UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 18-K
For Foreign Governments and Political Subdivisions Thereof
ANNUAL REPORTofJAPAN BANK FOR INTERNATIONAL COOPERATION(Name of registrant)

Date of end of last fiscal year: March 31, 2024

SECURITIES REGISTERED*(As of the close of the fiscal year)

Titles of Issue

Amounts as toWhich Registrationis Effective

Names of
Exchanges on
Which Registered

N/A

N/A

N/A

Names and addresses of persons authorized to receive notices
and communications from the Securities and Exchange Commission:
NOSE Nozomi
Chief Representative in New York
Representative Office in New York(Regional Headquarters for the Americas)
Japan Bank for International Cooperation
712 Fifth Avenue 26th Floor
New York, NY 10019 U.S.A.
Copies to:Jesse S. Gillespie
Morrison & Foerster LLP
Shin-Marunouchi Building, 29th Floor,
5-1, Marunouchi 1-chome
Chiyoda-ku, Tokyo 100-6529
Japan* The registrant is filing this annual report on a voluntary basis.

This Annual Report on Form 18-K of Japan Bank for International Cooperation (the “registrant”) is intended to be incorporated by reference into
Registration Statement No. 333-250107 of the registrant and Japan filed on November 16, 2020, as amended by the Pre-effective Amendment No. 1
thereto filed on December 23, 2020 (as so amended, the “Registration Statement”).
The information set forth below is to be furnished:1.

In respect of each issue of securities of the registrant registered, a brief statement as to:(a) The general effect of any material modifications, not previously reported, of the rights of the holders of such securities.

Not applicable.*(b) The title and the material provisions of any law, decree or administrative action, not previously reported, by reason of which the security is not
being serviced in accordance with the terms thereof.
Not applicable.*(c) The circumstances of any other failure, not previously reported, to pay principal, interest, or any sinking fund or amortization installment.
Not applicable.*2.

A statement as of the close of the last fiscal year of the registrant giving the total outstanding of:(a) Internal funded debt of the registrant. (Total to be stated in the currency of the registrant. If any internal funded debt is payable in a foreign
currency, it should not be included under this paragraph (a), but under paragraph (b) of this item.)

Reference is made to pages 54 to 55 of Exhibit 2 hereto.
(b) External funded debt of the registrant. (Totals to be stated in the respective currencies in which payable. No statement need be furnished as tointergovernmental debt.)
Reference is made to pages 54 to 55 of Exhibit 2 hereto.
3.

A statement giving the title, date of issue, date of maturity, interest rate and amount outstanding, together with the currency or currencies in whichpayable, of each issue of funded debt of the registrant outstanding as of the close of the last fiscal year of the registrant.

Reference is made to pages 54 to 55 of Exhibit 2 hereto.
4.

(a) As to each issue of securities of the registrant which is registered, there should be furnished a breakdown of the total amount outstanding, asshown in Item 3, into the following:(1) Total amount held by or for the account of the registrant.

Not applicable.*(2) Total estimated amount held by nationals of the registrant (or if registrant is other than a national government by the nationals of its
national government); this estimate need be furnished only if it is practicable to do so.
Not applicable.*(3) Total amount otherwise outstanding.
Not applicable.** No securities of the registrant are registered under the Securities Exchange Act of 1934, as amended.
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(b)If a substantial amount is set forth in answer to paragraph (a)(1) above, describe briefly the method employed by the registrant toreacquire such securities.

Not applicable.*5.

A statement as of the close of the last fiscal year of the registrant giving the estimated total of:(a)Internal floating indebtedness of the registrant. (Total to be stated in the currency of the registrant.)(b)

External floating indebtedness of the registrant. (Total to be stated in the respective currencies in which payable.)

None.

None.
6.

Statement of the receipts, classified by source, and of the expenditures, classified by purpose, of the registrant for each fiscal year of the registrant
ended since the close of the latest fiscal year for which such information was previously reported. These statements should be so itemized as to bereasonably informative and should cover both ordinary and extraordinary receipts and expenditures; there should be indicated separately, if
practicable, the amount of receipts pledged or otherwise specifically allocated to any issue registered, indicating the issue.

Reference is made to page 8 of Exhibit 2 hereto.
7.

(a)

If any foreign exchange control, not previously reported, has been established by the registrant (or if the registrant is other than a national
government, by its national government), briefly describe such foreign exchange control.

(b)

If any foreign exchange control previously reported has been discontinued or materially modified, briefly describe the effect of any suchaction, not previously reported.

None.

Not applicable.
This annual report comprises:*(a)

The cover page and pages numbered 2 to 6 consecutively.

(b)

The following exhibits:(1)

Description of Japan Bank for International Cooperation (“JBIC”) dated August 5, 2024.

(2)

Audited consolidated financial statements for the fiscal years ended March 31, 2024 and 2023 of JBIC and its consolidated
subsidiaries (the “JBIC Group”) prepared in accordance with accounting principles generally accepted in Japan (“Japanese
GAAP”).*(3)

Consent of Ernst & Young ShinNihon LLC related to audited consolidated financial statements for the fiscal year ended March 31,
2024 and 2023 of JBIC and its consolidated subsidiaries prepared in accordance with Japanese GAAP.*(4)

Excerpt of General Rules of the National Budget, which relates to the registrant for the fiscal year ending March 31, 2025 (inJapanese only).

The registrant has adopted Japanese GAAP for reporting purposes.
3(5)Japan Bank for International Cooperation Act (Act No. 39 of 2011), as amended (English translation).

(6)

Certificate of Nagashima Ohno & Tsunematsu.

(7)

Audited consolidated financial statements of the JBIC Group as of and for the fiscal years ended March 31, 2024 and 2023 preparedin accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board(the “IASB”).**(8)

Consent of Ernst & Young ShinNihon LLC related to audited consolidated financial statements as of and for the fiscal year ended
March 31, 2024 and 2023 prepared in accordance with IFRS.**(9)

Reconciliation of assets, liabilities and equity of the JBIC Group as of March 31, 2024 and 2023, and reconciliation of net profit of
the JBIC Group for the fiscal years ended March 31, 2024 and 2023, between Japanese GAAP and IFRS.**This Annual Report is filed subject to the Instructions for Form 18-K for Foreign Governments and Political Subdivisions Thereof.
**

Audited consolidated financial statements of the JBIC Group as of and for the fiscal years ended March 31, 2024 and 2023 prepared inaccordance with IFRS as issued by the IASB are being disclosed for reference purposes in order to improve comparability with international
issuers. The registrant’s financial statements for reporting purposes are prepared in accordance with Japanese GAAP (see Exhibit 2).
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this annual report to be signed on its behalf by theundersigned, thereunto duly authorized, at Tokyo, Japan on the 5th day of August, 2024.
JAPAN BANK FOR INTERNATIONAL COOPERATION

By: /s/ MOGAKI Katsuya
MOGAKI Katsuya
Executive Officer
Director General
Treasury Department
Treasury and Systems Group5

EXHIBIT INDEXExhibit
NumberDescription

1.

Description of Japan Bank for International Cooperation (“JBIC”) dated August 5, 2024.

2.

Audited consolidated financial statements for the fiscal years ended March 31, 2024 and 2023 of JBIC and its consolidated subsidiaries (the“JBIC Group”) prepared in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”).*

3.

Consent of Ernst & Young ShinNihon LLC related to audited consolidated financial statements for the fiscal year ended March 31, 2024
and 2023 of JBIC and its consolidated subsidiaries prepared in accordance with Japanese GAAP.*

4.

Excerpt of General Rules of the National Budget, which relates to the registrant for the fiscal year ending March 31, 2025 (in Japaneseonly).

5.

Japan Bank for International Cooperation Act (Act No. 39 of 2011), as amended (English translation).

6.

Certificate of Nagashima Ohno & Tsunematsu.

7.

Audited consolidated financial statements of the JBIC Group as of and for the fiscal years ended March 31, 2024 and 2023 prepared inaccordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the“IASB”).**

8.

Consent of Ernst & Young ShinNihon LLC related to audited consolidated financial statements as of and for the fiscal year ended
March 31, 2024 and 2023 prepared in accordance with IFRS.**

9.

Reconciliation of assets, liabilities and equity of the JBIC Group as of March 31, 2024 and 2023, and reconciliation of net profit of the
JBIC Group for the fiscal years ended March 31, 2024 and 2023, between Japanese GAAP and IFRS.*****The registrant has adopted Japanese GAAP for reporting purposes.
Audited consolidated financial statements of the JBIC Group as of and for the fiscal years ended March 31, 2024 and 2023 prepared inaccordance with IFRS as issued by the IASB are being disclosed for reference purposes in order to improve comparability with international
issuers. The registrant’s financial statements for reporting purposes are prepared in accordance with Japanese GAAP (see Exhibit 2).
6

Exhibit 1*
Japan Bank for International Cooperation
This description of Japan Bank for International Cooperation is dated August 5, 2024 and appears as Exhibit 1 to its Annual Report on Form 18-K filedwith the U.S. Securities and Exchange Commission.
*

JBIC’s financial information as of and for the fiscal years ended March 31, 2023 and 2024 in Exhibit 1 has been derived from its financial
statements prepared in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”).

THE DELIVERY OF THIS DOCUMENT AT ANY TIME DOES NOT IMPLY THAT THE INFORMATION IS CORRECT AS OF ANY TIMESUBSEQUENT TO ITS DATE. THIS DOCUMENT (OTHERWISE THAN AS PART OF A PROSPECTUS CONTAINED IN A REGISTRATIONSTATEMENT FILED UNDER THE U.S. SECURITIES ACT OF 1933) DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATIONOF AN OFFER TO BUY ANY SECURITIES OF JAPAN BANK FOR INTERNATIONAL COOPERATION.
TABLE OF CONTENTS
FURTHER INFORMATIONJAPAN BANK FOR INTERNATIONAL COOPERATIONJBIC Operations
Recent Developments
OPERATING RESULTS FOR THE FISCAL YEARS ENDED MARCH 31, 2021 AND 2022
Overall Operations
Each Operation
BUSINESS
Missions
Government Control and Supervision
Overview of JBIC’s Operations
JBIC Operations
Non-performing Loans
Risk Management
MANAGEMENTDEBT RECORDFINANCIAL STATEMENTS

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FURTHER INFORMATIONThis document appears as an Exhibit to the Annual Report of Japan Bank for International Cooperation (“JBIC”) filed with the U.S. Securities andExchange Commission (the “Commission”) on Form 18-K. Additional information with respect to JBIC is available in such Annual Report, in the otherexhibits to such Annual Report and in amendments thereto. Such Annual Report, exhibits and other amendments may be inspected and copied at the
public reference room maintained by the Commission at: 100F Street, N.E., Washington, D.C. 20549. Information regarding the operations of the public
reference room can be obtained by calling the Commission at 1-800-SEC-0330 or, without charge, from JBIC by telephoning 813-5218-3304. Such
Annual Report, exhibits and other amendments are also available through the Commission’s Internet website at http://www.sec.gov.
In this document, all amounts are expressed in Japanese Yen (“¥” or “yen”), except as otherwise specified. The spot buying rate quoted on
the Tokyo Foreign Exchange Market on August 1, 2024 as reported by the Bank of Japan at 5:00 p.m., Tokyo time, was ¥149.85= $1.00, and the noonbuying rate on July 26, 2024 for cable transfers in New York City payable in yen, as reported by the Federal Reserve Bank of New York, was ¥153.86=$1.00.
Unless otherwise specified, references in this document to “$” are to U.S. dollars.
References in this document to fiscal years are to the 12-month periods commencing on April 1 of the year indicated.
References in this document to “JBIC” are to “Japan Bank for International Cooperation.”
References in this document to the “JBIC Group” are to JBIC and its subsidiaries. As of March 31, 2024, JBIC had two subsidiaries, JBIC IG
Partners and Russia-Japan Investment Fund, L.P.
References in this document to “JBIC Operations” are to “Japan Bank for International Cooperation Operations.” References in this document
to “JBIC Operations” (i) prior to April 1, 2012 are to the JBIC Operations as conducted by the Predecessor, (ii) on or after April 1, 2012 until
March 31, 2017 are to the JBIC Operations as conducted by JBIC and (iii) on or after April 1, 2017 are to the JBIC Operations as conducted by the
JBIC Group.
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References in this document to the “Predecessor” are to “Japan Finance Corporation.”
Figures in tables included in this document may not add up to totals due to rounding.
Except where otherwise specified, financial information as of and for the fiscal years ended March 31, 2023 and 2024 is presented on aconsolidated basis.
JBIC’s financial information as of and for the fiscal years ended March 31, 2023 and 2024 in this document has been derived from its financial
statements prepared in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”). Japanese GAAP differs from generally
accepted accounting principles in other countries, such as the International Financial Reporting Standards (“IFRS”) as issued by the International
Accounting Standards Board (the “IASB”), or generally accepted accounting principles in the United States.
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JAPAN BANK FOR INTERNATIONAL COOPERATION
Pursuant to the Japan Bank for International Cooperation Act (Act No. 39 of 2011), as amended (the “JBIC Act”), which was passed into law on
April 28, 2011, on April 1, 2012 and subsequently amended on May 30, 2014 by Law No. 44 of 2014 and June 27, 2014 by Law No. 91 of 2014, thePredecessor spun off two of its operations: (i) the JBIC Operations and (ii) the Financial Operations for Facilitating Realignment of United States Forces
in Japan (the “Financial Operations for Facilitating Realignment of United States Forces in Japan”). Effective the same date, the JBIC Operations andthe Financial Operations for Facilitating Realignment of United States Forces in Japan were transferred out of the Predecessor to establish Japan Bankfor International Cooperation (“JBIC”), a joint-stock corporation wholly owned by the Japanese government.
Pursuant to the JBIC Act, on April 1, 2012, all of the assets and liabilities relating to the JBIC Operations and the Financial Operations for
Facilitating Realignment of United States Forces in Japan were assumed by JBIC. Upon the same date, with respect to bonds issued by the former Japan
Bank for International Cooperation prior to the establishment of the Predecessor on October 1, 2008 and subsequently succeeded to by the Predecessor,
JBIC and the Japan International Cooperation Agency, jointly and severally, assumed the obligations under such bonds. With respect to bonds issued by
the Predecessor prior to the establishment of JBIC on April 1, 2012, the post-spin off the Predecessor and JBIC, jointly and severally, assumed theobligations under such bonds. The guarantee of the bonds by the Japanese government remains in effect under the same conditions and such bonds
continue to rank senior in terms of payment to unsecured general obligations not represented by debt securities.
The Financial Operations for Facilitating Realignment of United States Forces in Japan were discontinued at the end of September 2012 based on
the joint statement by the Japan-US Security Consultative Committee dated April 27, 2012. In accordance with Article 23 of the Special Measures Act,on November 30, 2012, the residual assets were paid to the national treasury, and the Financial Account Related to the Financial Operations for
Facilitating Realignment of United States Forces in Japan was abolished.
As part of the Japanese government’s “Partnership for Quality Infrastructure” initiative in May 2015, the Act for Partial Amendment of the Japan
Bank for International Cooperation Act (the “Act for Partial Amendment of the JBIC Act”) was enacted on May 11, 2016 to further support the overseas
business expansion of Japanese companies by strengthening JBIC’s functions. Consequently, in October 2016, a new account for financing overseas
infrastructure projects (“Special Operations”) was established separately from the account for JBIC’s existing operations (“Ordinary Operations”). In
June 2017, together with Industrial Growth Platform, Inc., JBIC established its subsidiary, JBIC IG Partners, with the goal of providing support forforeign-directed investment funds.
JBIC Operations
Ordinary Operations
Pursuant to the JBIC Act, JBIC conducts the JBIC Operations to fulfill the following four missions in order to contribute to the sounddevelopment of Japan and the international economy and society: (a) promoting the overseas development and securement of resources which areimportant for Japan, (b) maintaining and improving the international competitiveness of Japanese industries, (c) promoting the overseas businesses
having the purpose of preserving the global environment, such as preventing global warming, and (d) preventing disruptions to international financial
order or taking appropriate measures with respect to damages caused by such disruption.
In order to execute the above missions, JBIC conducts the following seven principal operations by way of financing instruments such as loans,guarantees, acquisition and securitization of public/corporate bonds, assignment and securitization of loan assets and equity participations.
•

Export Loans. For the purpose of promoting exports of Japanese plants and for the purpose of securing equally competitive conditions interms of financing when Japanese exporters compete with other developed countries, export finance provides loans and guarantees of funds
to importers and financial institutions to support exports of plants and technologies by Japanese companies mostly to developing countries.
In particular, products such as power generation facilities, communication equipment, and marine vessels.

