widely through tight strata such as sandstone, limestone and shale formations,and the methods used for its extraction are similar to those used in shale oil and gas extraction (horizontal drilling, hydraulic fracturing, etc.).

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BrazilLatin America and the Caribbean

Examples of Business Outcomes in FY2012

Loan for Forestation, Woodchip Manufacturing and Sales Project:
Supporting Japanese Companies to Secure Long-term Stable Woodchip Supply

JBIC signed a loan agreement with Amapá Florestal e Celulose
S.A. (AMCEL), a Brazilian company capitalized by Japanesecompanies. This loan provides the necessary funds for AMCEL
to plant eucalyptus trees and manufacture and sell woodchips
sourced from plantation forests in Brazil. World woodchip
supply and demand is expected to tighten over the medium
to long term as demand for paper expands with economic
growth in emerging market countries, and this loan will help
Japanese companies to secure a long-term and stable supply
of woodchips from plantation forests.

Chile

1. Examples of Business Outcomes by Region

Project Finance for a Coal-Fired Power Generation Project:
Supporting the First Power Infrastructure Project by a Japanese Company in Chile

JBIC signed a project finance loan agreement with Empresa
Electrica Cochrane SpA, a Chilean subsidiary of Mitsubishi
Corporation, for the Cochrane Coal-Fired Power Project. Under
this power infrastructure project, Mitsubishi Corporation, as
an equity investor, will undertake all development processes,
from construction to operation, jointly with the Chilean com-Cochrane Sitepany AES Gerner S.A. This is the first power infrastructure project in Chile with capital participation by a Japanese company,
and is expected to become a model for future infrastructure
projects in Chile by Japanese companies.

Chile

Loan for a Project to Expand the World’s Largest Copper Mine:
Supporting the Long-term, Stable Procurement of Copper Concentrate by Japanese Companies

JBIC signed a loan agreement with Minera Escondida
Limitada (MEL), a Chilean company capitalized by Mitsubishi
Corporation, JX Nippon Mining & Metals Corporation,
Mitsubishi Materials Corporation, BHP Billiton Group and Rio
Tinto Group. The loan will provide the necessary funds for
MEL to expand its Escondida Copper Mine, the world’s largest copper mine, in Chile, and increase production of copper
concentrate. The copper concentrate produced by MEL is
crucial to Japanese companies due to its high quality, and thisloan will contribute to the long-term, stable supply of copper
concentrate to Japan.

   

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Examples of Business Outcomes in FY2012

Chile

Latin America and the Caribbean

Loan for Acquiring Equity in a Major Resources Subsidiary:
Contributing to Securing the Medium to Long Term Stable Supply of Copper Resources to JapanJBIC signed separate loan agreements with Mitsubishi
Corporation, MITSUI & CO., LTD., and a wholly owned subsidiary of MITSUI & CO., LTD. The loans will provide the necessary
funds for Mitsubishi Corporation and MITSUI & CO., LTD. toacquire equity in Anglo American Sur S.A., a wholly owned
Chilean subsidiary of the major British mining company Anglo
American plc. with a substantial portfolio of copper assets inChile, and also to acquire offtake rights for copper concentrates etc. The stronger cooperative relationship and strategic
ties with major mining companies resulting from this are also
highly significant for Japan’s securing a medium to long term
supply of copper concentrates.

1. Examples of Business Outcomes by Region

MexicoLoan for Automobile Manufacturing and Sales Project in Mexico:
Supporting the Overseas Business Operations of the Japanese Automobile Industry

JBIC signed a loan agreement with Mazda Motor Manufacturing
de Mexico S.A. de C.V. (MMMdM), a Mexican subsidiary of Mazda
Motor Corporation. This loan will provide the necessary funds to
MMMdM for the manufacture and sale of automobiles in Mexico.
Mazda Motor Corporation established MMMdM in Mexico as a
production site to manufacture and assemble cars for the important North American and Central and South American markets

Mexicowith a view to strengthening its global production network andexpanding its overseas operations to increase the local production
ratio, and in providing support to Mazda Motor Corporation in its
overseas business operations. This loan will help Japanese industries maintain and improve their international competitiveness.

MexicoLoan for Automobile Steel Pipe Manufacturing and Sales Project:
Supporting the Overseas Business Deployment of the Japanese Steel Industry

JBIC signed a loan agreement with Nippon Steel Pipe Mexico,
S.A de C.V. (NPM), a Mexican company jointly establishedby Nippon Steel & Sumitomo Metal Corporation, SPT and SC
Investment Co., Ltd. (a joint venture of Sumitomo Pipe andTube Co., Ltd. and Sumitomo Corporation), and Metal One
Corporation. The loan provides the necessary funds to NPM
for the manufacture and sale of high grade steel pipes forautomobiles in Mexico. In providing support for the overseas
business deployment of these companies investing in NPM,
this loan will help the Japanese steel industry maintain andimprove its international competitiveness.

   

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MexicoLatin America and the Caribbean

Examples of Business Outcomes in FY2012

Partial Acquisition of Publicly Placed Samurai Bonds Issued by the Mexican Government:
Supporting Diversification of the Mexican Government’s Funding Sources and Invigoration of the Samurai Bond Market

JBIC partially acquired the publicly placed yen-denominatedforeign bonds (Samurai bonds) issued in Japan by the Mexican
government. This acquisition will help to maintain and increase
the presence of Mexican government bonds in the Tokyo market, and provide a broad range of investment opportunities
to Japanese investors. JBIC holds an annual meeting for policy
dialogue with the Mexican government aimed at promoting
mutual cooperation and deepening bilateral economic relations, and at the second annual meeting held in fiscal 2012,
the Mexican government expressed its appreciation to JBIC
for this partial acquisition.

Venezuela

1. Examples of Business Outcomes by Region

Buyer’s Credit for Exporting Railway Cars:
Supporting Japanese Exports of Railway Cars

JBIC signed a buyer’s credit agreement with the Venezuelan
government. The loan will provide the necessary funds for
the Venezuelan state-run Instituto de Ferrocarriles del Estado(State Railways Institution) to purchase Japanese railway cars
(built by NIPPON SHARYO, LTD. and TOSHIBA CORPORATION)
from Marubeni Corporation to run from the capital Caracas
to the neighboring city of Tuy Medio. This mass-transit public
transport infrastructure project is expected to help alleviate urban traffic congestion and ease population pressures throughthe development of neighboring cities.

North America and Europe

Other

Equity Participation in a Fund Investing in Large Scale Infrastructure Projects Mainly inNorth America and Europe:
Supporting the Expansion of Infrastructure-related Investment Opportunities for Japanese Investors

JBIC agreed to equity participation in Japan Infrastructure
Investment Partners L.P., a fund established to invest in large
scale infrastructure projects in North America and Europe, andmanaged by a subsidiary of Mitsubishi Corporation. Throughparticipation in the Global Strategic Investment Alliance10, thefund will invest in airports, railways, ports and harbors, powertransmission and distribution, gas pipelines and other large
scale infrastructure projects primarily in North America andEurope, and is expected to expand the infrastructure-related
investment opportunities for Japanese corporate and institutional investors.

10. Global Strategic Investment Alliance is an alliance of multiple investors led by OMERS, a public-sector pension fund established in Ontario, Canada.

46

JBIC Annual Report 2013

2· Examples of Business Outcomes Relating to Support for SMEs

Manufacturing and Sales Business of Plant Facility Production

NAGAOKA INTERNATIONAL CORPORATION (NIC) has longpossessed top-most technological capacity for screen internals, which are used as major equipment for the improvement, desulfurization and other processes in petrochemicalplants and refineries. Nagaoka Hitachi Zosen Equipment(Dalian) Co., Ltd., its subsidiary in China, plans to produce
and sell plant facilities,
including those for petrochemicals, refineries
and the water related
sector. JBIC provided aloan to NIC for investingin this subsidiary.

TOYO METAL TREATING CORPORATION (TOYO METAL) is
engaged in metal heat treat processing primarily for steel rods
and other metal materials and metal parts used extensively in
automobiles, construction machines, equipment for ships andmachine tools. TOYO METAL TREATING (CHANGZHOU) CO.,LTD, its subsidiary in China, conducts metal treatment for steelrods (to be used forsteering wheel systems
and other products).
JBIC provided loans to
TOYO METAL for investing in this subsidiary andfor parent-subsidiarylending.

Manufacturing and Sales Business of Plastic Products

DAIHO INDUSTRIAL Co., Ltd. manufactures and sells a broad
range of plastic products, including parts for air-conditioner
cabinets and other household electrical appliances, and engine
covers and other molded plastic parts for motor vehicles, andis a leader in large injection molding and gas molding technologies1. The Indonesian subsidiary PT. DAIHO INDONESIA
manufactures and sells
plastic products for
OA equipment. JBIC
provided a loan to PT.
DAIHO INDONESIA tobuild a new factory.

ThailandIndonesia

DAIHO INDUSTRIAL Co., Ltd.

Momoi Fishing Net Mfg. Co., Ltd.
Manufacturing and Sales Business of Fishing Nets

Momoi Fishing Net Mfg. Co., Ltd. undertakes all processes offishing net manufacture, from sourcing raw materials to thefinal finished product, and is Japan’s leading manufacturerof gill nets, the company’s main product, using primarily
monofilament2. The company’s Indonesian subsidiary P.T.
Indoneptune Net Mfg., Co. manufactures and sells fishing nets,
and JBIC provided a loan
to P.T. Indoneptune Net
Mfg., Co. to acquire additional machinery andequipment.

Japan Chemical Engineering & Machinery Co., Ltd.
Plant Engineering BusinessJapan Chemical Engineering & Machinery Co., Ltd. (JCEM) is
the first developer of an alcohol distillation plant in Japan andhas been expanding its scope of business from the manufacture and construction of various types of equipment for thechemical industry to engineering for environmentally-friendly
cleaner plants. NIKKAKI (THAILAND) CO., LTD., its subsidiaryin Thailand, is engaged inengineering business ofchemical, food and drink,and energy plant machineries and equipment. JBIC
provided loans to JCEM forinvesting in this subsidiaryand for parent-subsidiarylending.

2. E
 xamples of Business Outcomes Relating to Support
for SMEs

Heat Treated Metal Processing Business

ThailandChina

TOYO METAL TREATING CORPORATION

Indonesia

China

NAGAOKA INTERNATIONAL CORPORATION

Examples of Business Outcomes in FY2012

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

3

TOKOKOSEN CORP.
Manufacturing, Sales and Wholesale Business ofAutomobile Parts and Other Products

TOKOKOSEN CORP. (TOKOKOSEN) is a trading company
specialized in trade with China. In recent years, it has been
making active efforts to conduct the business that integrates
manufacturing and trading. Its major business is manufacturing
and selling garments, and fabric used for automobiles at its
domestic and overseas production bases. Kosen Fibertec(Thailand) Co., Ltd., its
subsidiary in Thailand,
manufactures, sells andwholesales automobile
parts and other products. JBIC provided aloan to TOKOKOSEN to
increase in the capital ofthis subsidiary.

