2015 Annual ReportJBIC 2015

1

Japan Bank forInternational
Cooperation
Annual Report2

3

Numerical figures in this report
1. Numerical figures, other than percentages, inthis report are truncated to the nearest wholen u m b e r. ( F i g u re s p r i o r t o F Y 2 0 0 8 w e rerounded off.) Percentage figures are rounded
off. Thus numerical and percentage figures
may not add up to the totals given. Amounts
denominated in foreign currencies are treatedas follows. Commitments are converted into
yen at the Basic Rate of Exchange (revised
semi-annually by the Minister of Finance, basedon the prevailing market rates during thepreceding six months) at the time financing
contracts are concluded. Disbursements,
repayments, and outstanding balances arecalculated based on book value.
2. Numerical figures less than the specified units
are denoted by “0”; “—” denotes that data is
not available.
3. Until FY1998, the data of the Export-Import
Bank of Japan (JEXIM) was used. Data in
FY1999 is the sum of the data from JEXIM in
the first half and that from the International
Financial Account of the then-JBIC in thesecond half. From FY2000 to FY2007, data
came from the International Financial Accountof the then-JBIC. Data for FY2008 is the sumof the data from the International Financial
Account of then-JBIC in the first half and thedata from the Account for JBIC operations
under the Japan Finance Corporation in thesecond half. From FY2009 to FY2011, data
came from the Account for JBIC operations
under the Japan Finance Corporation. Data for
FY2012 and after is that of the Japan Bank forInternational Cooperation.

Profile of JBIC

1

1. Profile2

2. Interview with the Governor, CEO

4

3. Directors, Managing Executive Officers andCorporate Auditors

8

4. JBIC’s Medium-Term Business Plan
(FY2015—2017)

Hitotsubashi1 0gashi

5. Outline of Operations in FY2014

13

The Environment Surrounding JBIC and
Its Challenges

5

Hitotsubashi
Ramp

KKR
Hirakawa- Marubeni
JBIC
mon
Corp.

19

Tak

eba

1. Energy and Natural Resources Finance Group20

2. Infrastructure and Environment Finance Group24

3. Industry Finance Group

28

Examples of Business Outcomes in FY2014

33

1. Overview of Business Outcomes by Region

34

shi

sta

.

2. Examples of Business Outcomes by Region36

3. Examples of Business Outcomes Relating toSupport for SMEs

Imperial Palace

4. Examples of Business Outcomes Relating
to Environment

55

51

57
5. Examples of Business Outcomes Relating toStudies, and Collaboration with Overseas Governmental
Organizations and International Organizations

4

Nish
g

Financial Instruments

59

1. Financial Instruments

60

2. Prominent Initiatives in Recent Years71

3. Framework for Supporting Globalization
Efforts of SMEs

72

Operational and Administrative Policies

75

1. Corporate Governance76

2. Risk Management80

3. Public Information and Disclosure

83

Data1

Statistics

85

Data2

Financial Statements

101

Data3

Corporate Data

155

Kishocmae

TokyDefens1
Profile of JBIC
1. Profile2

2. Interview with the Governor, CEO

4

3. Directors, Managing Executive Officers andCorporate Auditors

8

4. JBIC’s Medium-Term Business Plan (FY2015–2017) 10
5. Outline of Operations in FY2014

13

JBIC Annual Report 2015

1

1. Profile

1

The Purpose of JBIC

Profile 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 to damages
caused by such disruption

1. Profile

Corporate Slogan

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

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

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

JBIC Annual Report 2015

1

JBIC Code of Conduct

Profile of JBIC

● 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.

1. Profile

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

April 2012

JBIC
(International Wing)(Domestic Finance Units)

October 1999

December 1950

Japan Bank forInternational Cooperation(former JBIC)

Export-Import Bank ofJapan (JEXIM)

International Financial
Operations

Agriculture, Forestry, Fisheries
and Food Business Unit

Japan Bank forInternational Cooperation(JBIC)

Small and Medium
Enterprise (SME) Unit
Operations to Facilitate Crisis
Responses and Specific
Businesses Promotion, etc.

March 1961
Overseas Economic
Cooperation Fund
(OECF)

Micro Business andIndividual Unit

Overseas Economic
Cooperation
Operations

Japan International
Cooperation Agency (JICA)

ProfileName

Japan Bank for International Cooperation (JBIC)

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

Capital*¥1,391.0 billion (wholly owned by the Japanese government)

Outstanding Loans and Equity Participations*¥14,693.0 billion

Outstanding Guarantees*¥2,572.3 billion* As of March 31, 2015

JBIC Annual Report 20153

2. Interview with the Governor, CEO

1
Profile of JBIC

I would like to take this opportunity to express my sincere gratitude for the ongoing support of all
JBIC stakeholders.
In the global economy, Europe is experiencing a prolonged recession, while key emerging
markets are seeing a deceleration in growth. China, in particular, is dealing with problems in its
financial and real estate sectors. Despite these factors, there are signs of gradual, overall global
economic recovery. However, the impact of a reduction in the United States’ quantitative easing
program, and geopolitical developments—including those relating to Russia and Ukraine—have
sparked concern over downside risks in the international economy.
Against this backdrop, Japan is facing significant changes in the economic environment.
Global demand is rapidly rising in the resources sector, causing related international competition
to intensify. While taking into consideration changes in the global supply and demand structure,
driven by the shale-gas revolution, the pursuit of both stability in resource access as well as
diversified supply sources, is an extremely important task that has a direct impact on the lives ofJapanese citizens.
In Japan’s industrial sector, as competition with other countries intensifies, it is vital thatJapanese companies offer overseas customers not only individual products and constituent
technologies, but also infrastructure systems that encompass management know-how together
with operation and maintenance services. Furthermore, in an era when achieving compatibility
between economic development and environmental protection goals is recognized as an issue
shared by countries the world over, expectations are rising with regard to how environmental andsocial issues are addressed, not only in individual projects, but also in the implementation ofprojects that will lead to protection and improvement of the environment. Such expectations
apply, for example, to projects that utilize Japan’s advanced environmental technologies and to
renewable energy projects.
Based on these changes in the operating environment in Japan and abroad, as a policy-based
financial institution, JBIC is committed to further improving its support for overseas businessdeployment by Japanese enterprises.

2. Interview with the Governor, CEO

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

4JBIC Annual Report 2015

Interview with the Governor, CEO■ Loans, Equity Participations and Guarantees (Commitments)(Number)(Number)(Billion of yen)

300

5,000

271
4,240.9
4,000

250

239
242

3,249.3
200

3,000

2,000

2,206.1

146
1,765.9150

1,595.9

133
100

1,000

0

FY2010FY2011FY2012FY2013

FY201450

Could you provide an overview of the specificoperational fields on which JBIC focused over the
past three years?
In the energy and natural resources sector, large changes are
occurring in the business model for imports conventionallyadopted by Japanese enterprises. To date, such business has
mainly focused on purchasing resources overseas andshipping them to Japan. The situation is now such that it isdifficult to assure a stable long-term supply by simply buying
resources in the marketplace. Hence, through the acquisitionof upstream interests or the equity of companies that holdsuch interests, Japanese enterprises are able to import into
Japan a volume of resources corresponding to the interests
or equity stake acquired. Furthermore, there are increasing
examples of Japanese enterprises importing a volume ofresources exceeding the share assured by their investments
in upstream interests or equity participation. This is often
based on support provided by the Japanese enterprise to thecompany holding resource interests for the expansion ofmarketing channels.
In particular, we have seen progress in the acquisition ofinterests in such areas as copper mining and natural gas
fields in South America and Australia in the past three years.
With regard to shale gas, a broad range of development istaking place in North America. Within this context, we areseeing the emergence of projects in which Japaneseenterprises take a share in a gas field, as well as those inwhich the companies construct liquefied natural gas (LNG)
production facilities that use shale gas as their main raw
material. However, there are an increasing number of
instances in which the resource supplying country adopts
measures to avoid excessive bias toward a particular region.
In the infrastructure sector, too, we are seeing an increasein projects that include the export of a complete system,
rather than simply involve the sale of equipment. Suchservices typically include the post-delivery operation andmanagement of facilities. This is significant for two reasons.
First, the pattern of demand among countries receiving
infrastructure is changing. To date, Southeast Asian
countries and China have been the main transaction partnercountries. Owing to high populations, these countries havegenerally expressed the desire to handle the operation offacilities domestically following delivery of projects. Thatsaid, future partner countries may not necessarily have large
populations. Consequently, rather than conducting
transactions based on the sale of equipment only, we believethat it will be necessary to provide contracted services,
including the post-delivery operation of facilities.
The second significant change in services concerns how
Japan’s high level of competitiveness is promoted. Although
the prices of Japanese products are high and often are notcompetitive, compared with those of emerging and othereconomies, when compared on an initial-cost-only basis,

JBIC Annual Report 2015

2. Interview with the Governor, CEO

Recapping events of the past three years, we carried out
operations aimed at contributing to the efforts of Japaneseindustry to capture the vitality of markets in Asia andother parts of the world. We have been able to maintainthe scale of our operations at a high level. This can beseen, for the period, from the cumulative total of JBIC
loans, guarantees, and equity participation, which exceeds¥9 trillion. In particular, Overseas Investment Loan has
grown significantly.
Given the stronger yen, Japanese companies haveincreased their merger and acquisition (M&A) activities,
driven by such objectives as the expansion of marketing
channels and acquisition of resource-related interests. From
this perspective, I believe that we have done a good job in
responding swiftly to changes in economic and social
conditions. In addition, we have increased our activities on aquantitative basis and not focused solely on loans, whichhave accounted for a high proportion of transactions to date.
Hence, we have successfully developed an effective mix ofseveral tools, including equity participation and guarantees.
Under our next medium-term business plan, we intend tocontinue expanding the use of these tools. I am proud that,by increasing the sophistication of our operations, we wereable to accomplish sound results. Meanwhile, although global
market conditions are not very robust, it is apparent thatprivate-sector financial institutions are unable to fully meetthe needs of enterprises in certain areas. Within this context,
I believe that we were able to respond flexibly to requests we
received for services and financing. It would be fair to say

Profile of JBIC

It has been three years since the establishment of
the new JBIC. Would you summarize JBIC’s first
medium-term business plan?

(Amount)

1

that we also achieved satisfactory results from thetransformation into an independent organization.

5

1Profile of JBIC

the lifetime cost is not necessarily high. That is due toJapanese products having low breakdown rates andexcellent durability. Hence, it is necessary to emphasize
overall superior performance, including the provision ofoperation services, in the marketing of infrastructure. Oneof the consequences of conducting business of this natureis that operations provided post-delivery in the partnercountry are paid for in local currency. This leads to the
problem of exchange-rate risk. JBIC provides support forJapanese companies in the area of dealing with foreignexchange transactions and risks. We are able to makeproposals that include financing not only in yen or dollars,
but also local currencies.
In the industrial sector, underpinned by vigorous M&A
activity by Japanese enterprises, over the three-year period
we provided support totaling approximately ¥9 trillion.
Focusing on industries in which Japanese enterprises arelikely to become more internationally competitive, we
broadened the range of fields covered by our support
operations to include conventional assembly-type
manufacturing businesses and an array of other fields. These
included, for example, support for equity participation in a
United States-based agricultural products wholesaler, M&A
support for a beverage company, and support for equity
participation in a hospital business.
We also achieved substantial results in the area of
support for mid-tier enterprises and small and mediumsized enterprises (SMEs). In recent years, an increasing
number of mid-tier enterprises and SMEs have beenworking to capture business in global markets, and areengaged in overseas expansion. JBIC has built partnerships
with private-sector financial institutions, such as regional
Japanese banks and shinkin banks, and has provided strong
support, including through the provision of information. As
a result, in FY2014 JBIC approved loans to more than 100
mid-tier enterprises and SMEs. Of all Japanese enterprises,
99.7% meet the definition of an SME, as defined under the
Small and Medium-sized Enterprise Basic Act. In otherwords, SMEs play a very large role as employers, and so, torevitalize the Japanese economy, it is imperative that midtier enterprises and SMEs undertake their activities withenergy and vigor. JBIC will continue to strengthen its
support for such enterprises.
With regard to the environment sector, in recent years it
has come to be recognized, by both developed anddeveloping countries, that achieving compatibility between
economic development and environmental protection is acommonly shared issue. Japan is expected not only to realize
its reduction target for domestic CO2 emissions, but also tocontribute to reducing CO 2 emissions overseas. In thiscontext, JBIC has seen two notable developments. First, it
finances the use, by Japanese enterprises, of highly energyefficient equipment and technologies overseas. Second, toconserve the environment—which is one of JBIC’s missions—
we support renewable energy projects and undertake
operations that represent what we define as being Global
actions for Reconciling Economic growth and ENvironmental

2. Interview with the Governor, CEO

6

JBIC Annual Report 2015

preservation (GREEN). Such undertakings promote projects
overseas designed to preserve the environment through anumber of measures, including those aimed at containing
global warming. In this way, we hope to contribute to “abalanced approach to the global environment and economy.”(Please refer to page 63.)

Please summarize JBIC’s FY2014 operating
performance.

In FY2014, the final year of the previous medium-termbusiness plan, the total of loans, guarantees, and equity
participation approvals remained high level, amounting to¥3,249.3 billion. The outstanding amount reached ¥14,693
billion, and net income ¥126.1 billion, the latter setting a newrecord for the second consecutive year.
JBIC did not carry out any import financing—albeit this is
an area that has been one of JBIC’s distinctive missions. I
would like to reiterate that one of JBIC’s core missions is tofacilitate the supply of energy and resources to Japan.
However, rather than the financing of imports, which has
been a key part of our operations until recently, thisdevelopment reflects JBIC’s shift to a model focused oninvestment finance, including M&As, for the purpose of
acquiring resource-related interests.
Thus, in the resources sector, progress was made in
LNG projects in the United States and Indonesia. In
countries other than the ones that have been the focus ofattention to date—such as Australia and those in southern
Africa—and that are expected to see business expand in thenear future, there has been an increase in projects. In theinfrastructure sector, meanwhile, loans were extended foroffshore wind power generation projects in the United
Kingdom, and for equity participation in an integrated
water management company in the Middle East. Support
for overseas business expansion included M&As in thebeverage and pharmaceutical fields.

■ Net income(Billion of yen)
150

126.1
120

91.3

90

60

58.7

63.5
52.5

30

0
FY2010FY2011FY2012FY2013

FY2014

Please outline the main points of JBIC’s current
medium-term business plan for FY2015–2017.

The goal of the second medium-term business plan is beststated as follows: “JBIC will contribute to exploring andcreating new business opportunities that will lead to thesustainable growth of Japan, through supporting thestrengthening of Japanese companies’ overseas businessdeployment and resource acquisition, by exercising thefinancial intermediary functions unique to JBIC.”JBIC is determined to provide advanced support andcontributions in five business areas—energy and natural
resources, infrastructure, manufacturing and industries, midtier enterprises and SMEs, and the environment. Thus, froman industrial perspective, while manufacturers expanding
overseas traditionally have been dominant—even in otherfields such as healthcare and food, which generally haveattracted focus—we intend to provide support that will lead

2. Interview with the Governor, CEO

The biggest issue, we believe, is how one gathers accurate
information in an overseas environment that is in flux.
Related to this, we must also consider the best methods ofsharing information with partner financial institutions inJapan and abroad—with whom we extend loans—as well aswith international institutions and local financial institutions
in countries where projects are undertaken.
The fiscal difficulties experienced by some developing
countries have caused concern that there may be some
impact on projects for which local governments were
expected to provide a portion of the funding needed. To date,
JBIC has used loans as its primary financing method but, in
response to demand for start-up funding—of which there is a
shortage—we also intend to consider equity participation asa key financing method.
Although I believe that, so far, our organizational
management has been comparatively sophisticated, when
considering JBIC’s future development I believe it will benecessary to strive for even more advanced management.
We recognize that strengthening the abilities of theBank’s employees is one of the key improvements to be
implemented, and in the context of ever-intensifying
international competition.

Profile of JBIC

Over the past three years, what key issues haveyou identified?

1

to an expansion of growth opportunities by tapping thecompetitive advantages held by Japanese enterprises.
In the area of institutional capabilities, we are focusing
on developing strengths in four areas, namely, “financial
structuring for business implementation,” “realizationof projects bankability,” “providing information andpolicy recommendations,” and “mobilization of private
sector finance.”
Among the operations JBIC has handled to date, we
believe these capabilities require reinforcing. In particular,
in the area of policy recommendations, I believe that thisincludes providing recommendations to the government
domestically, having a dialogue with business organizations,and offering recommendations to partner country
governments and other parties. From time to time, this may
include offering frank recommendations that the recipient
would rather not hear. At present, JBIC has begun a policy
dialogue with several countries. We intend to pursue suchdialogue with a broad range of countries, and look forward
to engaging in more thorough debate than has beenachieved to date.

Please offer your thoughts on JBIC’s longterm vision.

When considering how to strengthen the ability of Japan, as acountry, to earn its way, it is important to identify potentially
profitable areas, one of which is bankable projects. I believethat this is the mindset we must consciously adopt whenlooking for opportunities. As I mentioned earlier, in relation to
infrastructure, the profit margins available from simply
selling equipment are not very high. For example, this might
apply to selling a turbine in the case of power generation, or areverse osmosis membrane for seawater desalination in thecase of water treatment. In contrast, managing a watercompany that purchases a range of components is likely to
produce a much higher profit margin.
However, this type of development does not take place ina vacuum. Hence, it is often necessary to create a precedentor case that can serve as a template. In particular, for young
people in Japan—who are often seen as becoming
increasingly introverted—it is important, for the developmentof Japan and the world, that they proactively look foropportunities abroad. One way of encouraging this is byproviding opportunities for them to gain awareness of places
where they can expand their potential. With this in mind, if we
can find projects that have a high level of certainty, get suchprojects off the ground and running smoothly, and create
best practices, then more projects will follow. I believe thatsuch a scenario can generate a virtuous cycle for Japan.

JBIC Annual Report 20157

3. Directors, Managing Executive Officers andCorporate Auditors (As of August 1, 2015)

1
Profile of JBIC
3. Directors, Managing Executive Officers and Corporate Auditors(Back row, from left)
Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Managing Executive Officer

Shigeki Kimura

Kenichiro Hayashi

Hideo Naito

Yasuhiko Yoshida(Front row, from left)
Managing Director

Masaaki Amma

8

JBIC Annual Report 2015

Executive Managing Director, COO

Koichi Yajima

Governor, CEO

Senior Managing Director

Managing Director

Hiroshi Watanabe

Tadashi Maeda

Akira Kondoh

Corporate Auditor

Corporate Auditor

Tatsuo Igarashi

Hiroshi Imoto

Corporate Auditor

Yuko Tamai

1■ Directors and Managing Executive Officers

Executive Managing Director, COO

Koichi Yajima

Senior Managing Director

Tadashi Maeda

Managing Director
Global Head of Corporate Group

Masaaki Amma

Managing Director (Outside Director)

Akira Kondoh

Managing Executive Officer
Global Head of Energy and Natural Resources Finance Group

Kenichiro Hayashi

Managing Executive Officer
Global Head of Infrastructure and Environment Finance Group

Hideo Naito

Managing Executive Officer
Global Head of Industry Finance Group

Shigeki KimuraManaging Executive Officer
Global Head of Credit, Assessment, and Systems Group

Yasuhiko Yoshida

3. Directors, Managing Executive Officers and Corporate Auditors

Hiroshi Watanabe

Profile of JBIC

Governor, CEO■ Corporate Auditors
Corporate Auditor (Full-time Corporate Auditor)

Hiroshi Imoto

Corporate Auditor (Outside Corporate Auditor)

Tatsuo Igarashi

Corporate Auditor (Outside Corporate Auditor)

Yuko Tamai

JBIC Annual Report 20159

4. JBIC’s Medium-Term Business Plan (FY2015–2017)

1
Profile of JBIC
4. JBIC’s Medium-Term Business Plan (FY2015–2017)

JBIC, since its inception in April 2012, has been proactively
supporting Japanese companies’ overseas operations,
including acquisition of energy and natural resources,
infrastructure projects, M&A, as well as overseas businessdeployment of Japanese mid-tier enterprises and SMEs,
utilizing a diverse array of financial schemes, including
involvement in projects from the formation stage andperforming risk-assuming functions. As a result, under
JBIC’s three-year Medium-Term Business Plan (FY2012–2014), the loans, equity participations, and guarantees
carried out during the period amounted to a cumulative totalof ¥9,700 billion.
At present, Japan is grappling with such structural
challenges as population decline, a low birth rate, andpopulation aging. Despite these challenges, the country is in
the process of breaking free from more than two decades of
economic stagnation as it works to regain its dynamism. To put
the Japanese economy on a sound growth track and further liftsociety’s level of affluence, it is essential to improve theproductivity of the economy as a whole and strengthen the
country’s earning power. As one of the keys to achieving thisgoal, what is called for is the building of a new growth engine
for the Japanese economy, particularly through opening up
new frontiers. For example, this includes Japanese enterprises
taking up the challenge of creating new businesses and thepromotion of international project development.
Based on this recognition, JBIC has formulated its
Medium-Term Business Plan (FY2015–2017) (New MediumTerm Business Plan) as a means of contributing more
actively to the sustainable growth of the Japanese economy.
As Japan’s policy-based financial institution, JBIC will—as it
has in the past—implement efforts to support the overseas
business deployment of Japanese companies, and, throughthese efforts, JBIC will focus on supporting the building of a
new growth engine for the Japanese economy. Hence, JBIC’soperations aim to further contribute to the sounddevelopment of Japan, the global economy, and theinternational community.

Our Goal
JBIC will contribute to exploring and creating new business opportunities that will lead to the sustainablegrowth of Japan, through supporting the strengthening of Japanese companies’ overseas businessdeployment and resource acquisition, by exercising the financial intermediary functions unique to JBIC.

Our Goal and Key Action Plans● Established our “Goal” to conduct business more proactively and further contribute toward Japan’s sustainable
future growth.

● Identified 5 “Business Areas” which JBIC needs to focus on.
● Identified 4 “Institutional Capabilities” to be demonstrated and strengthened, which are essential to better perform
JBIC’s function in the 5 “Business Areas”.

● Identified “Key Action Plans” to “contribute to exploring and creating new business opportunities (country, region, area,
sector and etc.) that will lead to the sustainable growth of the Japanese economy” by demonstrating and strengthening
our 4 “Institutional Capabilities” in the 5 “Business Areas”.

Key Action Plans
1. Energy and Natural Resources
2. Infrastructure

In these three business areas, JBIC will emphasize activities withhigher difficulty levels such as those that require mid-to-longterm project formation.

3. Manufacturing and other Industries
4. Mid-tier Enterprises and SMEs
5. Environment

10

JBIC Annual Report 2015

In these two areas, JBIC will emphasize the whole range ofactivities of the Key Action Plan.

1

Our Goal

Profile of JBICJBIC will contribute to exploring and creating new business opportunities that will leadto the sustainable growth of Japan, through supporting the strengthening of Japanesecompanies’ overseas business deployment and resource acquisition, by exercising thefinancial intermediary functions unique to JBIC.

Institutional
Capabilities

Business Areas

Financial Structuring for Business Implementation

2. Infrastructure

Realization of Projects Bankability

3. Manufacturing and Other Industries

Providing Information and Policy Recommendations

4. Mid-tier Enterprises and SMEs

Mobilization of Private Sector Finance

5. Environment

Key Action Plans

Supporting JapaneseCompanies’ Energy andNatural Resources BusinessSupporting Promotion for
Diversification andAdvancement of JapaneseCompanies’ Overseas
Infrastructure Development

Supporting the Improvementof Japanese Industries’
Competitive Advantage and
Growth Opportunities in theWorld Market

Supporting Overseas
Business Expansion ofJapanese Mid-tierEnterprises and SMEs

4. JBIC’s Medium-Term Business Plan (FY2015–2017)

1. Energy and Natural Resources

Positive Contribution to Preserving the Global Environment, including Measures to Mitigate Climate Change
Enhancing Mobilization of Private Sector Finance through Strengthened Collaboration with Private Financial Institutions

Key Action Plans of Corporate and Treasury Areas
Enhancement of Risk Management and Maintenance/Strengthening of Financial Stability
Strengthening of Human Resources Development for the Further Improvement of Organizational Capability
Improvement of Efficient Organizational Operation and Workflow

Details of Key Action Plans■ 1. Supporting Japanese Companies’ Energy and Natural
Resources Business1 -1 Promoting projects that secure and diversify the supplyof resources● JBIC supports project formation and implementation,
through taking the country risk of resource-rich countries,
utilizing its knowledge of risk management/allocationand developing a dialogue with overseas counterparties
such as the governments of host countries, state-owned
oil & gas companies and the international resources
majors, by leveraging JBIC’s status as a policy-based
financial institution. In addition, JBIC supports integrated
natural resource projects, which includes surrounding
infrastructure and/or advanced technology.

JBIC Annual Report 2015

11

1
Profile of JBIC

1-2 Promoting projects that reduce LNG procurement costs● JBIC supports the financing and realization of Japanesecompanies’ businesses that reduce Japan’s long-term
LNG procurement costs in addition to the activities
mentioned in the above 1-1.

■ 2. Supporting Promotion for Diversification andAdvancement of Japanese Companies’ Overseas
Infrastructure Development

4. JBIC’s Medium-Term Business Plan (FY2015–2017)

2-1 Strengthening efforts for social infrastructure projects
such as railroad and water● JBIC supports Japanese companies’ overseas
infrastructure system projects, through developing a
d i a l o g u e w i t h t h e ove rsea s co u n te r pa r t i es a n dinternational key-players by leveraging JBIC’s status as apolicy-based financial institution, utilizing its knowledgeof risk management/allocation and drawing on various
financial facilities and schemes, and promoting JBIC’s
involvement from an early stage in the project’s
framework development and formation.
2-2 Strengthening efforts for smooth implementation of
power generation projects● JBIC supports the overseas deployment of advanced
technology and the participation of Japanese companies
in high efficiency and renewable energy power generation
projects etc. beyond existing markets and schemes, by
taking advantage of close relationships with and strong
influence on host country’s governments and overseas
key-players, and utilizing its knowledge of risk control/
allocation and drawing on various financial facilities
and schemes.