•

Import Loans. For the purpose of securing a stable supply of resources for Japan, import finance provides loans and guarantees of funds tosupport imports of oil, LNG, iron ore, other rare minerals and other strategically important materials to Japan. Apart from natural resources,
the guarantee facility supports imports of goods and services for which there are crucial domestic needs for the sound development of theJapanese economy, such as aircrafts.

•

Overseas Investment Loans. For the purpose of promoting Japan’s overseas business activities, overseas investment finance provides loans
and guarantees of long-term business funds to support foreign direct investments undertaken by Japanese companies, overseas Japaneseaffiliates and foreign governments or financial institutions that have equity participations in or provide loans to such overseas affiliates. The
eligible purposes include local manufacturing, resource development and other business ventures.
4•

Untied Loans. Untied loans provide loans and guarantees of funds to support improvements in the overseas business environment or tostabilize their currencies to facilitate Japanese trade, investments and other overseas business activities by foreign governments and foreign
government agencies. Untied loans also support projects that have a strong impact on preserving the environment.

•

Bridge Loans. Bridge loans provide short-term financing for developing country governments facing balance-of-payments difficulties orother emergencies until international agencies can provide economic support funds.

•

Equity Participations. Equity participations are equity investments in Japanese joint ventures conducting business overseas or overseas
companies in which Japanese companies have invested for the purposes of a business tie-up, and equity investments in funds in which
Japanese companies or international institutions participate.

•

Research and Studies. JBIC conducts research and studies to support its operations.

Special Operations
The JBIC Act (Act No. 39 of 2011), which regulates JBIC’s financial operations, was amended as of May 18, 2016 with the object, inter alia, ofenhancing JBIC’s capacity to finance overseas infrastructure projects through the newly established “Special Operations.” The amendment came into
force starting October 1, 2016 together with relevant implementing decrees. JBIC is thereafter required to maintain separate accounts for the Ordinary
Operations and the Special Operations to ensure transparency of both operations. From October 1, 2023, which the Act for Partial Amendment of Japan
Bank for International Cooperation Act became effective in its entirety, development of energy and natural resources, commercialization of newtechnology and business models, and equity investments in startups are included in Special Operations. In line with the Japanese government’s initiative
to promote development of quality infrastructure, the JBIC Group intends to leverage every tool at its disposal, including the Special Operations, tofurther mobilize the requisite funds to support private sector investment in infrastructure projects worldwide and to promote further risk-taking by
Japanese companies.
The Special Operations enable JBIC to finance overseas projects with risks that JBIC is unable to assume under the Ordinary Operations. Under
the Special Operations, JBIC considers projects that involve risks new to JBIC, to the extent that JBIC is in a good position to control or mitigate suchrisk throughout the tenor of the financing by way of close dialogue with the stakeholders such as the host-country government. As part of the due
diligence for providing financing under the Special Operations, JBIC takes into account the credit policy of other financial institutions for comparable
cases. JBIC also requires appropriate risk sharing among the parties involved and endeavors to mobilize adequate private funding to the relevant project.
Examples of projects under the Special Operations include finance for governments, government agencies or local governments with a risk profilethat does not fall into the scope of the Ordinary Operations and finance for public-private partnerships with the principal cash-flow entailing the risk offluctuations in demand.
Both the account for Ordinary Operations and the account for Special Operations are required to conduct sound and efficient operations based on
the principle that expenditures should not exceed revenues (“sufficient revenues to cover expenditures”) according to the JBIC Act. The account for
Ordinary Operations is additionally subject to the principle that repayment from the loans and the performance of the obligations under the guarantees
should be ascertained (“certainty of repayment”).
Average Yield in the JBIC Operations
With respect to the account for Ordinary Operations, the average yield of loans made by JBIC was 5.99% as of March 31, 2024. With respect tothe account for Special Operations, the average yield of loans made by JBIC was 5.54% as of March 31, 2024. The spread of each loan made by JBIC
depends on the purpose of the loan, maturity date and the borrower.
As a general matter, JBIC currently makes loans at fixed or floating interest rates, based on the request of the borrower, regardless of the term of
the loan.
Allowance for Loan Losses of the JBIC Operations
The JBIC Group provides an allowance for possible loan losses, pursuant to the relevant cabinet order and related regulations.
Allowance for loan losses is recognized in accordance with internally established standards.
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The allowance for claims on debtors who are legally bankrupt (“bankrupt borrowers”) or substantially bankrupt (“substantially bankrupt
borrowers”) is provided based on the outstanding balance after the write-offs described as below and the deductions of the amount expected to becollected through the disposal of collateral and the execution of guarantees. The allowance for claims on debtors who are not legally bankrupt but arelikely to become bankrupt (“potentially bankrupt borrowers”) is provided based on an assessment of the overall solvency of the debtors after deducting
the amount expected to be collected through the disposal of collateral and the execution of guarantees.
Of potentially bankrupt borrowers with restructured loans and others, (excluding foreign governments and other governmental entities) whoseloans exceed a threshold amount, if it is possible to reasonably estimate cash flows from the collection of principal and the receipt of interest, theallowance for claims on such debtors is provided based on an approach whereby the difference between the amount of cash flows discounted by theoriginal contractual interest rates and the carrying amount of the claims is determined to be the allowance for loan losses (the “cash flow estimation
approach”).
The allowance for claims on debtors other than bankrupt borrowers, substantially bankrupt borrowers and potentially bankrupt borrowers isprovided primarily in consideration of the expected loss amount over the average remaining periods of loans, and the expected loss amount is calculated
primarily based on the probability of default which is based on the actual bankruptcies during a certain period in the past. The allowance for possible
losses on specific overseas loans is provided based on the expected loss amount taking into consideration the political and economic situations of thesecountries.
All claims are assessed initially by the operational departments and subsequently by risk evaluation departments based on internal rules for selfassessment of asset quality. The risk evaluation departments, which are independent from the operational departments, review these self-assessments,
and the allowance is provided based on the results of the assessments.
With respect to claims with collateral or guarantees on debtors who are legally or substantially bankrupt, the residual book value of the claims,
after deducting, the amount which is deemed collectible through the disposal of collateral or the execution of guarantees is written off. There were nosuch amounts written off during the year ended March 31, 2024.
The spread of COVID-19 has had an adverse effect on the governments and economies of the countries and regions in which JBIC has madeloans, as well as individual borrowers thereof. Whether a borrower is categorized as substantially or potentially bankrupt is determined in considerationof the information currently available to JBIC.
In 2024, the global economic growth rate is expected to continue to recover to some extent. Currently, the allowance for loan losses is provided
based on the assumption that the level of the credit risk of outstanding loans and other investments will be the same as the historical level for the near
future, and is calculated based on the items including the probability of default that is based on the actual number of bankruptcies during a certain period
in the past.
As the future outlook is uncertain, the ongoing Russian invasion of Ukraine, or its impact on the international situation, as well as the related
economic impact, may differ significantly from the assumption above. In such a case, the allowance for loan losses may change going forward.
With regard to the ongoing Russian invasion of Ukraine, the governments of various countries, including the Government of Japan, have taken
various measures such as economic sanctions against Russia. JBIC is closely monitoring the trends in sanctions imposed by governments and otherentities with respect to Russia, including by reflecting the impact of the situation in Ukraine on JBIC’s loan loss reserves, by examining the impact ofsanctions measures on the business and performance of borrowers in determining borrower classification, and assessing the impact on credit risk on acase-by-case basis.
Recent Developments
Amendment of the JBIC Act
On April 7, 2023, the National Diet of Japan enacted the Act for Partial Amendment of Japan Bank for International Cooperation Act. The
amendment became effective in part on April 15, 2023 and in its entirety on October 1, 2023. In light of the changes in international conditions
surrounding Japan’s economy, this Act enhances the scope of JBIC’s operations in the following areas:•

Strengthening resilience of the supply chain that contributes to maintaining and improving the international competitiveness of Japaneseindustries.
•

Permit financing to foreign companies supporting Japanese companies’ supply chains and industrial bases.
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•

•

Permit import loans to be used for goods acquired overseas by Japanese companies.

•

Permit financing to large Japanese domestic companies for uses relating to overseas businesses that are related to the resilience ofJapanese companies’ supply chains.

Supporting further risk-taking by Japanese companies, including start-ups, with a focus on growth areas such as digital and green businessareas.
•

Permit investments in and purchases of corporate bonds from domestic start-ups and small-and medium-sized enterprises engaged inoverseas business.

•

Expand the scope of the account for the Special Operations to include resource development, commercialization of new technologies
and business models and investment in start-ups.

Participation in Recovery Assistance to Ukraine through international cooperation•

Permit guarantees to international financial institutions to enable JBIC can guarantee loans to Ukraine made by international
financial institutions.

Updates to Approach to Sustainability•

Governance and Management Systems

In June 2022, JBIC newly established the Sustainability Advisory Committee, Sustainability Committee, and Sustainability Management
Department as part of JBIC’s efforts toward strengthening its sustainability governance and management systems as set out in JBIC’s ESG Policy. Under
the supervision of multiple organs, including the Board of Directors, important matters related to sustainability, including those concerning climatechange, are discussed at the Executive Committee, Sustainability Committee and Corporate Risk Management Committee.
Under its sustainability governance and management systems, JBIC strives to contribute actively to the realization of global sustainability,
including sustainable development of the global economy and society and resolution of global issues. To that end, JBIC will provide proactive support
for initiatives by Japanese corporations to promote the Sustainable Development Goals (the “SDGs”) and realize the decarbonization of global economy
and society, and ensure the appropriate disclosure and announcement of the outcomes of such initiatives to stakeholders.
The following graphic shows the organization of JBIC’s sustainability governance and management systems.
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Strategies

In its Fourth Medium-term Business Plan announced in June 2021, the “JBIC Fourth Medium-term Business Plan (FY2021 – FY2023)”, whichruns through the fiscal year ended March 31, 2024, JBIC identified addressing “global issues toward realizing sustainable development for the global
economy and society” as its first key focus area. Moreover, in its Fifth Medium-term Business Plan announced in June 2024, which runs through thefiscal year starting April 1, 2024, “realization of sustainable future” is identified as one of the key focus areas. JBIC regards climate change as anopportunity to accelerate energy transition toward a decarbonized society and actively works to support this global agenda through the proactive
provision of GX finance as well as through strengthening its organizational structure. In addition, as one important role of JBIC as Japan’s policy-based
financial institution, JBIC is promoting engagement with the host countries’ governments and authorities and collaboration with overseas governmentalorganizations and international organizations for achieving global carbon neutrality.
•

Risk Management

JBIC recognizes the importance of managing risks related to climate change, and it has decided on a Climate Risk Management Policy in 2023.
Based on this policy, JBIC has prepared a framework to identify, assess, and manage climate-related risks. JBIC recognizes climate-related risks as
forward-looking risks that may materialize in different patterns and magnitudes, subject to future environmental and social circumstances, and which
therefore need to be addressed through long-term, comprehensive perspectives. JBIC also understands that climate-related risks are characterized as risk
drivers that are associated with every risk category, including credit risk, market risk, liquidity risk, and operational risk. Thus, they may materialize
over a variety of time horizons, both short and long term, and through a wide range of channels and touchpoints. Based on this recognition, JBIC has
designated climate-related risks as one of its Top Risks (risk events that will significantly impact JBIC when they become apparent and requireparticular attention) in its enterprise risk management framework, and it comprehensively manages these risks by monitoring the social and regulatory
trends related to climate issues and changes in situations regarding fossil fuel projects.
In order to evaluate the impacts that climate change will have on JBIC’s portfolio in the future, JBIC conducts scenario analysis for transition risk
and physical risk. The analysis is based on multiple scenarios, including the 1.5°C scenario that aims for net zero emissions by 2050, to enhance theflexibility and resilience of our risk management against various future circumstances that are related to climate change.
•

Metrics and Targets

JBIC believes it is essential that the flow of funds, including those through the mobilization of private finance, needs to be redirected to and shore
up decarbonization pathways to accelerate energy transitions and realize carbon neutrality on a global scale. Accordingly, under one of our action plans,“Respond to energy transformation toward the realization of a decarbonized society” in our Fourth Medium-Term Business Plan, JBIC has definedtargets for the numbers of green finance and transition finance projects committed and structured for the period of the business plan as well as for eachfiscal year during the business plan. JBIC monitored the status of achievement of such targets at the Executive Committee level.
Establishment and Launch of Global Investment Enhancement Facility
On July 1, 2022, JBIC launched its new Global Investment Enhancement Facility. Similar to the Post-COVID-19 Growth Facility established on
January 29, 2021, the Global Investment Enhancement Facility comprises two windows intended to support Japanese companies in (i) contribution
toward preserving the global environment, including decarbonization (the “Sustainability Window”) and (ii) enhancement of supply chain resilience, theexpansion of high-quality infrastructure and the creation of new overseas markets (the “Global Value Chain Resilience Window”).
Eligible projects and investments under the Sustainability Window include those that are expected to reduce greenhouse gas emissions, including
those related to renewable energy, energy savings, green mobility solutions (such as a modal shift in transportation and electric vehicles), carbon dioxide
capture and reduction, and low-carbon technologies and materials. The window also covers other projects that are expected to contribute toward
preserving the global environment, including those related to air pollution prevention, water supply, water pollution prevention, waste disposal andmeasures to address marine plastic pollution. Overseas investment loans and import loans in connection with energy and natural resources finance, forprojects relating to non-fossil energy sources, are also covered.
The Global Value Chain Resilience Window focuses on projects to provide funding for Japanese companies or their affiliates starting or expanding
overseas business, or improving the efficiency of overseas businesses, including through investments or other business tie-ups with certain foreigncompanies, as well as energy and natural resources finance. The window also focuses on financing activities to support Japanese companies in theenhancement of supply chains, thereby serving to maintain and improve the international competitiveness of Japanese industry, and projects where aJapanese company’s technology or business model will be implemented, thereby contributing to creating a new market in the relevant region.
Under this financing facility, the deadline for signing a financing agreement is June 30, 2025.
9