1. In gas molding technology, gas is injected into the plastic to form a precise shape matching the mold.
2. Monofilament is a single filament fiber; the single fiber extruded from each nozzle in the spinning process forms a strand of line that is used for fishing lines or brushes.

JBIC Annual Report 2013

47

3

Manufacturing and Sales Business of Plastic Film

India

Thailand

Examples of Business Outcomes in FY2012

Daika Kogyo Co., Ltd.

Ryonan Electric Corporation
Manufacturing and Sales Business of Automobile Parts

Ryonan Electric Corporation manufactures and sells electricalcomponent parts for motor vehicles, primarily wire harnesses,
based on its own design for each vehicle model. The company’s strength is in the outstanding quality of its products.
The Indian subsidiary RYONAN ELECTRIC INDIA PVT. LTD.
manufactures and sells electrical component parts for motor
vehicles, including EPS
brush holder assemblies3. JBIC co-financedwith The Hyakujushi
Bank, Ltd. the funds
necessary for the Indiansubsidiary’s capital investment.

TAISHODO CORPORATIONHIROSE Corporation

Manufacturing and Sales Business of Electronic Circuit Boards

India

Viet Nam

2. E
 xamples of Business Outcomes Relating to Support
for SMEs

Daika Kogyo Co., Ltd. has achieved stable product quality in its manufacture of a broad range of plastic film fromfood packaging to industrial material through its integrated
production structure. The company’s Thai subsidiary Daika
Kogyo (Thailand) Co., Ltd. manufactures breathable film used
as a back sheet for disposable diapers. JBIC provided a loan
to Daika Kogyo Co., Ltd.
to expand the manufacturing facilities andequipment at the local
subsidiary.

Manufacturing and Sales Business of Power Distribution Boards

HIROSE Corporation designs, manufactures and sells highvoltage power distribution boards and a wide range ofcontrol panels, and its strength is in its integrated businessstructure that also includes the installation and maintenanceof those products. The company’s Indian subsidiary ASAHI
Switchgear Products Limited manufactures and sells power
distribution boards. JBIC
co-financed with The
Hyakujushi Bank, Ltd.
the funds necessary for
the Indian subsidiary toestablish a new plating
and painting plant.

BELLSONICA CORPORATIONSHOSHIBA MANUFACTURING COMPANY LTD.

Manufacturing and Sales Business of Automobile Parts andOther Products

BELLSONICA CORPORATION (BELLSONICA) has strength in the
integrated production process—ranging from product design
to welding, painting and assembling, in addition to its hightechnological capabilities in manufacturing metal-stamped
parts, which will constitute a major framework of automobiles. Bellsonica Auto Component India Private Limited, its
subsidiary in India, manufactures and sells automobile parts.
JBIC provided a loan to
BELLSONICA for financing the expansion of thesubsidiary’s plant.

MexicoIndia

TAISHODO CORPORATION undertakes all processes of electronic
circuit board manufacture, from printed circuit board patterndesign, through parts procurement to board mounting and testing, and is an industry leader in its technological expertise andquality control capabilities underpinned by its unique high-mix,
low-volume, short-run production system. The Vietnamese subsidiary Taishodo Vietnam
Co., Ltd. manufacturesand sells electronic circuit boards. JBIC provided
a loan to TAISHODOCORPORATION’s Hong
Kong subsidiary to finance the Vietnamese
subsidiary for its factory
expansion.

Manufacturing and Sales Business of Automobile Parts andOther Products

SHOSHIBA MANUFACTURING COMPANY LTD. (SHOSHIBA)
manufactures and sells press-molded safety parts such as
airbag cases and seat frames. SHOSHIBA MEXICANA S.A.
de C.V., its subsidiary in Mexico, manufactures and sells
automobile parts and other products. JBIC provided loans
to SHOSHIBA for investing in this subsidiary and for parentsubsidiary lending.

3. EPS (Electric Power Steering) brush holder assemblies are electric power steering component parts.

48

JBIC Annual Report 2013

3· Examples of Business Outcomes Relating to the Environment

Nowadays, achieving economic development compatible withthat supply efficient power by using IT and eco-city projects

environmental sustainability is recognized as a common chal-that aim to realize environmentally sustainable cities.

lenge facing developed and developing countries alike. Given

Amid these developments, JBIC is devoting itself to sup-this self-realization, there are growing expectations across the

porting environment conservation and improvement projects,

world on implementing projects conducive to environmental

not to mention environmental and social considerations being

conservation and improvement.

made in individual projects. JBIC also launched GREEN (Global

A wide range of efforts are underway all over the world inaction for Reconciling Economic growth and ENvironmental

this sector, including energy efficiency improvement projects;preservation) operations in April 2010 and has since beenrenewable energy harnessing projects such as solar and wind

actively focusing its support on efforts to conserve the global

power generation; highly efficient, high performance coal-fired

environment, such as projects that are expected to signifi-

thermal power generation and natural gas-fired combined

cantly reduce greenhouse gas (GHG) emissions, while taking

cycle power projects that reduce carbon dioxide emissions;account of the global dissemination of Japan’s internationally-urban transport projects such as transit rails that mitigate

acclaimed advanced environmental technologies (see p. 59).

Examples of Business Outcomes in FY2012

Supporting Environmental Conservation and Improvement Projects

3

3. E xamples of Business Outcomes Relating to
the Environment

traffic congestion and reduce air pollution; smart grid projects

Supporting Renewable Energy and Waste-to-Energy Projects in Malaysia
JBIC established a credit line for RHB Bank Berhad (RHB), one of theleading commercial banks in Malaysia. The credit line is extended
under the GREEN operations to provide necessary funding for biomass power generation and other renewable energy projects andwaste-to-energy projects in Malaysia. Environment-related business
opportunities are increasing in Malaysia with the introduction ofsubsidies for renewable energy programs, such as the feed-in tariff
system. This credit line is expected not just to contribute to a reduction in GHG emissions, but also to provide Japanese companies
with greater environment-related business opportunities in Malaysia.

Providing Local Currency Loans to Support Japanese Companies’ Participation in Renewable Energy Power Generation
JBIC is providing a project finance loan for renewable energy projects
in Canada in which a Japanese company invests. As developed countries in particular adopt policies that advance the use of renewableenergy, business opportunities for Japanese companies as well willcontinue to expand. Under this project, a consortium will build andoperate wind power stations and solar power stations in Ontario
and British Columbia, Canada, and sell the generated power overthe following 20 years. This project is a long-term investment withrevenue received in the local currency, so JBIC is minimizing therisk inherent in foreign currency borrowings by extending finance inCanadian dollars. In this way, JBIC is providing support for long-term
overseas projects by Japanese companies.

JBIC Annual Report 201349

3
Examples of Business Outcomes in FY2012

Supporting Renewable Energy Projects in Colombia
JBIC has established a credit line for Banco de Bogotá S.A. (Banco de
Bogotá) in Colombia under the GREEN operations to provide necessary funding for environmental projects utilizing renewable energy in
Colombia, including small-scale run-of-the-river hydroelectric generation and biomass power generation. The Colombian government ispursuing environmental policies that include numerical targets to
cut its GHG emissions, and this credit line is expected to give further
momentum to the introduction of renewable energy and contributeto the reduction of GHG emissions in Colombia. It is also expected tofacilitate the spread of Japan’s internationally recognized advanced
environmental technologies in Colombia.

3. E
 xamples of Business Outcomes Relating to
the Environment

Partnerships and Knowledge Sharing in the Environmental Sector
As environment-related projects are expected to be imple-

sharing and knowledge dissemination by holding seminars andmented in many places across the world with the aim ofparticipating in relevant events, while forming close partner-

realizing global environmental conservation and a low

ships with foreign governments and government agencies,

carbon economy, JBIC is supporting Japanese overseas busi-

domestic prefectural and municipal governments, and otherness deployment as well as efforts being made by foreign

stakeholders.

governments, not only in financing but through information

Participation in the East Asia Low Carbon Growth Partnership Dialogue
JBIC, together with the World Bank and the Asian Development
Bank, participated in the East Asia Low Carbon Growth Partnership
Dialogue held in Tokyo in April 2012.
The Dialogue discussed a cooperative structure for promoting
low carbon growth in East Asia with the aim of reconciling global environmental preservation with economic growth through the spreadof energy-saving technologies in East Asian countries. Participants
included government ministers responsible for environmental andenergy-related policy from 18 member countries of the East Asia
Summit (EAS). The Dialogue reached an agreement that government officials, research institutions, and the private sector will work
together to build a network that can realize low carbon growth andsocieties that are much more resilient to climate change.

50

JBIC Annual Report 2013

4· Examples of Business Outcomes Relating to Studies, and Collaboration with
Overseas Government Organizations and International Organizations

overseas government organizations, foreign and domestic
research institutions, and experts in various sectors, JBIC is
engaged in gathering and analyzing a range of informationand sharing knowledge.
 Survey Report on Overseas Business Operations by

Japanese Manufacturing Companies
JBIC has been conducting the Survey on Overseas Business

The Sixth Economic Forum of The Export-Import Bank of China, The Export-Import
Bank of Korea and JBIC

Operations by Japanese Manufacturing Companies, a questionnaire survey, every year since 1989, and the fiscal 2012

The International Monetary Fund (IMF) and the World Bank

survey was the 24th. This annual survey attracts widespread

Annual Meetings were held in Tokyo in October 2012, the firstinterest

becauseoftime since 1964. During the period of the Meetings, JBIC held
the “JBIC Infrastructure Development Seminar” with the cooperation of the Ministry of Finance Japan, the World Bank, andidentifying the current

the Japanese Bankers Association. Featuring keynote speakers

trends and future out-

and discussions among panelists of infrastructure experts fromlook of the overseas

Japan and overseas, the seminar aimed at building common

businessground among the players concerned about the optimum

operationsof Japanese manufac-

form of collaboration between the government and private

turing companies.

sectors and the division of responsibilities to meet growing

JBIC compiles the results of the survey into a report, andinfrastructure demand especially in emerging market coun-makes this report and the information it contains widely avail-tries. The seminar had an attendance of approximately 200

able in booklet form, on the JBIC website, and also throughrepresentatives from Japanese and foreign private companies,

seminars held in collaboration with chambers of commerce

financial institutions and government agencies, and embassies

and regional banks throughout Japan. JBIC explained thein Tokyo, and generated considerable interest and awarenessresults of the survey at the “Overseas Investment Seminar:

about infrastructure development through PPP (Public Private

Overseas Business Operations by Japanese Manufacturing

Partnership).