■ 3. Supporting the Improvement of Japanese Industries’
Competitive Advantage and Growth Opportunities in
the World Market
3-1 Strengthening support for the overseas businessdeployment of various industries which are the basis of
the Japanese economy● JBIC supports further opportunities for Japanesecompanies in various industries, which are the basis of
the Japanese economy, to increase their earnings throughoverseas investment, by strengthening overseas risktaking and communication from the development stageof corporate strategy.
3-2 Contributing to the development of competitive Japanesetechnologies and business models into growing industries
through overseas business deployment● JBIC supports Japanese companies with competitivetechnologies/brands/business models, etc. to develop
into growth industries on a commercial basis and to
capture market share in oversea markets, aiming tocreate Japan’s new growth industries.

12

JBIC Annual Report 2015

■ 4. Supporting Overseas Business Expansion of Japanese
Mid-tier Enterprises and SMEs
Supporting mid-tier enterprises and SMEs overseas
business expansion utilizing JBIC’s characteristics● In collaboration with private financial institutions, JBIC
supports Japanese mid-tier enterprises and SMEs
increasing their earning opportunities through overseas
business expansion, taking into account JBIC’s uniquecharacteristics (e.g. local currency financing)■ 5. Positive Contribution to Preserving the Global
Environment, including Measures to Mitigate
Climate Change
Strengthening efforts on projects that promote thepreservation of the global environment, including
measures to tackle with climate change● JBIC supports the efforts of Japanese companies andoverseas counterparties to preserve the global
environment including measures to tackle with climatechange, considering the international discussions andpolicies of the Japanese and host country governments inthis field, by taking advantage of close relationships withhost country governments and utilizing its knowledge ofrisk management/allocation and a wide range of financial
facilities and schemes such as Global action for
Reconciling Economic growth and ENvironmental
preservation (GREEN).

■ 6. Enhancing Mobilization of Private Sector Financethrough Strengthened Collaboration with Private
Financial Institutions
Further enhancement of private sector finance mobilization● JBIC expands efforts to promote its initiatives of credit
securitization, including assignment of its loan portfolio.
● JBIC promotes the mobilization of private sector
finance in a variety of ways, including providing funds inthe form of equity, subordinated loans and providing
LBO financing.
● JBIC pursues appropriate cofinancing taking into accountthe uniqueness of individual projects and the surrounding
financial environment.
* JBIC will make necessary revisions to the Key Action Plans of the New Medium-TermBusiness Plan, when the surrounding environment or expected role change
significantly, and as a result, JBIC determines that it should engage in additional/
different fields.

5. Outline of Operations in FY2014

1

Operational Highlights
cooperation was also concluded with the Mozambican
Ministry of Mineral Resources.

■ Support for Japanese Companies’ Strategic Overseas■ Efforts in the Energy and Natural Resources Sector
In the energy resources sector, JBIC supported LNG projects
that Japanese companies are taking part in and the offsore
FPSO project in Brazil, and provided the necessary funds forthe procurement of an LNG tanker. JBIC also supported a
CO2-EOR (Enhanced Oil Recovery) project that utilizes fluegas generated by a coal-fired power plant.
In the mineral resources sector, JBIC provided support
fo r va r i o u s p ro j e c t s, i n c l u d i n g o n e re l a t e d t o t h edevelopment and operation of an iron ore mine and related
infrastructure in Australia and another involving woodchip
production and sales in Vietnam. Furthermore, JBIC
provided the necessary financing for Japanese companies toa c q u i re a n i n t e re s t i n a Pe r u v i a n c o p p e r m i n e . A
memorandum of understanding (MOU) related to business■ Supporting Exports by Japanese Companies
In addition to supporting the export of plants such as gas-togasoline plant equipment for Turkmenistan by a Japanesecompany, JBIC supplied project finance for an oil refinery
project in Turkey upon a collective order. Support was also

5. Outline of Operations in FY2014

Business Deployment
JBIC supported, in project financing, the expansion of an
integrated oil refinery and petrochemical plant in Saudi
Arabia1 and funds for a shipbuilding project that the Chinese
local subsidiary and Paraguayan local subsidiary of Japanesecompanies undertook.
JBIC also invested in a Middle Eastern integrated water
management company that a Japanese company has a stakein, thus supplying risk capital indispensable for anFY2014
overseas expansion of Japanese companies.

Profile of JBIC

The total amount of commitments JBIC made during
FY2014 in loans, guarantees and equity participation was¥3,249.3 billion, which is 47% greater than that for FY2013.
The outstanding amount of loans and guarantees as ofMarch 31, 2015, was ¥17,265.3 billion.
The following is a report on JBIC’s major operations ineach sector during FY2014.

1. Project finance is a financing scheme in which repayments are made solely from cash
flows generated by the project and secured only by the project assets.

■ Commitments by Purpose of Financing (FY2014 Unit: billions of yen)

■ Commitments by Region

Equity Participations 32.8 (1%)
Guarantees
312.3
(10%)

Others 21.2 (1%)
Latin America andthe Caribbean
136.1 (4%)

Export Loans 406.4(13%)(FY2014 Unit: billions of yen)North
America (43%)
1,389.3¥ 3,249.3

Asia 610.5(19%)

Untied Loans
46.7 (1%)(5%) Oceania 173.8¥3,249.3(7%)

Europe 228.8(15%)
2,451.0(75%)

The Middle East
493.6

(6%)

Overseas Investment
Loans

Africa 195.6■ Changing Composition of Loans, Equity Participations and Guarantees (Commitments)
FY2010

151.2
(9%)

169.5
(10%)

710.3
(40%)

(Unit: billions of yen)

638.1
(36%)

¥1,765.9
19.8 (1%)

76.8 (4%)

FY2011

207.9
(13%)

FY2012

304.3
(7%)

172.6
(11%)

962.0
(60%)

228.5
(14%)
1.5 (0%)23.2 (1%)
3,138.5
(74%)

210.5
(5%)

126.6 (3%)

FY2013

FY2014303.2(7%)

83.2 (2%)

56.2
(3%)
126.2 (6%)

1,671.0
(76%)

406.4
(13%)

2,451.0(75%)¥ 1,595.9¥ 4,240.9

74.3 (2%)

209.1
(9%)
46.0 (2%)¥ 2,206.1
97.4 (4%)

312.3
(10%)
46.7 (1%)¥ 3,249.3

32.8 (1%)■ Export Loans ■ Import Loans ■ Overseas Investment Loans ■ Untied Loans ■ Bridge Loans■ Guarantees ■ Equity Participations

JBIC Annual Report 2015

13

1
Profile of JBIC

provided for the export of geothermal power generationequipment and construction machinery by a Japanesecompany using an export credit line established for Turkeybased Yapi Kredi Bankasi A.S.
As for shipbuilding, JBIC supplied ¥26.7 billion in
financing for 26 commitments related to ship exports in
FY2014,1 including support for the export of bulk carriers to aleading Hong Kong shipping group.

addition, supporting various other efforts were made, suchas establishing an investment credit line with Japaneseregional financial institutions and the overseas subsidiary ofa lease company.

■ Supporting Japanese Companies with Local
Currency Loans
JBIC approved financing in local currencies worth about¥214.6 billion for 20 commitments, and this included
providing support through the first financing denominatedin the Mexican peso for a project related to the manufactureand sale of automobile engine parts in Mexico by aJapanese company, and funds denominated in Thai baht fora project involving, the manufacture and sale of automobile
parts in Thailand.

■ Supporting the Overseas Deployment of Infrastructure

5. Outline of Operations in FY2014

Business by Japanese Companies
In the power and water sector, JBIC provided support for an
offshore wind power generation project in the UK, the first
African ultra-supercritical coal-fired power generation projectin Morocco, and hydro power plant projects in Indonesia andLaos. JBIC also undertook various other activities, such assupporting exports for water infrastructure in Morocco byJapanese companies.
In the transportation and telecommunications sector,
JBIC supplied project finance for the Intercity Express
Programme in the UK and supported the export of terrestrial
digital broadcast equipment to Uzbekistan.
In addition, a shareholders’ agreement regarding
establishing a company to promote private-sector
projects, including urban development ones, in Myanmar,
was concluded.

■ Supporting Issuance of Samurai Bonds
JBIC provided guarantees for yen-denominated foreign
bonds (Samurai bonds) 2 issued by the government ofTurkey, the Central Bank of Tunisia, and the Export-Import
Bank of India.
■ Promoting Renewable Energy and Conserving the
Global Environment
In Jordan, JBIC provided support through project finance fora photovoltaic power generation project in which Japanesecompanies are taking part. In addition, through its GREEN
operations, JBIC established credit lines for Mexican, Turkish,South African, and Brazilian financial institutions forrenewable energy. JBIC conducted MOUs on operational
cooperation in the environmental field with governmental
institutions of India and Mexico.

■ Supporting Overseas Business Deployment of Japanese
Mid-tier Enterprises and SMEs
As for support to mid-tier enterprises and small andmedium-sized enterprises (SMEs) for their overseas
expansion, JBIC made 109 commitments, in collaboration
with Japanese regional financial institutions and shinkinbanks. These projects included one related to the
manufacture and sale of health foods and supplements in
Thailand, and another related to heat treating metal
products in Mexico, both by Japanese corporations. In

1. This includes support through local buyer’s credit.
2. Samurai bonds are yen-denominated bonds issued in Japanese markets by anoverseas entity such as a foreign country or corporation.

Operational Results
JBIC made total disbursements of ¥2,278.6 billion in FY2014.
Planned and Actual Lending and Investments(Unit: billions of yen)

FY2011FY2013

FY2014

Plan

ActualPlan

ActualPlan

ActualPlan

Actual

1 20.0

73.9

200.0

1 43. 1

1 90.01 1 2.5

200.0

1 1 2.0

Import Loans and Overseas
Investment Loans

1,1 1 3.5

913.0

1,879.0

2,307.4

1,97 1 .0

2,1 62.5

1,900.0

2,071.2

Untied Loans

1 00.0

103.2

100.0

132.0

50.0

88.5

50.0

64.3

Equity Participations

200.0

7.3

100.0

1 7.2

1 00.085.4

1 00.030.9

Securitization

1 9.0

—

1 9.0

—

—

—

—

—

1,552.5

1,097.6

2,298.0

2,599.8

2,3 1 1 .0

2,449.0

2,250.0

2,278.6

Export Loans

Total

14

FY2012JBIC Annual Report 2015

1

Financial Results■ Balance Sheet
Total assets increased to ¥18,463.8 billion because loans
and bills discounted increased ¥1,777.5 billion to ¥14,432.9
billion on account of an increase in loans denominated inforeign currencies, etc. Total liabilities grew to ¥16,003.2
billion for various reasons. Borrowed money grew ¥1,017.6
billion to ¥9,425.3 billion as a result of borrowed money
denominated in foreign currencies and new borrowed
money, while bonds payable increased ¥338.1 billion to¥3,049.4 billion as the amount of newly issued bonds
surpassed redemptions. Total net assets increased to¥2,460.5 billion because of ¥126.1 billion in net earnings and¥31.0 billion in increased capital contribution.

5. Outline of Operations in FY2014■ Statement of Operations
In FY2014, JBIC recorded ¥192.9 billion in interest incomeand ¥257.2 billion in ordinary income. This was for various
reasons including support to promote the acquisition ofinterests in and development of natural resources, toexpedite overseas M&As by Japanese companies, and to
expand the overseas operations of Japanese companies,
such as infrastructure projects. On the other hand, JBIC
record ¥136.7 billion in ordinary expenses as a result of

posting ¥116.0 billion in funding costs, such as interest
expenses. Therefore, ordinary profit was ¥120.4 billion, andnet earnings totaled ¥126.1 billion, which include an
extraordinary loss.

Profile of JBIC

Pursuant to the Companies Act and Article 26 of the Japan
Bank for International Cooperation Act (JBIC Act), JBIC
prepares financial statements and submits them to the
Minister of Finance.
The report on the final settlement of accounts is
submitted to the government of Japan, together with thefinancial statements and, after examination by the Board ofAudit of Japan, to the Diet.

The Third Term for JBIC (FY2014)
Statement of Operations

Balance Sheet(April 1, 2014–March 31, 2015; millions of yen)Accounts

Amounts(As of March 31, 2015; millions of yen)

Assets
Accounts

Liabilities and Net Assets
Amounts

Ordinary Income

2 57,252

Cash and Due from Banks

850,496

Interest Income

1 92,973

Receivables under Resale
Agreements Note 5─Fees and Commissions

35,9 0 1

Securities Note 4

Other Ordinary Income

4,100

Loans andBills Discounted Note 6

261,786
14,432,949

Other Income

24,276

Other Assets

430,297

Ordinary Expenses

1 36,75 5

Property, Plant andEquipment Note 828,295Interest Expenses

1 1 6,076

Intangible Assets

3, 154

Fees andCommissions Payments

2,088

Other Ordinary Expenses

1 ,585General and
Administrative Expenses

1 7,004

Other Expenses
Ordinary Profit
Extraordinary Income
Extraordinary LossNet Income

Customers’ Liabilities for
Acceptances and Guarantees
Allowance for Loan
Losses2,572,328△ 1 15,492

Accounts

Amounts

Borrowed Money

9,425,316

Bonds Payable Note 7

3,049,490

Other Liabilities

949,2 27

Provision for Bonuses
Provision for Directors’
Bonuses
Provision for
Retirement Benefits
Provision for Directors’
Retirement Benefits
Acceptances andGuarantees

5,707
16
1 26,1 87

Total Assets

1 8,463,816

6,395
30
2,572,328
16,003,296

Capital Stock

1,391,000
993,053

Total Shareholders’EquityValuation Difference on
Available-for-sale Securities
Deferred Gains or
Losses on Hedges
Valuation andTranslation Adjustments

1 20,496

6

Total Liabilities

Retained Earnings─

500

2,384,053
1 2,786
63,6 81
76,467

Total Net Assets

2,460,520

Total Liabilities and Net
Assets

1 8,463,816* See pages 110 and 111 for details of Notes 4 to 8.

JBIC Annual Report 201515

1

Funding Sources

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

Borrowings from FILP Fiscal Loan, GovernmentGuaranteed Foreign Bond issuance, capital contributions
from the government, etc., are included in the national
budget (either as an item in the General Account budget or
the Special Account budget), and requests for them are
submitted to the Diet for approval along the operating
budget of JBIC. Recent funding results and plans for FY2015
are shown in the table below.

5. Outline of Operations in FY2014

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

FY2011 Actual

FY2015
PlannedFY2012 Actual FY2013 Actual FY2014 Actual

Capital Contribution from FILP Industrial Investment

200.0

69.0

─

31 .0

─

Borrowing from FILP Fiscal Loan

201.0

400.0

555. 1

239.7

250.0

Borrowing from Foreign Exchange Fund Special Account

230.4

1 ,74 4.9

1,581.3

1,273.2

1,000.0

Government-guaranteed Foreign Bonds*

423.2

205.3

658.6

374.8

500.0

FILP AgencyBonds*

50.0

─

─

10.0

20.0

Other Sources of Funds, Including Repayments△ 6.9

18 0.6△ 345.9

349.8

50.0

1,097.6

2,599.8

2,449.0

2, 278.6

1,820.0

Total* 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

Foreign Exchange
Fund Special
Account
Governmentguaranteed
Foreign Bonds

Fiscal Loan Fund
Account

FILP Agency
Bonds

Internal Funds** Repayments, etc.

Loans
CapitalContribution

Loans

Loans /
Investments

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

16

JBIC Annual Report 2015

■ FILP Agency Bonds
In compliance with the government policy to reform the FILP,JBIC has issued bonds without government guarantees (FILP
agency bonds) in the Japan’s capital market since FY2001,
thereby raising funds based on its own creditworthiness. In
FY2014, JBIC issued ¥10.0 billion in FILP agency bonds andplans to issue up to ¥20.0 billion for the FY2015 budget.
FILP agency bonds that JBIC has already issued received
the same ratings as the government of Japan (as of July 31,2015) as shown below. They are treated as assets for which
BIS assigns 10% risk weight in calculating the capital
adequacy ratio for depository financial institutions.

JBIC Annual Report 2015

5. Outline of Operations in FY2014

Rating & Investment Information, Inc (R&I): .......AA+
Japan Credit Rating Agency, Ltd. (JCR): .............AAA
Moody’s: .................................................................A 1
Standard & Poor’s: .................................................AA–

1
Profile of JBIC

■ Government-guaranteed Bonds
JBIC raises part of its funds by issuing governmentguaranteed bonds in international capital markets.
Outstanding government-guaranteed bonds at the end of
FY2014 amounted to ¥2,574.5 billion at face value, which
accounts for 20.6% of the total outstanding borrowings andbonds. JBIC provides foreign currency loans when necessary
to effectively implement policy, and funds raised by issuinggovernment-guaranteed bonds are used as a source of
those loans.
As Japanese companies have been recently moving
forward with their overseas business deployment, there are
greater expectations for JBIC to provide financial support
denominated in local currencies. To properly meet demand
for such funds, JBIC issued government-guaranteed foreign
bonds denominated in Canadian dollars in March 2013 andsimilar bonds denominated in British pounds in March 2014.
In the FY2015 budget, JBIC plans to issue in the
total amount of up to ¥500.0 billion in governmentguaranteed bonds.
JBIC’s government-guaranteed bonds receive the sameratings as the Government of Japan from the rating
agencies (A1 from Moody’s and AA-from Standard & Poor’s
as of July 31, 2015). Since they are treated as assets forwhich the Bank for International Settlements (BIS) assigns
zero risk weight in calculating the capital adequacy ratio
for depository institutions, these bonds provide a quality
investment opportunity for investors in international
capital markets.

17

2

The Environment Surrounding
JBIC and Its Challenges
1. Energy and Natural Resources Finance Group20

2. Infrastructure and Environment Finance Group24

3. Industry Finance Group28

JBIC Annual Report 201519

1. Energy and Natural Resources Finance Group2

A Message from the Global Head of the GroupThe Environment Surrounding
JBIC and Its Challenges

As Japan is poorly endowed with natural resources, the stableprocurement of energy resources, such as oil, natural gas and othermineral resources from overseas is indispensable in order to maintainand improve the standard of living of Japanese citizens, as well as forthe growth and development of Japan’s economy.
The Energy and Natural Resources Finance Group is responsible forpromoting efforts to develop and acquire overseas natural resources
which are essential for Japan. Projects for overseas natural resource
development require massive, long-term investments and entail various
risks, including geopolitical risks. JBIC provides long-term funds
through financing and equity participation to supplement privatesector funds and, as a policy-based financial institution, focuses on
creating an environment which enables smooth implementation ofprojects by actively engaging in dialogues with local governments andstate-run oil companies.
JBIC will continue to contribute to securing a stable supply ofnatural resources through such efforts.

1. Energy and Natural Resources Finance Group

Kenichiro Hayashi
Managing Executive Officer
Global Head of Energy and Natural Resources Finance Group

Business Environment and Priority Issues
The global supply–demand energy balance is affected bymacroeconomic trends and various other factors. In recent
years, the growing demand for energy in emerging countries
has had a major impact on the price of natural resources. In
particular, energy consumption in Asia, which includes China
and India, is growing at a faster pace than that in any otherregion. However, Indonesia, one of the leading oil and gas
producers in Asia, has had less capacity to export because ofincreasing domestic demand for energy due to its remarkableeconomic growth. As a result, there has been a surge in importsof oil and natural gas needed by the whole Asian region.
Under such circumstances, Japan imports 80% or moreof its crude oil from the Middle East, and importing crude oilfrom the Middle East may expose Japan to potential
geopolitical risks. From the perspective of Japan’s energy
security, it is important for Japan to actively contribute tostability in the Middle East and, at the same time, to secure oil
imports from other regions.
As for Liquefied Natural Gas (LNG), Japan accounted for amajority of global LNG business until around year 2000, but
in recent years, China and India have increased their LNG
imports, causing a shift in Japan’s position as an LNG
purchaser. Considering that Japan now relies heavily on
natural gas as an energy source, it is indispensable to obtain astable supply of LNG, and in order to do so, it is important to20

JBIC Annual Report 2015

support the participation of Japanese companies in overseas
LNG projects and to link this to long-term LNG deals. Anotherimportant task is to hold down the medium-and long-term
purchase price of LNG by diversifying the pricing system forimported LNG.
Japan faces a major challenge in the mineral resource
sector as well. Despite a temporary slowdown, demand in
China, India, and other emerging countries is still on theincrease, and thus it continues to be vital to secure a stablesupply of mineral resources which are used for many
purposes in Japanese industries. As for iron ore, in addition toensuring the required volume, securing high-quality iron ore
has become a critical issue as the overall quality of ore fromexisting mines deteriorates.
These changes in the global supply–demand balance ofenergy and other resources have made it more difficult tosecure a stable supply of the resources. This in turn makes it
more important than ever before to proactively support
Japanese companies in acquiring interests in, and securinglong-term purchase of, natural resources.

JBIC’s Activities
During FY2014, JBIC took on the following efforts to address
the issue of securing a stable supply of energy and mineral
resources from overseas.

2
The Environment Surrounding
JBIC and Its Challenges

Cameron LNG, U.S.

provided the funds for acquiring an interest in the shale gas
mining area in Montney, Canada, and for developing andproducing shale gas from these fields. The natural gas
produced from the Canadian project is expected to beconverted into LNG and exported to Japan, and it is hopedthat adding Canada, which is geopolitically stable, as asource of LNG will contribute to diversification of LNG
supplies for Japan. JBIC also finances LNG tanker projects

1. Project finance is a financing scheme in which repayments are made solely from cash
flows generated by the project and secured only by the project assets.
2. Shale oil and gas refer to crude oil and natural gas stored in the shale stratum.
P ro d u c t i o n o f s h a l e o i l a n d ga s i s i n c re a s i n g o n a c c o u n t o f re c e n ttechnological innovation.

1. Energy and Natural Resources Finance Group■ Oil and Natural Gas
By providing the necessary funds through project finance, 1
JBIC supported the Cameron LNG Project as well as
Freeport LNG Project, the first projects involving thepurchase of LNG for Japan from mainland U.S. These
projects were also the first to involve the export of LNG,
based on long-term contracts, from mainland U.S. to
Japan. The LNG purchase price which Japanese electricand gas companies have traditionally paid has been linked
to crude oil prices, but the liquefied natural gas in both ofthese projects is based on a pricing formula linked to the
U.S. gas market index. It is therefore expected that support
for the projects will contribute to the diversification ofsources as well as prices of LNG. Furthermore, in Indonesia,
JBIC financed the Donggi-Senoro LNG Project, from whichmore than half of the LNG produced is scheduled to bepurchased by Japanese power companies. Up until the early
2000s, Japan was the largest LNG importer from Indonesia,
but the import volume has been falling in recent years. In
the midst of such condition, this project will contribute tosecuring a stable supply of LNG for Japan. In the course of
implementing the project, JBIC held numerous discussions
with the Indonesian government using a framework forpolicy dialogue, and also worked to mitigate the associatedpolitical risks.
JBIC supports the purchase of interests in unconventional
oil and gas as well. In addition to providing the necessary
funds for Japanese companies to purchase stakes in, and todevelop, the Eagle Ford Shale oil/gas2 area in the U.S., JBIC

■ Major Projects over the Last 10 Years (As of September 30, 2015)
Oil● Natural Gas■ Coal◆ Iron Ore▲ Copper✚ Other

IGBC Shale Gas, Canada
Cordova Shale Gas, Canada
Pogo Gold Mine, U.S.

Norwegian North Sea Oil Field✚

British North Sea Oil Field
West Mynkuduk Uranium✚ Mine, Kazakhstan✚

Kashagan Field,
Kazakhstan

Tungsten Mine,
Portugal

Kharassan Uranium Mine, Kazakhstan
BTC Pipeline✚

Tempa Rossa
Oil Field, Italy●●●
Suska Sukunka Mine, Canada■
Sakhalin I, Russia● Sakhalin II, Russia

Eagle Ford Shale Oil & Gas, U.S.

■ Advance Payment Loan to VINACOMIN, Vietnam
Vijachip/Vietnam ✚Gas Fields, Malaysia
Tiga LNG, Malaysia●✚Taganito Nickel Project, Philippines
Tayan Alumina Project, Indonesia●

Oil Field, UAE

Woodchip,Mozambique

◆✚

✚
✚

Assmang Iron, Zinc,
Chrome Ore Mine,
South Africa

Cape Lambert Iron Ore Shipping Port
West Angeles Mine
Jimblebar Mine
Roy Hill Mine

✚ Forestation, New Zealand■ Caval Ridge Mine
■ Isaac Plains Mine
■ Byerwen Mine
■ Kestrel Mine
■ Minerva Mine

● ●Cameron LNG/U.S.
●Oil & Gas Field/U.S.