Bond Issuances
On April 27, 2023, JBIC issued $2.5 billion of 4.250% government guaranteed bonds due April 27, 2026. On July 19, 2023, JBIC issued$1.5 billion of 4.625% government guaranteed bonds due July 19, 2028. On October 18, 2023, JBIC issued $0.5 billion of 4.875% government
guaranteed bonds due October 18, 2028. On January 24, 2024, JBIC issued $1.0 billion of 4.375% government guaranteed bonds due January 24, 2031.
On April 17, 2024, JBIC issued $1.0 billion of 4.625% government guaranteed bonds due April 17, 2034. On July 22, 2024, JBIC issued $1.5 billion of
4.625% government guaranteed bonds due July 22, 2027. The bonds have been admitted to the official list of the Luxembourg Stock Exchange and aretraded on the Luxembourg Stock Exchange’s Euro MTF Market.
Common Stock Issuance
On March 26, 2024, JBIC issued new shares of its common stock to the Japanese government for an aggregate issue price of ¥103.0 billion. The
proceeds from the issuance will be used for strengthening JBIC’s financial foundation in order to support Japanese companies’ overseas businessexpansion including in the field of infrastructure.
Medium-term Business Plan
On June 27, 2024, JBIC announced its fifth medium-term business plan, titled the “JBIC Fifth Medium-term Business Plan (FY2024 – FY2026)”,
which runs through the fiscal year ending March 31, 2027.
The current international situation is becoming even more uncertain as the world faces historical and structural changes and challenges, including
Russia’s invasion of Ukraine, changes in relationship between developed countries and Global South countries, destabilization of the global financial
environment due to inflation and increasing debt costs, and rebuilding of supply chains to ensure economic security in such areas as energy and foods.
On the other hand, climate change remains an urgent issue for the international society, and it is crucial to make a breakthrough with innovativetechnology to achieve both decarbonization and sustainable economic growth.
JBIC has developed the Fifth Medium-term Business Plan (FY2024–FY2026) toward solving these issues. The plan sets one of the key focus
areas as the realization of a sustainable future through achieving carbon neutrality, a global common challenge, and solving social issues of hostcountries in cooperation with various stakeholders. In addition, through the amendment to the JBIC Act in April 2023 to bolster its functions, JBIC willencourage creative innovation of Japanese industry by proactively supporting the efforts to ensure energy security, strengthen resilient supply chains,and develop innovative technologies and new businesses, including startups. Furthermore, JBIC will offer its own unique solutions by promoting
multilateral cooperation and performing its risk-assuming functions, such as the Special Operations, thereby contributing toward the development andimplementation of Japan’s foreign economic policies.
•

Key Focus Area 1: Realize a sustainable future•

Action Plan (1): Contribute toward realizing both carbon neutrality and economic growth••

Action Plan (2): Contribute toward solving social issues in collaboration with host countries••

Support efforts for global green transformation (GX) and energy transition via diverse paths to carbon neutrality in hostcountries, by financing to projects in such areas as renewable energy and energy efficient projects, hydrogen and ammonia,
carbon-recycling fuel, rechargeable batteries, resources recycling (circular economy), next-generation mobility, energysaving building, energy transition and, CCS (Carbon dioxide Capture and Storage)/CCUS (Carbon dioxide Capture,
Utilization and Storage).

Support projects that will contribute toward solving the host country’s social issues toward sustainable growth, including
development of medical environment (hospitals, medical devices, and medical networks), development of resilient basic
infrastructures (water supply and sewerage, transportation, disaster prevention, rural electrification and distributed power
supply, and telecommunication), improvement of hygienic environment (waste treatment and recycling), preservation andrestoration of natural resources (including management of marine plastic waste), and securement of food security (food value
chain).

Action Plan (3): Implement responsible sustainability management•

Promote pioneering initiatives related to sustainability with a focus on climate change issues.

•

Research, analyze, and report the advanced trends of wide range of sustainability issues (e.g., natural resources, humanrights, and gender).

•Upgrade efforts including disclosure and transmission of information related to climate change risk management (transition
risk and physical risk) and sustainability.
10•

Key Focus Area 2: Strengthen resilience of Japanese industry and support creative innovation•

Action Plan (4): Support securement of Japan’s energy security, strategic enhancement of the resilience of supply chains that
contribute to national interest, and development of frontier industries••

Action Plan (5): Support development of innovative technologies and businesses••

Support MTEs and SMEs that are active in global business through collaboration with private financial institutions such as
regional banks, and by information dissemination.

Key Focus Area 3: Provide JBIC’s own unique solutions by strategically functioning as an international financial institution•

Action Plan (7): Support projects which contribute toward developing and realizing Japan’s foreign economic policies••

Support initiatives that contribute toward developing and realizing Japan’s foreign economic policies which change withtimes, including promoting multilateral cooperation such as Japan-United States-Australia partnership and Quadrilateral
Security Dialogue (QUAD), supporting Ukraine and its neighboring countries, strengthening collaboration with Global
South countries, and promoting the Asia Zero Emission Community (AZEC).

Action Plan (8): Provide own unique solutions through strategic information analysis••

Support creative innovation of Japanese industry through financing to startups (including effort to add value throughengagements), projects in which Japanese companies invest for commercialization, and practical application of innovation,
projects that focus on innovation-related risks such as technological risks and commercialization risks, mergers andacquisitions by Japanese companies with an eye on securing advanced technology and business, and projects invested in by afund structured by JBIC IG.

Action Plan (6): Support overseas expansion of globally active mid-tier enterprises (MTEs) and small- and medium-sized enterprises(SMEs)••

Support strengthening of Japanese industry through providing assistance to projects that contribute to energy security inJapan, projects that enhance the resilience of global supply chains of Japanese industry, such as those for overseas capital
investments and exports, and projects related to securing interests of or importing mineral resources, including base metals
and critical minerals.

Strengthen external communication and sophisticate JBIC’s operations and strategies through information-gathering andanalysis functions.

Key Focus Area 4: Reinforce and reform organizational base toward value creation••

Action Plan (9): Exercise human capital management•

Develop and introduce new HR strategy focusing on organizational challenges.

•

Establish a human capital management system in which directors and staff members can maximize their abilities.

Action Plan (10): Streamline operations through DX (digital transformation) and develop business promotion infrastructure••

Streamline operations and develop an infrastructure for operational promotion by further strengthening IT infrastructure,
constantly reviewing operations, finding the best balance between the continuous review of operations and the utilization of
cutting-edge technologies (including generative AI), through the agile utilization of such technologies.

Action Plan (11): Build a highly engaged organization, reinforce and stabilize organizational base, and achieve efficient management•

Build an organization with high staff engagement through concrete organizational reforms directed by the management.

•

Enhancement and stable, efficient operation of the organization’s core businesses that underpin value creation.
11

OPERATING RESULTS FOR THE FISCAL YEARS ENDED MARCH 31, 2023 AND 2024
JBIC’s financial information as of and for the fiscal years ended March 31, 2023 and 2024 in this Exhibit 1 has been derived from its financial
statements prepared in accordance with Japanese GAAP.
Overall Operations
Set forth below are the operating results of the JBIC Group for the fiscal year ended March 31, 2024:
Year ended March 31,2024(In millions of yen)

Ordinary income
Ordinary profit
Net income attributable to owner of parent
Total assets
Loans and bills discounted
Customers’ liabilities for acceptances and guarantees¥

1,133,061
63,26562,342
21,657,108
16,423,476
1,522,529

During the fiscal year ended March 31, 2024, the JBIC Group’s operations consisted solely of Ordinary Operations and Special Operations. As
Ordinary Operations represent the JBIC Group’s primary business, the JBIC Group’s operating results were substantially determined by the operating
results of its Ordinary Operations, as further described in “Each Operation”.
Ordinary income for the fiscal year ended March 31, 2024 totaled ¥1,133,061 million, of which interest income amounted to ¥1,022,058 million.
Ordinary expenses for the fiscal year ended March 31, 2024 totaled ¥1,069,795 million. Interest expense, which amounted to ¥902,748 million
and reflected interest expense for its borrowings and outstanding debt securities, accounted for the majority of these expenses.
For the fiscal year ended March 31, 2024, the JBIC Group recorded ordinary profit of ¥63,265 million and net income attributable to owner ofparent of ¥62,342 million, and JBIC’s commitments, including guarantee, were ¥2,037 billion.
Set forth below are the operating results of the JBIC Group for the fiscal year ended March 31, 2023:
Year ended March 31,
2023(In millions of yen)

Ordinary income
Ordinary profit
Net income attributable to owner of parent
Total assets
Loans and bills discounted
Customers’ liabilities for acceptances and guarantees¥

659,923
156,518
156,585
20,157,883
15,587,788
1,534,258

During the fiscal year ended March 31, 2023, the JBIC Group’s operations consisted solely of Ordinary Operations and Special Operations. As
Ordinary Operations represent the JBIC Group’s primary business, the JBIC Group’s operating results were substantially determined by the operating
results of its Ordinary Operations, as further described in “Each Operation”.
Ordinary income for the fiscal year ended March 31, 2023 totaled ¥659,923 million, of which interest income amounted to ¥570,567 million.
Ordinary expenses for the fiscal year ended March 31, 2023 totaled ¥503,404 million. Interest expense, which amounted to ¥460,022 million andreflected interest expense for its borrowings and outstanding debt securities, accounted for the majority of these expenses.
12

For the fiscal year ended March 31, 2023, the JBIC Group recorded ordinary profit of ¥156,518 million and net income attributable to owner ofparent of ¥156,585 million, and JBIC’s commitments, including guarantee, were ¥2,315 billion.
Each Operation
Set forth below are the operating results of each operation of the JBIC Group for the fiscal year ended March 31, 2024:

Ordinary income
Ordinary profit (loss)
Net income (loss) attributable to owner of parent
Total assets
Loans and bills discounted
Customers’ liabilities for acceptances and guarantees(a)(a)

Ordinary Operations

Year ended March 31, 2024
Special Operations
Eliminations(In millions of yen)¥¥

1,131,366
63,062
62,13921,320,106
16,399,984
1,522,529

1,796
203
203
337,035
23,492
—

¥

(100)
—
—
(34)
—
—

Total

¥ 1,133,061
63,26562,342
21,657,108
16,423,476
1,522,529

This is the amount of guarantee liabilities recorded in the JBIC Group’s balance sheet.

Ordinary income from Ordinary Operations for the fiscal year ended March 31, 2024 totaled ¥1,131,366 million, of which ¥1,020,410 million
consisted of interest income. Ordinary expenses of Ordinary Operations for the fiscal year ended March 31, 2024 totaled ¥1,068,303 million, of which¥901,853 million consisted of interest expense. As a result, for the fiscal year ended March 31, 2024, the Ordinary Operations recorded ordinary profitof ¥63,062 million and net income attributable to owner of parent of ¥62,139 million.
In the Ordinary Operations, JBIC supported overseas development and the acquisition of important resources for Japan, including through loans toprovide necessary long-term finance for the stable procurement of LNG by a Japanese company and supporting the Japanese steel industry’s long-term
stable offtake of mineral resources and decarbonization. JBIC supported various Japanese companies, in order to improve the international
competitiveness of Japanese industry by utilizing the Global Investment Enhancement Facility, in connection with infrastructure and other projects,
including through loans for supporting an offshore electricity transmission project in the U.K. In addition, in the context of overseas M&A support, JBIC
provided loans to a Japanese company for acquiring an Australian company that manufactures and sells health foods, such as supplements, and to a
Japanese company for acquiring a U.S. science-driven biopharmaceutical company focused on the discovery and development of novel treatments forretinal diseases. In the context of supporting innovation, JBIC signed an agreement for equity participation in a Fund established by JBIC IG Partners
and others, invests in startups related to the sustainability and digitalization sector, mainly in northern Europe, to strengthening the international
competitiveness of Japanese companies through investments in northern Europe as frontrunner in the sustainability & digitalization sector. In the context
of supporting small and medium-sized enterprises, JBIC provided proactive support in ASEAN countries and India, utilizing local currency loans. JBIC
also supported overseas business that aim at preserving the global environment by utilizing the Sustainability Window under the Global Investment
Enhancement Facility, through providing a loan for a solar PV project in Benin and an offshore wind farm project in Taiwan.
Ordinary income from Special Operations for the fiscal year ended March 31, 2024 totaled ¥1,796 million, of which ¥1,648 million consisted ofinterest income. Ordinary expenses of Special Operations for the fiscal year ended March 31, 2024 totaled ¥1,592 million, of which ¥895 million
consisted of interest expense. As a result, for the fiscal year ended March 31, 2024, the Special Operations recorded ordinary profit of ¥203 million andnet profit attributable to owner of parent of ¥203 million.
For prior year data for Ordinary Operations and Special Operations, see the overall operating results for the fiscal year ended March 31, 2023
provided under “Overall Operations.”
13

BUSINESS
Missions
Pursuant to the JBIC Act, JBIC conducts the JBIC Operations to fulfill the following four missions in order to contribute to the sounddevelopment of Japan and the international economy and society: (a) promoting the overseas development and securement of resources which areimportant for Japan, (b) maintaining and improving the international competitiveness of Japanese industries, (c) promoting the overseas businesses
having the purpose of preserving the global environment, such as preventing global warming, and (d) preventing disruptions to international financial
order or taking appropriate measures with respect to damages caused by such disruption.
Government Control and Supervision
Under the JBIC Act, JBIC’s shares are wholly owned by the Japanese government, and JBIC is under the Japanese government’s control. JBIC’soperations, including appointment of directors, business plans and issuance of new debt securities, are supervised by the Minister of Finance. JBIC’s
budgets are subject to approval of the Japanese Diet, and the annual financial statements of JBIC are required to be submitted to the Diet.
Overview of JBIC’s Operations
The Act for Partial Amendment of the JBIC Act was approved and enacted at the 190th ordinary session of the Diet on May 11, 2016.
Consequently, a new “Special Operations” account was established in October 2016 from which JBIC can provide enhanced financing support foroverseas infrastructure projects and activities for this account are accounted for separately from those of the Ordinary Operations account.
Both the account for Ordinary Operations and the account for Special Operations are required to conduct sound and efficient operations based on
the principle that expenditures should not exceed revenues (“sufficient revenues to cover expenditures”) according to the JBIC Act. The account for
Ordinary Operations is additionally subject to the principle that repayment from the loans and the performance of the obligations under the guarantees
should be ascertained (“certainty of repayment”).
JBIC Operations
Outstanding Credit in the JBIC Operations
Due to the relative importance of JBIC’s credit commitments to the JBIC Group, as compared with those of its consolidated subsidiaries, thefollowing is presented on a non-consolidated basis.
JBIC’s total credit commitments for the year ended March 31, 2024 amounted to ¥1,807 billion, and the outstanding balance as of March 31, 2024
was ¥16,828 billion, each on a non-consolidated basis.
For the fiscal year ended March 31, 2024, JBIC’s total additional disbursed amounts under loans and guarantees on a non-consolidated basis
amounted to ¥1,448 billion and collections of loans and guarantees on a non-consolidated basis amounted to ¥2,619 billion. As of March 31, 2024,
JBIC’s outstanding balance of guarantees on a non-consolidated basis was ¥1,526 billion.
The following table sets forth, as of the dates indicated, the total amount of credit outstanding provided by JBIC on a non-consolidated basis, by
type and geographical distribution in accordance with JBIC’s system of classification:
Credit Outstanding by Type and Geographical Distribution of the JBIC Operations (Non-consolidated)
JBIC Operations
As of March 31,
2023(In millions of yen
except for the percentage)