4. Examples of Business Outcomes Relating to Studies, and Collaboration with
Overseas Government Organizations and International Organizations

its distinctive character and continuity in

Examples of Business Outcomes in FY2012

JBIC is undertaking studies and research relating to overseas
investments and international finance. In regular contact with

3

Companies” held in Tokyo in December 2012, and also JBIC
held explanatory meetings with overseas Japanese chambersof commerce and industry and foreign governments for communicating these results to their members. The findings of thesurvey were also used effectively in making policy proposals
to foreign governments.
Survey results and seminars are widely reported on bynewspapers and other media, and articles and commentaries
covering the survey are provided to the various branches ofthe mass media.
 Collaboration with Overseas Government

Organizations and International Organizations
In May 2012, the Economic Forum of The Export-Import BankJBIC Infrastructure Development Seminarof China, The Export-Import Bank of Korea and JBIC was heldin Korea. The forum brought together economists from theAlso in October 2012, JBIC together with the Banco Nacio-

economic research and sovereign risk assessment depart-nal de Desenvolvimento Econômico e Social (BNDES) held thements to discuss various issues facing the global economy and“BNDES- JBIC Seminar Commemorating 50 Years of Coopera-

political and economic conditions in emerging and develop-tion” in Tokyo. Like JBIC, BNDES is a governmental financial

ing countries. The forum was the sixth held since the first in

institution, and over these 50 years of cooperation, the two

2009, and was hosted by The Export-Import Bank of Korea.

banks have developed a strong relationship in which JBIC has

Participants discussed political and economic issues facing six

provided BNDES with funds amounting to a total of 3.5 billion

countries in East Asia, the Middle East, Southeast Asia, andU.S. dollars for 14 projects. Roughly 300 representatives from

Latin America, and also the European financial crisis.

Japanese companies and Japanese investors were invited to

JBIC Annual Report 2013

51

3
Examples of Business Outcomes in FY2012

the seminar, and as well as reflecting on the half-century ofpresentations and panel discussions on the importance ofcooperation between the two banks and Brazil’s economic

improving overseas project management capabilities, and thedevelopment, the seminar discussed the course of future co-effective use of and recent trends in project finance using

operation aimed at promoting economic exchanges between

examples of actual infrastructure projects.

the two countries.

4. Examples of Business Outcomes Relating to Studies, and Collaboration with
Overseas Government Organizations and International Organizations

Seminar “Project Finance in Overseas Project Management”

BNDES-JBIC Seminar Commemorating 50 Years of Cooperation

JBIC held the following joint forums and seminars with the
National Graduate Institute for Policy Studies (GRIPS).

In November 2012, JBIC participated in the Islamic Banking

In July 2012, JBIC and GRIPS held the seminar “Philippines’

Summit Africa held in Djibouti. The summit featured a special

Policy Challenges Ahead: Public-Private Partnerships and Gov-

address by the President of Djibouti and a key-note address

ernance.” The seminar invited a University of the Philippines

by the Governor of the Central Bank of Djibouti, as well as

professor who also formerly served as the Director General

presentations by senior officials of international organizations.

of National Economic and Development Authority to speak,

The summit discussed a broad range of topics, including risk

and dealt with PPPs in the Philippines, where there is greatmanagement, legal and accounting issues in Islamic financing,business potential and appeal to Japanese companies, andIslamic capital markets, and the Islamic insurance (takaful)still considerable scope for infrastructure development.

market.

In November 2012, JBIC and GRIPS held the seminar “Myanmar’s Political Landscape and Economic Prospects.” Following Collaboration with Universities, Research Institutions

and Academic Societies

a presentation by a noted Myanmarese political and economic
researcher invited from the Institute of Southeast Asian Studies

In response to an invitation from the Faculty of Economics(ISEAS) in Singapore, Japanese researchers joined discussionsof Universitas Indonesia, in May 2012 JBIC sent a member offocusing on Myanmar’s economic outlook.

staff to give a special lecture on development finance in Asiaand infrastructure financing through PPP.
Also in May 2012, JBIC presented a report entitled “Risks

In January 2013, JBIC and GRIPS held the forum “Prospects
for Indonesia’s Sustainable Growth—Is This Time Different
from the Pre-Asian Crisis Landscape?” Following a presenta-

in policy prescriptions for the European sovereign-debt crisis:tion on the prospects for Indonesia’s sustainable growth by

Muddling through or trapped in a vicious circle?” at the “Thethe former Governor of Bank Indonesia, central bank, a range

Causes of the Eurozone Debt Crisis” international financing

of views were exchanged on the significant political and eco-

panel held as a part of the Japan Society of Monetary Economics 2012 Spring Annual Meeting Program.
In June 2012, JBIC cosponsored a seminar entitled “WeJapanese should be able to do business better in India. Why
not?” with the Graduate School of Management of Kyoto
University. Speakers from a broad range of fields, including
JBIC, which are conducting business in India, gave presentations and held a panel discussion on points for successful
business operations in India. A second seminar was held inMarch 2013. In September 2012, JBIC also cosponsored theseminar “Project Finance in Overseas Project Management”
with the Graduate School of Management of Kyoto University,and the Japan Institute for Overseas Investment (JOI). The
seminar was attended by about 200 people, and featured

52

JBIC Annual Report 2013

JBIC-GRIPS joint forum “Prospects for Indonesia’s Sustainable Growth—Is This Time
Different from the Pre-Asian Crisis Landscape?”

3
Examples of Business Outcomes in FY2012

nomic transformation that has taken place in Indonesia since
the Asian financial crisis.
In September 2012, JBIC co-hosted the “Second IMF-SCID
Conference on Emerging Asia: Asia’s Rebalancing and Global
Implications” with the IMF and the Stanford Center for International Development (SCID) of Stanford University. The
two-day conference gave the numerous attending experts andeconomists from Japanese universities, Stanford University,
and Asian countries including China, Malaysia, the Philippines,
Singapore and Thailand, the opportunity for discussion on abroad range of critical topics for the future of the Asian andglobal economy.
In November 2012, JBIC gave a presentation entitled“Prospects of Indonesia and Thailand: Political and Economic

Sovereign risk workshop

Conflict in Middle-Income Countries” at the public lecture on
Growth—Is This Time Different from the Pre-Asian Crisis Land-

East Asian Development (ICSEAD) and the City of Kitakyushu.

scape?” held in January 2013, JBIC hosted the former Governor

ICSEAD is a research institution established with the aim ofof Bank Indonesia, central bank, who is currently a profes-

conducting research on economics and social issues in Eastsor of the Nanyang Technological University’s S.Rajaratnam

Asia and contributing to international and regional society.

School of International Studies. Discussions were held on the

In December 2012, JBIC participated in the “International

current state of the Indonesian economy and prospects forConference: The Changing Paradigm of India-Japan Relations”

sustainable growth compared to the situation before the Asian

hosted by the Indian policy think-tank Indian Council for Re-

financial crisis.

search on International Economic Relations (ICRIER). Held in

In February 2013, JBIC held the “Resilience Index” work-

New Delhi, the two-day conference was broken down into fiveshop, and had the opportunity to discuss the resilience index,

sessions covering a broad range of themes. Guest speakers

developed by an overseas team of experts. This index as-

included experts from the industrial, academic and govern-sesses the degree of resilience that developed, developing

ment sectors from Japan and India.

or emerging countries have against an external shock, andidentifies the background factors to this.

4. Examples of Business Outcomes Relating to Studies, and Collaboration with
Overseas Government Organizations and International Organizations

Asia co-hosted by the International Centre for the Study of Collaboration with Private-sector Financial

Institutions
JBIC is holding discussions and exchanging information withprivate-sector financial institutions concerning the political andeconomic situation in countries important to Japan, their future
prospects, and also risk analysis and assessment relating tothose countries.
In fiscal 2012 JBIC held workshops on the following
themes with officials responsible for sovereign risk screening
in private-sector financial institutions.
In July 2012, JBIC held the forum “Philippines’ Policy Challenges Ahead: Public-Private Partnerships and Governance.”
A professor from the University of the Philippines was invited
to give a presentation, after which discussions were held on
the economic prospects of the Philippines and the policy
challenges the country faces.
In November 2012, JBIC held the forum “Myanmar’s PoliticalLandscape and Economic Prospects,” and hosted a seniorresearch fellow from ISEAS. The workshop served to deepen
participants’ understanding of the political and economic
situation in Myanmar as Japan and other countries and international organizations steadily move toward recommencing
support and assistance.
At the forum “Prospects for Indonesia’s Sustainable

JBIC Annual Report 201353

Financial Instruments

41

Financial Instruments

562

Prominent Initiatives in Recent Years

65

3

Framework for Supporting Globalization
Efforts of SMEs

66

JBIC Annual Report 201355

4

1· Financial Instruments

Financial Instruments

Export Loans
Export loans are provided to overseas importers and financial

based on the OECD Arrangement. In principle, the loan

institutions to support finance exports of Japanese machinery,amount should not exceed the value of an export contract

equipment and technology mainly to developing countries. Inor technical service contract, and excludes down payment.

particular, products such as marine vessels, power genera-

While local costs cannot, in principle, be applied to the loan,

1. Financial Instrumentstion facilities and other types of plant equipment incorporatesuch costs may be covered provided that the amount is withina large amount of advanced technology, and their export

the scope prescribed by the OECD Arrangement.

contributes to enhancing the technological base of Japaneseindustries. Further, Japanese shipbuilding and plant facilities
industries have a broad range of supporting industries including SMEs producing parts and components. Export loans JBIC
provides are also expected to positively contribute to thebusiness of these Japanese companies. Export loans are alsoavailable to developed countries in eligible sectors (see note).
Terms and conditions of export loans are determinedprivate-sector
financial
institutions(Note)
Eligible Sectors of Export Loans in Developed Countries (As of July 31, 2013)[Integrated Infrastructure System Projects]
Railways (high-speed, inter-city projects and projects in major cities), water business, biomass fuel production, renewable energy power generation, nuclear power
generation, power transformation, transmission and distribution, highly efficientcoal-fired power generation, coal gasification, carbon capture and storage (CCS),
highly efficient gas-fired power generation and smart grid
[Other Export Transactions]Ships, satellites, aircrafts, medical positron beam therapy equipment

Loan (B/L)*2

Financial institution, etc.,
in foreign country

Loan (B/C)*1
Loans

Japanese exporter(s)Exports of plants, etc.

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

Supporting Japanese Companies’ Export to Overseas
Water Infrastructure Project
JBIC provides a buyer’s credit to Hydrochem (S) Pte Ltd. (Hydrochem), a wholly owned subsidiary of Hyflux Ltd. (Hyflux) in Singapore
which is one of the world’s leading fully-integrated water solutions companies. This loan is intended to finance Hydrochem topurchase key components (reverse-osmosis membrane elements
manufactured by Toray Industries, Inc. and high pressure pumps
manufactured by Torishima Pump Mfg. Co., Ltd.) for Singapore’s
largest membrane-based seawater desalination plant from Mitsui& Co. Plant Systems, Ltd. Water-related business has been growing
at the global level, as water shortages caused by population growthand expanding economic activities have been drawing increasing
interest to water issues. This loan will thus contribute to maintaining and improving the international competitiveness of Japanesecompanies in water-related business.