Freeport LNG/U.S.
Trinidad Methanol, Trinidad and Tobago
METOR Methanol, Venezuela ● Purchasing oil
Drummond Project, Columbia■● product fromPDVSA, Venezuela
Forestation, Brazil ✚AMAZON Alumina Refinery/Aluminum Smelter, Brazil ✚CENIBRA
Bayovar Phosphate Mine, Peru✚
Pulp,
Cerro Verde Mine, Peru
BrazilQuellaveco Mine,Peru ▲✚▲◆San Cristobal Zinc Mine, Bolivia ✚◆Donggi-Senoro LNG/Indonesia
Woodchip, Indonesia✚●Tangguh LNG, Indonesia✚ ●Pagardewa Oil Field, Indonesia●● PNG LNG, Papua New Guinea
Kangean Oil & Gas Field, Indonesia
Prelude FLNG
Browse LNG● ●Bayu Undan LNG●
Wheatstone LNG
Ichthys
LNG
Enfield/Vincent Oil Field ●●●●
Gorgon LNG✚◆● Curtis LNG
Sierra Gorda
Pluto LNG
✚ ◆◆Copper Mine,◆■ Rollestone Mine
Shark Bay Salt Field✚■ Boggabri Mine
Chile
Rasp✚ ■
Worsley Bauxite Mine &Moolarben
Mine
Zinc &
Alumina Refinery
Antucoya Copper Mine,
Lead
Chile
Mine

Ambatovy Nickel,
Madagascar

Alouette Aluminium✚Smelter, Canada● Marcellus
Shale Gas, U.S.

●●

■ Grande Cache Coal Mine, Canada

Petra Nova CO2-EOR Project/U.S.

LNG, Qatar ● Advance Payment Loan to ADNOCMOZAL
Aluminum Smelter,
Mozambique

MineralResources, etc
Hangingstone Oil Sands, Canada

Coal-Bed Methane, Canada ●Similco Mine, Canada ▲ACG Field,
Azerbaijan

Equatorial Guinia, LNG

Montney Shale Gas, Canada▲▲▲

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

Logistical
Support forIron Ore
Transportation, Brazil
Frade Oil Field,
BrazilMUSA Mine, Brazil

As of September 30, 2015

JBIC Annual Report 2015

21

2
The Environment Surrounding
JBIC and Its Challenges
1. Energy and Natural Resources Finance Group

as part of its comprehensive support for the natural gas
supply chain, and has provided loans for the operation of
LNG tankers required by Japanese companies to deliver
LNG from Australia to Japan.
Furthermore, JBIC is committed to support projects that
employ new technologies. In the U.S., JBIC provided thefunds for the CO2-EOR (Enhanced Oil Recovery) project, thegoal of which is to enhance the extraction of oil from theexisting oil fields, in which Japanese companies hold stakes,
by capturing CO2 emitted from coal-fired power plants andinjecting it into the oil fields. This project makes use ofJapanese CO 2 capture technology and is expected tocontribute to increasing production of energy resources andmitigating the impact on the global environment.

■ Mineral Resources
JBIC also actively supports projects that contribute tosecuring a steady supply of mineral resources, demand forwhich is growing in emerging countries. For iron ore, JBIC
provided the funds necessary to expand the production
capacity of the Australian West Angelas Iron Ore Mine,
which produces high-quality iron ore and in which Japanesecompanies own stakes, and to update and expand theWest Angeles Iron Ore Mine, Australia

22

JBIC Annual Report 2015

facilities at the port of loading for iron ore extracted fromthe mine. For copper, JBIC supplied the necessary funds forJapanese companies to acquire an interest in the
Quellaveco Mine in Peru. The copper concentrate produced
from the mine in the future will be allocated to Japanesecompanies in proportion to their investment and supplied
to refineries in Japan. As for wood chips, JBIC provided thefunds needed by a joint venture between Japanese andVi e t n a m ese co m pa n i es to co n d u c t t h e wo o d c h i p
production and sales. All of the produced woodchips will be
off-taken by the Japanese company and exported, mainly to
Japan, as papermaking material.

■ Efforts to Strengthen Multilayered Relationships with
Resource-Rich Countries
From the perspective of securing a stable supply of natural
resources, it is also important to strengthen the relationships
with resource-supplying countries, as well as with major
resource companies. Leveraging its status as Japan’s policybased financial institution, JBIC continually conducts
discussions and holds dialogues with the governments andgovernmental agencies of resource-rich countries, thereby
facilitating the acquisition of interests in resources and■ In the Future
In both the Strategic Energy Plan and Japan Revitalization
Strategy, endorsed and revised in FY2014 and FY2015, theJapanese government sets “diversification of natural
resources and the sources of such resources” as a measure
to secure a stable and inexpensive (economical) supply of
resources. JBIC, in the FY2015–2017 Medium-Term Business
Plan announced in June 2015, lists Supporting Japanesecompanies’ energy and natural resources business as apriority task in the area of resources, and has committed
itself to focusing on promoting projects that secure anddiversify the supply of resources as well as promoting
projects that reduce LNG procurement costs.
In addition to the LNG project in the U.S., there are alsoplans for shale gas-based LNG projects in Canada. The LNG

1. Energy and Natural Resources Finance Group

resource development projects by Japanese companies.
The following are examples of efforts to strengthen
bilateral relationships with resource-rich countries which aree s s e n t i a l f o r J a p a n . I n M e x i c o, J B I C c o n c l u d e d amemorandum of understanding (MOU) with their stateowned petroleum company Petróleos Mexicanos (PEMEX) inorder to reinforce cooperation in the field of oil and naturalgas. Energy reforms in Mexico have opened the possibility forforeign companies to participate in oil and natural gas
projects with PEMEX in a new way, such as upstream
development projects.
Mozambique, which is rich in energy and mineral
resources, such as natural gas and coal, is drawing keeninterest from Japanese companies to participate in resourcerelated projects in the country. JBIC concluded an MOU with
the Mozambican Ministry of Mineral Resources with the aimof exchanging information and opinions toward implementing
the resource-related projects in which Japanese companies
can take part as well as for cooperation in the project
development. As an example of efforts to strengthen thecooperative relationship with international resourcecompanies, JBIC concluded an MOU with Brazil-based ValeS.A. in order to cooperate through consultations towardrealizing projects that contribute to securing a stable supplyof mineral resources for Japan and exporting mining
equipment by Japanese corporations.

2
The Environment Surrounding
JBIC and Its Challenges

JBIC signs MOU on strengthening the cooperative relationship in the oil and natural gas
sector with PEMEX.

will be exported to Japan and other Asian countries, and JBIC
will proactively take into consideration the support for theseprojects. Furthermore, JBIC will contribute to diversificationof energy resources by supporting the acquisition of interests
in, and development of, unconventional oil and natural gas,such as shale oil and gas, coal-bed methane (CBM), oil sand,and tight oil, and also work to diversify the geographicalsources of the supplies in light of international affairs. In
Africa, too, which is highly expected as the last frontier for oil,natural gas, and metal resources, and where non-Africancountries have started to invest in resource development,
JBIC will support resource development projects which will
be tied to interest acquisition and businesses for Japanesecompanies. As acknowledged at the Fifth Tokyo International
Conference on African Development (TICAD V), such natural
resource development projects in Africa are significant interms of support for Africa, such as creation of employment
in the country where the project is implemented, provision offoreign currency, as well as promotion of related infrastructuredevelopment and industries.
New technologies are being created from natural
resource development. For offshore gas fields, a number ofprojects employing floating LNG (FLNG)1 technology, whichconverts the natural gas from offshore fields into LNG at sea,
are being planned. The FLNG technology has the advantageof reducing the environmental burden as it does not require apipeline to be laid on the ocean floor from the offshore gas
field to an onshore facility, nor development of the coastal
area. JBIC will actively support resource development
projects which employ new technologies, based on
appropriate risk assessment.
JBIC will also continue its efforts to create an environment
which enables the formulation and smooth implementationof resource development projects by holding dialogues withvarious parties, including the governments and governmental
agencies of resource-rich countries. In order to strengthen
the relationship with resource-rich countries, the key not only
lies in the cooperation in resource development projects, butalso in the establishment of comprehensive and sustainable
cooperative relationships that meet the needs of thesecountries in various fields, including infrastructure construction,industrial development, employment creation, technology
transfer, and reduced environmental burden through the useof renewable energy and energy efficiency. JBIC will not only
maintain but also work to strengthen its multilayered andpositive relationships with governments of resource-richcountries through comprehensive efforts that encompass
support for infrastructure, manufacturing, and other various
projects in the countries.

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

JBIC Annual Report 201523

2. Infrastructure and Environment Finance Group2* As of July 1, 2015, the Infrastructure and Environment Finance Group was reorganized as the New Energy and Power Finance Department I, the New Energy and Power Finance
Department II, and the Social Infrastructure Finance Department. By broadly dividing infrastructure into power generation infrastructure and social infrastructure, assigning power
generation infrastructure projects according to their characteristics, and handling projects not related to power generation in an integrated manner, the reorganization will increase
JBIC’s specialization and expertise in the infrastructure field and enable more flexible, responsive, and strategic operations.

The Environment Surrounding
JBIC and Its Challenges

A Message from the Global Head of the Group

2. Infrastructure and Environment Finance Group

Recently, it has been often discussed that the gap between infrastructure
supply and demand would be enormous throughout the world. In order todeal with it, it is vital, on the one part, to provide a stable supply of highquality long-term funds, and JBIC will not only actively provide its own
long-term financing but also work to further mobilize long-term private
financing. In terms of project development, on the other part, there are
expectations for the formation of high-quality projects which attract
long-term investment and project participation by private-sector
investors, especially in the case of public-private partnership (PPP)
projects. JBIC will strive to develop such projects by partnering with thegovernments of host countries, multilateral financial institutions, andother entities.
Under its new Medium-Term Business Plan (FY2015–2017), JBIC will
move forward with support for the diversification and advancement ofoverseas infrastructure projects in which Japanese companies
participate (particularly, in the field of the power sector, support that isbeyond the existing countries, and schemes/structures; and stronger
engagements with projects in the social infrastructure sector such asrailroads and water) and aggressively work to preserve the global
environment, which includes mitigating climate change.

Hideo Naito
Managing Executive Officer
Global Head of Infrastructure and Environment Finance Group

Business Environment and Priority Issues■ Japan’s Growth Strategy and the Need to Tap into
Overseas Infrastructure Demand
Global demand for infrastructure development is projected
to further grow in the future on account of economic growth
and rapid urbanization in emerging-market countries.
Overseas infrastructure demand in the power, nuclear power,
ports, and ICT sectors is expected to increase at an annual
rate of about 2.2%, 2.4%, 5%, and 4%, respectively.1
Such demand can be met by expanding local investmentin the projects and providing integrated infrastructure
systems that involve not only the delivery of infrastructurerelated equipment from Japanese companies with advanced
and eco-friendly technologies, which they have gained
through infrastructure projects in Japan, but also the transferof expertise in designing, constructing, operating, andmanaging infrastructure. Providing such infrastructure
systems and investments will contribute to the developmentof quality economic infrastructure that is necessary for thestability and growth of the global economy. At the same time,
it will help Japanese companies expand their business andsecure greater market share overseas.
With this in mind, the Japanese government set up threestrategic policies: (1) the Japan Revitalization Strategy,
endorsed by the Cabinet in June 2013, and revised in June

24

JBIC Annual Report 2015

High-speed railway project in the UK that Japanese companies are taking part in

2015; (2) the Infrastructure Systems Export Strategy,
adopted at the Ministerial Meeting on Strategy Relating
Infrastructure Export and Economic Cooperation, in May
2013, and revised in June 2015; and (3) the Basic Policy on
Economic and Fiscal Management and Reform, endorsed by
the Cabinet in June 2013, and revised in June 2015. The
objective is to lead the efforts to sustainable and robust
economic growth in Japan by aggressively capturing thehuge global demand for infrastructure through the maximum
use of Japan’s leading technologies and know-how.
For Asia, which shows particularly strong demand,

■ JBIC’s Financing for Infrastructure Projects

2
Power

Export of Gas-fired Power Generation Plant
Thermal Power Generation Project● Water■ Transport Infrastructure

United Kingdom(ports, railways, roads, etc.)

Russia■ Intercity Express Programme▼ Offshore Wind Power Generation Project◆ Broadcasting,Power Transformer Manufacturing and Sales Project

JordanTelecommunication▼ Renewable Energy✚ Others

Korea▼ Photovoltaic Power Generation Project

Export of Gas-fired Power Generation Plant

TurkeyCanada▼ TSL for Renewable
Energy-Related Project■ Export for Ports Facility
Construction and Expansion Project
Export for Geothermal Power Plant■▼▼ Renewable
Energy Power Generation Project▼

Latin America
and theCaribbean region

Kazakhstan●

Kuwait▼●Export of Gas-fired
Power Generation Plant◆ Export of Terrestrial
Digital broadcasting Equipment●Power and
Desalination Project●● ● ■▼

Qatar●

MyanmarSaudi Arabia
UAE● IWPP Project
IPP Project● Equity Participation inwater Mgmt Co. ▼(DUBAI)▼ TSL forRenewable
Energy-Related
Project

Tanzania

Singapore

Gas-Fired Combine
Power Plant Construction●Export of Seawater
Desalination Plant

Maldives●Water Supply and
Sewerage System

Dubai
South Africa▼ TSL for Renewable
Energy-Related Project▼●

Malaysia● Equity Participation in
Water Mgmt Co.

India

Ecuador■ Delhi-Mumbai Industrial Corridor (DMIC) Project
Combined Gas-fired
Mexico▼● Hydro Power Power Plant Project
Export of High Energy
Plant Project Export for
Eficient Coal-fired Power Plant
Super Critical Pressure
Portfolio Acquisition of
Coal Thermal Power Plant
Existing IPP Projects▼ TSL for Renewable▼ TSL for Renewable
Energy-Related Project
Energy-Related Project

Laos

●

✚ Establishing
Vehicle toPromotePrivate Sector
Projects

Export for Oil Thermal
Power Plant Project

IPP Project● IWPP Project✚●

IPP Project

Oman▼ TSL forRenewable
Energy-Related
Project

Uzbekistan

◆

■
◆

▼

◆ Export for
Terrestrial Digital
Broadcasting
Project■

PanamaThe Philippines
Portfolio Acquisition of
Existing IPP Projects

Viet Nam
Export ofGas-fired Power Generation Plant
Super Critical coal-fired
Power Plant Expansion

ThailandNatural Gas-Fired
Combined Cycle Power Plant
Project■ Panama Canal Expansion Project

Colombia▼ ■◆■Export of HydraulicPower Generation Facilities▼ TSL for Renewable
Energy-Related Project

Venezuela■ Exports of Railway Cars

Chile
Thermal Power Generation ProjectIndonesia◆ Export of Telecommunication Machinery and Equipment
Thermal Power Plant Project
Submarine Cables Replacement Project
Export of Transmission and Substation Equipment
Geothermal Power Plant ProjectHydro Power Plant Project

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

MoroccoBrazil■ São Paulo Beltway(RODOANEL) Project■ Cargo Railway Network
Development Project◆ Equipment Export for
Digital Broadcasting▼ TSL for Renewable
Energy-Related Project
As of July 31, 2015

Japanese Prime Minister Shinzo Abe announced in May
2015 the Partnership for Quality Infrastructure, which will
provide approximately $110 billion for quality infrastructure
investments in Asia over the next five years in collaboration
with the Asian Development Bank (ADB), which has
strengthened its role in this field. Through this partnership,
the Japanese government will strive to make sufficient
infrastructure investment in terms of both quality andquantity by mobilizing private-sector funds and knowh o w, i n c o l l a b o r a t i o n w i t h v a r i o u s c o u n t r i e s a n dinternational organizations.
JBIC will continue to actively support the participation ofJapanese companies in overseas infrastructure projects by
taking advantage of its experience with such projects in arange of fields including electric power systems, railroads,
and water supply systems, and the trusting relationships
JBIC has built with host countries over the years. Throughsuch efforts, JBIC will translate the Japanese government’s
policies into action and contribute to the stability anddevelopment of the global and Japanese economy.

■ Infrastructure Systems Export Strategy Based on PublicPrivate Partnership
The export of infrastructure systems generates various
benefits—it leads not only to the order itself but also to thecreation of a new foothold for Japanese companies and anenhanced supply chain through the development of local
infrastructure, and eventually to winning the local market
share. On the other hand, however, it entails a few major
challenges. For one, it occurs in fields exposed to the fiercest
international competition. It also generally requires large
upfront investments, and involves substantial business risks,such as long recovery periods, as well as negotiations withhost-country governments, all of which are difficult for
private-sector companies to handle on their own.
Taking this into consideration, the Japanese government
has promoted integrated public–private efforts, and, in the

1. According to the Infrastructure Systems Export Strategy (2014 revised edition),
adopted at the Ministerial Meeting on Strategy Relating Infrastructure Export andEconomic Cooperation, held on June 3, 2014.

JBIC Annual Report 201525

2
The Environment Surrounding
JBIC and Its Challenges

Japanese companies are involved in this solar power project in Jordan.

2. Infrastructure and Environment Finance Grouppreviously mentioned Japan Revitalization Strategy andInfrastructure Systems Export Strategy, set a clear target of
raising the total value of infrastructure systems orders
received by Japanese companies to some ¥30 trillion by
2020. Under the current Abe administration, the prime
minister and other cabinet ministers themselves conducted
strong sales promotion in countries throughout the world,
accompanied by an economic mission. This resulted inwinning actual orders for infrastructure systems, and thetotal value of orders for FY2013 has been shown to reachapproximately ¥16 trillion.1
The Infrastructure Systems Export Strategy divides
emerging-market countries targeted for overseas
infrastructure development into three groups: (1) China and
ASEAN; (2) Southwest Asia, the Middle East, Russia and the
CIS, and Central and South America; and (3) Africa.
Designating China and ASEAN as top-priority regions, thestrategy states that Japan will encourage the introduction ofhigh-quality and robust infrastructure systems that lead togreater connectivity within the ASEAN region.
Furthermore, the Infrastructure Systems Export Strategy
calls for promoting Japan’s advanced low-carbon technologies
overseas. It stresses the need to steadily implement theProactive Diplomatic Strategy for Countering Global Warming.
Also known as Actions for Cool Earth (ACE), this strategy isbased on three pillars: innovation (developing innovativetechnologies), application (introducing Japan’s technologies
overseas), and partnerships (support for developing countries).
These efforts will not only contribute to the economic growthof developing countries and greenhouse gas reduction, butalso promote the overseas development of infrastructure
systems for which Japan has a comparative advantage.

■ Three Challenges Japanese Companies Face in Overseas
Infrastructure Projects
As discussed earlier, the Infrastructure Systems Export
Strategy, which unites the activities of public and private
sectors, is underway and is beginning to produce somepositive outcomes. Still, many Japanese companies face
several difficulties when implementing infrastructure projects
overseas: (1) ability to offer competitive prices; (2) a shortageof versatile operators; and (3) the lack of schemes to ensure
project feasibility in emerging and developing countries.
The first challenge, price competitiveness, can beaddressed by shifting the production base for noncore parts
to countries where costs are lower and combining them with

26

JBIC Annual Report 2015

core parts produced in Japan, as many Japanese companies
have already done. Another approach is not to stick to the “AllJapan” principle of mobilizing only Japanese entities but toadopt the “Japan Initiative” strategy, by which the best mix ofJapanese and foreign products is achieved by using the core
part of plants made mainly by Japanese companies with atechnological competitive edge, while managing the otherparts in cooperation with foreign companies.
The second challenge is most evident in the Japanesewater and railway sectors, in which knowledge and expertise
related to construction and operation are spread among
several companies, including public corporations. There is a
shortage of Japanese companies that possess theexperience to comprehensively conduct business fromupstream operations (creation of master plans) to
downstream operations (operation and maintenance offacilities and collection of charges and fees). Therefore,
Japanese companies are not always able to adequately meetthe needs of host countries that call for integrated plans ofinfrastructure systems. In the sectors where Japanesecompanies lack expertise in comprehensive business
operations, effective measures may involve establishinginternational alliances or acquiring overseas companies thatwill help them accumulate such expertise.
The third challenge is best represented by infrastructure
projects in emerging and developing countries, in which there
are cases where the system places excessive risks on project
owners. These risks include inadequacies in the legal system
related to the responsibilities of local governments and stateowned companies in electricity purchase agreements, andinsufficient compensation by the local government regarding
ridership risks2 in transportation projects. Furthermore, forconstruction projects that involve several governments
agencies or occur in several local governments, it is notuncommon for the central government to lack the ability tocoordinate related parties and monitor the project. Under
these conditions, it has to be said that when looked at fromthe perspective of a private-sector company considering
participating in the project, the feasibility of the projectscheme is extreme low, which makes it difficult to obtain
private investment for the project.
In these situations, the expected approach is for the public
and private sectors to have an extensive exchange of opinions
and to form a partnership from the early stages of the project,so that the project will be feasible in the eyes of both parties. By
engaging in activities of the host country government as earlyas the project formulation phase (the early stage when thebusiness plan and risk distribution are proposed by thegovernment) through, for example, creating a company tofacilitate project formulation or regular dialogues with the hostcountry government, the Japanese side will be able to offer
appropriate support to the host country government in suchaspects as the project’s basic scheme, as well as its
implementation and management. It will also allow the
adoption of bidding criteria covering all aspects of the project,including life-cycle costs. These actions will, in turn, increase
the probability of developing highly feasible projects that meetthe realities and needs of all participants.

2

JBIC’s Activities

The Environment Surrounding
JBIC and Its Challenges

Offshore wind power project in the UK involving Japanese companies.

demand for infrastructure overseas will create and increasebusiness opportunities for them.

■ JBIC’s Commitment to Preserving the Global Environment
Achieving economic development compatible withenvironmental sustainability is now recognized as a common
issue facing developed countries and emerging countries
alike. In this respect, there are hopes throughout the world
for the implementation of projects that will lead toenvironmental preservation and improvement.
In this field, a wide range of efforts are being undertaken
across the world. They include: (1) energy efficiency projects;(2) renewable energy projects using solar, wind, or otherrenewable sources of power; (3) highly-efficient coal-fired
power generation projects and natural gas-fired combinedcycle power projects that reduce CO2 emissions; (4) urban
transportation projects that help alleviate traffic congestion
and air pollution, including rail transit projects; and (5)smart-grid projects aimed to efficiently supply electricity
using IT technology, as well as smart-city projects aimed torealize environmentally sustainable cities.
JBIC supports these efforts through its global promotionof Japan’s advanced environmental technologies under the
Infrastructure Systems Export Strategy. JBIC’s support also
goes to (1) projects for developing solar power plants andenergy-efficient power plants that take advantage ofadvanced environmental technologies in emerging-market
countries; and (2) projects that entail significant
environmental preservation effects, such as those that
introduce energy-efficient equipment. JBIC supports theseprojects with loans, equity participation, and guarantees
while mobilizing private financing under the Global action for
Re c o n c i l i n g Ec o n o m i c g ro w t h a n d E N v i ro n m e n t a lpreservation (GREEN) operations.
In addition to supporting the business activities byJapanese companies, JBIC will continue to provide financial
support for efforts aimed at global environmental
preservation by making most of the GREEN operations.

2. Infrastructure and Environment Finance Group.

■ JBIC’s Support for Export of Infrastructure Systems
Expectations are rising for JBIC’s role in the Japanese
government’s Infrastructure Systems Export Strategy andinfrastructure partnership. In response to suchexpectations, JBIC is creating and reinforcing its support
system to help Japanese companies overcome the above
challenges they confront.
JBIC tries to ensure project feasibility through various
schemes such as (1) establishing companies to promote
project formulation from the early stages and (2) holding
regular dialogues with host country governments.
In the first scheme, JBIC invested in the Delhi Mumbai
Industrial Corridor Development Corporation Limited(DMICDC), which is responsible for developing master plans
for the Delhi—Mumbai industrial corridor and conducting
feasibility studies for individual projects in the region. JBIC
also held discussions with the Myanmar government about
the establishing a project development promotion company
to play a similar role.
Turning to the second scheme, a representative example isthe Financial Policy Dialogue held between JBIC and thegovernment of Indonesia. JBIC is expanding the same scheme
to other countries, such as Mexico and Vietnam. In Indonesia,
while holding numerous rounds of discussions with theIndonesian Ministry of Finance and state-owned powercompany, which were extensions of the financial policy
dialogue, JBIC persistently asked questions and pressed foramendments to be made to related laws. The aim was toenable an independent power producer (IPP) project, which
introduces private-sector vitality, to be created with a scheme
acceptable to investors and private financial institutions. As aresult, a new government system for supporting the purchasesof electricity was created, and this led to financing for the
Sarulla Geothermal Power Project. It is expected that thissystem will be used for many prospective IPP projects inIndonesia. Furthermore, in Vietnam, JBIC supported thecreation of a new PPP Decree by holding a policy dialogue with
the Vietnamese government and partnering with the ADB andother entities, in order to support the early introduction of amuch-expected PPP system which promotes infrastructuredevelopment by introducing private-sector vitality. With thedecree put into effect in April 2015, it is hoped that numerous
infrastructure projects will be materialized in the future. Aspart of its efforts to ensure the feasibility of infrastructure
projects with a long investment payment period and whose
revenues are generated in the local currency, JBIC provides
loans in local currencies in order to reduce exchange risks
associated with foreign-currency loans borrowed by Japanese
project owners, and thus supports stable operations of the
projects over the long term.
JBIC will remain committed to upgrading and reinforcing
its financing functions, which constitute JBIC’s core business,to better accommodate the markets and needs. Also, as anentity that coordinates the needs of the public and theprivate sector, JBIC will continue to support Japanesecompanies in a variety of aspects so that the growing

1. The Third Infrastructure Systems Export Strategy Follow-up (Eighteenth Ministerial
Meeting on Strategy Relating Infrastructure Export and Economic Cooperation heldon June 2, 2015).
2. Ridership risk refers to the risk of being unable to secure the minimum number ofpassengers or users that is necessary to secure project profitability.