EXPORT LOANSAsia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total

¥

648,8171,141
130,015
183,713
126,329—
29,109400¥ 1,119,526

14

JBIC Operations
As of March 31,2024(In millions of yen
except for the percentage)

4.0% ¥ 653,660
0.0%
1,183
0.8%
119,223
1.1%
142,867
0.7%
99,756——0.1%
18,6090.0%—
6.9% ¥ 1,035,300

3.8%
0.0%
0.7%
0.8%
0.5%
—
0.1%
—
6.1%

JBIC Operations
As of March 31,
2023(In millions of yen
except for the percentage)

IMPORT LOANSAsia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total

¥

—
17,795—270,014——
127,64480,000495,454

—
0.1%
—
1.6%
—
—
0.7%
0.4%
2.9%

¥ 2,606,475
1,117,816
2,784,936
1,480,014
271,924
3,444,291
1,871,397
4,756¥13,581,613

16.2% ¥ 2,815,471
6.9%
1,050,222
17.4%
3,025,027
9.2%
1,587,086
1.6%
318,16621.5%
3,590,938
11.6%
2,094,975
0.0%
3,945
84.8% ¥14,485,833

16.7%
6.2%
17.9%
9.4%
1.8%
21.3%
12.4%
0.0%
86.0%

¥

262,536——
60,914
1,701—
103,726
13,689442,568

1.6% ¥
—
—
0.3%
0.0%
—
0.6%
0.0%
2.7% ¥

297,980——
85,988
1,042—
71,543
15,869472,424

1.7%
—
—
0.5%
0.0%
—
0.4%
0.0%
2.8%

12,943
—
1,843
5,583
—
—
—
—
20,3700.0% ¥
—
0.0%
0.0%
—
—
—
—
0.1% ¥

11,850
—
1,808
4,467
—
—
—
—
18,126

0.0%
—
0.0%
0.0%
—
—
—
—
0.1%

0.1% ¥
37,2000.3%
46,3770.2%
30,458————0.3%
53,218
0.0%
3,141
0.9%
151,166
2.0% ¥ 321,563
100.0% ¥16,828,701

0.2%
0.2%
0.1%
—
—
0.3%
0.0%
0.9%
1.9%
100.0%¥OVERSEAS INVESTMENT LOANSAsia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total
UNTIED LOANSAsia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total

¥

GOVERNMENTAL LOANSAsia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total

¥

¥

EQUITY INVESTMENTS
Asia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total
Total credit outstanding¥—
21,003—
264,092——
64,772160,000
509,868

29,57948,191
44,952——
48,2892,331
151,361¥ 324,706¥15,998,652

15

—
¥
0.1%
—
1.6%
—
—
0.4%
1.0%
3.1% ¥JBIC Operations
As of March 31,2024(In millions of yen
except for the percentage)

The following table sets forth, for the periods indicated, the total credit commitments made by JBIC on a non-consolidated basis, by type andgeographical distribution in accordance with JBIC’s system of classification.
Credit Commitments by Type and Geographical Distribution of the JBIC Operations (Non-consolidated)
JBIC Operations
As of March 31,
2023(In millions of yen
except for the percentage)

EXPORT LOANSAsia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total

¥

39,295
—
—
3,702
—
—
—
—
42,997

1.7% ¥
—
—
0.1%
—
—
—
—
1.9% ¥

16,224—————
39,125—55,349

0.9%
—
—
—
—
—
2.1%
—
3.0%

—
—
—
—
—
—
—
230,000
230,000

—
¥
—
—
—
—
—
—
10.3%
10.3% ¥

58,640—————72,17280,000210,813

3.2%
—
—
—
—
—
3.9%
4.4%
11.6%

506,497
7,000
429,993
174,723
79,609448,032
201,608—¥ 1,847,463

22.8% ¥ 269,507
0.3%
154,94919.3%
484,596
7.8%
—
3.5%
—
20.1%
148,4649.0%
304,699——
83.2% ¥ 1,362,217

14.9%
8.5%
26.8%
—
—
8.2%
16.8%
—
75.3%

¥

2.3% ¥
—
—
0.6%
—
—
0.4%
—
3.4% ¥

46,331——35,884
2,249
—
—
7,518
91,984

2.5%
—
—
1.9%
0.1%
—
—
0.4%
5.0%

—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—

¥

IMPORT LOANSAsia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total

¥

¥

OVERSEAS INVESTMENT LOANSAsia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total

¥

UNTIED LOANSAsia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total

¥

GOVERNMENTAL LOANSAsia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total

¥

¥
16

JBIC Operations
As of March 31,2024(In millions of yen
except for the percentage)

52,844——
13,379——10,000—76,223
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—

¥

¥

JBIC Operations
As of March 31,
2023(In millions of yen
except for the percentage)

EQUITY INVESTMENTS
Asia
The Pacific
EuropeThe Middle East
AfricaNorth America
Latin America
International Organizations, etc.
Total
Total credit commitments

¥

2,094
—
—
—
—
13,340—7,905¥
23,341¥ 2,220,026

JBIC Operations
As of March 31,2024(In millions of yen
except for the percentage)

0.0% ¥
84,386
—
—
—
—
—
—
—
—
0.6%
—
—
—
0.3%
2,828
1.0% ¥
87,215100.0% ¥ 1,807,579

4.6%
—
—
—
—
—
—
0.1%
4.8%
100.0%

Loan and Guarantee Terms of the JBIC Operations
The JBIC Act provides that JBIC’s interest rates and guarantee charges shall be determined in light of the interest rates and commissions charged
for guarantees by private banks on a basis such that the revenues of the JBIC Operations will cover its expenditures and losses. In addition, JBIC may
not compete with private financial institutions in extending loans and guarantees, and may extend loans and guarantees only if financing by private
financial institutions on ordinary terms is deemed difficult. JBIC carefully investigates the financial position of each prospective borrower and thetechnical and financial aspects of the project to be financed, and with respect to the Ordinary Operations, a loan or guarantee is extended only if there isreasonable assurance of repayment.
JBIC itself determines the interest rates, maturities, loan participation percentages, security and other terms on which it lends its funds or extends
its guarantees. The interest rate to be applied to each loan is set by the board of directors of JBIC, taking into consideration JBIC’s funding cost and therate for borrowers of the highest credit standing from private banks extending long-term loans.
Most of the JBIC Operations involve the financing of projects in cooperation with private financial institutions. Loans extended to domestic
borrowers are usually secured by a bank guarantee, a mortgage or other collateral, or supported by a covenant requiring the borrower to provide security
to JBIC at its request. Overseas direct loans, which are usually extended to banks, governmental institutions in foreign countries or private companies
with Japanese capital, are generally secured by guarantees issued by the foreign government or the foreign governmental financial institution, by
securities issued by Japanese domestic companies, or by cash flow and other assets of the borrower taken as security by JBIC.
In addition to the loan terms provided in the JBIC Act, JBIC’s terms and conditions for export loans are determined in accordance with theOECD’s Arrangement on Officially Supported Export Credits, commonly referred to as the “Arrangement”. The Arrangement, which was established toencourage competition among exporters based on quality and prices of goods and services exported rather than on the most favorable officially
supported export credits, stipulates limitations on financing terms and conditions including minimum interest rates, maximum credit terms and minimum
down payments for officially supported medium- and long-term export credits.
17

The following table sets forth information concerning the balances of the JBIC Group’s outstanding loans as of March 31, 2023 and 2024.

Loan Balances of the JBIC Operations by Remainder of Term(a)As of March 31, 2023
(In billions of yen
except for the percentage)

One year or lessMore than 1 to 2 years
More than 2 years to 3 years
More than 3 years to 4 years
More than 4 years to 5 years
More than 5 years to 6 years
More than 6 years to 7 years
More than 7 years to 8 years
More than 8 years to 9 years
More than 9 years to 10 years
More than 10 years
Total
(a)

¥

¥

1,886
1,879
2,141
1,722
1,429
1,280
1,290
956
636
581
1,490
15,296

12.3% ¥
12.2%
13.9%
11.2%
9.3%
8.3%
8.4%
6.2%
4.1%
3.8%
9.7%
100.0% ¥As of March 31, 2024
(In billions of yen
except for the percentage)

2,128
2,435
2,033
1,760
1,567
1,599
1,134
776
743
379
1,534
16,092

13.2%
15.1%
12.6%
10.9%
9.7%
9.9%
7.0%
4.8%
4.6%
2.3%
9.5%
100.0%

The amounts do not include principal that is overdue and unpaid, and principal that may possibly be waived according to the “Changes in Debt
Relief Method” announced by Government of Japan in December 2003.
Allowance for Loan Losses of the JBIC Operations

The JBIC Group provides an allowance for possible loan losses, pursuant to the relevant cabinet order and related regulations. Allowance for loan
losses as of March 31, 2024 amounted to ¥536,412 million.
In cases where borrowers indicate that they may be unable to meet payments on their loans, the JBIC Group may revise the terms of repayment. In
the case of direct loans to foreign governments, the international system provides several mechanisms and institutions through which countries facing
repayment difficulties can effect remedial measures in agreement with their creditors (Paris Club rescheduling). Therefore, rescheduled principal andinterest payments may have to be accepted in order to facilitate the collectability of some loans or portions of loans. Should a default occur in thepayment of principal or interest (whether by reason of a failure to agree on modified loan terms or otherwise), the JBIC Group considers the related loan
to be in arrears immediately to the extent of the defaulted amount.
The JBIC Group’s allowance for possible loan losses has a significant effect on the JBIC Group’s business results. The JBIC Group believes thatthe estimates and the assumptions used for estimating liabilities are reasonable and the allowance for possible loan losses is appropriately calculated.
However, the estimation of liabilities involves uncertainties that are uncontrollable by management, and the JBIC Group’s estimation of liabilities maychange due to unexpected changes in the underlying assumptions.
18Sources of Funds of the JBIC Operations
The following table sets forth information concerning the sources of funds for the JBIC Operations during the fiscal year ended March 31, 2024.

Sources of Funds of the JBIC Operations
Year ended March 31,2024(In billions of yen)

Borrowings from the Government Fund for Fiscal Investment and Loan Program(a)Borrowings from the Foreign Exchange Fund Special Account(b)Borrowings in Foreign Currency from Financial Institutions(a)Bonds and Notes with Government Guarantee(b)Bonds and Notes without Government Guarantee
(a)
(b)

¥

952
4,679
—
766
—

Long-term borrowings.
The amount of borrowings from the Foreign Exchange Fund Special Account is calculated based on the exchange rate at the end of the month
immediately preceding the date on which the borrowings were incurred. The amount of Bonds and Notes with the Government Guarantee iscalculated based on the exchange rate at the end of the month immediately preceding the date of issuance of the bonds and notes.

JBIC raises funds for its JBIC Operations through borrowings from the Government of Japan and issuances of Japanese Government-guaranteedbonds and notes in international markets. In the fiscal year ended March 31, 2023, JBIC issued bonds with a guarantee from the Government of Japan in
the aggregate amount of $6.0 billion and €2.0 billion, and did not issue any bonds without a guarantee from the Government of Japan. In the fiscal year
ended March 31, 2024, JBIC issued bonds with a guarantee from the Government of Japan in the aggregate amount of $5.5 billion, and did not issue any
bonds without a guarantee from the Government of Japan.
See “—Recent Developments” for information regarding $2.5 billion of 4.250% government-guaranteed bonds due April 27, 2026 issued by JBIC
on April 27, 2023, $1.5 billion of 4.625% government guaranteed bonds due July 19, 2028 issued by JBIC on July 19, 2023, $0.5 billion of 4.875%
government guaranteed bonds (JBIC Green Bond 3) due October 18, 2028 issued by JBIC on October 18, 2023, $1.0 billion of 4.375% government
guaranteed bonds due January 24, 2031 issued by JBIC on January 24, 2024, $1.0 billion of 4.625% government guaranteed bonds due April 17, 2034
issued by JBIC on April 17, 2024, and $1.5 billion of 4.625% government guaranteed bonds due July 22, 2027 issued by JBIC on July 22, 2024.
19

Capitalization
The Capitalization of the JBIC Group as of March 31, 2024 was as follows:
As of March 31, 2024
(In millions of yen)

Total assets
Total net assets
Capital stock
Retained earnings
Total net assets/Total assets¥

21,657,108
2,985,025
2,211,800
1,108,607
13.78%

The capital adequacy ratios for JBIC at the end of the fiscal year ended March 31, 2024, which are calculated in accordance with the Basel III
framework and relevant international standards, are set forth in the table below.
As of March 31, 2024
(In billions of yen except
for the percentage)

Total risk-weighted capital ratio
Tier 1 risk-weighted capital ratio
Common Equity Tier 1 risk-weighted capital ratio
Total capital (Common Equity Tier 1 capital + Additional Tier 1 capital + Tier 2 capital)
Tier 1 capital (Common Equity Tier 1 capital + Additional Tier 1 capital)
Common Equity Tier 1 capital
Risk-weighted assets
The amount of minimum capital requirements
20¥

18.79%
17.68%
17.68%
3,528
3,319
3,319
18,7771,502

Non-performing Loans
JBIC assessed its loans and other credits in accordance with disclosure requirements that are based, in all material respects, on two sets ofdisclosure regulations that are followed by commercial financial institutions in Japan, although JBIC is not required to follow either set of regulations.
The first set of disclosure regulations includes those set forth under the Banking Act of 1981, as amended (the “Banking Act”). The second set ofdisclosure regulations includes those set forth in the Act on Emergency Measures for the Revitalization of the Functions of the Financial System of
1998, as amended (the “Financial Revitalization Act”).
The table below sets forth the results of the JBIC Group’s assessment of the JBIC Group’s loans as of March 31, 2024, classified in all material
respects according to the Banking Act and the Financial Revitalization Act(a):As of March 31, 2024
(In millions of yen)

Bankrupt and quasi-bankrupt assets(b)Doubtful assets(c)Substandard loans
Loans with interest or principal repayments three months or more in arrears(d)Restructured loans(e)
Total
(a)
(b)

(c)

(d)
(e)

¥

¥

—
342,460
301,847
123,852
177,995
644,308

All of the loans shown in the table relate to the Ordinary Operations. Special Operations did not have any applicable loans as of March 31, 2024.
Bankrupt and quasi-bankrupt assets are loans to and other credits to borrowers which have begun proceedings under the Bankruptcy Act, theCorporate Reorganization Act, the Financial Revitalization Act or other similar laws of Japan and have financially failed, as well as similar loans
as so designated.
Doubtful Assets are loans and other credits to borrowers who have not financially failed but whose financial and operational conditions havedeteriorated and who have a possibility that payment of principal and/or interest will not be made on a contractual basis, and which do not fallunder the category of Bankrupt and Quasi-bankrupt Assets.
Loans with interest or principal repayments three months or more in arrears are loans whose principal or interest payment is three months or morein arrears, and which do not fall under the category of Bankrupt and quasi-bankrupt assets or Doubtful assets.
Restructured loans are loans whose repayment terms and conditions have been amended in favor of the borrowers (e.g. reduction of or exemption
from the stated interest rate, the deferral of interest payments, the extension of principal repayments or renunciation of claims) in order to support
the borrowers’ recovery from financial difficulties, and which do not fall under the category of Bankrupt and quasi-bankrupt assets, Doubtful
assets, or Loans with interest or principal repayments three months or more in arrears.