56

JBIC Annual Report 2013

Supporting Export of Bulk Carriers by Japanese Companies
JBIC signed buyer’s credit agreements with PB Vessels Holding
Limited (PBVH) in the British Virgin Islands for funding its purchaseof four bulk vessels. PBVH is a wholly owned subsidiary of Hong
Kong’s leading shipping operator, Pacific Basin Shipping Limited(Pacific Basin). These loans are intended to finance Pacific Basin topurchase four of their bulk carriers built by three Japanese shipbuilders respectively in their domestic shipyards. This loan will support
to enhance the international competitiveness of the Japanese
shipbuilding industry, which faces stiff competition from shipyards
in other countries, and provides support to a sector that plays asignificant role in local economies by furthering employment atmany SMEs, as well as other related companies.

4

Import loans support imports of strategically important goods

 Products Eligible for Import Loans (Natural Resources)

including natural resources. They are extended to JapaneseOil, petroleum gas, LNG, coal, uranium, metallic ore, metals,

importers or foreign exporters. As Japan is poorly endowed

mineral phosphate, fluorite, salt, lumber, wood chip, pulp,

with natural resources, stable imports of natural resourcesand other materials

over the long term are one of the key factors underpinning

1. Financial Instruments

domestic economic activity. Import loans finance the develop-

Financial Instruments

Import Loansment and import of energy resources, including oil and LNG,
and mineral resources, including iron ore, copper and otherrare materials.
In addition to natural resources, JBIC provides a guarantee
facility for goods and services essential to the sound development of the Japanese economy, such as for the import ofaircraft.

private-sector
financial
institutions

Loan

Loan

Japanese Importer(s)Imports of natural resources

Foreign exporter(s)Supporting Secure Long-Term Access to Mineral Resources
by Japanese Companies

Financing for Japanese Power Companies to
Support Stable Supplies of LNG

JBIC provides an import loan to Corporación Nacional del Cobrede Chile (CODELCO) in Chile to ensure a stable procurement ofmolybdenum oxide. Molybdenum is a byproduct used as an additive to enhance the heat resistance and strength of steel (special
steel) and increase the function of chlorine resistance, etc. Thus, it
is an indispensable rare metal for manufacturing high-quality special
steel such as stainless steel. Recently, growing demand in emerging
market countries has affected the global demand-supply balanceof this material. Thus, nine Japanese companies have been making
efforts with the support of the Ministry of Economy, Trade andIndustry and others to secure stable procurement of molybdenumoxide from CODELCO. This loan will be extended to CODELCO,
which produces molybdenum products, on the premise of long-term
purchase of molybdenum oxide by Japanese companies. The loan
will be used as funds necessary to establish a new refinery plantof CODELCO. The loan has high significance in securing medium
and long term access to mineral resources for Japan.

Stable supply of the energy resources that sustain our daily lives
and economic activity is a vital issue, and LNG has recently become
increasingly important as a primary source of energy. In response tothese circumstances, JBIC provides Japanese power companies withthe funding necessary for import of LNG. This financing, by supporting LNG procurement by Japanese power companies, contributes
to a stable supply of energy resources for Japan, and the stabilityof power supplies that are essential to daily life.

molybdenum oxide

JBIC Annual Report 201357

4
Financial Instruments

Overseas Investment Loans

1. Financial Instruments

Overseas investment loans support Japanese foreign direct

Japanese companies including SMEs, as well as TSLs intended

investments. They are extended to Japanese companies

to support their M&A activities. JBIC is also able to provide(investors), overseas affiliates including joint ventures where

short-term loans for overseas business operations when

Japanese companies have equity interests and governments

bridge loans are required to fill the financing gap before it

or financial institutions that make equity participations in oroffers long-term loans. JBIC is further empowered to extend

extend loans to such overseas affiliates.

investment loans for projects in developed countries for eligible sectors (see note).

Direct loans to Japanese companies are intended for SMEs,
as well as for projects aimed at developing or securing inter-(Note)
Eligible Sectors of Overseas Investment Loans in Developed Countries (As of July
31, 2013)
Railways (high-speed, inter-city projects and projects in major cities), water business,renewable energy power generation, nuclear power generation, power transformation, transmission and distribution, highly efficient coal-fired power generation,coal gasification, carbon capture and storage (CCS), smart grid, development oftelecommunications network, biomass fuel production, highly efficient gas-fired power
generation, aircraft maintenance and sales, M&A activities, etc.

ests in overseas resources that are strategically importantto Japan, or for projects to assist with merger and acquisition (M&A) activities and other agreements (including tolarge companies). Moreover, JBIC is able to provide two-steploans (TSLs) to support the overseas business deployment ofprivate-sector
financial
institutions

Loan

Loan

Japanese company

Loans

Loans and/or equity participations

Loans

Project(s) inforeign country(ies)58

Government, financial
institution, etc., in foreigncountry, Japanese bank

Loan

Loans

Japanese affiliate(s)Equity participations

Joint venture partner(s)Supporting Financing for Large-Scale LNG Project Led by
Japanese Companies

Supporting Japanese Company’s Business Activities by
Providing Loan in Local Currency

JBIC provides loans to finance Australia’s large-scale Ichthys LNG
Project where Japanese companies have been taking the lead indeveloping the gas and condensate fields and producing LNG andother petroleum products. The global demand of LNG is projected
to increase due to growing demand in emerging market countries
and heightened environmental awareness. In Japan, there have been
increasing hopes for a stable supply of LNG in recent years. This
prospect has made Australia, with its abundant gas reserves andpolitical and economic stability, increasingly important as a supply
source of LNG. In this context, supporting Japanese companies forleading the development of energy resources in this project has asignificant implication for securing a stable LNG supply to Japan.

JBIC provides a loan denominated in Indonesia rupiah to PT. JTEKTINDONESIA (JID), an Indonesian subsidiary of Japanese JTEKT CORPORATION. This loan is intended to finance JID to add additional
equipment facilities for expanding their manufacturing and sales ofautomobile and motorcycle parts such as electric power steering,
bearings and starter clutches. Indonesia is a promising market withsustained growth, which is indicated by its annual production ofover 1.0 million automobiles in 2012. This loan will contribute tomaintaining and improving the international competitiveness of theJapanese automobile parts industry.

JBIC Annual Report 2013

4

Untied loans are financing basically to developing countries
necessary to implement projects and import goods, or forsuch countries to level their international balance of trade, or
stabilize their currency. Loans are not conditional on procurement of equipment and materials from Japan.

Promote business activities of Japanese companies; Maintain

Loan

Government,
financial institution, etc.,
in foreign country

and expand trade and direct investment from Japan; Financeprojects having significant effect on global environmental
preservation; and Finance projects maintaining international

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

Exporter(s)financial order.

1. Financial Instruments

Capital procured from untied loans is used to: Securestable supplies of energy and mineral resources to Japan;

private-sector
financial
institutions

Financial Instruments

Untied Loans

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

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

Supporting GHG Emission Reduction Projects in Brazil
JBIC provides a long-term loan to Petróleo Brasileiro S.A. (PETROBRAS), a state-owned oil company of Brazil under JBIC’s GREEN operations. The loan will support reduce GHG emissions by financing
the co-generation project at Comperj oil concessions and the flaring
gas reduction project at multiple offshore oil fields in the Campos
Basin1. This loan will support reduce GHG emissions as well as
further strengthen the relationship between JBIC and PETROBRAS,
which has high presence in Brazil, as it holds the majority of thecountry’s oil and gas reserves,and on which Japanese companies have focused attention
as a business partner.

Guarantees

PrivateFlows

Equity participations/ Loans

Eligible Entity:

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

Eligible Projects:

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

Supporting Japanese Business Activities Affected by
Flood Damage
JBIC provides a loan for KASIKORNBANK Public Company Limited(KBANK), a commercial bank in Thailand, to support the recovery
and business efforts of a number of Japanese local affiliates that
suffered directly or indirectly from the unprecedented flood that
occurred mainly in Ayutthaya and Pathumthani Provinces, and thecapital city, Bangkok in 2011. It provides long-term sub-loans to
subsidiaries of Japanese SMEs as well as those local companies
that constitute supply chains of Japanese affiliates through KBANK.
This loan is thereby aiming at
a speedy recovery of Japanese business activities. Ten
regional financial institutions
across Japan having partnership with KBANK participatedin this loan as cofinancers.

1. This project aims to reduce GHG
emissions by diverting flaringgas, which was being wasted
previously, to increase the supply for domestic consumption in
Brazil, upon the stabilization andcapacity expansions of compressors etc.

JBIC Annual Report 2013

59

4
Financial Instruments

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

1. Financial Instruments

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

Japanesecompany(ies)

Equityparticipations

Overseas
project

Japanesecompany(ies)

Equity participation

 Japanese companies acquire equity interests in
a foreign company to form business alliance

Equityparticipations

Fund

Equityparticipations

Other
investor(s)Equity participation

 Japanese companies form a consortium and participate in
an international fundBusiness allianceJapanesecompany(ies)

Equityparticipations

Foreigncompany

Japanesecompany(ies)

Fund

Equityparticipations

Other
investor(s)Equity participation

consortium

Supporting Japanese Companies’ Participation in
Infrastructure Projects

Supporting Japanese Companies’ Participation in
Infrastructure Projects in Southeast Asian Countries

JBIC contributes to Delhi Mumbai Industrial Corridor Development
Corporation Limited (DMICDC) in India by its equity participation.
DMICDC has been incorporated for carrying out project development activities such as preparing feasibility study and development
master plans and for coordinating the implementation of the various
projects including support to obtain necessary licenses for the Delhi
Mumbai Industrial Corridor (DMICDC) project2, cooperating withthe central government of India and State governments in DMIC
region. With this equity participation in DMICDC, JBIC intends toadvise structuring infrastructure projects in the DMIC region fromtheir early stages and thereby support the participation of Japanesecompanies in these projects.

JBIC contributes capital to The CapAsia ASEAN Infrastructure Fund III
L.P. (the Fund) managed by Capital Advisors Partners Asia Pte. Ltd.,(CapAsia), a fund management company in Singapore. The Fund is a
private equity fund targeting investment in infrastructure projects inSoutheast Asian countries. Also investors in the Fund are: The Bankof Tokyo-Mitsubishi UFJ Ltd. (BTMU), The Rohatyn Group (TRG), thefund management company in the U.S., and CIMB Group (CIMB),a major financial group in Malaysia. TRG and CIMB are the parent
companies of CapAsia. Through participating in the Fund, CapAsia,
TRG and CIMB will identify new projects by making use of their
existing networks. Additionally, BTMU aims to provide its customers
with business relationships between the Fund portfolio companies aswell as provide financial instruments to the portfolio companies andpromote cooperation with Japanese companies. The participationof BTMU and JBIC in the Fund is expected to lead to strengthening
support for the overseas business expansion of Japanese companies
and deploying Japanese overseas infrastructure business promoted
under the cooperation between the public and private sectors.