JBIC Annual Report 201527

3. Industry Finance Group2

A Message from the Global Head of the GroupThe Environment Surrounding
JBIC and Its Challenges

The Industry Finance Group, as its name suggests, focuses centrally on
maintaining and strengthening the international competitiveness ofvarious industries in Japan. A distinguishing feature of the Group, which
comprises the Corporate Finance Department, the Marine and Aerospace
Finance/Financial Products Department, the West Japan Office, and the
Finance Division for SMEs, is the wide variety of industries it supports
and financial instruments it uses.
Amid a continuing strong appetite for overseas investment by
Japanese companies, particularly for overseas mergers and acquisitions(M&A), the Group provided loans, equity participations and guarantees
amounting to ¥1,460.6 billion for 208 commitments in FY2014.
In FY2015, under JBIC’s new Medium-Term Business Plan, we arefocusing on the following three priority issues: (1) strengthening support
for the overseas business deployment of various industries which are thebasis of the Japanese economy; (2) contributing to the development ofcompetitive Japanese technologies and business models into growing
industries through overseas business deployment; and (3) supporting
mid-tier enterprises and SMEs overseas business expansion utilizing
JBIC’s characteristics.

3. Industry Finance Group

Shigeki KimuraManaging Executive Officer
Global Head of Industry Finance Groupthroughout the world grew 3.7% year on year to $1,230.0
billion, overseas direct investment by Japan fell 16.3% year
on year to $110.0 billion.
On the other hand, there has been no change in the
stance of Japanese companies toward overseas M&As, andthe number of such M&A transactions in FY2014 hit a historichigh of 557, compared with 500 in FY2013. A detailed lookreveals that there were 232 M&A transactions targeting
Asian companies, which accounted for 42% of overseas M&A
transactions by Japanese companies. M&A transactions

Business Environment and Priority Issues■ Increasing Overseas M&As by Japanese Companies
FY2014 saw a slowdown in global economic growth withgrowing geopolitical risks in Russia, the Middle East, andNorth African countries, as well as weakened economies of
emerging-market countries on account of anotheradjustment in China’s economy and the plunge in crude oil
prices. Although the value of overseas direct investment■ Value of Foreign Direct Investment—Global and Japan
Value of global foreign
direct investment (left axis)

Value of Japanese foreign
direct investment (right axis)(10 billions of U.S. dollars)(10 billions of U.S. dollars)

250

Global foreign direct investment

200

12

150

9

100

6

50

3

0

'06

[Source] UNCTAD

28

15Japanese foreign direct investment

JBIC Annual Report 2015

'07

'08

'09

'10

'11

'12

'13

'14 (FY)0■ Supporting the Improvement of Japanese Industries’ ■have taken root as a method for Japanese companies tocapture and expand sales channels overseas, particularly inthe member countries of ASEAN, for which the ASEAN
Economic Community (AEC) was established in 2015.

■ Mid-tier Enterprises and SMEs Taking on the Challenge ofExpanding Overseas
Turning to the overseas expansion of mid-tier enterprises
and SMEs, a growing number of such companies are aiming
to create new business opportunities not only by capturing
demand in overseas markets, but also by meeting the local
procuring needs of major Japanese companies which havelaunched operations in emerging-market countries,
particularly in Asia. With such growth in business types,
increasing diversification is seen in mid-tier enterprises and
SMEs taking on the challenge of overseas expansion andcountries of destination, as well as in the needs for funds. On
the other hand, mid-tier enterprises and SMEs tend to face
greater constraints than larger companies on various fronts,
such as debt financing and information gathering for theoperation of overseas businesses. It is therefore necessary tofurther enhance the support provided to these companies in
multifaceted ways.

■ Japan’s Growth Strategy
The Japanese government formulated the Infrastructure
Systems Export Strategy in May 2013 and the Japan
Revitalization Strategy in June 2013, enabling JBIC to broadly
support overseas M&As by Japanese companies. JBIC is also
strengthening the support in the form of loans in local
currencies in order to facilitate the local currency funding by
Japanese companies which operate in the country.
The Revised Infrastructure Systems Export Strategy andthe Revised Japan Revitalization Strategy, both announced inJune 2014, added subordinate loans and leveraged buyouts(LBOs) as new methods to supplement the financing effortsof Japanese financial institutions. As a policy-based financial
institution which implements the Japanese government’s
growth strategy, JBIC supports the overseas expansion ofJapanese companies by using such new methods.

3. Industry Finance Group.

M&A by Japanese company

2
1
The Environment Surrounding
Profile of JBICJBIC and Its Challenges

Competitive Advantage and Growth Opportunities in theWorld Market
Let’s now consider the business environment of Japanesecompanies operating in overseas markets. In order to win
through the overseas competition, even in the financial
aspect, they will need support by greater communication andrisk taking from the strategy development stage, given thatthey will face increasing demand for global strategies tailoredto overseas markets, as well as stronger cost competitivenessand marketing. A growing number of Japanese companies inindustries which previously had little overseas expansion,
such as medicine, agriculture, and food products, are now
working to expand their businesses overseas. It is importantin terms of finance to leverage assets possessed by these
Japanese companies, including their technologies, brandvalues, and business models, and transform the industries
into growth industries through commercialization andcapturing of market share in overseas markets.

■ Number of Overseas M&As by Japanese Companies(Number)

600
Number of overseas M&As

500
400
300
Number of M&As targeting Asian companies

200
100
0

'06

'07

'08

'09

'10

'11

'12

'13

'14 (FY)[Source] RECOF Corporation.

JBIC Annual Report 2015

29

2

JBIC’s Activities

The Environment Surrounding
JBIC and Its Challenges■ Supporting Overseas Business Expansion using

3. Industry Finance Group

Various Instruments
JBIC takes advantage of its equity participation function in
supporting overseas business expansion of Japanesecompanies. In FY2014, JBIC supported the first general
hospital operation project undertaken by Japanesecompanies in India with the provision of risk money in local
currency by utilizing its equity participation function.
JBIC supports Japanese companies in launching or
enlarging overseas operations with loans as well. In FY2014,
JBIC provided hybrid finance, including subordinated loans,to support Japanese corporations’ expansion of existing
business, and the development of new business. Also by
concluding M&A credit lines with Japanese financial
institutions, JBIC flexibly provided the necessary loans foroverseas M&As in various industries, including food products,
papermaking, iron casting, chemicals, and real estate.
Furthermore, JBIC provided support in the form ofproject finance for various projects, such as one to expand an
oil refinery and petrochemical complex and another tocharter an ultra-deepwater FPSO (floating production,
storage, and offloading) unit. JBIC also supported Japanesecompanies procure funds in the local currencies of thecountries where they operate: loans denominated in the Thaibaht, Indonesian rupiah, and the Mexican peso (the first for
JBIC) for the manufacturing and sales businesses ofautomobile parts.

In such ways, JBIC actively supported the overseas
business expansion of Japanese companies through diverse
financing methods during FY2014.

■ Supporting Exports and Overseas Businesses ofJapanese Companies
JBIC is also committed to supporting exports and overseas
sales by Japanese companies. During FY2014, JBIC
supported Japanese companies increase their exports of oil
refinery plants and petrochemical plants by approaching thebuyers, such as the governments of host countries, withfinance-related proposals from the development stage of
projects, conducting direct negotiations, and drawing on its
various financial facilities and schemes, including project
finance, for structuring projects.
In addition, JBIC supported Japanese shipbuilders tostrengthen their capacity to win orders across the world andexpand sales, for example by providing timely support forexports of ships with an export credit line, set up forexporting bulk carriers made by multiple shipbuilders.

■ Supporting Overseas Business Deployment of Mid-TierEnterprises and SMEs
JBIC is striving more than ever to support mid-tierenterprises and SMEs’ overseas business deployment
through the units for this special purpose at its Head Officeand West Japan Office. During FY2014, it made 109
commitments to such companies.
To support mid-tier enterprises and SMEs finance, JBIC
strengthened cooperation with Japanese financial

Project to expand a refinery and petrochemical complex in which a Japanese company is participating

30

JBIC Annual Report 2015

■ Paying Close Attention to Real Corporate Needs
Amid the ever-changing economic environment, JBIC willcontinue to contribute to work to maintain and strengthen
the international competitiveness of Japanese industries inaccordance with policy trends in Japan. JBIC will enhance its
support for the global expansion of Japanese companies byleveraging various financial instruments, including project
finance, subordinated loans, and loans denominated in local
currencies, and appropriately meet the true needs ofJapanese companies in order to contribute to exploring andcreating new business opportunities that will lead to thesustainable growth of Japan, thereby serving a role thatconnects Japan with the world.

2
The Environment Surrounding
JBIC and Its Challenges
3. Industry Finance Groupinstitutions, including regional financial institutions, andcombined its loans with domestic financing via parent–
subsidiary loans provided by Japanese financial institutions
that do not handle overseas operations (particularly regionalbanks and shinkin banks). JBIC also actively worked tocomplement private financing, by providing, in addition tohard currencies (Japanese yen and U.S. dollars), loans
denominated in other currencies, such as the Thai baht,
Indonesian rupiah, and Chinese yuan, in order to meet theoverseas subsidiaries’ needs for funds in local currencies.
In addition to financial support, JBIC offered information
on a range of topics, such as the foreign investment
environment, and strengthened its partnerships with local
financial institutions in developing countries with whom JBIC
has concluded MOUs regarding support for the overseas
expansion of mid-tier enterprises and SMEs throughJapanese regional financial institutions.
In this way, JBIC facilitated the overseas expansion of midtier enterprises and SMEs through multifaceted approaches.

Holding mid-tier enterprises and SMEs roundtable talks with clients

Image photo
Bulk carrier made by Japanese companies

JBIC Annual Report 2015

31

3

Examples of Business Outcomesin FY2014
1. Overview of Business Outcomes by Region

34

2. Examples of Business Outcomes by Region36

3. Examples of Business Outcomes Relating toSupport for SMEs

51

4. Examples of Business Outcomes Relating
to Environment

55

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

57

JBIC Annual Report 201533

1. Overview of Business Outcomes by Region

3■ Geographical Distribution of Loan and Equity Participation Commitments (FY2014. Unit: billions of yen)

Examples of Business Outcomesin FY2014

Russia 1.3 (1%)
Ireland35.5(16%)

Germany
13.1(6%)

Europe¥228.8(FY2014)

1. Overview of Business Outcomes by Region

Jordan 9.2 (2%)

United Kingdom
178.7
(78%)

Turkey72.5(19%)

Others 0.2 (0%)
Uzbekistan 4.4 (1%)

China 25.6 (4%)
Hong Kong 18.1 (3%)

The Middle
East¥ 377.6(FY2014)

Turkmenistan
200.7
(35%)

Saudi Arabia
295.8
(78%)

Asia

¥578.8Indonesia
137.9
(24%)

(FY2014)

Sri Lanka 3.0 (0%)

India
67.7
(12%)

Vietnam
73.6(13%)

Laos 24.1 (4%)
Malaysia 1.7 (0%)
Myanmar 0.7 (0%)
The Philippines 1.1 (0%)
Singapore 4.4 (1%)
Thailand 15.0 (3%)

Tanzania
20.8
(16%)

South Africa
14.8
(11%)

New Zealand
35.6
(21%)

Africa¥ 132.3(FY2014)

Morocco96.5(73%)

Oceania¥173.8(FY2014)Australia
138.1
(79%)

34

JBIC Annual Report 2015

3
Examples of Business Outcomesin FY2014

Canada 50.6 (4%)

North America

1. Overview of Business Outcomes by Region¥ 1,300.8(FY2014)

United States
1,250.1(96%)

Mexico13.0(11%)

Latin America
andthe Caribbean

Peru
39.7
(32%)

■ Transition of Composition of Commitments by Region (Loans,
Equity Participation and Guarantees) over the Last 5 Years (Unit: billions of yen)¥123.5

Brazil66.4(54%)(FY2014)

Oceania 8.3 (0%)
Europe 62.4 (4%)

FY2010

Asia
221.5
(13%)

North America 148.5 (8%)
International Organizations 24.3 (1%)
Latin America andthe Caribbean
426.2
(24%)

The MiddleEast
409.3
(23%)
Africa 66.3 (4%)

Others398.7(23%)¥1,765.9

Africa 3.3 (0%)

Panama 1.9 (2%)

North America 113.6 (7%)

FY2011

Asia
269.9
(17%)

Latin America andthe Caribbean
415.5
(26%)

Oceania Europe The Middle
East
170.4 216.6
232.4(11%) (14%) (15%)

Paraguay 2.3 (2%)
¥ 1,595.9

International Organizations 12.3 (1%)
Others 161.5 (10%)

FY2012The Middle East 104.8 (5%)
Africa 81.1 (4%)

FY2013

Asia
472.7
(21%)

Oceania
292.9
(13%)

Europe350.3(16%)

North America
654.0
(30%)

Oceania 173.8 (5%)

FY2014

Asia
610.5
(19%)

Europe228.8(7%)

The Middle East
493.6
(15%)

Others 154.2 (4%)

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

Oceania
1,005.7
(24%)

Asia
513.6
(12%)

The Middle
East
305.9
(7%)

North America
710.8
(17%)

Latin America and the Caribbean 209.1 (9%)

Latin America andthe Caribbean
805.5
(19%)

¥ 4,240.9

Others 40.8 (2%)¥ 2,206.1
Latin America and the Caribbean 136.1 (4%)
Others 21.2 (1%)

Africa 195.6 (6%)
North America
1,389.3(43%)¥ 3,249.3

JBIC Annual Report 201535

2. Examples of Business Outcomes by Region

3

Asia

Examples of Business Outcomesin FY2014

China
Loan for Shipbuilding Business by Japanese Company
Supporting the expansion of an overseas businesses that employs Japanese shipbuilding technology

2. Examples of Business Outcomes by Region

JBIC concluded a loan agreement with China-based Dalian COSCO KHI ShipEngineering Co., Ltd. (DACKS), in which Kawasaki Heavy Industries, Ltd.
(Kawasaki) has an equity stake. The agreement provides the necessary funds forthe shipbuilding business conducted by DACKS in Dalian, Liaoning Province,
located in northeast China. The funds are to be used to expand the company’s
shipbuilding facilities. DACKS builds and sells ships for overseas markets,
including China, using the design know-how, production management technology,
etc., of Kawasaki, which is involved in the construction of various types of vessels.
In the market for new ships, demand is expected to be firm in the future on
account of greater overseas transport, and Kawasaki is attempting to expand its
ship building and sales operations, particularly for large vessels, through aninvestment in additional plants and equipment for DACKS.

Indonesia
Loan for the Development and Operation Business of Hotel-Residences
Supporting the expansion of Japanese companies into Indonesia through residential facilities
JBIC concluded a loan agreement with Indonesia-based PT. TTL Residences (TTLR). TTLR
was jointly established by Toyota Tsusho Corporation (Toyota Tsusho), the Indonesia-based
LIPPO Group, Toyota Home Co., Ltd., and an Indonesian subsidiary of Tokyu Fudosan
Holdings Corporation. The agreement provides the necessary funds for TTLR to develop andoperate hotel-residences in Indonesia’s Lippo Cikarang district that are primarily forJapanese employees of Japanese companies who are on a local assignment or business trip.
Because there are plans to develop new sea ports and airports in Indonesia, particularly in theindustrial area of east Jakarta, a growing number of Japanese companies are launching
operations in the country. Toyota Tsusho plans on supporting Japanese companies with local
operations by providing residential facilities of Japanese quality and daily life support services
for employees on local assignment through TTLR. This financing supports the expansion ofJapanese companies into Indonesia and contributes to maintaining and strengthening theinternational competitiveness of Japanese companies.

Indonesia
Project Financing for the Donggi-Senoro LNG ProjectContributing to secureing stable supplies, and diversifying the sources, of energy resources for JapanJBIC concluded a project finance1 loan agreement for Indonesia-based PT. Donggi-Senoro
LNG (Donggi-Senoro), in which Mitsubishi Corporation (MC), Korea Gas Corporation, PT.
Pertamina (Persero), the state oil company of Indonesia and Indonesia-based PT. Medco
Energi Internasional Tbk. have equity stakes. The financing provides the necessary funds for
Donggi-Senoro LNG to construct and operate a liquefied natural gas (LNG) plant with anannual production capacity of two million tons in the central part of the eastern coast of
Sulawesi Island, Indonesia, and to supply the LNG produced at the plant to Japanese powercompanies and others over 13 years.
JBIC also concluded a loan agreement with MC that provides the necessary funds not only
to develop upstream gas fields to supply LNG to the Donggi-Senoro LNG project, but also toundertake the Donggi-Senoro two Project.

1. Project finance is a financing scheme in which repayments are made solely from cash flows generated by the project and secured only by the project assets.

36

JBIC Annual Report 2015

3
Examples of Business Outcomesin FY2014

Laos
First Project Finance for a Hydro Power Plant Project in Laos
Supporting a Japanese company’s overseas infrastructure project which utilizes renewable energy

2. Examples of Business Outcomes by Region

JBIC concluded a project finance loan agreement with Laos-based Nam Ngiep 1 Power
Company Limited (NNP1), in which the Kansai Electric Power Co., Inc. (KEPCO), a subsidiaryof the Electricity Generating Authority of Thailand (EGAT), and a Laotian state-owned
company have equity stakes. This is JBIC’s first project financing loan for Laos and will be
used for the Nam Ngiep 1 Hydropower Project. JBIC is also providing the government of the
Lao Peoples Democratic Republic with funds to invest in NNP1 through a Laotian stateowned company.
This is a cross-border project in two member countries of ASEAN, which is experiencing
dramatic economic growth, and involves building, owning, and operating a dam-typehydropower plant on the Nam Ngiep River in Bolikhamsai Province. The power generated by
the plant will be sold to both EGAT and Electricite du Laos for 27 years. The project also
contributes to a reduction in CO2 emissions by promoting the effective use of Laos’s
abundant water resources, a source of renewable energy.

Malaysia
Loan for the Manufacture and Sale of Acrylic Fiber Products
Supporting the overseas business deployment of a Japanese chemical manufacturer
JBIC concluded a loan agreement with KANEKA INNOVATIVE FIBERS SDN. BHD.
(KIF), a local Malaysian subsidiary of KANEKA Corporation (Kaneka). The loan
provides the necessary financing for KIF’s manufacturing and sales business ofacrylic fiber products2 in Pahang, Malaysia, and the funds will be used to construct
new production facilities. Kaneka established KIF in Malaysia as an overseas
production base in October 2010 in order to meet the growing demand in overseas
markets. All the products expected to be manufactured at the new facilities will besold in Africa, and Kaneka is attempting to increase its share of the market in
Africa, which is expected to see a large increase in demand on account of both
population and economic growth. Through this financing, JBIC is contributing tomaintaining and improveing the international competitiveness of Japaneseindustry.

MyanmarConclusion of Shareholders’ Agreement to Establish a Company to Promote Private-Sector Projects in Myanmar
Contributing to Japanese companies’ participation in projects and promotion of investments through support for projects from theearly stages
JBIC concluded a shareholders’ agreement with Myanmar’s Ministry of National Planning andEconomic Development (MNPED) regarding establishing a Project Promoting Vehicle (PPV).
PPV will be established to support, from the early stages, projects that are expected to becommercially viable, such as urban development projects throughout Myanmar, including the
Yangon metropolitan area, in order to resolve various problems including traffic congestion
and jumps in land prices due to inefficient land use. The establishment of a PPV is in line with
the Project List3 announced at the Japan-Myanmar Summit Meeting in May 2013, and a PPV
will make it possible to undertake various operations such as promoting private-sector
projects and supporting efforts to obtain licenses. It will also facilitate investment by privatecompanies, including Japanese companies, in Myanmar. As Japan’s policy-based financial
institution, JBIC will advance efforts to develop projects and contribute to the further
deepening and expansion of the economic relationship between Myanmar and Japan.
2. The main use of this product is hair extensions used as necessities among African women.
3. This document was prepared by a public-private partnership task force on Myanmar, which consists of the Government of Japan and relevant institutions and associations. In thisProject List, JBIC is expected to build up an appropriate financial mechanism (including the establishment of promotion vehicle) from early stage for the infrastructure development in
the sector such as power, industrial zone and urban development, implemented by public and/or private entities.

JBIC Annual Report 2015

37

3

Asia

Examples of Business Outcomesin FY2014

Vietnam
Loan for Production and Sales Business of Woodchips
Contributing to efforts by Japanese companies to secure a stable supply of woodchips

2. Examples of Business Outcomes by Region

JBIC concluded a loan agreement with Sojitz Corporation (Sojitz) to provide funds
to construct a factory necessary for Vietnam-Japan Chip Corporation LTD.
(VIJACHIP), a joint venture between Sojitz and Vietnamese investors, to produce
and sell woodchips. VIJACHIP plans to produce 190 thousand BD tons 1 ofwoodchips annually starting in 2016, and all of the output will be handled by Sojitz,
which plans on mainly selling it in Japan as raw material for paper. The overseas
supply covers over half of Japan’s demand for woodchips to make paper, but the
supply of woodchips from Vietnam is expected to tighten in the medium- and longterm as China increases its production of paper due to its economic growth. This
project thereby helps secure a stable supply of woodchips from Vietnam.

India
Equity Participation for the Operation of a Private General Hospital
Supporting international deployment of Japanese medical technologies and services
JBIC signed a shareholders agreement with SECOM CO., LTD., Secom Medical
System Co., Ltd., Toyota Tsusho Corporation, and two Indian companies, VSK
Holdings Private Limited and TAKSHASILA HOSPITALS OPERATING PRIVATELIMITED (THO), as well as other parties for JBIC's acquisition of preferred stocksof THO. This equity investment supports the operation of a private general
hospital, the SAKRA World Hospital2, which is run through THO, making it the first
general hospital project undertaken by Japanese companies in India. JBIC will
provide risk money in the local currency by utilizing its equity participation
function. This equity investment will support global deployment of Japanese-style
medical technology and services based on a government of Japan policy. This
project is also expected to help improve the quality of the local medical service
with more comprehensive medical facilities.

Sri Lanka
Loan for Acquisition of Shares of Sri Lanka-based CEYLON QUARTZ INDUSTRIES (PRIVATE) LIMITED
Supporting the overseas business expansion of a mid-tier enterprise and a small and medium-sized enterprise
JBIC concluded a loan agreement with Tatsumori Ltd. (Tatsumori) to provide part of the funds
the company needs to acquire shares of Sri Lanka-based CEYLON QUARTZ INDUSTRIES(PRIVATE) LIMITED (CQI), which Tatsumori has jointly invested in with a local company.
Tatsumori, a small and medium-sized enterprise (SME) engaged in the production and sale ofsilica3 used as filler material for semiconductors,4 is expanding into Malaysia, Sri Lanka, China,
and other countries in order to secure raw materials and expand sales. Tatsumori plans on
obtaining a stable supply of raw materials and moving forward with its global businessdeployment by acquiring a majority of CQI’s shares and thus a controlling interest through theshare acquisition. The loan agreement provides long-term funds necessary for an overseas
mergers and acquisitions (M&A) and supports the overseas business expansion and new
business development of mid-tier enterprises and SMEs. As Japan’s policy-based financial
institution, JBIC partners with private-sector financial institutions and provides support foroverseas M&As by Japanese companies, including those of mid-tier enterprises and SMEs.
1. BD (Bone Dry) ton is a measurement of wood pulp/chip at 0 percent moisture content.
2. SAKRA World Hospital was opened in March 2014 as a general hospital in Bangalore. In addition to having six core centers, including the cranial neurology center and cardiology center,the hospital offers services in 17 specialties: internal medicine, otorhinolaryngology, radiology, rheumatology, anesthesiology, endocrinology/diabetes, ophthalmology, psychiatry,dermatology, respiratory medicine, and emergency care.
3. Silica refers to silicon dioxide.
4. Filler material for semi-conductors is an insulator to protect semi-conductors.

38

JBIC Annual Report 2015

3

Buyer’s Credit for the Turkmenistan Government
Supporting the export of equipment for an ethylene complex, Gas to Gasoline plant, and chemical fertilizer plant by Japanese companies

2. Examples of Business Outcomes by Region

JBIC concluded three buyer’s credit5 loan agreements with the Turkmenistan government.
The buyer’s credit will provide funds for (1) Turkmenistan’s state-run gas company
Turkmengas to construct an ethylene complex to produce high density polyethylene andpolypropylene6 from natural gas, (2) the construction of a Gas to Gasoline plant to produce
gasoline from natural gas, and (3) Turkmenistan’s state-owned petrochemical company,
Turkmenhimiya, to construct a chemical fertilizer plant to produce ammonia and urea
fertilizer from natural gas. Supporting the export of plants produced by Japanese companies
through this financing not only helps create business opportunities for Japanese companies,
but also contributes to a more diverse energy sector for Turkmenistan, which continues torecord strong economic growth.

Examples of Business Outcomesin FY2014

Turkmenistan

Uzbekistan
Export Credit Line for the National Bank for Foreign Economic Activity of Uzbekistan
Supporting the export of terrestrial digital broadcasting equipment by a Japanese company
JBIC concluded an export credit line agreement with Uzbekistan state-owned National Bank
for Foreign Economic Activity of the Republic of Uzbekistan (NBU) in the presence of thecountry’s First Deputy Prime Minister and Minister of Finance of Uzbekistan H.E. Rustam
Azimov, who was visiting Japan to attend the 12th Japan-Uzbekistan Joint Economic
Conference in Tokyo. The agreement provides funds through the NBU for the purchase from
OGAWA SEIKI CO., LTD. of all the necessary equipment to build a terrestrial digital
broadcasting network in major Uzbek cities, such as Tashkent, Samarkand, and Bukhara.
This not only contributes to the construction of a high-quality digital broadcasting network in
Uzbekistan, which is pushing forward with efforts to transition to terrestrial digital
broadcasting within the country by 2017, but also provides financial support for the export ofrelated equipment from Japan.

5. 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.
6. High density polyethylene/polypropylene is one of the major raw materials of plastics and is mainly used in automobile parts, home appliance parts, packaging films, foodcontainers, etc.