In the event that a debtor country is temporarily unable to repay its external public debt (debts to creditors that are public institutions such as
central governments, trade insurance agencies and export credit agencies) due to a decline in its balance of payments, meetings of creditor countries (the“Paris Club”) may be held to discuss debt relief measures. When creditor countries agree on debt relief measures, debt rescheduling agreements between
the creditors and a debtor are agreed, and repayments are made according to the agreements. During this temporary liquidity assistance effort, the debtor
country implements an economic reform program pursuant to an agreement with the IMF and continues repayments of its debts. The principal amount ofloans as of March 31, 2024, of which JBIC agreed to provide debt relief pursuant to the Paris Club agreements was ¥79,425 million.
JBIC classifies its loans rescheduled under the Paris Club made to borrowers classified under the self-assessment as “Watchlisted”, but not “Loans
with interest or principal repayments three months or more in arrears”, as “Restructured loans.” The amount of such loans as of March 31, 2024,
included in “Restructured loans” in the above table, is ¥62,535 million.
Risk Management
As a policy-lending institution, JBIC separately manages the major risks of Ordinary Operations and Special Operations in the following manner.
21

Credit Risk
Managing credit risk
The basis of credit risk management is centered on individual credit management based on the creditworthiness of the borrower during the credit
approval process.
When a new credit application is processed, the relevant finance departments (sales promotion departments) and credit departments collect andanalyze information on the borrower. The overseas representative offices also play a part in collecting information on foreign governments andcorporations. Credit appraisal takes place based on the information that has been gathered and analyzed, with the different departments ensuring
appropriate check throughout the process, leading to the final decision by the management.
For lending to foreign governments and corporations, JBIC makes use of its position as a public institution and exchanges views and information
with governments and other authorities in recipient countries, international institutions such as the IMF and the World Bank, other regional developmentbanks and official export credit agencies as well as private financial institutions in the industrial countries. Using all these channels, JBIC evaluates
sovereign or country risk (risk in addition to corporate risk associated with the country in which the corporation is located) based on a broad range of
information on government and government agency borrowers as well as political and economic conditions in their countries.
For credit to domestic and foreign corporations, there is a need to evaluate their creditworthiness and the appropriateness of the collateral they
provide. In particular, for credit related to projects overseas, credit evaluation involves checking the certainty of transactions to be financed, feasibility
studies of projects and the industry in which the borrower operates.
Credit risk rating
JBIC has institutionalized its credit risk rating system that covers substantially all of its borrowers. JBIC uses its credit risk ratings for loan
appraisals and to quantify its credit risks. Further, the credit risk rating system has been revised where necessary.
Asset self-assessment
As part of its credit risk management, JBIC undertakes self-assessments, similar to Japanese private financial institutions. In this process, JBIC,
following the examples of private financial institutions, conducts first stage assessments by the relevant finance departments, second stage assessments
by the credit and country economic analysis departments, and inspections by an independent auditing department. The results of asset self-assessment
are used for the disclosure of the quality of assets to enhance the transparency of JBIC’s financial position.
Quantifying credit risks
Besides the individual credit management outlined above, credit risks are quantified to assess the overall risk of the portfolio in these operations.
To quantify credit risks, it is important to take into account the characteristic of the loan portfolio, that there are a significant proportion of long-termloans and loans involving sovereign risk or country risk. Also to be taken into account is the mechanism of securing assets, such as the framework ofinternational financial assistance to debtor countries through the Paris Club, which is unique to official creditors. This account uses a unique model toquantify the credit risk taking account of the above explained elements and measures amount of credit risk, which are utilized for credit risk
management.
Risks related to LIBOR and other interest rate indexes
JBIC used LIBOR and other interest rate indexes as a benchmark reference for loans and derivatives. In July 2014, following a series of illegal
manipulations of LIBOR which became apparent after 2011, the Financial Stability Board recommended the development of an alternative nearly riskfree reference rate. In addition, in March 2021, the Financial Conduct Authority of the United Kingdom released a statement on the permanent cessationof the LIBOR benchmarks (for USD, JPY, GBP, EUR and CHF), specifying that all LIBOR benchmarks will either cease to be provided by any
administrator or no longer be representative on December 31, 2021 or June 30, 2023, as applicable. The publication of LIBOR was ceased at the end of
December 2021, except for certain tenors of USD LIBOR, which was ceased at the end of June 2023.
JBIC is proceeding with contract changes related to the replacement with alternative interest rates to existing contracts for those transactions
referencing each tenor of USD LIBOR settings. For the majority of transactions referencing U.S. dollar LIBOR settings, the JBIC completed contractchanges related to the replacement with alternative interest rates. JBIC will continue to proceed contract changes for remaining transactions which arefacing difficulties to migrate with applying legislative measures in U.S. and U.K. Uncertainty as to the nature of such potential changes, alternativereference rates, the replacement or disappearance of LIBOR or other reforms may adversely affect the return, liquidity and value on financial
instruments of JBIC.
22

Risks relating to transactions with Russian counterparties and compliance with economic sanctions
JBIC has historically provided loan and investment guarantees to entities in Russia in order to support Japanese companies’ overseas businessdevelopment and securing of resources. In light of the ongoing Russian invasion of Ukraine, our business activities with Russian counterparties or
involving certain project financing in Russia could subject us to various risks and uncertainties.
In response to the ongoing Russian invasion of Ukraine, since February 2022, governments, including the Government of Japan, have taken
various measures, such as economic sanctions against Russia, resulting in changes in the market environment. Due to the broad economic sanctions
imposed on Russian entities and persons by the United States, EU, UK, Japan, and other countries worldwide, including, but not limited to, sanctions orother restriction imposed on certain Russian financial institutions and the removal of certain Russian financial institutions from the Society for
Worldwide Interbank Financial Telecommunication (SWIFT) system, JBIC may experience increased credit risk and defaults on our loans tocounterparties in Russia.
JBIC currently engages in business involving certain counterparties that are subject to such sanctions, including, but not limited to, Russian
financial institutions such as Sberbank of Russia and Vnesheconombank. Although JBIC has established policies to ensure that JBIC conducts ouractivities in Russia in compliance with applicable laws and regulations, including applicable sanctions, any actual or perceived failure to comply withapplicable laws and regulations could result in regulatory actions against us, damage to our reputation, or other negative consequences. In addition, ourparticipation in transactions with sanctioned entities may lead some potential counterparties and investors to avoid doing business with us or investing in
our securities. JBIC may be required to, or otherwise decide to, terminate our relationships with, or activities involving, Russian counterparties or otherentities, which may result in termination fees or other related costs. As a result of the foregoing, our results of operations and financial condition may be
negatively impacted.
Given this background, JBIC is closely monitoring the trends in sanctions imposed by governments and other entities with respect to Russia,
including by reflecting the impact of the situation in Ukraine on JBIC’s loan loss reserves, by examining the impact of sanctions measures on thebusiness and performance of borrowers in determining borrower classification, and assessing the impact on credit risk on a case-by-case basis. Whilesome factors are uncertain at this time, there is a risk that, in connection with Russia-related borrowers, our non-performing loans and credit-related
costs may increase. In addition, if market disruptions or unforeseen circumstances arise due to future developments related to the ongoing Russian
invasion of Ukraine, JBIC may suffer losses caused by market risks or other factors, and JBIC’s financing costs may increase.
Market Risks
Exchange rate risk
Foreign currency-denominated loans conducted in these operations involve risks related to exchange rate fluctuations. JBIC has a consistentpolicy of managing this risk by fully hedging this risk exposure through the use of currency swaps.
Interest rate risk
Interest rate risk arises from exposure to market interest rate fluctuations for yen-denominated loan and foreign currency-denominated loan
operations and the policy for managing interest rate risk is described below.
(1) Yen-denominated loan operations
Funding for yen-denominated loans is mainly managed at fixed-rate interest. Interest rate risk for yen-denominated loans, however, islimited since derivative transactions such as interest rate swaps are used to hedge interest rate risk for portions of loans that are thought to havehigh exposures to interest rate fluctuation.
(2) Foreign currency-denominated loan operations
Interest rate risks associated with foreign currency-denominated loan operations and relevant funding are generally hedged by managing thefunds with floating interest rates with the use of interest rate swap transactions.
23

Derivatives transactions
Policy for derivatives transactions
JBIC engages in derivative transactions solely for the purpose of hedging foreign exchange risks and interest rate risks associated with its lending
and funding operations.
Transactions
Derivatives transactions of JBIC include interest rate and currency swaps and forward exchange contracts. The table below gives details of thesetransactions as of March 31, 2024.

Credit Risk Amounts of Derivatives, etc. for JBIC
As of March 31, 2024
Notional Amount(a)Credit Risk
(In billions of yen)Interest Rate Swaps and Currency Swaps(b)Forward Exchange Contracts
Credit Risk Reductions through Netting
Total
(a)
(b)

¥

¥

12,08722—
12,110

¥

114

¥

—
114

The amounts indicated are maximum notional amounts to which JBIC may be exposed during the period since March 31, 2024 through thematurity date of the relevant derivative contract.
As of March 31, 2024, the notional amount of interest rate swaps was ¥7,011 billion and the notional amount of currency swaps was¥5,076 billion.
Risks involved in derivatives transactions and policies for addressing risks

Credit risk. Credit risk refers to potential losses from the failure of a counterparty to perform its obligations in accordance with the terms andconditions of the contract governing transactions due to bankruptcy or deteriorating business conditions.
JBIC constantly monitors the market value of derivatives transactions as to each counterparty and the amount of its credit exposure to andcreditworthiness of each counterparty in order to ascertain the appropriateness of entering into or maintaining a transaction with each counterparty.
Market risk. Market risk refers to the risk of potential losses due to changes in the value or market price of financial instruments, such asderivatives, that are caused by fluctuations in exchange rates and interest rates. As JBIC engages in derivatives transactions solely for the purpose ofhedging market risks of other transactions, such as raising capital or loan transactions, the market risks related to such derivatives transactions are
generally offset by the market risks involved in the transactions that are being hedged.
Liquidity risk. Liquidity risk refers to the risk of cash flow tightening due to worsening fund-raising capability that arises from deterioration of
creditworthiness or mismatches in the maturity of assets and liabilities. JBIC minimizes liquidity risk through effective cash flow management anddiversification of its funding sources. In addition, multiple financial institutions have established short-term credit lines with JBIC. JBIC borrows under
the Fiscal Investment and Loan Program and issues government-guaranteed bonds in the international capital markets for the JBIC Operations. JBIC
may also issue bonds without a government guarantee in the domestic capital markets.
Operational risk. Operational risk refers to the potential loss from negligence or from accidents or misdeeds on the part of JBIC’s management
and staff or from external events. JBIC minimizes this risk by ensuring accurate operations through checks on the administrative process, creating
operational manuals, improving training programs, and streamlining and computerizing procedures.
Computer system risk. Computer system risk refers to the potential loss from a breakdown or malfunction in computer systems as well as fromtheir misuse. With greater reliance on information systems, there is an increasing need to make the operations of JBIC smoother and more effective byexchanging information with Japanese firms as well as foreign governments through information networks. It is thus important to give greater weight toinformation management and staff with respect to internal information management and by putting in place measures to block illegal access to JBIC’s
information systems from external sources by way of information networks. As part of an effort to ensure information security, JBIC drew up theInformation Security Policy and created the Information Security Committee, consisting of the Managing Executive Officer in charge and heads of therelevant departments.
24

Information security risk. Information security risk refers to the potential loss caused by threats to confidentiality of information assets. JBIC
manages information security risk by establishing information security rules including information management and by thoroughly training officers andemployees. However, JBIC still faces the risk of becoming liable for damages for, or incurring expenses in order to respond to, issues such as
information leaks and system stoppages caused by cyberattacks, other unauthorized access or infection by computer viruses.
Disaster and crisis risks. Disaster and crisis risks refer to the potential loss caused by disasters or other crises. In order to manage disaster andcrisis risks, JBIC has established internal rules regarding crisis management. In the event a crisis occurs and normal operations are disrupted or
disruptions to normal operations are anticipated, JBIC will establish a Countermeasure Office in accordance with the internal rules regarding crisis
management and will work towards prompt and efficient recovery of operations. JBIC has also established a Business Continuity Plan for the purpose ofcarrying out continuous operations in the event a major earthquake occurs in the Tokyo metropolitan area.
25

MANAGEMENTJBIC’s board of directors has the ultimate responsibility for the administration of its affairs. JBIC’s articles of incorporation provide for a board of
directors of not more than nine directors and three corporate auditors. All directors and corporate auditors are elected by the Japanese government as
JBIC’s sole shareholder at the shareholder’s general meetings, but the election of each director and corporate auditor is subject to approval of the
Minister of Finance in accordance with the JBIC Act. The normal term of office for directors is two years, and the normal term of office for corporate
auditors is four years, but directors and corporate auditors may serve any number of consecutive terms. The board of directors may elect from among its
members a Governor, Deputy Governor, an Executive Managing Director, several Senior Managing Directors and several Managing Directors. The
Governor acts as the chairperson at the shareholder’s general meeting. The board of directors may also elect one or more representative directors fromamong its members, but such election is subject to the approval of the Minister of Finance. Each of the Governor, Deputy Governor, Executive
Managing Director and Senior Managing Directors shall represent JBIC in the conduct of its affairs, and in addition, several directors may be appointed
to have the authority to represent JBIC in the conduct of its affairs.
The corporate auditors form the board of corporate auditors. The board of corporate auditors has a statutory duty to prepare and submit an audit
report to the board of directors each year based on the audit reports issued by the individual corporate auditors in that year. A corporate auditor may note
his or her opinion in the audit report issued by the board of corporate auditors if his or her opinion expressed in the individual audit report is different
from the opinion expressed in the audit report issued by the board of corporate auditors. The board of corporate auditors is empowered to establish audit
principles, the method of examination by the corporate auditors of JBIC’s affairs and financial position and any other matters relating to the performanceof the corporate auditors’ duties.
JBIC is required to appoint, and has appointed, independent auditors, who have the statutory duties of examining the financial statements,
prepared in accordance with Japanese GAAP, to be submitted to the shareholders by a representative director, and preparing their audit report thereon.
JBIC has selected its independent auditors to audit the financial statements for the fiscal years ended March 31, 2023 and 2024.
JBIC’s current directors and corporate auditors as of June 18, 2024, are as follows:
Name

Title

HAYASHI Nobumitsu
AMAKAWA Kazuhiko
HASHIYAMA Shigeto
UCHIDA Makoto
OGAWA Kazunori
KIKUCHI Yo
MAEDA Tadashi
KOIZUMI Shinichi
KAWAMURA Yoshinori
NASU Noriko
TSUCHIYA Mitsuaki
MOTOMURA Aya

Governor
Deputy Governor
Executive Managing Director
Senior Managing Director
Senior Managing Director
Senior Managing Director
Managing Director, Chairman of the Board of Directors
Managing Director (Outside Director)
Managing Director (Outside Director)
Full-Time Audit and Supervisory Board Member
Outside Audit and Supervisory Board Member
Outside Audit and Supervisory Board Member
26

DEBT RECORD
There has been no default in the payment of interest or principal on any obligation of the JBIC Group, including those obligations incurred by its
predecessors to which JBIC succeeded.