2. The DMIC project is a Japan-India joint development project which aims tobuild a freight rail line to connect Delhi and Mumbai and develop infrastructure along the line such as industrial estates, logistics parks, power plants,
roads, ports, residential areas and commercial facilities mainly by mobilizing
private investments.

60

Equityparticipation

JBIC Annual Report 2013

4

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

 Guarantees for Imports of Manufactured Products
Private financial institution,etc.

the borrowings made by Japanesecompanies to finance the import

Guarantee

of aircraft and other manufactured

Loan

products that are important for Japan.
Import of products

Foreign exporter(s)1. Financial Instruments

JBIC has a guarantee facility for

Financial Instruments

Guarantees

Japanese importer(s) Guarantees for Corporate Bonds Issued by Japanese Affiliates
JBIC supports Japanese affiliates operating overseas by providing guaran-

Investor(s)tees for the bonds they issue in local
capital markets.

Guarantee
Counterguarantee

Sub guarantee
Guarantees

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

Issue of bonds

Japanese affiliate(Issuer) Guarantees for Co-financing, Overseas Syndicated Loans and Public Sector Bonds
Loans to developing countries involve,
among others, currency conversion

Investor(s)and transfer risks, and country risk.

Guarantee

Guarantees that JBIC issues to cover

Guarantee

such risks will enable Japanese private
financial institutions to provide medium
and long term financing for developing countries, supporting developing

Issues of publicbonds, etc.

Loan

Private financial institution,
etc.

Loan

Government, etc.,
in foreign country

countries to bring in private capital andfacilitating private companies expanding international business activities.

 Guarantees for Currency Swaps
JBIC provides guarantees for swap

Japanesecompany(ies)transactions to support the local
currency financing of overseas infrastructure projects, etc., undertaken

Guarantee

by Japanese companies.
Swap counterpartyin overseas

Private financial
institution
Currency
swap
contract

Operation

Local
currency
loan

Investment

Overseas
infrastructure
projects,etc.

JBIC Annual Report 2013

61

4
Financial Instruments

 Counter Guarantees for Export Credits
In the case where Japanese companies export machinery and equipment jointly with other country’s
companies, JBIC provides a counter guarantee forthe guarantee provided by that country’s Export

Counterguarantee

Japanesecompany(ies)

Foreign ECAGuarantee

Credit Agency (ECA). This function enables JBIC to

Foreigncompany(ies)
Exportparticipate in multilateral mutual guarantee schemes

1. Financial Instruments

Private bank(s)with other ECAs, which reduces the administrative
burden of exporters and expedites the arrangement

Loan

Foreign importer(s)of financing. Through such schemes, JBIC supports
the exports by Japanese companies in cooperation
with foreign exporters.

Bridge Loans
JBIC provides short-term financing for governmentsof developing countries to meet their foreign currency needs for external transactions when they face

Loan

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

Loans from the IMF,
World Bank, etc.

balance-of-payment difficulties.
JBIC provided bridge loans (short-term bridging
loans) for Myanmar in January 2013 to support clear
the arrears of past loans from the Asian Develop-

Import orother externaltransaction(s)ment Bank (ADB) and the International Development
Association (IDA), one of the World Bank Group.

Acquisition of Loan Assets and Public and Corporate Bonds
When JBIC provides export loans, import loans, overseas

operations is to promote private financial institutions’ loans

investment loans and untied loans, JBIC can also provide

in international finance and Japanese companies' funding incredits, in addition to providing loans and guarantees, byinternational capital markets.

purchasing loan assets and acquiring public and corporate
bonds1 issued by borrowers for funding. The objective of such

1. The scope of assets and securities acquired includes public bonds, corporate
bonds, debt securities and trust beneficiary rights.

Research and Studies
JBIC conducts research and studies on individual projects dur-engineering design (FEED), and studies of regions and industry

ing their initial stage, as well as research and studies focusedsectors linked to specific projects. After the research andon specific regions or industry sectors that may have a bearing

studies are completed, follow-up reviews are conducted aton specific projects occasionally. This is an effective means

least once each year to confirm the progress of the project.

of uncovering potentially favorable projects, and supports to

Research and studies are conducted in the following order.

increase exports of materials and services from Japan for that

1. Selection of a research and study subject

project, as well as to expand opportunities for participation by

2. Selection of the contractor to conduct research and studies

Japanese companies. Research and studies are conducted at

3. Conduct of the research and studies

each stage necessary for realization of the project, including

4. Completion of the research and study report

creation of a master plan for an individual project, conducting

5. Follow-up

of prefeasibility and feasibility studies (Pre-F/S, F/S), front end

62

JBIC Annual Report 2013

4

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

1. Securitization (Guarantees)

2. Securitization (Acquisition of Securities)
JBIC supports bond issues by acquiring a portion of the asset-

companies issue asset-backed securities or other financial

backed securities issued by SPCs or trust companies withproducts with loans or other assets as collateral, JBIC guaran-loans or other assets as collateral. JBIC’s acquisition will con-tees the payment of such asset-backed securities to reduce

tribute to the smooth issuance of bonds, as well as stimulates

country and structure risks, thereby supporting the issuancethe market by circulating the acquired bonds back into theof bonds in the emerging capital markets.

market when market conditions allow it.

Originator

Transfer of loans

Private financial
institutions, etc.

Special purpose company(SPC)

Guarantee

Loans
Obligor

1. Financial Instruments

In cases where special purpose companies (SPCs) or trust

Financial Instruments

Securitization, etc.

Issue of assetbacked security

Purchase of assetbacked security

Investors(in Japan and overseas)

Overseas Japaneseaffiliates

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

3. Securitization of Receivables, etc.
JBIC provides guarantees for the receivables and other mon-by banks. JBIC is also able to provide guarantees for securities

etary claims held by overseas subsidiaries of Japanese com-issued by SPCs or trust companies to secure monetary claims

panies, in order to facilitate the purchase of such receivables

they have acquired from overseas Japanese subsidiaries.

Overseas Japaneseaffiliates

Accounts receivable, etc.

Guarantee
Proceeds

Overseas Local companies
Guarantee

Assignment of account receivable

Private financial
institutions

SPC or Trust

Asset-backed securities

Investors

Proceeds

Supporting Securitization of Credit Card Receivables in Thailand

JBIC acquires a part of asset-backed securities (ABS) in a securitization transactionof the credit card receivables originatedby AEON Thana Sinsap (Thailand) PublicCompany Limited (ATS), a subsidiary of
AEON Financial Service Co., Ltd. JBIC also
provides guarantee for the remaining portion of this ABS and an asset-backed loan
funded by private investors. This transaction is the first securitization deal with theinvestors outside Thailand for ATS and thefirst credit card receivables securitization
deal for JBIC. With JBIC’s partial acquisition
and guarantee provision to the securitized
product, this transaction is expected tocontribute to meeting the needs of ATS
for diversification of funding as well as
to providing investment opportunities toprivate investors in the market by mitigating
country risk and structuring risk.

JBIC Annual Report 2013

63

4
Financial Instruments

Japan Bank for International Cooperation Guidelines for
Confirmation of Environmental and Social Considerations
Growing interest in environmental conservation has led to ation Guidelines for Confirmation of Environmental and Socialworldwide trend for more rigorous environmental regulations.

Considerations” (Environmental Guidelines).

1. Financial Instruments

There are not a few cases, especially in overseas projects, in

The Environmental Guidelines set out the procedures, cri-which insufficient risk management of possible environmental

teria and requirements that JBIC-financed projects must meetand social impacts has seriously affected project implementa-

in confirmation of environmental and social considerations.
When JBIC judges the project proponents have not madetion or undermined social reputation.
In conducting these operations, JBIC confirms whether theappropriate environmental and social considerations, it willborrower makes appropriate considerations for local com-

encourage them to take remedial measures. If appropriate

munities and the natural environment in all the JBIC-financed

environmental and social considerations have not been taken,

projects based on the “Japan Bank for International Coopera-

JBIC may decide not to extend funding.

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

Screening form is
submitted at time offunding request.

Project
Proponent

Information necessary
for the Environmental
Review is submitted.

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

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

Category A
Categorization

JBIC

Category B

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

Category FI

Environmental Review*

Funding
Commitment

Confirmation of
Monitoring(Site inspections conducted as necessary)

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

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

Category C

The project outline,
category, and EIA
report (required forCategory A) are inprinciple disclosed on
the JBIC website

Disclosure* For Category FI projects, JBIC confirms through the financial intermediary that the proper environmental and social considerations indicated in
the Environment Guidelines have been followed for the project.

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

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

Category B:

Project with the potential for an adverse impact on the environment, but less than that of Category A projects.

Category C:

Project with the potential for minimal or no adverse impact on the environment.

Category FI: Project for which JBIC provides funding to a financial intermediary, and after acceptance of JBIC funding, the financial intermediaryselects and conducts screenings for specific subprojects, in cases where subprojects cannot be determined prior to acceptanceof JBIC funding, and where such subprojects are anticipated to have an impact on the environment.

64

JBIC Annual Report 2013

2· Prominent Initiatives in Recent Years

4

The Japanese yen, U.S. dollar and Euro are the standard cur-

3. Guarantees for corporate bond issues denominated inlocal currencies:

rencies of financing of JBIC, and in order to meet the increasing demands for financing denominated in other currencies

JBIC provides guarantees for bonds issued in local currencies(including currencies of developing countries), JBIC has been

by Japanese subsidiaries operating overseas, under the Asianworking on the following financing menu:

Bond Markets Initiatives (ABMI) agreed at the 6th ASEAN+3(Japan, China and Korea) Finance Ministers’ Meeting in August

Direct loans in currencies other than the Japanese yen, U.S.

2003.

dollar and Euro can be considered on a case-by-case basis

4. Guarantees for loans denominated in local currencies:

by confirming the availability of funding in such currencies.

JBIC provides guarantees for loans in local currencies provided

2. Two-step-loans (TSLs) through local financial institutions:by private financial institutions to support local currency fi-

JBIC provides loans to local financial institutions in developing

nancing.

countries (including local subsidiaries/branches of Japanese

5. Guarantees for currency swaps:

financial institutions) in the Japanese yen or U.S. dollar, who,

In April 2012, JBIC started the guarantee operations for cross-in turn, extend sub-loans in local currencies.

currency swap transactions in order to facilitate funding of
local currencies.

2. Prominent Initiatives in Recent Years

1. Direct loans (in local currency):

Financial Instruments

Efforts to Meet Local Currency Needs

JBIC Facility for African Investment and Trade Enhancement (FAITH)JBIC launched in June 2013 the JBIC Facility for African In-

Japan expressed that it would work toward expanding trade

vestment and Trade Enhancement (“FAITH”) to support theand investment in African countries in tandem with the private

promotion of private sector-led growth and the acceleration

sector. Under FAITH,of infrastructure development in African countries by drawingit

on its financial instruments such as loans, equity participations

such financial support

and guarantees. FAITH was expanded and evolved from thewould approximately

JBIC Facility for African Investment (“FAI”) launched in Aprilamount to 5 billion U.S.