JBIC Annual Report 2015

39

3

Oceania

Examples of Business Outcomesin FY2014

Australia
Loan for the Acquisition of Interests in Browse Gas and Condensate Fields
Contributing to efforts to secure a stable supply of LNG for Japan in the medium- and long-term

2. Examples of Business Outcomes by Region

JBIC concluded a loan agreement with MITSUI & CO., Ltd. (MITSUI & CO.) toprovide funds for Australia-based Japan Australia LNG (MIMI Browse) Pty Ltd(MIMI Browse), in which MITSUI & CO. has a 50% stake, to acquire 16% ofinterests in East Browse and 8% in West Browse, the two of which form theBrowse Gas and Condensate Fields1 off the coast of Western Australia. MIMI
Browse plans to develop the gas-condensate field together with other partners
including Australia-based Woodside Energy Ltd. MIMI Browse will obtain aportion of the output proportional to the above participating interests, and is
expected to sell the output mainly to Japan. The agreement contributes toJapan's stable supply of LNG through the purchase of interests in natural
resources by Japanese companies.
Image courtesy of Shell

Australia
Project Financing for the Purchase of an LNG Tanker
Supporting efforts to reinforce the value chain in order to secure a stable, long-term supply of LNG
JBIC concluded a project finance loan agreement with Panama-based Oceanic
Breeze LNG Transport S.A. (OBLT), in which Kawasaki Kisen Kaisha, Ltd. and
INPEX SHIPPING CO., LTD., a wholly-owned subsidiary of INPEX CORPORATION(INPEX), have stakes. The funds will finance the OBLT’s purchase of an LNG
tanker, which is expected to be mainly used to transport LNG produced by the
Ichthys LNG Project,2 operated by INPEX in Australia. This agreement supports
efforts by Japanese companies to reinforce the energy value-chain from LNG
project planning to transportation, and helps secure a stable supply of natural gas
using the know-how of Japanese shipping companies.

Image courtesy of INPEX CORPORATION

1. Condensate is a hydrocarbon liquid at room temperature and atmospheric pressure obtained in the process of collection and purification of natural gas. In general lighter than oil, it isintended to be refined into gasoline, diesel, jet fuel or naphtha.
2. The Ichthys LNG Project is a project to develop the Ichthys Gas-condensate Field off the coast of Western Australia and produce and sell LNG and other products. Since 2012, JBIC has
concluded various loan agreements related to the Ichthys LNG Project, including ones with Australia-based Ichthys LNG Pty Ltd; Tokyo Gas Co., Ltd.; Australia-based Osaka Gas Ichthys
Pty Ltd, a wholly owned subsidiary of Osaka Gas Co., Ltd.; Chubu Electric Power Co., Inc.; and Australia-based Kansai Electric Power Ichthys E&P Pty Ltd, a subsidiary of the Kansai
Electric Power Company, Incorporated.

40

JBIC Annual Report 2015

3

EuropeExamples of Business Outcomesin FY2014

Germany
Buyer’s Credits for the Export of Ships to Germany-based Oldendorff
Supporting the export of bulk carriers built by Japanese Shipbuilders

2. Examples of Business Outcomes by Region

JBIC concluded buyer’s credit agreements with German-based Oldendorff
Carriers GmbH & Co. KG (Oldendorff) for funding its purchase of two bulk carriers.
Oldendorff, based in Germany, is a shipping operator that boasts one of theworld’s largest fleets, mainly bulk carriers. The financing makes it possible forOldendorff to purchase two 60,000DWT3 bulk carriers to be built by Japan Marine
United Corporation. These agreements not only provide financial support for theexport of ships built by Japanese shipbuilders, which play an important role inlocal economies and are involved with various related industries comprising midtier enterprises and SMEs, but also contributes to efforts to at least maintain, if
not improve, the international competitiveness of Japan’s shipbuilding industry.

United Kingdom
Project Financing for an Intercity Express Programme
Supporting the participation of a Japanese company in an overseas railway project through British pound sterling loan
JBIC concluded a project finance loan agreement with Britain-based Agility Trains
East Limited (ATEL), in which Hitachi, Ltd. (Hitachi) has a stake, to fund the East
Coast Main Line segment of the Intercity Express Programme (the “Programme”)
in the UK. This financing will provide funds in pound sterling currency necessary
for ATEL, established by Hitachi and a Britain-based company, which invests inpublic infrastructure, to purchase rail cars, develop railway depots to maintain thecars, and to lease the train cars and provide maintenance services to the train
operator for a period of about 30 years. This loan, by which JBIC provides support
to the segment integrally with Phase 14 of the Programme, positioned as one of
the highest-priority projects by the British government, is expected to contributeto strengthening economic ties between Japan and the UK.

3. Dead weight tonnage (DWT) refers to the total carrying capacity of a vessel, including freight, fuel, food, drink, water, ship crew and their personal effects.
4. For Phase 1, JBIC concluded a project finance loan agreement for the Great Western Main Line in July 2012.

JBIC Annual Report 201541

3

The Middle East

Examples of Business Outcomesin FY2014

JordanProject Finance for Photovoltaic Power Generation Project
Supporting the participation of a Japanese company in a solar power generation project

2. Examples of Business Outcomes by Region

JBIC concluded a project finance loan agreement with Jordan-based Shams Ma’an
Power Generation PSC (Shams Ma’an) for a photovoltaic power generation
project, in the presence of Japanese Prime Minister Shinzo Abe and JordanianPrime Minister and Minister of Defense Abdalla Ensour. The project involves
Shams Ma’an, invested by Mitsubishi Corporation to construct and operate a solar
power plant in Ma’an Governorate, Jordan, and to sell the electricity to the National
Electric Power Company in Jordan for 20 years. Demand for electricity in Jordan is
growing on average 7% per year due to the country’s economic growth, andincreasing power generation capacity has become an urgent issue. Jordan is also
moving forward with the development of renewable energy, including solar power,
and this project is in line with the Jordanian government’s policy.

Saudi Arabia
Project Finance for Expanding the Rabigh Integrated Oil Refining and Petrochemical Plant
Supporting the overseas business deployment of the Japanese petrochemical industry
JBIC concluded a project finance loan agreement with Saudi Arabia-based RabighRefining & Petrochemical Company (Petro Rabigh) to provide funds for the
expansion of the Rabigh Integrated Oil Refinery and Petrochemical Plant (RabighPhase II Project). Both Sumitomo Chemical Company, Limited (Sumitomo
Chemical) and Saudi Arabia-based Saudi Arabian Oil Company (Saudi Aramco)
have stakes in Petro Rabigh. The project will expand its existing plant (RabighPhase I Project)1 and produce high-added-value petrochemical products, which
will then be sold by Sumitomo Chemical and Saudi Aramco. Sumitomo Chemicalseeks to increase its profitability through economies of scale and costcompetitiveness helped by the location of the site with the raw materials.

TurkeyLoan for the Manufacturing and Sale of Various Products including Cold Rolled Steel and Surface-Processed Steel Sheets
Supporting the overseas business deployment of a Japanese corporation in Turkey
JBIC concluded loan agreements with both Tosyali Toyo Celik Anonim Sirketi(Tosyali Toyo), a joint venture established by Toyo Kohan Co., Ltd. (Toyo Kohan)
and Turkey-based Tosyali Holding A.S., and Yapi ve Kredi Bankasi A.S., a Turkishcommercial bank. Financing from both agreements will be used by Tosyali Toyo to
manufacture and sell cold rolled steel, surface-treated steel sheets, and similar
products in Turkey. Making use of rolling and surface-treatment technology that it
has acquired over many years as a group company of Toyo Seikan Group Holdings,
Ltd., Toyo Kohan will establish a production base in Turkey, which is expected tosee demand for such technologies grow, and plans to aggressively move forwardwith its steel plate business overseas.

1. JBIC concluded a project finance loan agreement with Petro Rabigh related to the Rabigh Phase I Project in 2006.

42

JBIC Annual Report 2015

3
Examples of Business Outcomesin FY2014

TurkeyBuyer's Credit for STAR Oil Refinery Project
Supporting Export of Plant and Machinery and Equipment by Japanese Companies

2. Examples of Business Outcomes by Region

JBIC signed a buyer's credit agreement (export loan) in project financing with STARRAFİNERİ ANONİM ŞİRKETİ (STAR). The State Oil Company of the Azerbaijan Republic(SOCAR), a national oil company of the Republic of Azerbaijan and the Ministry of Economy
and Industry of the Republic of Azerbaijan have a stake in STAR. In this project, STAR willbuild and operate a 10 million ton per annum capacity oil refinery in the Aliaga area about 50
km northwest of Izmir, and sell refined products to distributors and other companies in thedomestic market. JBIC provides the necessary funds partially for engineering, procurement
and construction of STAR's oil refinery plant, upon a collective order, by a joint venture
participated by Itochu Corporation. The construction of this oil refinery is expected tocontribute to the improvement of short supply of domestic refined products in Turkey, andalso to creating export opportunities for Japanese companies.

United Arab Emirates (UAE)Business Cooperation Agreement with Abu Dhabi National Oil Company in the Environment Sector
Diversifying the relationship with Abu Dhabi government-affiliated entities and supporting the activities of Japanese corporations
JBIC concluded a memorandum of understanding (MOU) on cooperation in the environment sector with Abu Dhabi National Oil
Company (ADNOC), a state-run oil company fully owned by the government of the Emirate of Abu Dhabi. ADNOC operates an oil and gas
business in the emirate of Abu Dhabi, the leader in oil and gas production in the UAE. JBIC has previously concluded three MOUs with
ADNOC in the field of oil and gas, but the latest MOU extends the cooperative relationship to the environmental field. The UAE is anextremely important country in Japan’s resource strategy for reasons such as having been a stable supplier of oil over the past 30 years.
The conclusion of this MOU with ADNOC is in line with the Joint Statement issued by both countries2 as well as ADNOC’s policies, which
include reducing greenhouse gas (GHG) emissions, utilizing renewable energy, promoting a sustainable environment and ecology, while
making effective use of energy and water resources, and will lead to a stronger relationship between Japan and the UAE.

2. The Joint Statement on the Strengthening of the Comprehensive Partnership between Japan and the UAE towards Stability and Prosperity, which expands the multi-level partnership
between Japan and the UAE. It confirms with the head of the UAE the comprehensive partnership in a wide range of fields, including politics, business, culture, and personnel
exchanges, It was announced when Japanese Prime Minister Abe visited the UAE in May 2013. The desire to strengthen that comprehensive partnership was confirmed by Prime
Minster Abe when H.H. General Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, visited Japan in
February 2014.

JBIC Annual Report 201543

3

AfricaExamples of Business Outcomesin FY2014

MoroccoProject Finance for Ultra Super Critical Coal-Fired Power Generation Project in Morocco, the First for JBIC and for the
African Continent
Supporting the participation of a Japanese corporation in a power generation project

2. Examples of Business Outcomes by Region

JBIC signed a project finance loan agreements with Morocco-based Safi Energy Company
S.A. (Safi), in which Mitsui & Co., Ltd. and other investors have stakes, to finance the Safi
coal-fired power generation project. In this project, Safi will construct and operate an ultra
super critical coal-fired power plant with a capacity of approx. 1,250 MW in the Safi area of
Morocco, and will sell the electricity to the Office National de l’Electricité et de l’Eau Potablefor 30 years after the completion of construction work. It is expected that the plant will serveas an important source of power for the country, where demand for electricity has been
growing in recent years. These loans are made under the JBIC Facility for African Investment
and Trade Enhancement (FAITH),1 which was established in accordance with the Fifth Tokyo
International Conference on African Development (TICAD V), and is in line with various
Japanese government policies including the Strategy Relating Infrastructure Export andEconomic Cooperation, Strategic Energy Plan, and Actions for Cool Earth (ACE).

Tunisia
Guarantee for Privately Placed Samurai Bonds Issued by the Central Bank of Tunisia
Supporting the business activities of Japanese corporations through guarantees
JBIC concluded agreements related to guarantees for yen-denominated bonds issued in Japan (Samurai bonds)2 by the Central Bank ofTunisia as part of FAITH. The bonds are privately placed yen-denominated bonds, and JBIC guarantees the full principal and some of theinterest of the bonds. With the agreement, JBIC provided guarantees through the Guarantee and Acquisition toward Tokyo market
Enhancement (GATE) facility3 as part of support for the Middle East and North Africa based on the Deauville Partnership.4 This is thethird round of guarantees that JBIC has provided for Samurai bonds issued by the Central Bank of Tunisia. Such continuous support is
expected to aid the diversification of fund procurement by the Tunisian government, as well as promote the issuance of bonds byoverseas entities in the Samurai bond market, and also contribute to efforts to at least maintain if not improve the international
competitiveness of Japan’s capital markets. Tunisia’s real GDP grew at an annualized rate 2.3% in 2013, and it is hoped that thisagreement will further strengthen the relationship between Japan and Tunisia, and invigorate Japanese corporations’ business in a wide
range of fields.

Mozambique
MOU with the Mozambique Government in the Field of Resources
Supporting resource-related projects for Mozambique by Japanese corporations
JBIC concluded an MOU with the Mozambique Ministry of Mineral Resources (MIREM) aimed at the exchange of information andopinions as well as joint cooperation toward developing and implementing resource-related projects in Mozambique in which Japanese
corporations are involved. Mozambique is rich in energy and mineral resources, such as natural gas and coal, and Japanese corporations
have shown a strong interest in participating in such projects. When Japanese Prime Minister Abe visited Mozambique in January 2014,
the two countries reached agreement on the Japan-Mozambique Development Initiative based on Natural gas and coal, in accordancewith the Japan-Mozambique “amizade ” (meaning friendship in Portuguese) partnership, and it was decided to facilitate efforts such as
improving the investment environment which promotes the resource-related projects. The MOU will contribute to further exchanges of
information and opinions, as well as to the establishment of frameworks for capacity building and joint cooperation in project
development with the MIREM. Moreover, progress in the resource-related projects under bilateral initiatives is expected to lead to thediversification of resource and energy supplies for Japan, and to business expansions for Japanese companies.

1. The JBIC Facility for African Investment and Trade Enhancement (FAITH) was established in June 2013 to make use of JBIC financing, guarantees, etc., and to promote private-sector
lead growth and the construction of infrastructure in Africa.
2. Samurai bonds are yen-denominated bonds issued in Japanese markets by an overseas entity such as a foreign country or corporation.
3. With the Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility, JBIC supports the issuance of Samurai bonds through partial guarantees and acquires
some Samurai bonds itself when necessary.
4. The Deauville Partnership is a framework agreed to at the G8 Deauville Summit held in May 2011 to support the historic changes that were occurring in the Middle East andNorth Africa.

44

JBIC Annual Report 2015

3
Examples of Business Outcomesin FY2014

South Africa
First Credit Line for Standard Bank in South Africa under GREEN Operations
Supporting renewable energy businesses in Sub-Saharan African countries

2. Examples of Business Outcomes by Region

JBIC concluded, in line with FAITH, a loan agreement with the South Africa-based privatesector bank, The Standard Bank of South Africa Limited (SBSA), to establish a credit line
(credit facility based on financing for project development). This credit line provides,
through the SBSA, the necessary funds for environmental projects that make use ofrenewable energy, such as photovoltaic and solar thermal power, in various Sub-SaharanAfrican countries as part of JBIC’s Global action for Reconciling Economic growth andENvironmental preservation (GREEN)5 operations. SBSA is the core bank of the largest
financial group in Africa in terms of assets, operating in 20 African countries. Thisfinancing, which is expected to contribute to a reduction in GHG emissions in Sub-SaharanAfrican countries, is also in line with Actions for Cool Earth (ACE) announced by theJapanese government in November 2013.

Tanzania
First Buyer’s Credit Provided to the Government of Tanzania by JBIC
Supporting the export of power plant equipment by Japanese companies
JBIC concluded, in line with FAITH, a loan agreement (export financing) with the Tanzanian government which provides the funds
necessary for the procurement and installation of gas turbines made by MITSUBISHI HITACHI POWER SYSTEMS, LTD. from SUMITOMOCORPORATION, for a gas-fired combined cycle power plant scheduled to be constructed by TANZANIA ELECTRIC SUPPLY COMPANY(TANESCO). Given Tanzania’s tighter supply of power due to robust economic growth, the Tanzanian government has created a Power
System Master Plan, through which it strives to not only expand its power generation capacity, but also reduce the cost of generating
power through the use of the country’s abundant gas resources. Supporting the export of equipment manufactured by Japanesecompanies through this loan is expected to contribute to maintaining and improving the international competitiveness of Japanese
corporations, and also aid Tanzania’s economic development through a stable supply of energy.

5. Global action for Reconciling Economic growth and ENvironmental preservation (GREEN) operations promote overseas projects which aim to preserve the environment, such as theprevention of global warming. JBIC seeks to contribute to achieving both environmental and economic sustainability through these operations. (See page 63.)

JBIC Annual Report 2015

45

3

North America

Examples of Business Outcomesin FY2014

CanadaLoan for the Acquisition of Interests and Development of Shale Gas ProjectContributing to the diversification of LNG supplies for Japan

2. Examples of Business Outcomes by Region

JBIC concluded a loan agreement with Canada-based JAPEX Montney Ltd. (JML), which isowned by Japan Petroleum Exploration Co., Ltd. (JAPEX), Japan Oil, Gas and Metals National
Corporation, and MITSUBISHI GAS CHEMICAL COMPANY, INC. The financing provides thenecessary funds for JML to acquire 10% of the shale gas mining rights in British Columbia,
Canada, owned by a subsidiary of Malaysia’s Petroliam Nasional Berhad (PETRONAS), and todevelop and produce shale gas. With vast reserves of shale gas, Canada has substantial
potential as a new supplier of LNG to Asian and Pacific markets. JML is planning to convert
the natural gas produced through this project into LNG at a liquefaction plant to be built on
the west coast of British Columbia, and export the LNG to Asia, including Japan. The projectis expected to contribute to the diversification of LNG sources for Japan.
Image courtesy of JAPEX

United States
Project Financing for Freeport LNG Project
Supporting Japanese Company's Participation in U.S. LNG Export Project
JBIC signed a loan agreement in project financing with FLNG Liquefaction, LLC(FLIQ), a company in the U.S. Osaka Gas, Chubu Electric, and Freeport LNG
Expansion, L.P. have invested in FLIQ. This loan will finance new construction of aliquefaction plant in the state of Texas, and production of LNG made from shale
gas and conventional gas produced in the U.S. Osaka Gas and Chubu Electric haveobtained the right to use liquefaction facilities and offtake LNG as tollers. This is along-term LNG procurement project using the pricing mechanism linked to the
U.S. gas market index, which is different from the existing LNG pricing linked tocrude oil prices. Thus, this project contributes to the diversification of LNG
procurement sources and the pricing mechanism.

United States
Loan for the Acquisition of U.S.-Based Beam Inc.
Supporting the overseas M&A of a Japanese company by hybrid financing
JBIC concluded a subordinated loan agreement, a type of hybrid financing,1 with Suntory Holdings Limited (Suntory) to provide part of
the funds necessary for the company to acquire U.S.-based Beam Inc. (now Beam Suntory Inc., referred to as “Beam” below), whichmakes and sells spirits. Under the policy of reinforcing its global spirits business, Suntory will acquire a controlling interest in Beam,which possesses numerous global brands, and aims to enhance the strength of its brand in the global spirits market and realize global
growth using Beam’s sales network and promote technological exchanges between the two companies. JBIC also concluded anotherloan agreement to supply some of the funds for the acquisition. By leveraging hybrid financing to help Japanese companies raise longterm funds for overseas M&As, JBIC supports the overseas business expansion of Japanese companies and contributes to at least
maintaining if not improving the international competitiveness of Japanese industry.

1. Hybrid financing is accounted for as a liability but part of it can be treated as capital when credit rating agencies assess the financial position of the borrower.

46

JBIC Annual Report 2015

3
Examples of Business Outcomesin FY2014

United States
Project Financing for Cameron LNG ProjectContributing to securing stable supply and diversifying supply sources of energy resources to Japan

2. Examples of Business Outcomes by Region

JBIC signed a loan agreement in project financing with Cameron LNG, LLC (Cameron), a U.S.
company. The loan will finance Cameron’s new construction of a liquefaction plant in the U.S.
state of Louisiana, and production of LNG from shale gas and conventional gas produced in
the U.S. Cameron is invested by Mitsui & Co., Ltd. (Mitsui), Mitsubishi Corporation (MC),
Nippon Yusen Kabushiki Kaisha, Sempra Energy, a U.S. company, and ENGIE S.A. (ENGIE,
known as GDF SUEZ prior to April 2015), a French company. Mitsui, MC and ENGIE, upon
obtaining the liquefaction plant use rights as LNG tollers will sell LNG to Japanese utility
companies and others. This is the first project to export LNG to Japan based on a long-term
contract using the pricing formula linked to the U.S. gas market index. Thus, the projectcontributes to the promotion of diversifying LNG procurement sources and the pricing
formula.

JBIC Annual Report 201547

3

Latin America and the Caribbean

Examples of Business Outcomesin FY2014

BrazilThird Credit Line for the BNDES under GREEN Operations
Supporting renewable energy projects which make use of Japan’s environmental technologies

2. Examples of Business Outcomes by Region

JBIC concluded a loan agreement with Banco Nacional de Desenvolvimento Econômico e Social (BNDES) to establish a credit line
(credit facility based on financing for project development), the third loan for the bank. As part of JBIC's GREEN operations, it provides,
through the BNDES, the necessary funds for environmental projects that make use of renewable energy, such as wind and biomassgenerated power in Brazil. The BNDES, as the sole government-affiliated financial institution responsible for providing long-term funds
for projects in Brazil, actively supports environmental projects which utilize renewable energy. JBIC and the BNDES have developed aclose relationship over the past 50 years through financing and technical cooperation related to various types of projects in Brazil, suchas industrial investment, export promotion, and infrastructure development. This loan agreement is expected to contribute to a decline
in GHG emissions in Brazil, and to provide opportunities to spread Japan’s leading environmental technology in the country.

BrazilProject Financing for Chartering Ultra-Deepwater FPSO Units
Supporting offshore resource related projects of Japanese corporations
JBIC concluded a loan agreement with Netherlands-based Carioca MV27B.V (CMV27), which is invested by MODEC, Inc., Mitsui & Co.,
Ltd., Mitsui O.S.K. Lines, Ltd., and Marubeni Corporation. The loan is for a long-term FPSO1 unit charter project for Netherlands-based
Guara B.V., a company established by a consortium2 that includes Brazil’s state-owned oil company Petróleo Brasileiro S.A., which owns
the rights to the Lapa (formerly Carioca) deepwater field3 off the coast of Brazil. This project involves CMV27 providing Guara B.V. withcharter services over 20 years for an ultra-deepwater FPSO unit to be constructedby MODEC, Inc. that will be used for the development of the Lapa (formerly
Carioca) field. The charter services include the lease and other operations(operating and maintaining the unit). Continued provision of FPSO unit charter
services, which are indispensable for the development of marine resources, byJapanese ocean energy businesses will lead to enhancement in the provision oftechnology and know-how related to operating FPSO units in deepwater fields.

Note: The same FPSO unit model discussed here

BrazilMOU on Business Cooperation with Brazil-Based Vale S.A.
Reinforcing the relationship with one of the major resource companies in the world and supporting the business activities ofJapanese corporations
Taking Japanese Prime Minister Abe’s visit to Brazil as an opportunity, JBIC concluded an MOU with Brazil-based Vale S.A. (Vale) on
business cooperation. The main objective of this MOU is business cooperation through consultations toward realizing projects which not
only secure a stable supply of mineral resources for Japan, but also involve the export of mining-related equipment by Japanese
corporations. Vale, one the world’s top suppliers of mineral resources, such as high-quality iron ore, has built good relationships with
JBIC and Japanese companies over many years. Resource-related projects have recently grown in size, and Japanese companies are
expected to have a larger number of, and more diverse, opportunities to take part in these projects. Given such expectation, JBIC,
through this agreement, seeks to contribute to securing of a stable supply of mineral resources by Japanese companies, as well as
creating export opportunities for mining equipment by further strengthening the close cooperation and partnership with Vale throughdeepening discussions related to the development and operation of projects of mineral resources.

1. A floating production, storage and offloading (FPSO) unit is a floating vessel that conducts primary refining of crude oil (removing gas and water mixed in the crude oil straight from awell) , then stores and offloads the oil.
2. The consortium comprises Petrobras, the England-based BG Group, Spain-based Repsol Group, and China's Sinopec.
3. The Lapa (formerly Carioca) field is a massive oil field under the pre-salt layer of the Santo Basin located about 300 km south of the coast of Rio de Janeiro.

48

JBIC Annual Report 2015

3
Examples of Business Outcomesin FY2014

Paraguay
Loan for Shipbuilding Business by Japanese Corporation
Supporting the overseas business deployment of mid-tier enterprises and SMEs

2. Examples of Business Outcomes by Region

JBIC concluded a loan agreement with Tsuneishi Holdings Corporation (Tsuneishi HD) to
provide the funds necessary for Paraguay-based Astillero Tsuneishi Paraguay S.A. (ATP), a
local subsidiary of Tsuneishi Shipbuilding Co., Ltd. which is affiliated with Tsuneishi HD, tobuild river barges4 and barge pushers5. Tsuneishi HD, a SME conducting shipbuilding andshipping operations business globally, builds various types of ships centering on bulk carriers,in Japan and overseas. The company’s new business of building barges and barge pushers inSouth America is expected to experience firm growth in the steady demand in the future
because of an increase in river shipping. Thus, Tsuneishi HD plans to expand its production
and sale of river barges and barge pushers in South America through the investment in ATP.
JBIC will contribute to maintaining and strengthening the international competitiveness of theJapanese shipbuilding industry by supporting such overseas business deployment of mid-tierenterprises and SMEs.