FINANCIAL STATEMENTS
Audited consolidated financial statements for the fiscal year ended March 31, 2024 and 2023 of the JBIC Group prepared in accordance withJapanese GAAP are included as Exhibit 2 to this Annual Report on Form 18-K filed with the Commission. Such financial statements have been auditedby Ernst & Young ShinNihon LLC, independent auditors, as stated in their report accompanying such financial statements.
JBIC started preparing financial statements in accordance with IFRS as issued by the IASB from the fiscal year ended March 31, 2015 forreference purposes in order to improve comparability with international issuers. The JBIC Group’s consolidated financial statements as of and for the
fiscal years ended March 31, 2024 and 2023 prepared in accordance with IFRS are included as Exhibit 7 to this Annual report on Form 18-K. Suchfinancial statements have been audited by Ernst & Young ShinNihon LLC, independent auditors, as stated in their report accompanying such financial
statements.
In preparing financial statements in accordance with IFRS as issued by the IASB, JBIC made adjustments to the financial statements prepared inaccordance with Japanese GAAP which were prepared based on the JBIC Act and related regulations. Details of reconciliations between the two sets offinancial statements are included as Exhibit 9 to this Annual Report on Form 18-K.
27

Exhibit 2

Independent Auditor’s Report
The Board of Directors
Japan Bank for International Cooperation
The Audit of the Consolidated Financial Statements
OpinionWe have audited the accompanying consolidated financial statements of Japan Bank for International Cooperation and its consolidated subsidiaries (theGroup), which comprise the consolidated balance sheets as of March 31, 2024 and 2023, and the consolidated statements of operations, comprehensive
income, changes in net assets, and cash flows for the years then ended, and notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of theGroup as of March 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordancewith accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Groupin accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled ourother ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements ofthe current period. These matters were addressed in the context of the audit of the consolidated financial statements as a whole, and in forming theauditor’s opinion thereon, and we do not provide a separate opinion on these matters.
Determination of borrowers’ category as the basis for calculating the allowance for loan losses for loans and bills discounted and application of cash
flow estimation approach
Description of Key Audit Matter
As a policy-based financial institution, the Group engages in financing
activities to realize its policy objectives, and the nature of the finance tosupport overseas economic transactions is characterized by a relatively
significant portion of long-term loans and loans subject to sovereign orcountry risk.

Auditor’s Response
Our audit procedures performed to examine the Group’s determinationof the borrowers’ category and the estimation of future cash flows ofindividually-assessed loans and bills discounted used in the cash flow
estimation approach included the following, among others:
1

- We obtained an understanding, evaluated the design and tested
operating effectiveness of the controls over the Group’s borrower
category process. The controls tested included, but were not limited to,those controls over the accuracy of underlying internal credit rating dataand schedules used in determining the borrowers’ category as well as
As such, the Group calculates an expected loss amount and recognizes it as controls over the completeness of the scope of self-assessment of asset
an allowance for loan losses. The allowance for loan losses included in the quality.
consolidated balance sheet as of March 31, 2024 was ¥536,412 million and- We selected a sample of borrowers by taking into account the degree
the method for recognition is described in (d) “Allowance for Loan Losses”
of increase in credit risk estimated considering the type of business, thein Note 5 “Significant Accounting Policies” in the notes to the consolidated
repayment status, financial position/degree of deterioration in theirfinancial statements.
business performance and external factors including the ongoing
Russian invasion of Ukraine to test management’s determination of the
Allowance for loan losses is calculated in accordance with the Group’s
internal rules for self-assessment of asset quality and internally established category of the sampled borrowers. We also considered the monetaryimpact of changes in the borrowers’ category on the amount recorded instandards. As described in “6. Significant Accounting Estimates” in thethe allowance for loan losses.
notes to the consolidated financial statements, its calculation processincludes, but is not limited to the determination of the borrowers’ category- We evaluated sampled borrowers’ recent repayment status, financial
based on the evaluation of the borrowers’ solvency in consideration of theirposition, and business performance, by inspecting a set of materials
repayment status, financial condition, performance, future prospects andrelated to the Group’s self-assessment of asset quality, such asother relevant factors, and the estimation of future cash flows of
explanatory materials including a description of the business, borrowing
individually-assessed loans and bills discounted under the cash flow
and repayment status, research materials providing an understanding of
estimation approach.
actual financial position, financial statements, and the trial balance, andby evaluating the impact of the international situation related to Russia
Given that the future prospects for borrowers and other factors used inand Ukraine on the future prospects of the borrowers’ businessdetermining the borrowers’ category and future cash flows of individual
performance and compared them with available external information
claims used under the cash flow estimation approach are affected bychanges in the borrowers’ business environment including the impact of the including, as appropriate, trends in natural resource prices. In addition,international situation relating to the ongoing Russian invasion of Ukraine, we made inquiries to the Finance Group in charge of the loans and theand whether their business strategy is successful, they require management Credit, Assessment and Risk Management Group as necessary tosupplement our understanding. Also, we compared internal credit ratings
judgement, and are subject to higher estimation uncertainty.
on sovereign loans with external credit ratings.
Therefore, the Group’s non-performing loans and credit-related expenses
may increase if the financial conditions of the individual borrowers
significantly deteriorate due to political and economic trends in the
borrowers’ countries or regions.

2

Accordingly, the future prospects for borrowers and other factors used in- We assessed the future cash flows of a sample of individually-assessed
determining category of borrowers displaying a deterioration in repayment loans and bills discounted used in the cash flow estimation approach as
status, financial position or business performance, as well as the estimate of well as the inputs used by management, evaluated the model used in the
future cash flows of individually-assessed loans and bills discounted used cash flow estimation approach and tested their mathematical accuracy
in the cash flow estimation approach are considered a key audit matter.
through recalculations.
Other Information
The other information comprises the information included in the Annual Report that contains audited consolidated financial statements, but does notinclude the consolidated financial statements and our auditor’s reports thereon. Management is responsible for preparation and disclosure of the otherinformation. The Corporate Auditor and the Board of Corporate Auditors are responsible for overseeing the Group’s reporting process of the otherinformation.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management, the Corporate Auditor and the Board of Corporate Auditors for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles
generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern anddisclosing, as required by accounting principles generally accepted in Japan, matters related to going concern.
The Corporate Auditor and the Board of Corporate Auditors are responsible for overseeing the Group’s financial reporting process.
3

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design andperform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion.

•Consider internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances for our risk
assessments, while the purpose of the audit of the consolidated financial statements is not expressing an opinion on the effectiveness of theGroup’s internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made bymanagement.

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as agoing concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group tocease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation inaccordance with accounting principles generally accepted in Japan.

•

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to
express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of thegroup audit. We remain solely responsible for our audit opinion.

We communicate with the Corporate Auditor and the Board of Corporate Auditors regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
4

We also provide the Corporate Auditor and the Board of Corporate Auditors with a statement that we have complied with the ethical requirements
regarding independence that are relevant to our audit of the consolidated financial statements in Japan, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards
applied to reduce threats to an acceptable level.
From the matters communicated with the Corporate Auditor and the Board of Corporate Auditors, we determine those matters that were of mostsignificance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these mattersin our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine thata matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2024 are presented solely forconvenience. Our audit also included the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation has been
made on the basis described in Note 1 to the consolidated financial statements.
Fee-related Information
The fees for the audits of the financial statements of Japan Bank for International Cooperation and its subsidiaries and other services provided by us andother EY member firms for the year ended March 31, 2024 are 160 million yen and 8 million yen, respectively.
5Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed pursuant to the provisions of theCertified Public Accountants Act of Japan.
Ernst & Young ShinNihon LLC
Tokyo, Japan
August 5, 2024
/s/ Hiroshi Nishida
Hiroshi Nishida
Designated Engagement Partner
Certified Public Accountant/s/ Toshiro Kuwata
Toshiro Kuwata
Designated Engagement Partner
Certified Public Accountant/s/ Yoshiyuki Hashimoto
Yoshiyuki Hashimoto
Designated Engagement Partner
Certified Public Accountant
6

CONSOLIDATED BALANCE SHEETS

Assets:Cash and due from banks
Securities
Loans and bills discounted
Other assets
Derivative financial instruments
Cash collateral paid for financial instruments
Other
Property, plant and equipment
Buildings
Land
Construction in progress
Other
Intangible assets
Software
Customers’ liabilities for acceptances and guarantees
Allowance for loan losses
Total assets

As ofMarch 31, 2023
(In millions of yen)

As ofMarch 31, 2024
(In millions of yen)¥¥

Note 7Note 8Note 8Note 10Note 8¥

Liabilities:
Borrowed money
Bonds payable
Other liabilities
Derivative financial instruments
Cash collateral received for financial instruments
Other
Provision for bonuses
Provision for directors’ bonuses
Net defined benefit liability
Provision for directors’ retirement benefits
Acceptances and guarantees
Total liabilities¥
Note 9¥Net assets:
Capital stock
Retained earnings
Total shareholder’s equity¥

2,193,775
347,087
15,587,788
866,306
31,287651,110
183,908
30,7303,682
24,311
1,869
866
8,461
8,461
1,534,258(410,526)
20,157,883
8,513,677
6,191,755
962,446
719,364
30,860212,221
614
10
5,690
37
1,534,258
17,208,488
2,108,800
1,126,210
3,235,010

¥
¥

¥
¥

25,300(323,123)
11,923(285,899)

Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income (loss)

2,565,369
340,203
16,423,476
1,297,682
38,107
1,033,820
225,755
32,796
5,616
24,311
1,114
1,753
11,462
11,462
1,522,529(536,412)
21,657,108
9,193,988
6,636,856
1,313,353
1,032,900
37,350243,102
660
10
4,631
52
1,522,529
18,672,083
2,211,800
1,108,607
3,320,407

As ofMarch 31, 2024
(In millions of
U.S. dollars)

$

$
$

$
$

41,226(382,907)
6,040(335,640)

16,943
2,247
108,470
8,571
252
6,828
1,491
217
37
161
7
12
75
75
10,056(3,543)143,036
60,722
43,834
8,674
6,822
246
1,606
4
0
31
0
10,056
123,321
14,608
7,322
21,930272(2,529)40(2,217)

Non-controlling interests
Total net assets¥

283
2,949,394¥

258
2,985,025$

2
19,715

Total liabilities and net assets¥

20,157,883¥

21,657,108$

143,036

7

CONSOLIDATED STATEMENTS OF OPERATIONS

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on deposits with banks
Other interest income
Fees and commissions
Other ordinary income
Gain on foreign exchange transactions
Other
Other income
Reversal of allowance for loan losses
Recoveries of written-off claims
Other
Ordinary expenses
Interest expense
Interest on borrowed money and rediscounts
Interest on bonds
Interest on interest rate swaps
Other interest expense
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Provision of allowance for loan losses
Other
Ordinary profit
Extraordinary income
Gain on disposal of noncurrent assets
Extraordinary loss
Loss on disposal of noncurrent assets
Impairment losses
Net income before income taxes
Income taxes – current
Total income taxes
Net income

For the year ended
March 31, 2023
(In millions of yen)

For the year ended
March 31, 2024
(In millions of yen)

For the year ended
March 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

Note 12Note 13

Net loss attributable to non-controlling interests
Net income attributable to owner of parent¥
8659,923
570,567
552,609
1,613
16,332
11
22,74644,74438,062
6,682
21,865
19,352—2,512
503,404
460,022
186,866
143,229
127,876
2,048
3,799
2,111
24,382
13,088—13,088
156,51813
13
0
0—
156,532
13
13
156,518(66)
156,585¥

1,133,061
1,022,058
972,232
7,703
42,08834
29,62553,66353,484
178
27,714—
11,591
16,122
1,069,795
902,748
362,856
175,095
360,427
4,369
4,319
1,991
25,925
134,811
125,886
8,924
63,265
5
5
899
—
899
62,37154
5462,316(25)
62,342

$

7,483
6,750
6,421
51
278
0
196
354
353
1
183
—
77
106
7,065
5,962
2,397
1,156
2,380
29
29
13
171
890
831
59
418
0
0
6
—
6
412
0
0
412
(0)
412

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Net income
Other comprehensive income (loss)
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Share of other comprehensive income (loss) of equity
method investments
Comprehensive income (loss)

For the year ended
March 31, 2023
(In millions of yen)

For the year ended
March 31, 2024
(In millions of yen)

For the year ended
March 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

Note 14¥(Comprehensive income (loss) attributable to)
Owner of parent
Non-controlling interests

156,518(187,762)
9,215(206,393)
4,656
4,758
(31,243)(31,177)
(66)

9

¥

62,316(49,741)
15,926(59,784)(3,309)(2,573)
12,575
12,601
(25)

$

412
(329)
105
(395)
(22)
(17)
83
83
(0)

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
From April 1, 2022 to March 31, 2023
(In millions of yen)
Capital stock

Balance at April 1, 2022
Changes during period
Issuance of new shares
Payment to National Treasury
Net income attributable to ownerof parent
Change in scope of equity method
Net changes of items other thanshareholder’s equity
Total changes during period
Balance at March 31, 2023¥

2,023,800

Shareholder’s equity
Retainedearnings

Total shareholder’sequity¥¥976,953

3,000,753

85,00085,000(7,329)(7,329)156,585¥

85,0002,108,800¥

149,256
1,126,210

156,585—

234,256
3,235,010¥(In millions of yen)
Accumulated other comprehensive income (loss)

Balance at April 1, 2022
Changes during period
Issuance of new shares
Payment to National Treasury
Net income attributable to ownerof parent
Change in scope of equity method
Net changes of items other thanshareholder’s equity
Total changes during period
Balance at March 31, 2023