2009. Under FAITH, JBIC will actively extend loans, includ-

dollars over the next 5

ing those in local currency, make equity participations andyears.

isexpected

that

provide guarantees in African countries in cooperation withinternational organizations. In TICAD V, the Government ofAfrican Countries
International
Organizations

Loan/Equity Participation/Guarantee— Promoting Trades— Supporting Manufacturing
Sector Investment— Natural Resource
Development

Businesscooperation
Equity Participation

Accelerating
Infrastructure
Development

Loan

FAITH

Cofinancing

Japanese Privatesector Financial
Institutions

Loan

Local Financial
Institutions

Guarantee

Loan

Private Sector-led
GrowthLoan

JBIC signed a loan agreementwith the Development Bank ofSouthern Africa Limited (DBSA).
The loan is aimed to support
renewable energy projects inSouthern African countries

ExportJapanese
Companies

Investment— Building Electricity Supply
Capacity— Development of Financial
SectorPromoting Sustainable
and Resilient Growth* The facility is not a fund or account,but a program with specific procedures for managing operations.

JBIC Annual Report 201365

4

3· Framework for Supporting Globalization Efforts of SMEs

Financial Instruments

As the globalization of the world economy advances, it has

 Strengthening the Framework for Supporting SMEs

become imperative for Japanese mid-tier enterprises as well as

Following the inauguration of JBIC in April 2012, JBIC assigned

small and medium enterprises (collectively “SMEs”) to actively

operating officers dedicated to providing support for Japanesedevelop overseas business. JBIC supports such activities by

SMEs with their overseas business development, in order toproviding information and holding seminars on the overseas

conduct operations more responsively and flexibly. These of-investment climate, as well as directly supporting the financing

ficers are responsible for SMEs in East Japan and West Japan,

3. Framework for Supporting Globalization Efforts of SMEsof overseas operations through loans and equity participa-

separately. JBIC also set up units that specialize in the support

tion. JBIC also supports these efforts through its collaborationof overseas business development of SMEs at its Head Officewith regional financial institutions in Japan and local financial

in Tokyo and West Japan Office in Osaka, respectively. These

institutions in developing countries.

arrangements, together with the 16 overseas representative
offices in JBIC’s worldwide network, have further strengthened the framework for supporting SMEs. This allows JBIC,
for example, a better opportunity for providing information
on specific loans and investment climates abroad.

Organization of JBIC’s Finance Groups (from April 2012)

Energy, Natural Resources andEnvironment Finance Group

Infrastructure Finance Group

Industry Finance GroupOil and Gas Finance Department

Power and Water Finance
Department

Corporate Finance Department

Mining and Metals Finance
Department

Transportation andTelecommunication Finance
Department

Marine and Aerospace Finance/
Financial Products Department

Nuclear and Renewable Energy
Finance Department

 Specialized units have been established to support SMEs.
 They are also designed to strengthen the cooperation of regional financial
institutions in Japan and local financial institutions in developing countries.

 Cooperation with Local Financial Institutions in

Developing Countries
On December 21, 2010, the Financial Services Agency, theSpecial Advisor
for SMEs

West Japan
OfficeFinance Division
for SMEs of
East Japan

Finance Division
for SMEs ofWest Japan

Japan Bank for International Cooperation (JBIC) and Japan
External Trade Organization (JETRO).” Under this policy, JBIC
has been working with the Regional Banks Association of

Ministry of Finance, and the Ministry of Economy, Trade andJapan and other entities to strengthen cooperation with local

Industry announced a joint policy called the “Development

financial institutions in developing countries while identifying

and Strengthening of Support System by Financial Institutions

what kind of support Japanese SMEs need through Japanesefor Small and Medium Enterprises’ Entry into Asia throughregional financial institutions to expand their business opera-

Coordination among Japanese Regional Financial Institutions,tions overseas.

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

When MOU was signed

Number of participating Japanese
Regional Financial Institutions

ThailandKASIKORNBANK Public Company Limited

May 2011

25 (as of May 2, 2013)

Indonesia

PT. Bank Negara Indonesia

July 201131 (as of May 7, 2013)

India

State Bank of India

August 2012

38 (as of March 13, 2013)

BDO Unibank, Inc. (BDO)

March 2013

7 (as of July 23, 2013)

Metropolitan Bank and Trust Company (Metrobank)March 2013

33 (as of July 23, 2013)

The Philippines

66

Local Financial Institutions in Developing Countries

JBIC Annual Report 2013

4

Japan for three major purposes: (i) supporting overseas business activities of Japanese companies, particularly SMEs in
the Setouchi area where the 114Bank has its main businessbase; (ii) exchanging information on investment climates inforeign countries; and (iii) expanding cofinancing for them.

Products Limited, an Indian subsidiary of HIROSE Corporation.
Based in Mitoyo City, Kagawa Prefecture, HIROSE Corporation
is an SME that designs, manufactures, and sells high voltage
MOU signed with the State Bank of India

distribution switchgears and control panels of various kinds.
JBIC’s efforts in this regard were not limited to Japan only. In
July 2012, JBIC organized a meeting in Bangkok, Thailand, withIn FY2011 and FY2012, JBIC signed a memorandum of

local representatives of Japanese regional financial institutions

understanding (MOU) with several local financial institutions

to exchange views on how to support Japanese companies

in Thailand, Indonesia, India, and the Philippines to provide a

operating locally. This is just one example of JBIC’s ongo-

framework for supporting Japanese SMEs in expanding theiring efforts to further strengthen the framework for assisting

operations overseas through regional financial institutions inJapanese SMEs to expand their overseas business operations

Japan. Under these MOUs, JBIC has encouraged these local

in cooperation with Japanese regional financial institutions.

financial institutions in the four countries to newly set up asingle contact point for Japanese companies (“Japan Desk”) or Information Services, Seminars, etc.

expand such Japan Desk if one already exists. It has also built

JBIC organizes seminars and consultation sessions on over-a framework for continuous consultation with each of themseas business expansion in cooperation with other Japaneseon specific means to cooperate in support of Japanese SMEs

entities, including regional banks and other local financial

in doing business there. Many regional financial institutions

institutions, prefectural and municipal governments, and lo-

in Japan have already joined such frameworks.

cal chambers of commerce and industry. It also conducts

3. Framework for Supporting Globalization Efforts of SMEs

Under this MOU, JBIC, in cooperation with 114Bank, signed
a loan agreement in the same month with ASAHI Switchgear

Financial Instruments

In November 2012, JBIC signed an MOU on operational
cooperation with The Hyakujushi Bank, Ltd. (114Bank) of

field studies to assess investment climates in countries where
Japanese companies are actively doing business. The findings Cooperation with Japanese Regional Financial

Institutionsof these studies are compiled into guidebooks, which areavailable in book form and on JBIC’s website.

JBIC has signed MOUs on the operational cooperation ofDuring FY2012, JBIC published four such guidebooks inregional financial institutions in Japan chiefly to exchange

Japanese: “Investment Climate in Thailand,” “Investment Cli-

information on overseas business operations of Japanesemate in Viet Nam,” “Investment Climate Series in China: An

companies, particularly Japanese local SMEs, as well as on

Overview,” and “Investment Climate in Indonesia.”

the investment climate of overseas countries.

Moreover, JBIC provides knowledge and advice on investing overseas and how to start businesses overseas. It also

A seminar on overseas investment

JBIC Annual Report 201367

4
Financial Instruments
3. Framework for Supporting Globalization Efforts of SMEs

68

offers an itinerant advisory service in many parts of Japanin cooperation with prefectural and municipal governments
and local chambers of commerce and industry that support
local companies in expanding their operations overseas. This
service, which is available on a regular basis in Sendai, Ota,
Tokyo, and Nagoya, offers advice on the overseas investment
climate and how to obtain long-term financing, among othertopics. As part of its advisory services, JBIC also offers advice
on taxes, accounting, and legal matters in relation to China,
India, and ASEAN countries, through external experts, as earlyas the preliminary consultation phase.

JBIC Annual Report 2013

Operational and
Administrative Policies

51

Corporate Governance70

2

Risk Management

74

3

Public Information and Disclosure

77

JBIC Annual Report 201369

5

1· Corporate GovernanceOperational and Administrative Policies

 Fundamental Approach to Corporate Governanceand efficiency, as it seeks to fulfill the mission set out under

JBIC is making efforts to build corporate governance structure

the JBIC Act (Law No. 39, 2012) and realize its corporate

in conducting operations with particular attention to integrity

philosophy.

Shareholder Meeting

Supervisory and Evaluation Function

1. Corporate Governance

Board of Corporate Auditors

Board of Directors

Outside Corporate
Auditors

Outside Director

Accounting Auditor

Management Advisory and
Evaluation Committee

Office of Corporate
AuditorRisk Advisory Committee

Executive
FunctionInternal Audit
Committee

Executive Committee

Credit Committee

Preliminary Credit
Committee

Corporate Risk
Management
Committee

ALM Committee

Compliance andCustomer Protection
Management Committee

Global HeadCommittee

Personnel
Committee

Internal Audit
Department[Deliberative Committees][Decision Making Committees] How National Government is Involved in JBIC

Board of Directors as well as conduct speedy and flexible

As JBIC has its shares wholly owned by the Government ofoperations, JBIC has established, in addition to the Board ofJapan, it is subject to the control of the Japanese govern-

Directors, the Board of Corporate Auditors and other organs

ment, its sole shareholder. Additionally, it is subject to therequired by the Companies Act, the Management Advisorynational budget passed in the Diet, inspections by the Board

and Evaluation Committee, the Risk Advisory Committee,of Audit of Japan, by the Competent Minister and by thethe Internal Audit Committee and the Executive Committee.

Financial Services Agency whose inspection is delegated by

Furthermore, a variety of committees were set up by thethe Competent Minister.

Executive Committee that delegated specific tasks to them.
(1) Board of Directors

 Supervisory and Evaluation Function and

the Conduct of JBIC Operations
To strengthen the supervisory and evaluative function of the

70

JBIC Annual Report 2013

The Board of Directors consists of 5 members, of which one
member is an outside director as set forth in the Companies
Act. The external director supervises the conduct of JBIC

5

apart from representative directors of JBIC. In addition, hecontributes to improving the governance of JBIC as a memberof the Management Advisory and Evaluation Committee aswell as the Risk Advisory Committee.

Name

Occupation〇 Keisuke Yokoo

Advisor of Mizuho Securities Co., Ltd.