Peru
Loan for Acquisition of Shares of Anglo-American Quellaveco S.A. in Peru
Securing Stable Supply of Copper Resources to Japan over Medium and Long Term
JBIC signed a loan agreement with Mitsubishi Corporation (MC) to finance MC's acquisitionof the 18.1 percent interest in Anglo-American Quellaveco S.A. (AAQ) in Peru which was heldby the International Finance Corporation (IFC). Through this acquisition of shares, MC
obtained interests in the Quellaveco Copper Project in Peru owned by AAQ, and plans to takedelivery of copper concentrate produced by AAQ in proportion to its share ownership for
supplies to Japanese refineries as well as other buyers. Copper is indispensable to Japaneseindustry as it’s used extensively for various products, and its demand is expected to rise
globally with growing demand among emerging countries and increasing sales of hybrid andelectric vehicles.6 This loan contributes to secure a long-term stable supply of copper
resources important to Japan who relies solely on imports for its supply of copper
concentrate, used for copper ingots.

Mexico
MOU with Banco Nacional de Obras y Servicios Públicos S.N.C. Regarding an Exchange of Information and Opinions
Supporting the creation of infra-related business opportunities in Mexico

JBIC concluded an MOU with Banco Nacional de Obras y Servicios Públicos S.N.C. (BANOBRAS), a government-affiliated financial
institution established to support infrastructure projects in Mexico, in the presence of Japanese Prime Minister Abe and Mexican
President Peña Nieto. Enhancement of infrastructure is one of the key policies of the Mexican government. The MOU was concluded inorder to facilitate an exchange of information and opinions regarding how JBIC provides peso-denominated financing, as well as on
infrastructure-related cooperation. Creating this type of framework with BANOBRAS is expected to promote the development of
infrastructure projects in which Japanese companies can take part.

4. A barge is a flat boat that carriers cargo on inland waterways, such as rivers and canals, and in harbors. Because barges do not have engines, they cannot propel themselves.
5. Barge pushers are equipped with an engine and push barges.
6. It is said that hybrid and electric vehicles need two to three times more copper than in comparison with the same type of conventional engine vehicles.

JBIC Annual Report 2015

49

3
Examples of Business Outcomesin FY2014
2. Examples of Business Outcomes by Region

50

Latin America and the Caribbean
MexicoLoan for the Manufacturing and Sales Business of Automobile Engine Parts
Supporting the overseas business expansion of mid-tier enterprises and a SMEs through its first financing denominated in
Mexican pesos
JBIC concluded a loan agreement with NISSIN MANUFACTURING CO., LTD.
(NISSIN)’s Mexico-based subsidiary NISSIN MANUFACTURA DE MÉXICO, S.A. DE
C.V. (NMX). This agreement provides funds denominated in the local currency
necessary for NMX to establish a plant to manufacture automobile engine parts(rocker arms, etc.) in the state of San Luis Potosí, Mexico. NISSIN, a mid-tierenterprise that manufactures and sells automobile engine parts, established NMX
in Mexico in 2012 and plans to expand its business in the country, as the demandfor products such as automobile parts is expected to continue to grow, particularly
in North, Central, and South America. This financing will contribute to efforts to atleast maintain, if not improve, the international competitiveness of Japaneseindustry by supporting the overseas business expansion of NISSIN.

Mexico
MOU with the Petróleos Mexicanos
Supporting the participation of Japanese companies in the development of oil and gas in Mexico
JBIC concluded an MOU with the Mexican state-run petroleum company
Petróleos Mexicanos (PEMEX), in the presence of Japanese Prime Minister Abe
and Mexican President Peña Nieto. In February 2007, JBIC and PEMEX had
concluded an MOU to support the expansion of trade between Japan and
Mexico, and the participation of Japanese companies in oil and gas projects
undertaken by PEMEX through consultations and exchanges of information
related to new PEMEX projects and business strategies, and to expand business
opportunities for both JBIC and PEMEX. The new MOU revises the fields in which
JBIC and PEMEX will try to strengthen their relationship and forms a framework
for creating and developing the long-term friendly and cooperative partnership
between both companies. JBIC not only contributes to the creation of business
opportunities for Japanese companies but also supports efforts to further
strengthen the economic relationship between Japan and Mexico.

JBIC Annual Report 2015

3. Examples of Business Outcomes Relating to Support for SMEs

3

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

Indonesia

HIRUTA KOGYO CO., LTD.

Marugo Rubber Industries, Ltd.

Manufacturing and Sales of Automobile Parts

Manufacturing and Sales of Rubber Products for Automobiles

Since its inception in 1954, Marugo Rubber Industries, Ltd.
(Marugo Rubber) has been involved in the production ofrubber products for automobiles, including rubber vibration
isolators and high-performance hoses. With theestablishment of its Indonesian subsidiary, PT. MARUGO
RUBBER INDONESIA (PTMI), the company strengthened its
manufacturing and sales of products mainly for local
Japanese-affiliated automakers, and is expanding its market
share. JBIC provided Marugo Rubber with the necessary
funds for PTMI to conduct the business.

Indonesia

Indonesia

KYOTOSEIKO CO., LTD.

FASIC CO., LTD

Manufacturing and Sales of Automatic Machines andInspection Equipment for Industrial Use

Manufacturing and Sales of Men’s Clothing

KYOTOSEIKO CO., LTD. handles automatic industrial
machines and inspection equipment, such as leak test
machines, image inspection machines, and various automatic
assembly and inspection machines, and has earned highcredit from the customers for its post-delivery maintenanceand after-sales service. The company established theIndonesia-based PT. KYOTOSEIKO INDONESIA (KSI) in 2013,
and is moving forward with efforts to expand its overseas
market share. JBIC provided KSI with necessary funds
denominated in the local currency for its business operations.

3. Examples of Business Outcomes Relating to Support for SMEs

HIRUTA KOGYO CO., LTD. manufactures and sells
automobile parts such as those for chassis, transmissions,and engine related parts. Having already expanded its
business overseas in countries such as the U.S., Thailand,
China, and Mexico, the company is now aiming to further
increase its share of the Chinese market by making capital
investments in its China-based subsidiary HIRUTA(FOSHAN) AUTOMOTIVE COMPANY, LIMITED (HFA). JBIC
provided the funds to finance HFA for the capital investment
or facilities necessary to conduct the business.

Examples of Business Outcomesin FY2014

China

Specializing in private brand development for men’s andwomen’s clothing (suits, jackets, and others) retailers,
FASIC CO., LTD is mainly planning, manufacturing, andsupplying its products to major mass retailers of men’s
clothing. It established an Indonesian subsidiary, PT. FASICINDONESIA (PTFI), as its production base under the China
plus one strategy, for the country has geographicaladvantages in addition to an inexpensive and abundant workforce. JBIC provided PTFI with funds necessary for
expanding its production facilities.

JBIC Annual Report 2015

51

3
Examples of Business Outcomesin FY2014
3. Examples of Business Outcomes Relating to Support for SMEs

Indonesia

Laos

RP TOPLA LIMITED

Misuzu Co., Ltd.

Manufacturing and Sales of Synthetic Resin Injection Molded
Products

Manufacturing and Sales of Conductors for Various Types ofElectrical Wires

Since its foundation in 1953, RP TOPLA LIMITED (PRTOPLA) has manufactured and sold synthetic resin injection
molded products.* Given the increasing demand for thesynthetic resin injection molded products with the growing
economies of Indonesia and neighboring countries, thecompany is expanding its market share through its
Indonesia-based subsidiary, PT. TOPLA HYMOLDINDONESIA. JBIC provided RP TOPLA with necessary funds
for expanding for production facilities at its local subsidiary.

Misuzu Co., Ltd. (Misuzu) was established in 1955 and sincethen has been engaged in the production and sales ofconductors for various types of electrical wires. The
products are used in a wide range of devices such as
household appliances and cables for gastro and otherendoscopes. Misuzu established the Lao-based MISUZULAO CO., LTD (MLO) in order to capture a greater share of
the ASEAN market, which is projected to further grow in the
future. JBIC provided MISUZU with funds necessary for
MLO to conduct the business.

Philippines

Thailand

Kasai Works Co., Ltd

Facelabo Co., Ltd.

Manufacturing and Sales of Plastic Resin Molded Parts

Production and Sales of Dietary Supplements

Kasai Works Co., Ltd. (Kasai) is a plastic resin productmaker manufacturing that produces and sells electric partsfor automobiles. Since establishing a Philippine subsidiary,
KASAI ADVANCED MFG. PHILIPPINES INC (KAMP), which
manufactures and sells molded plastic resin molded parts
such as door mirror switches, Kasai has been expanding its
business in emerging countries by using the Philippines as abase for manufacturing and selling products mainly forJapanese-affiliated automakers. JBIC provided Kasai with
the necessary funds to establish KAMP.

Facelabo Co., Ltd.(Facelabo) produces and sells cosmetics,
health foods, and dietary supplements. Demand for healthfoods and supplements is expected to grow in Thailand,backed by greater health consciousness and economic
growth, and thus Facelabo seeks to expand the production
and sales business targeting local Thai brands through its
local subsidiary FC Laboratories Co., Ltd (FCL). JBIC
provided FCL with necessary funds to expand its
production facilities.

* Synthetic resin injection moldings are plastic products produced by (injection molding) technique that injects and cools plastic material dissolved in hot molding into an injection mold.

52

JBIC Annual Report 2015

3
Thailand

Yamamori Inc.

KAIHARA CORPORATION

Brewing and Sales of Japanese Soy Sauce

Production and Sales of Denim Fabric

KAIHARA CORPORATION (KAIHARA), which started businessin 1893, has produced and sold denim fabrics. Handling allprocesses from spinning the raw cotton to dyeing, weaving, up
to finished fabrics, it is the largest domestic producer of denim
fabric in Japan and has won high praise from throughout theworld, particularly for its Aizen (indigo dyeing) technology.
KAIHARA established KAIHARA (THAILAND) CO., LTD. in
Thailand, its first overseas production base, and is attempting
to expand the market. JBIC provided KAIHARA with funds
necessary for conducting its Thai subsidiary’s business.

VietnamVietnam

Unika Holdings Co., Ltd.

KATZDEN ARCHITEC Co. Ltd.

Construction and Operation of Industrial Parks

Manufacturing and Sales of Residential Metal Parts

With UNIKA CO., LTD., a subsidiary of Unika Holdings Co., Ltd.
(Unika HD), which manufactures and sells cutting-edges tips forvarious types of electric drills and fasteners for construction,
Unika HD began operating an industrial park in Vietnam in 1996
through a subsidiary. Through its subsidiary, Unika HD
established Vietnam-based VIETNAM JAPAN TECHNOLOGYPARK COMPANY LIMITED (VIE-PAN), a joint venture with acompany affiliated with the Ho Chi Minh City People’s
Committee, and is aiming to expand its business. JBIC provided
VIE-PAN with necessary funds for the industrial park project.

3. Examples of Business Outcomes Relating to Support for SMEs

One of the largest soy sauce producers in Japan in terms of
production volume, Yamamori Inc. (Yamamori) also possesses
advanced technical skills in the field of product development,such as small packages of liquids and retort-pouch foods.
Through its Thai subsidiary, YAMAMORI TRADING CO., LTD.
(YTC), Yamamori established YAMAMORI (THAILAND) CO.,LTD. (YTH) in Rayong Province of central Thailand, and is
working to further expand its local market share. JBIC provided
YTC with funds denominated in the local currency for theestablishment of YTH.

Examples of Business Outcomesin FY2014

Thailand

KATZDEN ARCHITEC Co. Ltd. (KATZDEN ARCHITEC) is
involved in the manufacture and sales of stair products andother housing components and has won praise for its highdesign quality. As demand for residential metal parts is
expected to grow on account of economic growth in emerging
countries, KATZDEN ARCHITEC established Vietnam-based
KATZDEN ARCHITEC VIETNAM CO., LTD and is expanding its
business in emerging markets, such as ASEAN, using Vietnam
as the base. JBIC provided KATZDEN ARCHITEC withnecessary funds for its local subsidiary’s business operations.

JBIC Annual Report 201553

3
Examples of Business Outcomesin FY2014

India

TurkeyKusakabe Electric & Machinery Co., Ltd.

Sango Co., Ltd.

Manufacturing and Sales of Pipe Mills

Manufacturing and Sales of Automobile Parts

3. Examples of Business Outcomes Relating to Support for SMEs

Established in 1916, Kusakabe Electric & Machinery Co., Ltd.
(KUSAKABE) manufactures and sells pipe mills. To meetthe demand from Japanese-affiliated companies which havelaunched operations in India, as well as demand fromthroughout the world, KUSAKABE set up a local subsidiary
in India, KUSAKABE INDIA PRIVATE LIMITED (KI), as anoverseas production base, and aims to expand its business.
JBIC provided KUSAKABE with necessary funds toconstruct a new factory for KI.

With its strength in metal processing technology for variouspressed and pipe products, Sango Co., Ltd.(SANGO)
manufactures and sells parts for automotive exhaust systemparts for major automobile manufacturers. SANGO
established the Turkey-based SANGO OTOMOTIV URUNLERISANAYI VE TICARET ANONIM SIRKETI (STI) in 2002 as abase for car exports to the European Union countries andfurther expands its market share. JBIC provided STI withnecessary funds for conducting its business.

MexicoMexicoTOHKEN THERMO TECH CO., LTD.

KUROTA SEIKI-SEISAKUSHO CO., LTD.

Manufacturing and Sales of Heat Treatment

Manufacturing and Sales of Automobile Parts

As an industry pioneer that heat-treats metal materials, mainly
those used for automobile parts, TOHKEN THERMO TECH
CO., LTD. (TOHKEN THERMO TECH) is one of the largest andpossesses some of the most advanced technological skills. It
established the local subsidiary TOHKEN THERMOMEXICANA, S.A. DE C.V. (TTM) in Mexico, which is becoming
increasingly important as an export base for North America,
Central America, and South America after Thailand, Malaysia,
and China. JBIC provided TOHKEN THERMO TECH withnecessary funds for TTM’s business operations.

54

JBIC Annual Report 2015

KUROTA SEIKI-SEISAKUSHO CO., LTD. (KUROTA)
manufactures and sells automobile parts, and given the
expectation that Mexico will see stronger demand as a
production base for automobile parts due to the growing
North American economy and automobile market, itestablished KUROTA MEXICO S.A. de C.V. (KRM) in June
2014. JBIC provided the necessary funds for KRM to
manufacture and sell automobile parts in the state ofAguascalientes, Mexico. KUROTA seeks to expand its
business through local production by KRM.

4. Examples of Business Outcomes Relating to Environment

3

Supporting Environmental Conservation and Improvement Projects

4. Examples of Business Outcomes Relating to Environment

grid projects that supply electricity efficiently using IT
technology; and eco-city projects that aim to realize
environmentally sustainable cities.
Amid such developments, JBIC not only takes into
consideration the environmental and social aspects ofindividual projects, but is also committed to support
environmental conservation and improvement projects, suchas measures against global warming. For its Global action for
Reconciling Economic growth and ENvironmental preservation(GREEN) operations, JBIC focuses its support on efforts toconserve the global environment, including projects that are
expected to dramatically reduce GHG emissions, while keeping
in mind the global dissemination of Japan’s internationallyacclaimed leading environmental technologies (see page 63).

Examples of Business Outcomesin FY2014

Achieving both environmental preservation and economic
development is at present universally recognized as a common
challenge for developed and developing countries alike. Given
this awareness, there are growing expectations across theworld on implementing projects which lead to environmental
conservation and improvement.
Various efforts in this field are underway throughout theworld, including energy-saving projects to increase energy
efficiency; renewable energy projects such as solar and wind
power generation; projects involving highly efficient, highperformance coal-fired power generation and natural gas-fired
combined-cycle power generation that reduce carbon dioxide(CO 2) emissions; urban transportation projects such asrailroads that help alleviate traffic jams and air pollution; smart

Supporting a CO2-EOR1 Project that Utilizes Exhaust from Coal-fired Power Plants
JBIC signed a project finance loan agreement with U.S.based Petra Nova Parish Holdings LLC, which is owned by
the JX Group and U.S.-based NRG Energy, Inc. (NRG). This
CO2-EOR project in Texas involves the construction of a
CO2 capture system2 at the W.A. Parish coal-fired power
plant, owned by a subsidiary of NRG, and injection of CO2
captured from the power plant’s exhaust gas into the West
Ranch oil field located on the Gulf of Mexico for theenhancement of oil recovery and sequestration of CO 2
underground. Although EOR utilizing CO2 has already been
implemented in areas throughout the world, this will be oneof the world’s largest commercial enhanced oil recovery
projects using CO2 captured from the emission of a coal-

fired power plant. It is expected to contribute to both
reducing the environmental burden and enhancing the
productivity of energy resources.

Supporting a Hydro Power Plant Project in Indonesia
Indonesia is expected to see its demand for electricity growat an annual rate of 8.5% over the next ten years, and, at thesame time, the Indonesian government is actively working to
make use of renewable energy for the prevention of global
warming. Under such circumstances, JBIC concluded a loan
agreement for the Rajamandala Hydro Power Project withIndonesia-based PT. Rajamandala Electric Power (REP), in
which the Kansai Electric Power Co., Inc. has a stake. The
project involves REP constructing and operating a run-ofthe-river hydro power plant in the Citarum River basin(Indonesia) and selling the electricity to the PT. PLN(Persero) in Indonesia for 30 years. This project willcontribute to a reduction in CO2 emissions by effectively
employing water resources, a source of renewable energy,

through the productive use of the vertical drop between
existing dam-type power plants located both upstream anddownstream and taking in the water released from the
upstream power plant.

1. EOR is an abbreviation for "enhanced oil recovery".
2. For this project, a consortium consisting of Mitsubishi Heavy Industries America, Inc., a U.S. subsidiary of Mitsubishi Heavy Industries, Ltd., and TIC (The Industrial Company), a major
U.S. construction company, will construct the CO2 capture plant with a daily capturing capacity of 4,776 metric tons, making it one of the largest plants in the world to capture CO2 fromexhaust gas.

JBIC Annual Report 201555

3

Supporting Offshore Wind Power Generation Projects

Examples of Business Outcomesin FY2014
4. Examples of Business Outcomes Relating to Environment

JBIC concluded a project finance loan agreement with Britainbased WMR JV Investco Limited (WMR), in which Marubeni
Corporation has an equity stake, for an offshore wind power
generation project in the UK. In this project, Marubeni and
Britain-based Green Investment Bank Plc jointly established
WMR, through which they acquired shares of a UK offshore
wind power generation company owned by a subsidiary ofDenmark-based DONG Energy A/S (DONG), the world’s
largest offshore wind power generator. Marubeni will workwith DONG to build and operate an offshore wind power plant
about eight kilometers off the coast of East Riding inYorkshire, and to sell the electric power generated by theplant. Amid the advancement of large-scale offshore power
generation projects in Europe and intensifying competition
among foreign companies from various countries forconcessions in projects, JBIC supports long-term overseas
renewable energy projects by Japanese companies throughprovision of long-term funds denominated in British pounds,
reducing the exchange rate risk in foreign-currency loans
faced by project participants.

Partnerships and Knowledge Sharing in the Environmental Sector
Amid growing expectations for the implementation ofenvironment-related projects towards global environmental
conservation and a low-carbon society in various parts of theworld, JBIC supports Japanese overseas businessdeployment as well as efforts being made by foreign
governments in this field, not only through financing but also

by sharing information and providing knowledge throughactivities such as holding seminars and participating in
relevant events. JBIC also simultaneously forms close
partnerships with foreign governments and government
agencies, domestic prefectural and municipal governments,and other stakeholders both in Japan and abroad.

MOU with Nacional Financiera in Mexico
JBIC and Nacional Financiera, S.N.C., I.B.D.(NAFIN), a
governmental financial institution that supports Mexico’s
mid-tier enterprises and SMEs, as well as renewable energy
and energy efficiency projects, concluded an MOU in thepresence of Japanese Prime Minister Abe and Mexican
President H.E. Enrique Peña Nieto. The purpose of the MOU
is to improve the exchange of information and opinions
regarding the manufacturing sector of local SMEs and theenvironment sector, such as renewable energy projects in

Mexico. Since a new administration came to power at the endof 2012, the Mexican government has worked on structuralreform of various sectors, and announced its active efforts inthe energy sector by setting the goal of increasing thepercentage of energy generated from renewable energy
sources to 35% by 2024 under its Energy Reform. It is
expected that this MOU will create business opportunities forcompanies in both countries, particularly in these fields,
through cooperation between JBIC and NAFIN.

MOU with the Ministry of New and Renewable Energy in India
The Indian government has set the numerical target of
reducing GHG emissions per unit of gross domestic product(GDP) to 20–25% below 2005 levels by 2022.
Seizing the opportunity provided by the official visit ofIndian Prime Minister H.E. Narendra Modi to Japan, JBIC andthe Indian Ministry of New and Renewable Energy concluded
an MOU on the cooperation and exchange of information topromote renewable energy projects in India. The main
objective of the MOU is for JBIC to exchange information andopinions with the Indian Ministry of New and Renewable

56

JBIC Annual Report 2015

Energy and to promote renewable energy projects byleveraging Japanese companies and their latest technologies.
Given the projection that demand for electricity in India willremain strong, active efforts are being made to develop
renewable energy in order to ensure electricity generating
capacity and to diversify energy supply sources. The MOU isalso expected to contribute to the promotion of project
development in the renewable energy field in India whichmakes use of Japanese companies’ technologies.

5. Examples of Business Outcomes Relating to Studies, and Collaboration
with Overseas Governmental Organizations and International Organizations■ Survey Report on Overseas Business Operations by

and International Organizations
In October 2014, the Philippine government held a businessseminar in Tokyo, “Philippine Economic Briefing in Japan”,
which was supported by JBIC along with Japan’s Ministry of
Finance, Japan International Cooperation Agency (JICA), andother organizations. The seminar was held to promote
understanding of the Philippine economy in Japan, and JBIC
gave a presentation on the outlook for the Philippine
economy and possibilities to further strengthen its
manufacturing industry. Around 400 people attended themeeting, including several members of the Philippine cabinet,
such as the Secretary of Finance and Director-General of the
National Economic and Development Authority, andmembers of Japanese corporations and financial institutions.
Cabinet members and other participants gave presentations
on not only the Philippine economy and financial markets but
also on infrastructure development, which were followed bylively questions and answers.

Japanese Manufacturing Companies
Since 1989, JBIC has conducted the Survey Report on
Overseas Business Operations by Japanese Manufacturing
Companies annually, making the 2014 survey the twentysixth such survey. The survey is used to ascertain the trends
and issues in the overseas business operations by Japanesemanufacturing companies, and it attracts widespreadinterest for its distinctive character and continuity.
The results of the survey are compiled into a report andreleased to the public in several ways, including booklet form
and website, and extensive use is made of the report toprovide information at various venues such as seminars heldin partnership with Chamber of Commerce and Industry inareas throughout Japan. In fiscal 2014, JBIC held “theOverseas Investment Seminar: Overseas Business
Operations by Japanese Manufacturing Companies” inseveral Japanese cities, including Tokyo, Osaka, Nagoya and■ Collaboration with Overseas Governmental Organizations

Promising Countries and Regions for Overseas Business over
the Medium Term (FY2014)
Ranking

Survey Report on Overseas Business Operations by Japanese
Manufacturing Companies

Country/Region

Number of
Respondents(Companies)

Share (%)

1

India

229

45.9

2

Indonesia

228

45.7

3

China

218

43.7

4

Thailand

176

35.3

5

Vietnam

155

3 1.1

6

Mexico

101

20.2

7

Brazil

83

1 6.6

8

United States

66

1 3.2

9

Russia

60

1 2.0

10

Myanmar55

1 1.0

Each company selected up to five countries or regions that they consider promising in
the medium term (in the next three years).

3

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

Kyoto. Effective use is made of the survey results in overseas
countries as well, when holding explanatory meetings foroverseas Japan Chamber of Commerce and Industry andforeign governments, and also when making policy proposals
to overseas governments.

Examples of Business Outcomesin FY2014

JBIC conducts research and surveys related to overseas
investment and international finance, and these efforts
include collection and analysis of a variety of information,
as well as knowledge sharing, while interacting withoverseas government organizations, as well as foreign anddomestic research institutes and experts in various fields.

Overseas investment seminar

JBIC Annual Report 201557

3
Examples of Business Outcomesin FY2014
5. Examples of Business Outcomes Relating to Studies, and Collaboration with Overseas Governmental Organizations and International Organizations

58

In November 2014, JBIC took part in the Asian EXIM
Banks Forum,* 20th Annual Meeting in Jodhpur, India. The
Asian EXIM Banks Forum, initiated under the advocacy of theExport-Import Bank of India, has held its Annual Meetings
every year since 1996 to exchange information and discuss
issues of common interest among Asian export credit
agencies. The theme for the 20th Annual Meeting was the“Evolving Role and Relevance of Asian EXIM Banks —Path to2020,” and the representatives of each participatingorganization delivered a presentation on transitions andefforts they have made. In the JBIC's presentation, therepresentative touched upon the transition of JBIC's
Commitments in last several decades including the responseto the Asian financial crisis and global financial crisis, thenpresented JBIC's future effort as its “Path to 2020”.
Also in November, the Ministry of Economy, Trade andIndustry of Japan and the Asia Pacific Energy ResearchCentre (APERC) jointly held the “LNG Producer-Consumer
Conference 2014” in Tokyo, where JBIC gave a presentation
at the session titled “New Movement towards Developing
Flexible LNG Market and Change in LNG Trade.” Based on thechanges in the LNG market and importance of its healthy* The following are the ten member organizations: Export Finance and Insurance
Corporation (Australia), The Export-Import Bank of China (China), Export-Import Bankof India (India), Indonesia Eximbank (Indonesia), Export-Import Bank of Malaysia
Berhad (Malaysia), Philippine Export-Import Credit Agency (Philippines), The ExportImport Bank of Korea (Korea), Export-Import Bank of Thailand (Thailand), The Vietnam
Development Bank (Vietnam), and JBIC (Japan).

development, the conference was held with the aim ofenabling producers and consumers in the LNG market toshare the latest trends and to discuss the development of astable and transparent market. More than 1,000 participantsfrom companies, government departments and agencies,and researchers, including various government ministers—
Qatar’s Minister of Energy & Industry, Australia’s Minister for
Industry, Canada’s Minister of Natural Resources, andJapan’s Minister of Economy, Trade and Industry—from over
50 countries and regions attended the conference,
demonstrating the strong interest in the LNG market.