Valuation difference
on available-for-salesecurities

Deferred gains(losses) on hedges¥¥

16,084(116,730)

Foreigncurrencytranslation
adjustment

¥

2,508

Total
accumulated
othercomprehensive
income (loss)

Non-controllinginterests¥¥(98,136)350

Total net
assets¥2,902,967
85,000(7,329)

¥

9,215
9,215
25,300¥(206,393)(206,393)(323,123)

¥

111

111

9,303
9,415
11,923(187,874)(187,762)(285,899)¥

156,585
111

¥

(66)
(66)
283

(187,940)
46,427¥2,949,394

From April 1, 2023 to March 31, 2024
(In millions of yen)
Shareholder’s equity
Retainedearnings

Capital stock

Balance at April 1, 2023
Changes during period
Issuance of new shares
Payment to National Treasury
Net income attributable to ownerof parent
Net changes of items other thanshareholder’s equity
Total changes during period
Balance at March 31, 2024¥

2,108,800¥

1,126,210

Total shareholder’sequity¥103,000¥

103,000
2,211,800¥

3,235,010(79,945)

103,000(79,945)

62,342

62,342(17,602)
1,108,607¥

85,3973,320,407(In millions of yen)

Accumulated other comprehensive income (loss)

Balance at April 1, 2023
Changes during period
Issuance of new shares
Payment to National Treasury
Net income attributable to ownerof parent
Net changes of items other thanshareholder’s equity

Valuation difference
on available-for-salesecurities

Deferred gains(losses) on hedges¥¥

25,300(323,123)

Foreigncurrencytranslation
adjustment¥

11,923

Total
accumulated
othercomprehensive
income (loss)

Non-controllinginterests¥¥(285,899)

283

Total net
assets¥2,949,394
103,000(79,945)
62,342

15,926(59,784)(5,883)(49,741)(25)(49,766)

Total changes during period
Balance at March 31, 2024¥

15,926
41,226¥(59,784)(382,907)
10¥(5,883)
6,040¥(49,741)(335,640)

¥

(25)
258

35,630¥2,985,025

From April 1, 2023 to March 31, 2024

Capital stock

Balance at April 1, 2023
Changes during period
Issuance of new shares
Payment to National Treasury
Net income attributable toowner of parent
Net changes of items otherthan shareholder’s equity
Total changes during period
Balance at March 31, 2024$

13,928(In millions of U.S. dollars)
Shareholder’s equity
Retained
Total shareholder’searnings
equity

$

7,438

$

680

$

680
14,608$21,366

(528)

680
(528)

412

412

(116)
7,322

$

564
21,930(In millions of U.S. dollars)

Accumulated other comprehensive income (loss)

Balance at April 1, 2023
Changes during period
Issuance of new shares
Payment to National Treasury
Net income attributable toowner of parent
Net changes of items otherthan shareholder’s equity
Total changes during period
Balance at March 31, 2024

Valuation difference
on available-for-salesecurities

Deferred gains(losses) on hedges

$

$

167

(2,134)Foreigncurrencytranslation
adjustment

$

79

Total
accumulated
othercomprehensive
income (loss)

Non-controllinginterests

Total net assets

$

$

$

(1,888)2

19,480
680
(528)
412

$

105
105
272

$

(395)
(395)
(2,529)
11

$

(39)
(39)
40

$

(329)
(329)
(2,217)

$

(0)
(0)
2

$

(329)
235
19,715CONSOLIDATED STATEMENTS OF CASH FLOWSCash flows from operating activities
Net income before income taxes
Depreciation and amortization
Impairment losses
Losses (profits) of equity method investments
Increase (decrease) in allowance for loan losses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors’ bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’ retirement
benefits
Interest income
Interest expense
Losses (gains) related to securities
Foreign exchange losses (gains)
Losses (gains) on disposal of noncurrent assets
Net decrease (increase) in derivative financial instruments(assets)
Net increase (decrease) in derivative financial instruments(liabilities)
Net decrease (increase) in loans and bills discounted
Net increase (decrease) in borrowed money
Net decrease (increase) in deposits (excluding deposits paid
to Bank of Japan)
Net decrease (increase) in cash collateral paid for financial
instruments
Net increase (decrease) in cash collateral received forfinancial instruments
Increase (decrease) in straight bonds-issuance andredemption
Interest received
Interest paid
Other
Subtotal
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from sales of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of new shares
Payment to National Treasury
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Note
16
12

For the year ended
March 31, 2023
(In millions of yen)

For the year ended
March 31, 2024
(In millions of yen)

For the year ended
March 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

¥

156,532
3,445—(2,058)(60,308)
16
0
(366)

62,371
3,637
899
95
125,88646
0(1,059)

412
24
6
1
831
0
0
(7)

(14)
(570,567)
460,022
12,902(4,567)(13)

14(1,022,058)
902,748(7,323)(9,716)(5)

0(6,750)
5,962
(48)
(64)
(0)

(11,017)(6,819)(45)

236,815(828,614)
959,468

313,535(835,687)
680,3112,071(5,519)4,493(264,654)(630,920)(4,167)(124,010)(382,710)(2,528)12,2506,490

43553,742441,625(388,716)(170,482)
411,430(49)
411,380

441,961
983,227(855,782)(75,917)(306,772)
2(306,770)

2,919
6,494
(5,652)(502)(2,026)0(2,026)(28,629)
21,785(2,192)16(2,045)(11,064)(22,953)
57,021(3,090)8(6,502)
24,483

(152)
377
(20)
0
(43)
162

85,000(7,329)—77,670—477,986
727,871

103,000(79,945)(1)
23,053—(259,233)
1,205,858

680
(528)
(0)
152
—
(1,712)
7,964

1,205,858¥

946,624$

6,252

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of presentation
The accompanying consolidated financial statements have been prepared from the accounting records maintained by Japan Bank for International
Cooperation (“JBIC”) and its subsidiaries (the “JBIC Group”) in accordance with the accounting principles and practices generally accepted in Japan,
which are different in certain respects as to the application and disclosure requirements of International Financial Reporting Standards (“IFRS”).
The amounts indicated in millions of yen are rounded down by omitting figures less than one million. As a result, the totals in yen do notnecessarily agree with the sum of the individual amounts. Items less than 1 million yen are presented as “0” and items whose balance is nil is presented
as “-”.
Amounts in U.S. dollars are presented solely for the convenience of readers outside Japan. The rate of ¥151.41=$1.00, the foreign exchange rateon March 31, 2024, has been used in translations. The presentation of such amounts is not intended to imply that Japanese yen has been or could bereadily converted, realized, or settled in U.S. dollars at the aforementioned rate or any other rates.
2. Scope of consolidation(a)Consolidated subsidiaries

The number of consolidated subsidiaries is two.
Company names:(b)

JBIC IG Partners
Russia-Japan Investment Fund, L.P.

Unconsolidated subsidiaries

There are no applicable subsidiaries.
(c)

Other company whose majority of voting rights is owned by JBIC on its own account but which is not determined to be its subsidiary

Company name:

RJIF GP2 Limited(Reason for determining not to be a subsidiary)
JBIC has determined that RJIF GP2 Limited is not a subsidiary because, while JBIC indirectly owns a majority of voting rights of RJIF
Management Limited through JBIC IG Partners, which is its consolidated subsidiary, JBIC needs to obtain agreement from the other JV company formaking decisions on significant financial and business policies.
3. Application of the equity method(a)Unconsolidated subsidiaries accounted for using the equity method

There are no applicable subsidiaries.
(b)

Affiliates accounted for using the equity method

The number of affiliates accounted for using the equity method is three.
Company names:(c)

IFC Capitalization (Equity) Fund, L.P.
IFC Capitalization (Subordinated Debt) Fund, L.P.
JB Nordic Fund I SCSp

Unconsolidated subsidiaries that are not accounted for using the equity method

There are no applicable subsidiaries.
(d)Affiliates that are not accounted for using the equity method

Major company names:

Credit Guarantee and Investment Facility
RJIF GP2 Limited

These companies were not included in the scope of the equity method primarily because they do not have significant impacts on the consolidated
financial statements in respect of any of the following items: Net income (the amount proportionate to the share of net income of such companies),
Retained earnings (the amount proportionate to the share of retained earnings of such companies) and Accumulated other comprehensive income (loss)(the amount proportionate to the share of other comprehensive income (loss) of such companies).
13

4. Balance sheet dates of consolidated subsidiaries
The financial statements of the consolidated subsidiaries are used in preparing the consolidated financial statements.
The balance sheet dates of the consolidated subsidiaries are as follows:
March 312024

December 31
March 31

1
1

Appropriate adjustments are made for significant transactions that occurred during the period between the consolidated closing date and thesubsidiary’s balance sheet date above.
5. Significant accounting policies(a)Securities

Held-to-maturity securities are carried at amortized cost based on the moving average method. Investments in affiliates that are not accounted forusing the equity method are carried at cost based on the moving average method. Available-for-sale securities are stated at fair value with changes in net
unrealized gains or losses included directly in net assets. However, equity and other securities whose market prices are not available are carried at costbased on the moving average method. Securities held by the consolidated foreign subsidiary (including investments in affiliates) are classified as
financial assets designated as fair value through profit or loss based on IFRS. These securities are recognized as securities classified as trading in JBIC’s
consolidated financial statements and are measured at fair value.
Investments in partnerships for investment and other similar partnerships, which are regarded as securities under Article 2, Paragraph 2 of theJapanese Financial Instruments and Exchange Act (Act No. 25 of 1948), are recognized at an amount equivalent to JBIC’s percentage share of the net
assets of such partnerships, based upon the most recent financial statements available depending on the reporting date stipulated in the partnershipagreement.
(b)Valuation method for derivative financial instruments

Derivative financial instruments are measured at fair value.
With respect to specific credit risk, fair value is calculated for a group of financial assets and liabilities on a basis of a net amount after offsetting
the amounts of the assets and the liabilities in the group.
Financial assets and financial liabilities arising from derivatives transactions that are executed with the same counterparties and are measured atfair value are offset on a counterparty-by-counterparty basis if a valid ISDA Master Netting Agreement is entered into. The resulting amount isrecognized in the consolidated balance sheets.
(c)

Depreciation and amortization basis for fixed assets(i)

Property, plant and equipment

Property, plant and equipment of JBIC are depreciated using the declining balance method over their useful economic lives except forbuildings excluding installed facilities as well as installed facilities and structures acquired on or after April 1, 2016, which are depreciatedusing the straight-line method.
Depreciation is based on the following range of estimated useful lives:
Buildings:

3 years to 50 years

Other:

2 years to 75 years

Property, plant and equipment of consolidated subsidiaries are depreciated primarily using the straight-line method based on the estimateduseful lives of the assets.
(ii)

Intangible assets

Amortization of intangible assets is computed using the straight-line method. Software used by JBIC and its consolidated subsidiaries isamortized over its useful life (5 years or less) at JBIC and its consolidated subsidiaries.
14

(d)

Allowance for loan losses

Allowance for loan losses is recognized in accordance with internally established standards.
The allowance for claims on debtors who are legally bankrupt (“Bankrupt borrowers”) or substantially bankrupt (“Substantially bankrupt
borrowers”) is provided based on the outstanding balance after the write-offs described as below and the deductions of the amount expected to becollected through the disposal of collateral and the execution of guarantees. The allowance for claims on debtors who are not legally bankrupt but arelikely to become bankrupt (“Potentially bankrupt borrowers”) is provided based on an assessment of the overall solvency of the debtors after deducting
the amount expected to be collected through the disposal of collateral and the execution of guarantees.
For Potentially bankrupt borrowers with restructured loans and others, (excluding foreign governments and other governmental entities) whose
loan exceeds a threshold amount, if it is possible to reasonably estimate cash flows from the collection of principal and the receipt of interest, theallowance for claims on such debtors is provided based on an approach whereby the difference between the amount of cash flows discounted by theoriginal contractual interest rates and the carrying amount of the claims is determined to be the allowance for loan losses (“cash flow estimation
approach”).
The allowance for claims on debtors other than Bankrupt borrowers, Substantially bankrupt borrowers and Potentially bankrupt borrowers isprovided primarily in consideration of the expected loss amount over the average remaining periods of loans, and the expected loss amount is calculated
primarily based on the probability of default which is based on the actual bankruptcies during a certain period in the past. The allowance for possible
losses on specific overseas loans is provided based on the expected loss amount taking into consideration the political and economic situations of thesecountries.
All claims are assessed initially by the operational departments and subsequently by risk evaluation departments based on internal rules for selfassessment of asset quality. The risk evaluation departments, which are independent from the operational departments, review these self-assessments,
and the allowance is provided based on the results of the assessments.
With respect to claims with collateral or guarantees on debtors who are legally or substantially bankrupt, the residual book value of the claims,
after deducting the amount which is deemed collectible through the disposal of collateral or the execution of guarantees, is written off. There were no
accumulated write-offs as of March 31, 2023 and 2024.
(e)

Provision for bonuses

The Provision for bonuses is calculated and provided for based on the estimated amounts of future payments attributable to the services that havebeen rendered by employees to the date of the consolidated balance sheet.
(f)Provision for directors’ bonuses

The Provision for directors’ bonuses is calculated and provided for based on the estimated amounts of future payments attributable to the services
that have been rendered by directors to the date of the consolidated balance sheet.
(g)

Provision for directors’ retirement benefits

The Provision for directors’ retirement benefits which provides for future retirement pension payments to directors, is recognized at the amountaccrued at the end of the current fiscal year.
(h)Accounting for retirement benefits(i)Method of attributing the projected benefits to periods of services

In calculating the projected benefit obligation, the estimated amount of retirement benefit payments is attributed to the period up to the endof the fiscal year based on the benefit formula.
(ii)

Accounting for actuarial gains or losses and prior service costs

Actuarial gains or losses and prior service costs are expensed as they are incurred.
(i)

Foreign currency translation and revaluation method

JBIC maintains its accounting records in Japanese yen. Assets and liabilities denominated in foreign currencies and held by JBIC are translated
into Japanese yen at the market exchange rate prevailing at the fiscal year end.
Assets and liabilities denominated in foreign currencies and held by consolidated subsidiaries are translated at the market exchange rate prevailingat respective balance sheet dates and other base dates.
15

(j)

Accounting for hedges of interest rate risk(i)Hedge accounting

The deferral method is applied to derivatives used for interest risk hedging purposes.
(ii)

Hedging instruments and hedged items

Hedging instruments: interest rate swaps
Hedged items: loans and bills discounted, and bonds payable(iii) Hedging policy
JBIC enters into hedging transactions up to the amount of the underlying hedged assets and liabilities.
(iv)

Assessment of hedge effectiveness

JBIC assesses the effectiveness of designated hedges by measuring and comparing the change in fair value or cumulative change of cash
flows of both hedging instruments and corresponding hedged items from the date of inception of the hedges to the assessment date.
(k)