◎ Naoyuki Yoshino

Professor, Faculty of Economics, Keio
University◎ Chairman〇 Deputy–chairman(Listed in the order of 50 character kana syllabary, name listed without honorifics)(2) Board of Corporate Auditors
The Board of Corporate Auditors consists of 3 auditors, of(5) Internal Audit Committee

which two are outside corporate auditors, as set forth in

The Internal Audit Committee consists of representative di-

the Companies Act. Outside corporate auditors contribute torectors and the outside director. They make decisions andimproving the governance structure of JBIC, as they cooperatedeliberations concerning important matters pertaining towith the full-time auditor in auditing the conduct of its opera-

internal audit, as delegated by the Board of Directors.

tions. As a section helping them execute their responsibilities,(6) Executive Committee(3) Management Advisory and Evaluation Committee

executive director and all the managing executive officers.

The Management Advisory and Evaluation Committee consists

They make decisions and deliberations concerning importantof 3 to 7 external experts and the outside director. They

managerial matters, thereby taking responsibility for conduct-

make assessment and offer advice on the matters referreding flexible JBIC operations, as delegated by the Board of

to them by the Board of Directors pertaining to the businessDirectors. Certain decisions such as financing to a specificoperations and management of JBIC.

project are delegated to the following committees.

The Executive Committee consists of representative directors,

List of Members of the Management Advisory and Evaluation Committee
Name〇 Shujiro Urata

Occupation

Professor, Graduate School of AsiaPacific Studies, Waseda University

Akira Kondoh

JBIC Managing Director (Outside
Director)

Yoshikatsu Suzuki

Senior Commentator of Jiji Press Ltd.

◎ Yuzo Takagi

Mikiko Fujiwara

Chairman & Representative of Audit
Corporation GODAI, Certified Public
Accountant
CEO of Alpha Associates Co., Ltd.

Hirokazu Yoshikawa Senior Corporate Adviser of DOWA
Holdings Co., Ltd.
◎ Chairman〇 Deputy–chairman(Listed in the order of 50 character kana syllabary, name listed without honorifics)

1. Corporate Governancethere is the Office of Corporate Auditor.

Operational and Administrative Policies

operations from the point of view of a corporate outsider,(i) Credit Committee
The Credit Committee makes decisions and deliberations
concerning important matters on loan, guarantee and equity
participation by JBIC, as delegated by the Executive Committee.
(ii) Corporate Risk Management Committee
The Corporate Risk Management Committee makes decisions
and deliberations concerning important matters pertaining to
the corporate risk management of JBIC, as delegated by the
Executive Committee.
(iii) Compliance and Customer Protection Management
Committee
The Compliance and Customer Protection Management
Committee makes decisions and deliberations concerning
important matters pertaining to the compliance and customer
protection management of JBIC, as delegated by the Executive
Committee.
(iv) Personnel Committee(4) Risk Advisory Committee
The Risk Advisory Committee consists of 3 to 7 external ex-

The Personnel Committee makes decisions and deliberations

perts and the outside director. They offer advice on the mat-concerning important matters pertaining to the personnel ofters referred to them by the Board of Directors pertaining to

JBIC, as delegated by the Executive Committee.

risk management and assessment framework associated with(v) Preliminary Credit Committee

large-lot debtors and risk exposure to large-scale projects.
List of Members of the Risk Advisory Committee
Name

Occupation

The Preliminary Credit Committee makes deliberations concerning important matters pertaining to assessment policies
toward loan, guarantee and equity participation and credit
policy toward large-lot debtors, as delegated by the Executive

Shuhei Abe

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

Akira Kondoh

JBIC Managing Director (Outside Director)

Toshiki Tomita

Professor, Faculty of Law, Chuo University

portant matters pertaining to the asset-liability management

Chieko Matsuda

Professor of Management, Graduate
School of Social Sciences, Tokyo
Metropolitan University

the Corporate Risk Management Committee.

Committee.
(vi) ALM Committee
The ALM Committee makes deliberations concerning im(ALM) of JBIC, as delegated by the Executive Committee and

JBIC Annual Report 201371

5
Operational and Administrative Policies(vii) Global Head Committee

more flexibly and strategically.

The Global Head Committee makes deliberations concern-

Specifically, Corporate Group; Energy, Natural Resources

ing cross-cutting matters among internal groups, including

and Environment Finance Group; Infrastructure Finance Group;

operational policy for each country or region, as delegatedIndustry Finance Group; and Credit, Assessment, and Systems

by the Executive Committee.

Group were set up, with each Group having departments withspecial expertise.

 Adopting Mission/Sector-Specific Group Structure

For each Group, the responsible board member is ap-

JBIC reconstituted its organization and adopted mission/

pointed, and the managing director or a managing executive

sector-specific group structure in July 2011. Its objective isofficer performs as Global Head of each Group. Each Groupto strengthen the capacity to formulate projects by bringing

is managed in an integral manner under the Global Head of

together know-how and expertise in each sector and area,

the Group in an effort to conduct speedy, flexible and efficient

thereby facilitating JBIC to perform the functions in its mission

operations.

1. Corporate Governance

Governor(Governor of JBIC / Responsible for Internal Audit Department)

CEO, Executive Managing Director(Governor’s support / Responsible for Credit, Assessment, and Systems Group)

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

Internal Audit
Department(Global Head ofCorporate Group)

CorporateGroup

Member of Board of Directors

72

JBIC Annual Report 2013

(Responsible for Business operation)

Managing
Director

Managing
Executive
OfficerManaging
Executive
OfficerManaging
Executive
OfficerManaging
Executive
Officer(Global Head ofEnergy, Natural
Resources andEnvironment FinanceGroup)(Global Head of
Infrastructure FinanceGroup)(Global Head ofIndustry FinanceGroup)(Global Head of
Credit, Assessment, and Systems
Group)

Infrastructure
FinanceGroup

Industry
FinanceGroup

Energy, Natural
Resources andEnvironment
Finance Group

Member of Internal Audit Committee

Member of Executive Committee

Credit,Assessment,
and Systems
Group(As of April 1, 2013)5
an internal reporting system such that it is capable of finding

As an internal control system for overall operations, JBIC hassignificant compliance issues at an early stage and taking

appropriate internal audit procedures to review, as well as

appropriate remedial action.

evaluate their appropriateness and effectiveness and makerecommendations to improve them. For these purposes, JBIC

 Protection of Private Information

has the Internal Audit Committee, which includes the outside

JBIC has drawn up and disclosed its Privacy Policy (director, as a decision-making body independent of the Execu-

p. 142) which stipulates appropriate management of privateseetive Committee that is responsible for conducting operations.

information held by JBIC pursuant to the provisions of the Act

There is also the Internal Audit Department independent ofon the Protection of Personal Information Held by Independent

the line departments and directly reporting to the Governor.

Administrative Agencies, etc.

The Internal Audit Department exchanges relevant information and cooperates with Corporate Auditors and an
Accounting Auditor for executing efficient internal audit.
(

See p. 139 for the Fundamental Policy on Internal Control)

1. Corporate Governance Maintenance and Control of Information Assets
JBIC sets forth its fundamental “Security Policy” concerning
the use and management of information assets (Operational and Administrative Policies

 Fundamental Policy on Internal Control

see p. 141)in order to secure high standard information security andimplement proper and efficient operations. Based on the standard, JBIC properly handles, manages, protects and maintains
information assets.
 Compliance
JBIC has set forth in its Code of Conduct to “Maintain highethical standards and a law-abiding spirit. Observe our moral
code as a JBIC member at all times.” Its management andstaff members are keenly aware of the public missions andsocial responsibilities called for in the international community
and in civil society. It is also well recognized that any act inviolation of laws, regulations or rules by its management andstaff will lead to denigrating confidence in JBIC as a whole andhave a materially adverse effect on its operations. Attentive
to these needs, JBIC is constantly striving toward complianceand operational integrity.
JBIC makes positive efforts to improve compliance, primarily through the Compliance and Customer Protection Management Committee, and has established the Legal Affairs andCompliance Office as an integrated compliance management
unit.
Each group and overseas representative office serving asa regional headquarter has an Integrated Compliance Officer,
while each department and overseas representative office has
a Compliance Officer for making positive efforts in compliance,such as fostering such awareness among JBIC employees.
To foster in-depth understanding of compliance, JBIC
makes good use of its Compliance Manual and provides training sessions for its management and staff members. It also
develops a compliance program every fiscal year as a basis
for making necessary compliance arrangements and providing
relevant training.
In addition to the reporting procedures in its ordinary lineof business, JBIC has put in place and is properly operating

JBIC Annual Report 201373

transparency. For this purpose, JBIC has designated the staff

ous risks, including credit risk, market risk (such as interest rate

responsible for managing various risks and has a department

and exchange rate risk, etc.), liquidity risk and operational risk.

working on the overall risk management. In addition, there

As a policy-based financial institution, JBIC conducts financial

are the Corporate Risk Management Committee and the ALM

operations to achieve policy objectives. Thus, JBIC differs from

Committee that make discussions and considerations for the

In general, the operations of financial institutions involve vari-More specifically, JBIC defines the objective of risk manage-

The following sections describe how JBIC manages repre-

ment as identifying, measuring and monitoring various risks

sentative risks JBIC is facing, among various other operational

2. Risk Management

2· Risk Management

Operational and Administrative Policies

5

JBIC is exposed to in the process of conducting operations torisks, in conducting operations as a policy-based financial

ensure the soundness and integrity of operations and increase

institution.

private financial institutions in its nature as well as the extent

effective functioning of risk management. JBIC has also setof risks involved in its operations and ways to deal with them.

up the Risk Advisory Committee, which consists of external

Nonetheless, recognizing the importance of appropriate risk

experts, to provide the JBIC Board of Directors with advice onmanagement as a financial institution, JBIC has put in place

the risk management and assessment system with respect toan institutional system for risk management commensurate

large-lot debtors and on issues referred to by the JBIC board

with different types of risks and for addressing integrated riskof directors with respect to risks associated with large-scale

management.

projects.

Credit Risk
Credit risk refers to the potential loss from a decline or loss ofa part in collecting information on foreign governments andthe value of credit assets due to deterioration in the financial

companies. It is based on this information and its analysis thatconditions of a debtor. This risk is inherent in JBIC’s operations

credit appraisal takes place, with checks and balances at work

as it primarily engages in lending activities. Credit risk exposure

between these different departments throughout this process,to JBIC may be classified into: sovereign risk, which involves

leading to the final decision by management.

financing foreign governments; corporate risk, which involves

In providing credit for foreign governments and compa-

financing business firms; project risk, which occurs when anies, JBIC makes the most of its unique position as an official

project financed in project financing—a financing structure in

financier, as it exchanges views and information with the gov-

which a loan is primarily secured on the cash flow generated

ernments and relevant authorities in the recipient countries,

from the project—fails to generate the planned cash flow;

multilateral institutions such as the International Monetaryand country risk, which involves financing foreign firms as

Fund (IMF) and the World Bank, other official export credit

well as projects located in foreign countries (a risk added

agencies and, furthermore, with private financial institutions

to corporate risk and project risk arising from the country

in developed countries. Using all these channels, JBIC evalu-

where the debtor resides and the project is located). Given

ates sovereign and country risks based on a broad range ofthe very nature of financial support JBIC provides for promot-

information collected on borrowing governments, government

ing overseas development and securement of strategically

agencies and political and economic conditions in their coun-

important resources to Japan, for maintaining and improv-

tries.

ing the international competitiveness of Japanese industries,

In providing credit for domestic and foreign companies,

and for promoting the overseas business for preserving thethere is a need to evaluate their creditworthiness and theglobal environment, such as preventing global warming, JBIC

appropriateness of the collateral they offer. In particular, forfrequently extends loans to foreign governments, government

credit provision related to overseas projects, credit evaluation

agencies and companies. Therefore, sovereign and country

involves checking and examining the certainty of conducting

risks account for a considerable share of the credit risks ac-transactions to be financed, feasibility studies of the projects

companying JBIC’s operations.

and the industry in which the borrower operates.