■ Collaboration with Universities
In November 2014, JBIC co-hosted a joint discussion on theeconomies of the various Asian countries with Seikei
University and the Asian Development Bank (ADB). The
event was planned and held in order to deepen
understanding of Asian economies from a wider range ofperspectives through sharing results of studies conducted byeach institution.
The discussion among JBIC, which focuses on risks as alender, Seikei University, which analyzes economies from anacademic perspective, and the ADB, which emphasizes
developmental perspectives, such as poverty elimination andgender issues, led to numerous valuable findings for eachorganization.

Philippine Economic Briefing in Japan

Presenters at the LNG Producer–Consumer Conference 2014

Asian EXIM Banks Forum

Joint discussion on the Asian economy

JBIC Annual Report 2015

4
Financial Instruments
1. Financial Instruments

60

2. Prominent Initiatives in Recent Years71

3. Framework for Supporting Globalization
Efforts of SMEs

72

JBIC Annual Report 201559

1. Financial Instruments

4

Export Loans

Financial Instruments
1. Financial Instruments

Export loans are provided to overseas importers and financial
institutions to support finance exports of Japanesemachinery, equipment and technology mainly to developing
countries. In particular, products such as marine vessels,
power generation facilities and other types of plant
equipment incorporate a large amount of advanced
technology, and their export contributes to enhancing thetechnological base of Japanese industries. Further, Japanese
shipbuilding and plant facilities industries have a broad rangeof supporting industries including small and medium-sizedenterprses (SMEs) producing parts and components. Exportloans JBIC provides are also expected to positively contributeto the business of these Japanese companies. Export loans
are also available to developed countries in eligible sectors(see note).
private-sector
financial institutions

Terms and conditions of export loans are determinedbased on the Arrangement on Officially Supported Export
Credits (OECD Arrangement). In principle, the loan amountshould not exceed the value of an export contract ortechnical service contract, and excludes down payment.
While local costs cannot, in principle, be applied to the loan,such costs may be covered provided that the amount iswithin the scope prescribed by the OECD Arrangement.
Eligible Sectors of Export Loans in Developed Countries (As of July 31, 2015)[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 efficient coalfired 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)*1
Loan (B/C)*2

Japanese exporter(s)Exports of plants, etc.

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

Supporting the Export of Bulk Carriers by Japanese Companies

Image photo

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

owned subsidiary of TSUNEISHIHOLDINGS CORPORATION. These loans
will support Japanese shipbuilders win
more orders and will support individual
contracts for exports from Japan in acomprehensive, flexible, and responsive
manner. These loans will thus contributeto maintaining and strengthening theinternational competitiveness of theJapanese shipbuilding industry.

Supporting Export of Facilities Related to Oil Refining and Petrochemical Plants by Japanese Companies
JBIC signed a loan agreement to set up
an export credit line with RelianceIndustries Limited (RIL) in India. This
Credit Line will finance RIL for
procurement of goods and services frommultiple Japanese companies including a
number of SMEs related to newgasification and refinery off-gas cracker
plants and expansion of existing
petrochemical plants at Jamnagar, Dahej,
Hazira and Silvassa. In India, further
growth in the petrochemical sector isforeseen, backed by its vigorous

60

JBIC Annual Report 2015

domestic demand. In these projects,
financial support provided by JBIC andJapanese cofinancing private financial
institutions, including Japanese regionalbanks, will help create business
opportunities for Japanese companies inIndia’s oil refining and petrochemical
sector, and also contribute to supportingsmooth implementation of long-term
financing projects to developing
countries by both Japanese mega andregional banks.

4

Import Loans
In addition to natural resources, JBIC provides aguarantee facility for goods and services essential to thesound development of the Japanese economy, such as forthe import of aircraft.

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

Financial Instruments

Import loans support imports of strategically important
goods including natural resources. They are extended toJapanese importers or foreign exporters. As Japan is poorly
endowed with natural resources, stable imports of natural
resources over the long term are one of the key factors
underpinning domestic economic activity. Import loans
finance the development and import of energy resources,
including oil and liquefied natural gas (LNG), and mineral
resources, including iron ore, copper and other rarematerials.

1. Financial Instruments

Loan

private-sector
financial institutions

Loan

Japanese Importer(s)Imports of natural resources

Foreign exporter(s)Providing Guarantees for Loan of Private Financial Institutions for Importing Aircraft
JBIC concluded guarantee agreements for the principal andinterests of loans which private financial institutions provide to
ANA Holdings Inc. and Japan Airlines Co., Ltd. (JAL). The
agreements not only help the ANA Group and JAL to borrowthe necessary funds from private financial institutions toimport aircraft (operated by the ANA Group and JAL) from the

U.S.-based Boeing Company, but also contribute to maintaining
and strengthening the international competitiveness of Japan’s
aviation industry. As Japan’s policy based financial institution,
JBIC will continue to provide financial support for the import ofaircraft, which are indispensable for the lives of Japanesepeople.

JBIC Annual Report 201561

4Overseas Investment Loans

Financial Instruments
1. Financial Instruments

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

Loan

Japanese company

Loan

as TSLs intended to support their M&A activities. JBIC is alsoable to provide short-term loans for overseas business
operations when bridge loans are required to fill the financing
gap before it offers long-term loans. JBIC is further
empowered to extend investment loans for projects indeveloped countries for eligible sectors (see note).

Eligible Sectors of Overseas Investment Loans in Developed Countries (As of July 31, 2015)
Railways (high-speed, inter-city projects and projects in major cities), water business,renewable energy power generation, nuclear power generation, power transformation,transmission and distribution, highly efficient coal-fired power generation, coalgasification, carbon capture and storage (CCS), smart grid, development oftelecommunications network, biomass fuel production, highly efficient gas-fired power
generation, aircraft maintenance and sales, M&A activities, etc.

Loan

Loan

Loans and/or equity participations

Loan

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

Japanese affiliate(s)Equity participations

Joint venture partner(s)Loan for Manufacturing and Sales Business of Automobile Parts
JBIC signed a loan agreement withENKEI CORPORATION to provide thenecessary funding for manufacturing
and sales business of automobile parts(aluminum wheels) of Enkei Philippines,
Inc. (EKP), its subsidiary in thePhilippines. ENKEI is the first Japanesecompany that successfully produced
aluminum wheels, and supplies thegenuine aluminum wheels to motorcycle
and automobile manufacturers as anindependent supplier. Currently, thecompany has 16 overseas subsidiaries
and supplies their products mostly to

62

JBIC Annual Report 2015

Japanese automobile manufacturers
l o c a l l y. A m i d t h a t t h e a u t o m o b i l emanufacturers are expanding their local
production in Asian countries
responding to the increase in demand
for motorcycles and automobiles backed
with economic growth, EKP sells the
products mainly in the Philippines'
domestic market. The loan contributes
to maintaining and strengthening theinternational competitiveness ofJapanese industries through supporting
ENKEI’s overseas business deployment.

4

Untied Loansstable supplies of energy and mineral resources to Japan;
Promote business activities of Japanese companies;
Maintain and expand trade and direct investment fromJapan; Finance projects having significant effect on global
environmental preservation; and Finance projects
maintaining international financial order.

Financial Instruments

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

private-sector
financial institutions
1. Financial Instruments

Loan
Government,
financial institution, etc.,
in foreign country

Foreign importer(s)Project(s) in the recipient
country(ies)

Imports of equipment
and technology

Exporter(s)Promoting the overseas business having the purpose of preserving
the global environment, such as preventing global warming

GREEN Operations

Guarantees

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 andmachinery/equipment exports. Accordingly, projects dedicatedsolely to preservation of the global environment were so far not
eligible for JBIC support. Launching GREEN operations enabled
JBIC to focus its financing on projects seeking to preserve theglobal environment, such as those that materially reducegreenhouse gas (GHG) emissions, while propagating advanced
Japanese environmental technologies across the world.

Equity participations/Loans

PrivateFlows

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

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

Supporting Renewable Energy and Energy Efficiency Projects in Turkey
Through its GREEN operations, JBIC
signed untied loan agreement for setting
up a credit line with Türkiye Kalkınma
Bankası A. Ş. (TKB), Development Bankof Turkey and Türkiye Sınai Kalkınma
Bankası A. Ş. (TSKB) a development andinvestment bank in Turkey to provide
the necessary funds for renewableenergy and energy efficiency projects in
Turkey. TKB is a policy-based financial
institution established to achievevarious goals including promoting
national development projects in
Turkey, and TSKB is a privately owned

development and investment bankresponsible for policy-based financing inTurkey. The Turkish government haspromoted increasing the country’se n e r g y s e l f- s u f f i c i e n c y r a t e a s a nimportant policy challenge and ismoving forward with both banks toundertake projects that preserve theenvironment. This credit line supports
these efforts by the Turkish government
and is expected to help Japan’s
advanced environmental technology
spread throughout the country.

JBIC Annual Report 201563

4

Equity Participations

Financial Instruments

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

■ Japanese companies make equity■ Japanese companies participate in fund (and perform such major

participation in an overseas projectrole as general partner in their management and investment
decisions)
Major role

Japanesecompany(ies)
1. Financial Instruments

Equityparticipations

Overseas
project

Japanesecompany(ies)

Equityparticipation

Equityparticipations

Fund
Equityparticipations

Other
investor(s)Equityparticipation■ Japanese companies acquire equity
interests in a foreign company to formbusiness alliance■ Japanese companies form a consortium and participate in fundBusiness allianceJapanesecompany(ies)

Equityparticipations

Japanesecompany(ies)

Foreigncompany

Equityparticipation

Consortium

Fund
Equityparticipations

Other
investor(s)Equityparticipation

Equity Participation in Metito Holdings Limited
Along with Mitsubishi Corporation (MC)and Mitsubishi Heavy Industries, Ltd.
(MHI), JBIC signed a shareholders’agreement with Metito Holdings Limited(MHL) and its existing shareholders toacquire MHL classified shares. Throughthis investment, MC and MHI acquired astake in MHL, an integrated water
management company based in Dubai of
the United Arab Emirates, and by investingin MHL through classified shares, JBIC
supported the company’s efforts to raise

the funds necessary for its growth.
Investing in MHL, which boasts a strong
presence in the Middle East, Africa, andAsia, is mutually complementary for both
MC and MHI, and by supporting the efforts
of both companies to acquire a businessfoundation to develop their waterbusinesses in these regions, JBIC iscontributing to maintaining andstrengthening the international
competitiveness of the water businessesof Japanese companies.

Equity Participation in IFC Fund to Invest in Financial Institutions of Emerging Countries
JBIC signed an agreement for equity
participation in the IFC Financial
Institutions Growth Fund, LP (The Fund),which is managed by IFC AssetManagement Company, LLC, a subsidiaryof International Finance Corporation(IFC). The Fund, financed by IFC ando t h e r gove r n m e n t a l o rga n i z a t i o n s
together with JBIC, invests in financial
institutions such as banks and insurancecompanies in emerging countries. In

2009, JBIC participated as a founding
partner with IFC in the IFC Capitalization
Fund (Cap Fund) * with the purpose ofstabilizing the international financial
system after global financial crisis in2008 by strengthening the capital basesof banks in emerging countries, and they
played an important role in improving thegovernance and capital adequacy ratiosof the investee banks. The Fund has been
positioned as its successor fund.

* The IFC Capitalization Fund was established to strengthen the capital base of leading local banks in small and mediumsized developing countries through equity investments and subordinate financing, and thereby stabilize the financial
system of those countries.

64

JBIC Annual Report 2015

4

Guarantees■ Guarantees for Imports of Manufactured Products
JBIC has a guarantee facility for the
borrowings made by Japanese companies tofinance the import of aircraft and othermanufactured products that are importantfor Japan.

Financial Instruments

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

Private financial
institution, etc.
Guarantee

Foreign exporter(s)Import of products

Japanese importer(s)■ Guarantees for Corporate Bonds Issued by Japanese Affiliates
JBIC supports Japanese affiliates operating
overseas by providing guarantees for thebonds they issue in local capital markets.

1. Financial Instruments

Loan

Investor(s)Guarantee
Counterguarantee
Japanese company(Parent company,
privatefinancial institution, etc.)

Issue ofbonds

Sub guarantee
Guarantees

Japanese affiliate(Issuer)■ Guarantees for Co-financing, Overseas Syndicated Loans and Public Sector Bonds
Loans to developing countries involve, among
others, currency conversion and transfer risks,and country risk. Guarantees that JBIC issues
to cover such risks will enable Japanese
private financial institutions to provide
medium and long term financing fordeveloping countries, supporting developing
countries to bring in private capital andfacilitating private companies expanding
international business activities.

Investor(s)Guarantee
Issues of
publicbonds, etc.

Guarantee
Loan
Private financial
institution, etc.

Loan

Government, etc.,
in foreign country

Providing Guarantees for Privately Placed Samurai Bonds Issued by the Turkish Government
JBIC concluded agreements related to guarantees for yendenominated foreign bonds issued in the Japanese bond market(Samurai bonds1) by the Turkish government. These bonds are
privately-placed yen-denominated bonds, and JBIC guaranteed
the full amount of the principle. Based on JBIC’s Guarantee andAcquisition toward Tokyo market Enhancement (GATE) facility2,
the guarantees are the third round of guarantees for Samurai
bonds issued by the Turkish government. Supporting theissuance of Samurai bonds through credit enhancement by
JBIC guarantees provides a broad range of investment
opportunities for Japanese investors and contributes tomaintaining and improving the international competitiveness ofJapanese capital markets, as well as diversifying the source offunds for the Turkish government.
In addition to continuing to record firm economic growthand boasting strong demand for infrastructure, Turkey isdrawing a lot of attention as a destination of plant andequipment exports and overseas investment for Japanese
corporations. It is expected that these guarantees willcontribute to even closer ties between the two countries andinvigorate the business of Japanese companies.
1. Samurai bonds are yen-denominated bonds issued by a foreign government orcompany in the Japanese bond market.
2. The Guarantee and Acquisition toward Tokyo market Enhancement (GATE) facility
supports the issuance of Samurai bonds through partial guarantees by JBIC, andJBIC itself purchases some of these bonds when necessary.

JBIC Annual Report 2015

65

4

■ Guarantees for Currency Swaps

Financial Instruments

JBIC provides guarantees forswap transactions to support
the local currency financing ofoverseas infrastructure
projects, etc., undertaken by
Japanese companies.

Japanesecompany(ies)
Operation

Guarantee
Swap counterpartyin overseas

Overseas
infrastructure
projects, etc.

Private financial
institution
Currency
swap
contract

Investment

Local
currencyloan

1. Financial Instruments■ Counter Guarantees for Export Credits
In the case where Japanese companies export
machinery and equipment jointly with othercountry’s companies, JBIC provides a counter
guarantee for the guarantee provided by thatcountry’s Export Credit Agency (ECA). Thisfunction enables JBIC to participate inmultilateral mutual guarantee schemes withother ECAs, which reduces the administrative
burden of exporters and expedites thearrangement of financing. Through such
schemes, JBIC supports the exports by
Japanese companies in cooperation withforeign exporters.

Japanesecompany(ies)

Foreign ECACounterguarantee

Guarantee

Private bank(s)Foreigncompany(ies)
ExportForeign importer(s)LoanBridge Loans
JBIC provides short-term financing for governments ofdeveloping countries to meet their foreign currency needs
for external transactions when they face balance-ofpayment difficulties.

Loan

JBIC provided bridge loans (short-term bridging loans) for
Myanmar in January 2013 to support clear the arrears ofpast loans from the Asian Development Bank (ADB) and theInternational Development Association (IDA), a member ofthe World Bank Group.

Government, financial institution,etc., in foreign country

Import or other externaltransaction(s)66

JBIC Annual Report 2015

(Conditionality)

Loans from the IMF,
World Bank, etc.

4Acquisition of Loan Assets and Public and Corporate Bonds
in international finance and Japanese companies' funding ininternational capital markets.

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

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

1. Financial Instruments

Research and Studies

Financial Instruments

When JBIC provides export loans, import loans, overseas
investment loans and untied loans, JBIC can also provide
credits, in addition to providing loans and guarantees, bypurchasing loan assets and acquiring public and corporate
bonds1 issued by borrowers for funding. The objective of suchoperations is to promote private financial institutions’ loans

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

1. Securitization (Guarantees)

2. Securitization (Acquisition of Securities)

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

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

Originator
Private financial
institutions, etc.
Loans
ObligorOverseas Japaneseaffiliates

Transfer of loans

Special purpose company(SPC)

Guarantee

Issue ofassetbacked
security

Purchase of
assetbacked
security

Investors(in Japan and overseas)

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

JBIC Annual Report 2015

67

4
Financial Instruments

3. Securitization of Receivables, etc.
JBIC provides guarantees for the receivables and othermonetary claims held by overseas subsidiaries of Japanesecompanies, in order to facilitate the purchase of suchreceivable by banks. JBIC is also able to provide guarantees

Overseas Japaneseaffiliates

Accounts receivable, etc.

1. Financial Instruments

Guarantee
Proceeds

JBIC Annual Report 2015

Overseas Local companies
Guarantee

Assignment of account receivable

Private financial
institutions

68

for securities issued by SPCs or trust companies to securemonetary claims they have acquired from overseas
Japanese subsidiaries.

SPC or
Trust

Asset-backed securities
Proceeds

Investors

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

1. To investigate facts as to whether or not the Guidelines
have been complied with by JBIC and report the results
thereof to the Executive Committee; and2. To encourage dialogues between the parties concerned
based on their consent in order to assist early resolution of
disputes concerning specific environmental and/or social
problems caused by the JBIC-funded project, which arose
due to JBIC's non-compliance with the Guidelines.

1. Financial Instruments■ Process for Revising Environmental Guidelines
The Guidelines set forth that a comprehensive review should
be conducted within five years of their enforcement andrevisions may be made as needed. In 2013, four years after
its Guidelines came into effect in 2009, JBIC started to workon amending the Guidelines, and after being widely
disseminated, the Guidelines were amended in January 2015.
In order to ensure a highly transparent and open process
for amending the Guidelines, JBIC held a total of 11
consultation meetings in which experts and parties fromvarious entities including opinion leaders, representatives
from NGOs, industry and government departments andagencies participated, from December 2013 throughNovember 2014, making it possible to exchange opinions
regarding the amendments. After a public comment period
regarding the proposed amendments, the current Guidelines
were set in January 2015 and came into effect in April of thesame year.

■ Objection Procedures
JBIC introduced “Procedures to Submit Objections
Concerning JBIC Guidelines for Confirmation ofEnvironmental and Social Considerations (Procedures)” toensure compliance with the Guidelines.
As for actual procedures to submit objections, JBIC
was appointed independent Examiners for Environmental
Guidelines responsible for investments and finance inorder toFinancial Instruments

Growing interest in environmental conservation has led toa worldwide trend toward more rigorous environmental
regulations. There are more than a few cases, especially inoverseas projects, in which insufficient risk managementof possible environmental and social impacts has
seriously affected project implementation or undermined
its social reputation.
In conducting these operations, JBIC confirms whether
the borrower has made appropriate consideration for local
communities and the natural environment in all the JBIC
f i n a n c e d p r o j e c t s b a s e d o n t h e “J a p a n B a n k f o r
International Cooperation Guidelines for Confirmation ofEnvironmental and Social Considerations” (Guidelines).
The Environmental Guidelines set out the procedures,
criteria, and requirements that JBIC-financed projects mustmeet in confirming environmental and social
considerations. When JBIC judges that the project
proponents have not made appropriate environmental andsocial considerations, it will encourage them to takeremedial measures. If appropriate environmental and social
considerations have not been taken, JBIC may decide not toextend funding.

4

Along with amendments to the Environmental Guidelines,
the Procedures were also revised. The current Procedures
were set in January 2015 and came into effect in April of thesame year.

Cover of the new Guidelines

JBIC Annual Report 2015

69

4
Financial Instruments■ 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 havebeen considered in a proper manner. After funding has been approved, projects are monitored to assess the actual impact.

Screening form is submitted
at time of funding request.

Project
Proponent

Information necessary
for the Environmental
Review is submitted.

Status report is presented on implementationof measures for environment and social
considerations (monitoring).

1. Financial Instruments

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

Category B

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

Category FI

Environmental Review*

Category A
Categorization

Funding
Commitment

Category C

JBIC

The project outline,
category, and EIA report(required for Category A)
are in principle disclosed
on the JBIC website

Disclosure

The Environmental Review
and Screening Form aredisclosed on the JBIC
website (with the exceptionof Category C projects).

Confirmation of
Monitoring(Site inspections
conducted
as necessary)

In cases where the project
proponent discloses themonitoring report, the reportis in principle also disclosed
on the JBIC website.

* For Category FI projects, JBIC confirms through the financial intermediary that the proper environmental and social considerations indicated in theEnvironment 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 theinformation provided by the project proponent during the screening process.

70

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, thefinancial intermediary selects and conducts screenings for specific subprojects, in cases where subprojects
cannot be determined prior to acceptance of JBIC funding, and where such subprojects are anticipated to havean impact on the environment.

JBIC Annual Report 2015

2. Prominent Initiatives in Recent Years

4

Efforts to Meet Local Currency Needs

Supporting Projects in Africa
In order to support the promotion of private-sector lead
growth and infrastructure development in Africa by utilizing
its functions of loans, equity participations, and guarantees,
JBIC established the JBIC Facility for African Investment andTrade Enhancement (FAITH).
This facility was expanded and restructured from the
JBIC Facility for African Investment, which was established in
April 2009, and through the new facility, JBIC actively
provides loans, investments, and guarantees for projects in
Africa, including investments in projects and financing in
local currencies, in cooperation with internationalorganizations and other entities.
At the Fifth Tokyo International Conference on African
Development (TICAD V), which was held in Yokohama in
June 2013, the Japanese government announced its
intentions to expand its trade and investment in Africa
through public- private sector cooperation. JBIC expects toprovide financial support worth 5.0 billion dollars over a
period of five years under the FAITH framework, alreadyapproving approximately 2.7 billion dollars in loans andguarantees by May 2015.

2. Prominent Initiatives in Recent Years

1. Direct loans in local currency
Each direct loan in a currency other than the Japanese yen,
U.S. dollar, or Euro is given a case-by-case consideration
while confirming the availability of funding in such currency
and other aspects.
2. Two-step loans (TSLs) through local financial institutions
JBIC provides loans in currencies such as Japanese yen
and U.S. dollar to local financial institutions in developing
countries, including local subsidiaries and branches ofJapanese private financial institutions; the local financial
institutions in turn extend sub-loans in local currencies.

3. Guarantees for corporate bonds denominated inlocal currencies
JBIC provides guarantees for bonds denominated in local
currencies which are issued by local subsidiaries ofJapanese companies under the Asian Bond Markets
Initiative (ABMI), agreed to at the 6th ASEAN+3 Finance
Ministers’ Meeting in August 2003 (ASEAN+3 refers to
ASEAN member nations along with Japan, China, and theRepublic of Korea),
4. Guarantees for loans denominated in local currencies
In order to support local-currency financing, JBIC provides
guarantees for the portion of loans in local currencies
provided by private financial institutions.
5. Guarantees for currency swaps
In April 2012, JBIC launched a guarantee operation forcross-currency swap transactions in order to facilitate
financing in local currencies.

Financial Instruments

Although Japanese yen, U.S. dollar, and Euro have been thestandard currencies of JBIC’s financing, JBIC has recently
been actively responding to the growing need for financing
denominated in other currencies, including those ofdeveloping countries.

JBIC’s Loans, Equity Participations and Guarantees for Africa since 2013
Month of agreement

Country

March 2013

South Africa

Export credit line for the Development Bank of Southern Africa

Project

June 2013

South Africa

Loans and Guarantee for the Development Bank of Southern Africa (renewable energy projects)

August 2013

Tunisia

Guarantee for Samurai bonds issued by the Central Bank of Tunisia

September 2013

Ghana

Project financing for deep water FPSO chartering project for the T.E.N. offshore oil field in Ghana

October 2013

MoroccoCredit line for the Banque Marocaine du Commerce Extérieur (BMCE Bank)

October 2013

South Africa

Loans for South Africa-based group company of Toyota Financial Services (TFS)

September 2014

MoroccoProject financing for thermal power generation project undertaken by Safi Energy Company S.A.

October 2014

Tunisia

Guarantee for Samurai bonds issued by the Central Bank of Tunisia

March 2015

MoroccoBuyer’s credit for the export of desalination plant equipment

March 2015

Tanzania

Buyer’s credit for the export of equipment for gas-fired combined cycle power plant

March 2015

South Africa

Renewable energy credit line for Standard Bank of South Africa Limited

JBIC Annual Report 201571

3. Framework for Supporting Globalization Efforts of SMEs

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

JBIC actively supports Japanese mid-tier enterprises andsmall and medium-sized enterprises (hereinafter collectively
referred to as “SMEs”) expanding overseas in response to
economic globalization.
Following the economic growth of emerging market
countries since the beginning of the 2000s, especially in
Asia, an increasing number of SMEs are not only meeting the
procurement needs of major Japanese companies withoverseas production operations, but also seeking to expand
their own business in emerging markets. With such change inthe purposes for SMEs’ overseas expansions, the needs forfunds among SMEs have grown more diverse.
In order to respond to the diversification of SMEs’
financial needs for their overseas expansion, JBIC is further
enhancing cooperation with Japanese private financial
institutions and local financial institutions in other countries
and expanding its support, including provision of two-steploans through private financial institutions, loans incooperation with regional banks and credit unions (shinkinbanks), loans denominated in local currencies, and two-steploans for finance leases.
Commitments for SMEs
FY2011FY2012FY2013

FY2014

Number

16

34

54

109

Amount¥3.6 billion¥34.1 billion¥18.0 billion¥111.7 billion■ Support for the Overseas Deployment of SMEs
Utilizing the know-how and experience of overseas financingthat it has accumulated over the years, JBIC supports thelong-term financing required by Japanese companies,
including SMEs, for overseas investment, export of products,
and other activities through co-financing with private
financial institutions in the form of overseas investment
loans, export loans, and other loans.
JBIC implements the following six measures in order tosupport the overseas business deployment of SMEs.