 Managing Credit Risk

 Internal Credit Rating

The cornerstone of credit risk management at JBIC is the

JBIC has established an internal credit rating system which

evaluation of an individual borrower’s creditworthiness in the

covers, in principle, all the borrowers. Internal credit ratingsprocess leading to credit approval. When a new loan applica-

are the cornerstone of credit risk management, being usedtion is being processed, the relevant finance department andfor conducting individual credit appraisals and quantifying

the Credit Department collect and analyze information on

credit risks.

the borrower. The overseas representative offices also play

74

JBIC Annual Report 2013

5
are also reflected in the disclosure of asset quality to enhance

Japanese private financial institutions undertake the internal

the transparency of JBIC’s financial position.

assessment of asset portfolios in accordance with Inspection

Manual for Deposit-Taking Institutions (the “Financial Inspec-

 Quantifying Credit Risktion Manual”) of Japan’s Financial Services Agency. JBIC is

In addition to individual credit risk management, JBIC is work-

similarly undertaking the internal assessment of its loan port-

ing on quantifying credit risks with a view to evaluating thefolio, based on the Financial Inspection Manual so that therisk of the overall loan portfolio. To quantify credit risks, it ischaracteristics of its loan assets will be accurately reflected

important to take into account the characteristics of JBIC’son its assessment. In this process, the first-stage assessment

loan portfolio, which holds a significant proportion of long-is conducted by the relevant financing departments, whileterm loans and loans involving sovereign and country risks.

the second-stage assessment is conducted by the Credit De-

Also to be taken into account are mechanisms for securing

partment and the Country Credit Department, which is thenassets, such as the Paris Club1 a unique framework for debt
management by official creditor countries. The credit risk
quantification model incorporating these factors is measuring

internally for the continuous reviews of the loan portfolio but

credit risks and is utilized for internal control.

2. Risk Management

inspected by the Audit Department. The results of internal
assessment conducted on the portfolio are not only used

Market Risk
Market risk refers to the potential loss from changes in thevalue of assets and liabilities as a result of fluctuations in interest rates and foreign exchange rates. JBIC manages specifictable gives a summary of these transactions.
Credit Risk of Derivatives, etc.
(As of March 31, 2013; 100 millions of yen)market risks as follows.

Contract Amounts /Credit Risk Amounts
Notional Amounts

 Exchange Rate Risk

Interest Rate Swaps

24,560895

Foreign currency-denominated loans involve the risk associ-Currency Swaps

41,497

6,047

Forward Exchange
Contracts

10

Other Derivatives──

ated with exchange rate fluctuations. JBIC has a consistentpolicy of hedging the full amount of such exposure throughcurrency swaps and forward exchange transactions.
 Interest Rate Risk
Interest rate risk for foreign currency-denominated loans ishedged through interest rate swaps with which both foreign

Operational and Administrative Policies

 Internal Assessment of Asset Portfolio

Credit Risk Reductions
through Netting
Total(2,845)66,0584,097(Note) “The credit risk amounts” are calculated under Uniform International Standardsin accordance with the Banking Act of Japan and the related regulations.

currency-denominated loans and their funding are managed
in floating rates. Although yen-denominated loans are mostly(3) Risks Involved in Derivatives Transactions

made in fixed interest rates, their interest rate risk is limited

Derivatives transactions involve the following risks.

since the maturities of loans and their corresponding funding Counterparty Credit Risk

are more or less matched. In addition, JBIC carefully calculates

The potential loss from the failure of a counterparty to perform

and analyzes projections of its future asset / liability structure

its obligations in accordance with the terms and conditions

and profits and losses.

of the contract governing transactions due to bankruptcy orits deteriorating business performance.

 Derivatives Transactions

 Market Risk

(1) Basic Policy for Derivatives Transactions

The potential loss from changes in the market value of finan-

JBIC engages in derivatives transactions exclusively for thecial products due to fluctuations in interest rates or exchange

purpose of hedging exchange rate and interest rate risks.

rates in the market.

(2) Transactions(4) Measures to Address These Risks

Derivatives transactions of JBIC include interest rate and cur-

 Counterparty Credit Risk

rency swaps and forward exchange contracts. The following

JBIC constantly monitors the market value of a derivative in

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

JBIC Annual Report 201375

5
Operational and Administrative Policies

ties in funding due to a maturity mismatch between financing

JBIC is minimizing liquidity risk through effective cash flow

and funding caused by unexpected cash-outs or from being

management and the diversification of its funding sources,

forced to fund at an interest rate significantly higher than inincluding borrowings under the Fiscal Investment and Loan

2. Risk Management Market Risk

making transaction with each counterparty, credit risk expo-

normal circumstances, as well as the potential loss resulting

Program (FILP), government-guaranteed bond issues in inter-from a failure to make transactions in the market due tonational capital markets and FILP agency bond issues in themarket turmoil or from being forced to make transactions

domestic capital market.

sure to it and its creditworthiness. Such information is then

JBIC utilizes derivatives transactions exclusively for the pur-used to assess the appropriateness of making transactionpose of hedging. Therefore, the market risk on derivatives

with it.

transactions and the risk on hedged (lending or funding)transactions, in principle, offset each other.

Liquidity Risk
Liquidity risk refers to the potential loss resulting from difficul-

circumstances.

at a significantly disadvantageous price compared to normal

Operational Risks
Operational risk refers to the potential loss resulting from Computer System Risk

inadequate or failed internal processes, people and systems or

Computer system risk refers to the potential loss from a break-from external events. Apart from administrative and computer

down or malfunction in computer systems as well as fromsystem risks, JBIC recognizes that its operations involve various

their misuse. JBIC has been minimizing computer system risk

direct and indirect risks. JBIC will proactively identify, assess

by increasing readiness to respond effectively to emergency

and manage such risks.

situations. Specifically, (a) measures have been taken to prevent system malfunctions and leakage of client information;

 Administrative Riskand (b) contingency plans have been prepared to respond toAdministrative risk is the risk of a financial institution incurring

system malfunctions caused by accidents and other causes,

losses from the neglect by officers and employees to con-and disaster-response drills have been conducted.

duct administrative work properly, accidents caused by them,and violation of laws and regulations caused by them, etc.,
conducted in the course of the administrative work process.
JBIC has been minimizing this risk by ensuring sound operations through scrupulous checks on work processes, creating
operational manuals, improving training programs, and streamlining and adopting systematic procedures. In addition, theAudit Department, independent from other departments andreporting directly to the Governor & CEO, conducts internal
auditing of JBIC.

76

JBIC Annual Report 2013

3· Public Information and Disclosure5 Websiterange of the domestic and overseas public in an effort to

The website provides access to JBIC information, including its

promote further understanding of its operations and activities.

financial instruments, press releases, invitations to seminars,

The JBIC Information Center at the Head Office and theoverseas investment climate reports, reports on various stud-West Japan Office make available to the general public various

ies, activities on environmental issues, annual reports, various

brochures, annual reports, public relations magazines andbrochures, IR information for investors, JBIC videos, and other

other materials. In addition, a variety of information about JBIC

various types of information.

is provided to the domestic and overseas public through the
JBIC website (http://www.jbic.go.jp/en/).
 Publications
JBIC publishes its annual operations and activities, and financial conditions in various disclosure materials, including
annual reports, business reports, financial statements, andOperational and Administrative Policies

JBIC is providing and disseminating information to a broad

3. Public Information and Disclosure

the Form 10-K submitted to the U.S. Securities and Exchange
Commission.
Other publications available to the public include: a public
information magazine, “JBIC TODAY ,” which reports JBIC’s latest activities and topics on its operations and other relevant
issues; “JBIC Profile: Role and Function ,” a brochure describing
JBIC operations; and “JBIC Project Finance Initiatives .”JBIC Today

JBIC website

JBIC Profile: Role and Function

JBIC Project Finance Initiatives

JBIC Annual Report 201377

5
Operational and Administrative Policies

 Information Dissemination for the Media Participating in Various Events

Aside from information dissemination through various publica-

JBIC participates in various events both in Japan and over-tions, the website and other means, JBIC informs the newsseas to introduce its functions, role, and support activities

media about its operations and activities through press confer-

in environmental and other sectors. In December 2012, JBIC

ences and meetings, etc.

participated in Eco-Products 2012, held at Tokyo Big Sight, by
setting up its own booth and making presentations. Outside
Japan, JBIC took part in the seminar on digital terrestrial television broadcasting (DTTB), which was held in Quito, Ecuador in
July 2012, to promote the transfer to DTTB in the country. In
February 2013, JBIC attended the “Investing in African Mining
Indaba 2013,” conference, one of the world’s largest mining
conferences, held in Cape Town, South Africa. More information on these and other events in which JBIC has participated
is available on the JBIC website.

3. Public Information and Disclosure

Governor Okuda at the press conference Information Dissemination from Overseas
JBIC’s overseas representative offices are actively contributing
reports and articles to the news media to provide informationfrom overseas. They have also appeared in TV news programs

Eco-Products 2012

to provide timely topics that can only be reported at the
local grassroots level, such as individual consumption and Disclosure

information on taxation, etc.

JBIC discloses to the public operational and financial information to promote further understanding of its current activities

 Promoting International Exchange
Since 1976, JBIC has annually held ‘JBIC Seminars’ in Japanto promote mutual understanding with its overseas business
partners and relevant organizations by inviting officials fromas follows.
(Principal) Materials for Providing Information
Source of Information

foreign governments, government agencies, private compa-

Business Reportnies and financial institutions, etc. The cumulative number ofFinancial Statements

seminar participants has exceeded 600 so far.

List of Assets
Report on Settlement of
Accounts
Auditor’s Opinion

Access Available at the Head Office andthe West Japan Office Distributed to the National
Diet Library and economic
organizations, etc.

Audit Report

Participants at the JBIC Seminar

78

JBIC Annual Report 2013

Annual Report(Japanese and English)
Public Relations Magazine,etc.

 Available at the Head Office andthe West Japan Office Distributed to interested
persons/institutions

Website: Type of Business
Operations, BusinessResults, Overview ofOrganization, Financial
Composition, etc.

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