(1) Application of preferential loan conditions: Long-term loans withpreferential loan conditions (interest rates, etc.)(2) Response to small loans of several million to several 10 million
yen: In addition to new capital investment, small loans for
replacement of machinery, etc.
(3) Local currency-denominated loans: Long-term local currency
loans with fixed interest rates(4) Support for mergers and acquisitions overseas: Loans foracquisition funds required when entering overseas markets
through M&As
(5) Coordination and cooperation with private financial institutions(regional banks, credit unions, money center banks): Support forthe overseas business deployment needs of SMEs all throughthe country(6) Utilization of networks of JBIC overseas offices: Information
service on overseas investment environment; support for solving
issues with foreign governments

72

JBIC Annual Report 2015

■ Cooperation with Japanese Regional
Financial Institutions
Regional financial institutions that SMEs work with play animportant role when SMEs seek to expand overseas.
JBIC concludes business cooperation memorandum of
understandings (MOUs) with regional financial institutions
and provides a wide range of support to facilitate theoverseas expansion of local companies, such as holding joint
seminars on overseas business expansion and other issues.
This type of agreement was concluded with The Shimizu
Bank, Ltd. in June 2014 and THE SHIGA BANK, LTD. in
August of the same year with the aim of supporting theoverseas expansion of Japanese companies, especially SMEs
based in their respective areas.
In addition, following amendments to the Ordinance for
Enforcement of the Shinkin Bank Act in March 2013, whichenabled shinkin banks to make direct loans to the overseas
subsidiaries of their clients, JBIC has strengthened its
cooperation with shinkin banks and provided fine-tuned
support, including small loans.
Furthermore, JBIC signed an MOU with the Japan
Federation of Bar Associations (JFBA) aimed at businesscooperation relating to the overseas business expansion ofSMEs, to which JBIC and the JFBA work closely to provide
support–for example, JBIC provides SMEs who require legal
advice with information about JFBA’s referral system forlawyers who support the overseas deployment of SMEs.

■ Cooperation with Local Financial Institutions in
Developing Countries
Securing the support of local financial institutions indeveloping countries well-acquainted with the local area isalso vital for SMEs.
Not limiting itself to supporting local subsidiaries ofJapanese companies, JBIC has strengthened its relationshipwith local financial institutions, through measures such asprovision of two-step loans, in order to develop and support
local companies that supply the local subsidiaries ofJapanese companies with materials and components.
In addition, JBIC have concluded MOUs with the local
financial institutions to develop a support system for SME’s
local business expansion that involves regional financial
institutions in Japan. Until now, JBIC has reinforced its
relationships with the local financial institutions, whileworking with the regional Japanese financial institutions toconfirm SMEs’ needs in their overseas expansion. Under
these MOUs, JBIC encourages local financial institutions to
set up and expand single contact points “Japan desks” forJapanese companies, and builds frameworks which enableconsultations on specific cooperation and coordination
together with the regional financial institutions who havebusiness relationships with the SMEs.
Furthermore, JBIC held meetings with participating
financial institutions to exchange opinions–Thailand’s
KASIKORNBANK Public Company Limited in July 2014
and the Philippines’ Metropolitan Bank and Trust
Company (Metrobank) in September 2014–where various
issues were discussed, including how to improve theJapan desk operations.

Local Financial Institutions in Developing Countries and Participating Japanese Regional Financial Institutions
Local financial institutions in developing countries

When MOU was signed

Number of participating Japaneseregional financial institutions

ThailandKASIKORNBANK Public Company Limited

May 2011

Indonesia

PT. Bank Negara Indonesia

July 2011

33

India

State Bank of India

August 201245

The Philippines
Vietnam

28

BDO Unibank, Inc. (BDO)

March 2013

7

Metropolitan Bank and Trust Company (Metrobank)March 201345

Bank for Investment and Development of Vietnam (BIDV)

July 2013

5

Vietcombank (VCB)

August 2013

45

4
Financial Instruments

Country(As of July 2015)■ Information Services, Seminars, etc.
In addition to consulting services for SMEs’ overseas
expansion, JBIC provides advisory services concerning thelegal, accounting, and tax affairs relating to currency
regulations, employment and labor issues, contracts,
company establishment, and other issues for China, India,
and the ten member countries of the ASEAN through experts.
JBIC also organizes seminars and consultation sessions
on overseas business deployment in cooperation withJapanese entities, including regional financial institutions,prefectural and municipal governments, and local chambersof commerce and industry. In addition, it conducts fieldstudies to assess investment climates in countries where
Japanese companies are actively expanding business. The
findings of these studies are compiled into guidebooks, which
are available in book form and on JBIC’s website.
Moreover, JBIC offers an itinerant advisory service inmany parts of Japan in cooperation with prefectural andmunicipal governments as well as local chambers ofcommerce and industry which support local companies in
expanding their operations overseas. This service, which isavailable on a regular basis in Sendai, Ota, Tokyo, andNagoya, offers advice on the overseas investment climate
and how to obtain long-term financing, among other topics.

3. Framework for Supporting Globalization Efforts of SMEs

■ Providing Local Currency-Denominated Loans
In response to expansion of the overseas business of SMEs,
JBIC has provided loans in various local currencies, including
the Thai baht, Indonesian rupiah, and Chinese yuan, since2012. When SMEs try to procure local currency funds indeveloping countries, they face the problems of short
repayment periods (basically up to one year) and highinterest rates. In order to solve these problems, JBIC
prepares long-term fixed-rate local currency loans, apreferential measure for SMEs, and provides co-financing
with private financial institutions directly to the local
subsidiaries of Japanese companies who are the clients of
those financial institutions. The co-financing involves JBIC
providing local currency-denominated loans and the private
financial institutions providing yen-denominated loans
through the parent company in Japan.

Providing funds denominated in the Thai baht for local production and sales by theautomobile parts manufacturer Okawa Screw Manufacturing Co., Ltd.

On March 27, 2015, The Small and Medium Enterprise
Agency announced “Excellent SMEs and MicroEnterprises Selection 300” and “Excellent Shopping
Districts Selection 30,” which present examples ofefforts by SMEs and shopping streets throughout
Japan that are active in various fields such as
developing innovative products, creating services,
revitalizing local communities, and expanding
business overseas.
JBIC’s clients, companies listed to the right, werealso selected for the development of innovative
products or successful overseas expansion.

•Industria Co., Ltd.

•Tamada Industries, Inc.

•Katzden Architec. Inc•Suzutoku Holdings Co., Ltd.

•Kyotoseiko Co., Ltd.

•Haso Ltd

•Kosei Aluminum Co., Ltd.

•Benda Kogyo Co., Ltd.

•Samtech Co., Ltd.

•Marugo Rubber Industries, Ltd.

•Shóshiba Manufacturing Company, Ltd •Yuei Caster Co., Ltd.
•Takaokaya Co., Ltd.

JBIC Annual Report 2015

73

5

Operational and
Administrative Policies
1. Corporate Governance76

2. Risk Management80

3. Public Information and Disclosure

83

JBIC Annual Report 201575

1. Corporate Governance5
Operational and Administrative
Policies■ Fundamental Approach to Corporate Governance
JBIC is making efforts to build corporate governancestructure in conducting operations with particular attention

to integrity and efficiency, as it seeks to fulfill the mission set
out under the JBIC Act (Law No. 39, 2012) and realize its
corporate philosophy.

Shareholder Meeting

Supervisory and Evaluative Function

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 Head

Personnel
Committee

Internal Audit
Department[Decision Committees][Decision Committees]■ How National Government is Involved in JBICAs JBIC has its shares wholly owned by the Governmentof Japan, it is subject to the control of the Japanese
government, its sole shareholder. Additionally, it is subject
to the national budget passed in the Diet, inspections by the
Board of Audit of Japan, by the Competent Minister and by
the Financial Services Agency whose inspection isdelegated by the Competent Minister.
■ Supervisory and Evaluative Function and the Conduct of
JBIC Operations
To strengthen the supervisory and evaluative function of theBoard of Directors as well as conduct speedy and flexible

76

JBIC Annual Report 2015

operations, JBIC has established, in addition to the Board of
Directors, the Board of Corporate Auditors and other organs
required by the Companies Act, the Management Advisory
and Evaluation Committee, the Risk Advisory Committee, theInternal Audit Committee and the Executive Committee.
Furthermore, a variety of committees were set up by the
Executive Committee that delegated specific tasks to them.

(1) Board of Directors
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
operations from the point of view of a corporate outsider,(5) Internal Audit Committee
The Internal Audit Committee consists of representative
directors and the outside director. They make decisions anddeliberations concerning important matters pertaining tointernal audit, as delegated by the Board of Directors.

(2) Board of Corporate Auditors
The Board of Corporate Auditors consists of 3 auditors, ofwhich two are outside corporate auditors, as set forth in the
Companies Act. Outside corporate auditors contribute toimproving the governance structure of JBIC, as they
cooperate with the full-time auditor in auditing the conductof its operations. As a section helping them execute their
responsibilities, there is the office of corporate Auditor.

(6) Executive Committee(3) Management Advisory and Evaluation Committee
The Management Advisory and Evaluation Committee
consists of 3 to 7 external experts and the outside director.
They make assessment and offer advice on the mattersreferred to them by the Board of Directors pertaining to thebusiness operations and management of JBIC.

(i) Credit Committee

List of Members of the Management Advisory and Evaluation Committee(ii) Corporate Risk Management Committee

Name〇 Shujiro Urata

Occupation
Professor, Graduate School of Asia-PacificStudies, Waseda University

Akira Kondoh

JBIC Managing Director (Outside Director)

Yoshikatsu Suzuki

Senior Commentator of Jiji Press Ltd.

◎ Yuzo Takagi

Chairman & Representative of Audit Corporation
GODAI, Certified Public Accountant

Mikiko Fujiwara

CEO of Alpha Associates Co., Ltd.

Sumihiko Yoshie

Executive Auditor of Government Pension
Investment Fund, Japan (Former Representative
Director and President of NIPPON STEEL &SUMIKIN INSURANCE SERVICE, INC.)(◎: Chairman 〇: Deputy–chairman)(Listed in the order of 50 character kana syllabary, name listed without honorifics)(4) Risk Advisory Committee
The Risk Advisory Committee consists of 3 to 7 external
experts and the outside director. They offer advice on thematters referred to them by the Board of Directors
pertaining to risk management and assessment frameworkassociated with large-lot debtors and risk exposure to largescale projects.
List of Members of the Risk Advisory Committee
Name
Shuhei Abe◎ Eiji Ogawa

Occupation
President, CEO&CIO of SPARX Group Co., Ltd.
Professor, Graduate School of Commerce andManagement, Hitotsubashi University

Akira Kondoh

JBIC Managing Director (Outside Director)

Toshiki Tomita

Professor, Faculty of Law, Chuo University

Chieko Matsuda

Professor of Management, Graduate School ofSocial Sciences, Tokyo Metropolitan University〇 Keisuke Yokoo

Advisor of Mizuho Securities Co., Ltd.

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

The Credit Committee makes decisions and deliberations
concerning important matters on loan, guarantee ande q u i ty pa r t i c i pa t i o n by J B I C, a s d e l e ga te d by t h e
Executive Committee.

1. Corporate Governance

The Executive Committee consists of representative
directors, executive director and all the managing executive
officers. They make decisions and deliberations concerning
important managerial matters, thereby taking responsibility
for conducting flexible JBIC operations, as delegated by the
Board of Directors. Certain decisions such as financing to a
specific project are delegated to the following committees.

5
Operational and Administrative
Policies

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

The Corporate Risk Management Committee makes
decisions and deliberations concerning important matterspertaining to the corporate risk management of JBIC, asdelegated 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 andcustomer protection management of JBIC, as delegated by
the Executive Committee.

(iv) Personnel Committee
The Personnel Committee makes decisions and deliberations
concerning important matters pertaining to the personnel of
JBIC, as delegated by the Executive Committee.

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

(vi) ALM Committee
The ALM Committee makes deliberations concerning
important matters pertaining to the asset-liability
management (ALM) of JBIC, as delegated by the Executive
Committee and the Corporate Risk Management Committee.

(vii) Global Head Committee
The Global Head Committee makes deliberations
concerningcross-cutting matters among internal groups,
including operational policy for each country or region, asdelegated by the Executive Committee.

JBIC Annual Report 201577

5
Operational and Administrative
Policies■ Mission/Sector-Specific Group Structure
JBIC reconstituted its organization and adopted mission/sector-specific group structure in July 2011. Its objective is tostrengthen the capacity to formulate projects by bringing
together knowhow and expertise in each sector and area,
thereby facilitating JBIC to perform the functions in its
mission more flexibly and strategically.
Specifically, Energy and Natural Resources FinanceGroup; Infrastructure and Environment Finance Group;

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

Member of Board of Directors
1. Corporate Governance

Governor, CEO

Hiroshi Watanabe

Executive Managing Director, COO

Koichi Yajima

Senior Managing Director

Tadashi Maeda

Managing Director

Masaaki Amma

Managing Director (Outside Director)

Akira Kondoh

Corporate GroupManaging Executive Officers
Global Head of Energy andNatural Resources Finance Group

Kenichiro Hayashi

Energy andNatural Resources Finance Group

Global Head of Infrastructure andEnvironment Finance Group

Hideo Naito

Infrastructure andEnvironment Finance Group

Global Head of Industry Finance Group

Shigeki Kimura

Industry Finance Group

Global Head of Credit, Assessment,
and Systems Group

Yasuhiko Yoshida

Credit, Assessment, andSystems Group

Member of Board of Directors

Member of Internal Audit Committee■ Fundamental Policy on Internal Control
As an internal control system for overall operations, JBIC has
appropriate internal audit procedures to review, as well as
evaluate their appropriateness and effectiveness and makerecommendations to improve them. For these purposes,
JBIC has the Internal Audit Committee, which includes theoutside director, as a decision-making body independent of
the Executive Committee that is responsible for conducting
operations. There is also the Internal Audit Department
independent of the line departments and directly reporting to
the Governor.
The Internal Audit Department exchanges relevant

78

JBIC Annual Report 2015

Member of Executive Committee

information and cooperates with Corporate Auditors and an
Accounting Auditor for executing efficient internal audit.
(See p. 164 for the Fundamental Policy on Internal Control)■ Maintenance and Control of Information Assets
JBIC sets forth its fundamental “Security Policy” concerning
the use and management of information assets (see p. 166)in order to secure high standard information security andimplement proper and efficient operations. Based on thestandard, JBIC properly handles, manages, protects andmaintains information assets.

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

5Operational and Administrative
Policies
1. Corporate Governance■ Compliance
JBIC has set forth in its Code of Conduct to “Maintain highethical standards and a law-abiding spirit. Observe ourmoral code as a JBIC member at all times.” Its management
and staff members are keenly aware of the public missions
and social responsibilities called for in the international
community and in civil society. It is also well recognized thatany act in violation of laws, regulations or rules by its
management and staff will lead to denigrating confidence in
JBIC as a whole and have a materially adverse effect on its
operations. Attentive to these needs, JBIC is constantly
striving toward compliance and operational integrity.
JBIC makes positive efforts to improve compliance,
primarily through the Compliance and Customer Protection
Management Committee, and has established the Legal
Affairs and Compliance Office as an integrated compliancemanagement unit.
Each group and overseas representative office serving asa regional headquarter has an Integrated Compliance Officer,
while each department and overseas representative officehas a Compliance Officer for making positive efforts incompliance, such as fostering such awareness among JBIC
employees.
To foster in-depth understanding of compliance, JBIC
makes good use of its Compliance Manual and provides
training sessions for its management and staff members. It
also develops a compliance program every fiscal year as abasis for making necessary compliance arrangements andproviding relevant training.
In addition to the reporting procedures in its ordinary lineof business, JBIC has put in place and is properly operating
an internal reporting system such that it is capable of finding
significant compliance issues at an early stage and taking
appropriate remedial action.

JBIC Annual Report 2015

79

2. Risk Management

5
Operational and Administrative
Policies
2. Risk Management

In general, the operations of financial institutions involve
various risks, including credit risk, market risk (such as
interest rate and exchange rate risk, etc.), liquidity risk andoperational risk. As a policy-based financial institution, JBIC
conducts financial operations to achieve policy objectives.
Thus, JBIC differs from private financial institutions in its
nature as well as the extent of risks involved in its operations
and ways to deal with them. Nonetheless, recognizing theimportance of appropriate risk management as a financial
institution, JBIC has put in place an institutional system forrisk management commensurate with different types of risks
and for addressing integrated risk management.
More specifically, JBIC defines the objective of risk
management as identifying, measuring and monitoring
various risks JBIC is exposed to in the process of conducting
operations to ensure the soundness and integrity ofCredit Risk
Credit risk refers to the potential loss from a decline or lossof the value of credit assets due to deterioration in thefinancial conditions of a debtor. This risk is inherent in JBIC’soperations as it primarily engages in lending activities. Credit
risk exposure to JBIC may be classified into: sovereign risk,
which involves financing foreign governments; corporate risk,
which involves financing business firms; project risk, which
occurs when a project financed in project financing—afinancing structure in which a loan is primarily secured on the
cash flow generated from the project—fails to generate theplanned cash flow; and country risk, which involves financing
foreign firms as well as projects located in foreign countries(a risk added to corporate risk and project risk arising fromthe country where the debtor resides and the project islocated). Given the very nature of financial support JBIC
provides for promoting overseas development andsecurement of strategically important resources to Japan,
for maintaining and improving the international
competitiveness of Japanese industries, and for promoting
the overseas business for preserving the global environment,such as preventing global warming, JBIC frequently extends
loans to foreign governments, government agencies andcompanies. Therefore, sovereign and country risks accountfor a considerable share of the credit risks accompanying
JBIC’s operations.

■ Managing Credit Risk
The cornerstone of credit risk management at JBIC is theevaluation of an individual borrower’s creditworthiness in theprocess leading to credit approval. When a new loan
application is being processed, the relevant financedepartment and the Credit Department collect and analyze
information on the borrower. The overseas representative
offices also play a part in collecting information on foreign
governments and companies. It is based on this informationand its analysis that credit appraisal takes place, with checks
and balances at work between these different departments

80

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

JBIC Annual Report 2015

throughout this process, leading to the final decision by
management.
In providing credit for foreign governments andcompanies, JBIC makes the most of its unique position as an
official financier, as it exchanges views and information withthe governments and relevant authorities in the recipient
countries, multilateral institutions such as the International
Monetary Fund (IMF) and the World Bank, other official
export credit agencies and, furthermore, with private
financial institutions in developed countries. Using all thesechannels, JBIC evaluates sovereign and country risks basedon a broad range of information collected on borrowing
governments, government agencies and political andeconomic conditions in their countries.
In providing credit for domestic and foreign companies,
there is a need to evaluate their creditworthiness and theappropriateness of the collateral they offer. In particular, forcredit provision related to overseas projects, credit
evaluation involves checking and examining the certainty of
conducting transactions to be financed, feasibility studies ofthe projects and the industry in which the borrower operates.

■ Internal Credit Rating
JBIC has established an internal credit rating system which
covers, in principle, all the borrowers. Internal credit ratings
are the cornerstone of credit risk management, being used
for conducting individual credit appraisals and quantifying
credit risks.
■ Internal Assessment of Asset Portfolio
Japanese private financial institutions undertake the internal
assessment of asset portfolios in accordance with Inspection
Manual for Deposit-Taking Institutions (the “Financial
Inspection Manual”) of Japan’s Financial Services Agency.
JBIC is similarly undertaking the internal assessment of its
loan portfolio, based on the Financial Inspection Manual sothat the characteristics of its loan assets will be accurately

risks. Also to be taken into account are mechanisms forsecuring assets, such as the Paris Club1 a unique frameworkfor debt management by official creditor countries. The
credit risk quantification model incorporating these factors ismeasuring credit risks and is utilized for internal control.
1. An informal group of official creditors whose role is to find coordinated andsustainable solutions to the payment difficulties experienced by debtor nations.
Since the first meeting took place in 1956 to resolve the debt problem of Argentina,
the meeting has been held in Paris, with the French Treasury acting as its
secretariat. Hence, it has come to be called the Paris Club.

2. Risk Management■ Quantifying Credit Risk
In addition to individual credit risk management, JBIC is
working on quantifying credit risks with a view to evaluating
the risk of the overall loan portfolio. To quantify credit risks, it
is important to take into account the characteristics of JBIC’sloan portfolio, which holds a significant proportion of
longterm loans and loans involving sovereign and country

5
Operational and Administrative
Policies

reflected on its assessment. In this process, the first-stage
assessment is conducted by the relevant financing
departments, while the second-stage assessment isconducted by the Credit Department and the Country Credit
Department, which is then inspected by the Audit
Department. The results of internal assessment conductedon the portfolio are not only used internally for thecontinuous reviews of the loan portfolio but are also reflectedin the disclosure of asset quality to enhance the transparencyof JBIC’s financial position.

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

following table gives a summary of these transactions as ofMarch 31, 2015.
Credit Risk of Derivatives, etc.
(As of March 31, 2015; 100millions of yen)Contract Amounts /Credit Risk Amounts
Notional Amounts
Interest Rate Swaps

36,184889

Currency Swaps

51,2203,794

Forward Exchange
Contracts

10

Other Derivatives——

Credit Risk Reductions
through Netting
Total△ 3,239
87,406

1,445“The credit risk amounts” are calculated under Uniform International Standardsin accordance with the Banking Act of Japan and the related regulations.

(3) Risks Involved in Derivatives Transactions
Derivatives transactions involve the following risks.
◆ Counterparty Credit Risk
The potential loss from the failure of a counterparty toperform its obligations in accordance with the terms andconditions of the contract governing transactions due tobankruptcy or its deteriorating business performance.
◆ Market Risk
The potential loss from changes in the market value offinancial products due to fluctuations in interest rates or
exchange rates in the market.

JBIC Annual Report 2015815(4) Measures to Address These Risks

Operational and Administrative
Policies◆ Counterparty Credit Risk
JBIC constantly monitors the market value of a derivative inmaking transaction with each counterparty, credit risk
exposure to it and its creditworthiness. Such information isthen used to assess the appropriateness of making
transaction with it.

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

Liquidity Risk

2. Risk Management

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

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

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

82

JBIC Annual Report 2015

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

3. Public Information and Disclosure■ Website
The website provides access to JBIC information, including its
financial instruments, press releases, invitations to seminars,
reports on various studies, activities on environmental issues,
annual reports, various brochures, IR information for investors,
and various other types of information.

3. Public Information and Disclosure■ Publications
JBIC publishes its annual operations and activities as well as
its financial conditions in various disclosure materials,
including annual reports, business reports, financial
statements, and Form 18-K, submitted to the U.S. Securities
and Exchange Commission.
Other publications available to the public include “JBIC
Today ,” a public information magazine that reports on JBIC’slatest activities and topics on its operations and otherrelevant issues; and “JBIC Profile: Role and Function ,” abrochure describing JBIC operations.

5
Operational and Administrative
Policies

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

JBIC Today

JBIC website

JBIC Profile: Role and Function
JBIC Project Finance Initiatives

JBIC Annual Report 201583

5
Operational and Administrative
Policies■ Information Dissemination for the Media
Aside from information disseminated through various
publications, the website, and other means, JBIC informs thenews media about its operations and activities through press
conferences, meetings, etc.

■ Participating in Various Events
JBIC actively takes part in events held both in Japan andoverseas in order to explain its role and functions, its support
in the environmental field, etc. Photos of JBIC's participationin these events can be viewed on its website. In November
2014, JBIC had a booth at Messe Nagoya 2014, which washeld in Nagoya. In December 2014, JBIC held Eco-Products2014 at Tokyo Big Sight. JBIC has also undertaken various
activities overseas, such as having an employee give a
presentation at the 3rd Annual Islamic Banking Summit
Africa, which was held in the African country of the Republicof Djibouti in November 2014.

3. Public Information and Disclosure.

Governor Hiroshi Watanabe at the press conference
Eco-Products 2014

■ Disseminating Information from
Overseas Representative Office
JBIC’s overseas representative offices are actively
contributing reports and articles to the news media toprovide information from overseas. They have also appearedin TV news programs to provide timely topics that can only
be reported on at the local grassroots level, such as individual
consumption and information on taxation, etc.
■ Promoting International Exchange
Since 1976, JBIC has held annual JBIC Seminars in Japan topromote mutual understanding with its overseas business
partners and relevant organizations by inviting officials fromforeign governments, government agencies, privatecompanies, financial institutions, etc. The cumulative numberof seminar participants is approximately 640 so far.

■ Disclosure
JBIC discloses to the public its operational and financial
information to promote further understanding of its current
activities, as follows.

(Principal) Materials for Providing Information
Source of Information

Access● Available at the Head Office andReport on Settlement of
Accounts

the West Japan Office● Distributed to the National Diet

Library and economic
organizations, etc.
● Available at the Head Office,Annual Report Public
Relations Magazine, etc.

the West Japan Office andRepresentative Offices● Distributed to interested
persons/institutions

Website:● Type of Business

Operations, Operational
Results, Overview ofOrganization, Financial
Composition, etc.

Participants at the JBIC Seminar

84

JBIC Annual Report 2015

● On the internet

Address:
http://www.jbic. go.jp/en/