Accounting for hedges of foreign exchange risks

Hedging instruments used to hedge foreign exchange risks associated with foreign currency denominated financial assets and liabilities areaccounted for primarily using the deferral method under “Accounting and Auditing Treatment Relating to Adoption of Accounting Standard for Foreign
Currency Transactions for Banks” (The Japanese Institute of Certified Public Accountants (JICPA) Industry-specific Committee Practical Guideline
No. 25 of October 8, 2020 (“Industry-specific Committee Practical Guideline No. 25”)).
The effectiveness of the hedges described above is assessed by comparing the foreign currency position of the hedged loans and bills discounted
and bonds payable denominated in foreign currencies with that of the hedging instruments, such as currency swaps and forward foreign exchange
contracts which are used for hedging the foreign exchange risks of loans and bills discounted and bonds payable denominated in foreign currencies.
(l)

Scope of cash and cash equivalents in the consolidated statements of cash flows“Cash and cash equivalents” as stated in the consolidated statements of cash flows consists of cash on hand and deposits with the Bank of Japan in
Cash and due from banks in the consolidated balance sheets.
6. Significant accounting estimates
The following item in the consolidated financial statements for the respective fiscal year is based on accounting estimates that may have asignificant effect on the consolidated financial statements for the next fiscal year.
•

Allowance for loan losses(i)Amount recognized in the consolidated financial statements for the current fiscal year

Allowance for loan losses

As ofMarch 31, 2023
(In millions of yen)

As ofMarch 31, 2024
(In millions of yen)

As ofMarch 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

410,526(ii)

Information on significant accounting estimates related to the identified item①

Calculation method

536,412

3,543

The calculation method of allowance for loan losses is described in “5. Significant accounting policies, (d) Allowance for loan
losses” in the notes to the consolidated financial statements.
JBIC engages in financing activities to realize its policy objectives as a policy-based financial institution and may incur loss frombeing impossible or difficult to recover its loans due to, among other factors, a deterioration in borrowers’ creditworthiness. To address sucha risk of JBIC incurring loss arising from a reduction in, or diminishment of, asset value attributable to a deterioration in borrowers’
financial condition and for other reasons, JBIC calculates an expected loss amount and recognizes it as allowance for loan losses. JBIC
engages in significant financing activities with overseas governments, governmental institutions, and overseas corporations as part of its
support of overseas economic transactions. Because of the characteristics of these activities, sovereign or country risk is a relatively
significant part of the credit risk JBIC is exposed to in connection with these activities.
16

Allowance for loan losses is calculated in accordance with JBIC’s internal rules for self-assessment of asset quality and internallyestablished standards. The calculation process includes the determination of the borrowers’ category based on the evaluation of borrowers’
solvency in consideration of their repayment status, financial condition, performance, future prospects and other relevant factors, and theestimation of future cash flows under the cash flow estimation approach.
Note: For the details of the credit risk JBIC is exposed to in connection with its financing activities, see the descriptions in “17.
Financial instruments and related disclosure, (a) Status of financial instruments, (ii) Types of financial instruments and risks, ① Credit risk”
in the note to the consolidated financial statements.
②

Major assumptions

Major assumptions are the future prospects for borrowers and other applicable items used in the borrowers’ category determination,and future cash flows of individual claims used under the cash flow estimation approach.
These assumptions are affected by relevant factors such as changes in borrowers’ business environment and whether their businessstrategy is successful. Therefore, JBIC’s estimation and judgment are reassessed and modified whenever the economic environment changes
or new information becomes available.
Given the above, such estimation and judgment related to the major assumptions may have a significant effect on the amount ofallowance for loan losses.
③

Effects on the consolidated financial statements for the next fiscal year

With respect to the international situation related to Russia and Ukraine, while the national governments have taken various
measures, such as economic sanctions, against Russia, the effects of the international situation related to Russia and Ukraine are reflected in
the allowance for loan losses in the fiscal year ended March 31, 2024 by assessing in detail the effects of such measures on the business of,or the performance of obligations by, Russia-related borrowers in the process of the borrowers’ category determination and assessing theeffects on credit risk individually. In the future, the expansion of the scope, or extension, of economic sanctions may have direct and indirect
effects on the borrowers’ category.
In addition, the impact of COVID-19 is being carefully examined and reflected in the allowance for loan losses in the process ofdetermining the borrowers’ category for affected individual borrowers.
As the future outlook of these events is uncertain, if the developments in the international situation related to Russia and Ukraine andthe situation of COVID-19 differ significantly from the assumptions, the allowance for loan losses as of the end of the fiscal year ending
March 31, 2025 may change.
The allowance for loan losses as of March 31, 2024 is the current best estimate. However, given a high estimation uncertainty related
to other factors in addition to the international situation related to Russia and Ukraine and the effects of COVID-19, there is a risk that theborrowers’ results of operations, financial position or other items may change more than what was assumed at the time of estimation andsuch changes, if occurred, may have a significant effect on the consolidated financial statements for the next fiscal year.
177. Equity and other securities or investments in unconsolidated subsidiaries and affiliates

Equity and other securities
Investments

As ofMarch 31, 2023
(In millions of yen)

As ofMarch 31, 2024
(In millions of yen)

As ofMarch 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

35,28978,25324,70265,743163
434

8. Loans(a)Loans issued under the Japan Bank for International Cooperation Act (“JBIC Act”) are as follows. Loans represent those items presented
in the following accounts in the consolidated balance sheets: Loans and bills discounted, accrued interest income and suspense payments
included in Other assets, and Customers’ liabilities for acceptances and guarantees.

Bankrupt and Quasi-bankrupt Assets
Doubtful Assets
Loans with interest or principal repayments three months or more inarrears
Restructured loans
Total amount

As ofMarch 31, 2023
(In millions of yen)

As ofMarch 31, 2024
(In millions of yen)

As ofMarch 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

—
291,008
58
196,908
487,975—
342,460
123,852
177,995
644,308

—
2,262
818
1,176
4,255

Bankrupt and Quasi-bankrupt Assets are loans and other credits to borrowers who have begun proceedings under the Bankruptcy Act, theCorporate Reorganization Act, the Civil Rehabilitation Act and other similar laws of Japan and have financially failed.
Doubtful Assets are loans and other credits to borrowers who have not financially failed but whose financial and operational conditions
have deteriorated and who have a possibility that payment of principal and/or interest will not be made on a contractual basis, and which
do not fall under the category of Bankrupt and Quasi-bankrupt Assets.
Loans with interest or principal repayments three months or more in arrears are loans whose principal or interest payment is three months
or more in arrears, and which do not fall under the category of Bankrupt and Quasi-bankrupt Assets and Doubtful Assets.
Restructured loans are loans whose repayment terms and conditions have been amended in favor of the borrowers (e.g. reduction of or
exemption from the stated interest rate, deferral of interest payments, extension of principal repayments or waiver of claims) in order tosupport the borrowers’ recovery from financial difficulties, and which do not fall under the category of Bankrupt and Quasi-bankrupt
Assets, Doubtful Assets, or loans with interest or principal repayments three months or more in arrears.
The amounts of loans indicated in the table above are the gross amounts before the deduction of allowance for loan losses.
18

(b)

JBIC, as a policy, does not issue loans to borrowers in part or in full immediately after the execution of the loan agreements, but instead
executes loans, in accordance with the progress of the underlying projects. These undrawn amounts are not included in the loans
recognized in the consolidated balance sheets. The balance of undrawn amounts is as follows:

Balance of undrawn loans

As ofMarch 31, 2023
(In millions of yen)

As ofMarch 31, 2024
(In millions of yen)

As ofMarch 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

2,347,605

3,096,208

20,449

9. Assets pledged as collateral
Pursuant to Article 34 of the JBIC Act, all JBIC assets are pledged as general collateral for all bonds issued by JBIC:

Bonds payable

As ofMarch 31, 2023
(In millions of yen)

As ofMarch 31, 2024
(In millions of yen)

As ofMarch 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

6,191,755

6,636,856

43,834

10. Accumulated depreciation of Property, plant and equipment

Accumulated depreciation

As ofMarch 31, 2023
(In millions of yen)

As ofMarch 31, 2024
(In millions of yen)

As ofMarch 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

4,412

5,076

34

11. Contingent liabilities
Japan Finance Corporation (“JFC”) assumed the obligations of the JFC bonds on April 1, 2012, and JBIC is jointly responsible for the obligationsof these bonds. In accordance with Article 17 (2) of the Supplementary Provisions of the JBIC Act, all of JBIC’s assets are pledged as generalcollateral for these joint obligations as follows.

Joint obligations

As ofMarch 31, 2023
(In millions of yen)

As ofMarch 31, 2024
(In millions of yen)

As ofMarch 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

60,00060,000396

12. Items included in Other under Other income
Other under Other income includes the following:

Gains on sales of equity and other securities
Gains on investments in partnerships
Profits of equity method investments

For the year ended
March 31, 2023
(In millions ofyen)

For the year ended
March 31, 2024
(In millions ofyen)

For the year ended
March 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

97
—
2,058

3,150
12,749—2184—

13. Items included in Other under Other expenses
Other under Other expenses includes the following:

Losses on sales of equity and other securities
Impairment losses on equity and other securities
Losses on investments in partnerships
Losses of equity method investments
19

For the year ended
March 31, 2023
(In millions ofyen)

For the year ended
March 31, 2024
(In millions ofyen)

For the year ended
March 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

3,384
3,486
6,129
—

8,576
—
—
95

57
—
—
1

14. Reclassification adjustments and tax effects of other comprehensive income (loss)

Valuation difference on available-for-sale securities:
Amount recognized during the fiscal year
Reclassification adjustments
Before tax effect adjustment
Tax effect
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges:
Amount recognized during the fiscal year
Reclassification adjustments
Before tax effect adjustment
Tax effect
Deferred gains (losses) on hedges
Foreign currency translation adjustment:
Amount recognized during the fiscal year
Reclassification adjustments
Before tax effect adjustment
Tax effectForeign currency translation adjustment
Share of other comprehensive income (loss) of equity method investments:
Amount recognized during the fiscal year
Reclassification adjustments
Before tax effect adjustment
Tax effect
Share of other comprehensive income (loss) of equity method
investments
Total other comprehensive income (loss)

For the year ended
March 31, 2023
(In millions of yen)

For the year ended
March 31, 2024
(In millions of yen)

For the year ended
March 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

¥
20

12,014(2,798)
9,215
—
9,215

22,862(6,936)15,926—15,926

151
(46)
105
—
105

(333,282)
126,889(206,393)—(206,393)(422,764)
362,980(59,784)—(59,784)(2,792)
2,397
(395)
—
(395)

4,656
—
4,656
—
4,656

(3,309)—(3,309)—(3,309)

(22)
—
(22)
—
(22)

6,567
(1,809)
4,758
—

2,871
(5,445)(2,573)
—

19
(36)
(17)
—

4,758
(187,762)¥(2,573)(49,741)

$

(17)
(329)

15. Changes in Net assets(a)Issued shares and treasury stock
For the fiscal year ended March 31, 2023, the type and the number of issued shares and treasury stock are as follows:

Types

Issued shares
Common stock
Classified stock
Total
Treasury stock
Common stock
Classified stock
Total(Note)(Unit: thousands of shares)
The number of sharesat the end of the fiscal year
Remarks

The number of sharesat the beginning of the fiscal year

Increase during
the fiscal year

Decrease during
the fiscal year

1,873,800,000—
1,873,800,000

85,000,000—
85,000,000———

1,958,800,000—
1,958,800,000

—
—
—

—
—
—

—
—
—

—
—
—

Note
Note

The reason for an increase in shares is the issuance of 85,000,000 thousand new shares.
For the fiscal year ended March 31, 2024, the type and the number of issued shares and treasury stock are as follows:

Types

Issued shares
Common stock
Classified stock
Total
Treasury stock
Common stock
Classified stock
Total(Note)(Unit: thousands of shares)
The number of sharesat the end of the fiscal year
Remarks

The number of sharesat the beginning of the fiscal year

Increase during
the fiscal year

Decrease during
the fiscal year

1,958,800,000—
1,958,800,000

103,000,000—
103,000,000———

2,061,800,000—
2,061,800,000

—
—
—

—
—
—

—
—
—

—
—
—

Note
Note

The reason for an increase in shares is the issuance of 103,000,000 thousand new shares.

16. Cash flows
A reconciliation of Cash and cash equivalents in the consolidated statements of cash flows as of March 31, 2023 and 2024 to Cash and due frombanks in the consolidated balance sheets is as follows:
For the year ended
March 31, 2023
(In millions of yen)

Cash and due from banks
Time deposits and others
Cash and cash equivalents¥¥
21

For the year ended
March 31, 2024
(In millions of yen)

2,193,775 ¥(987,917)
1,205,858 ¥For the year ended
March 31, 2024
(In millions of
U.S. dollars)

2,565,369 $(1,618,744)
946,624 $

16,943(10,691)6,252

17. Financial instruments and related disclosure(a)Status of financial instruments(i)

Policies for financial instruments

Based on the JBIC Act, JBIC is a policy-based financial institution wholly owned by the Japanese government, which has the
purpose of contributing to the sound development of Japan and the international economy and society while supplementing the financialtransactions implemented by private-sector financial institutions, by performing the financial function to promote the overseas
development and securement of resources which are important for Japan; maintaining and improving the international competitiveness ofJapanese industries; promoting the overseas business having the purpose of preserving the global environment, such as preventing global
warming, as well as preventing disruptions to international financial order or taking appropriate measures with respect to damages causedby such disruption.
JBIC’s principal operations consist of providing “export loans,” “import loans,” “investment financing,” “financing for businessdevelopment” (including guarantees) and “capital investment.” To conduct these operations, funds are raised through borrowings from thefiscal investment and loans and the foreign exchange fund special account, and the issuing of bonds. An ALM (asset and liability
management) function has been established in respect of JBIC’s financial assets and liabilities that are subject to interest rate and currency
fluctuations to assist in ensuring that such fluctuations do not have an adverse effect on JBIC’s operations. In addition, derivativetransactions are entered into for the purpose of mitigating risk inherent in foreign currency denominated transactions. Financial
instruments that can be used for the management of surplus funds are limited to safe instruments such as Japanese government bonds
according to in the JBIC Act.
The budget required for governmental financial operations is decided upon by the Diet of Japan, and business plans and financial
plans (borrowings from fiscal investment and loans, bonds, general accounting investment, and loans and other investments) are appended
to the budget and submitted to the Diet of Japan.
The consolidated foreign subsidiary of JBIC engages in investments and other related activities as its principal operation.
(ii)

Types of financial instruments and risks

The assets that JBIC holds mainly include loans to borrowers in Japan and overseas, and securities and liabilities mainly include
borrowed money and bonds. The consolidated foreign subsidiary of JBIC holds securities subject to price fluctuations.
The associated risks of financial assets and financial liabilities held by JBIC are described below.
①

Credit risk

Credit risk is the risk that JBIC will suffer losses if the financial conditions of the borrower deteriorate and the value of assets (including
off-balance sheet assets) declines or is impaired.
The credit risks associated with JBIC include sovereign risk, country risk, corporate risk, and project risk. JBIC engages in significant
financing activities with overseas governments, governmental institutions, and overseas corporations as part of its support to overseas
economic transactions. Because of the characteristics of these activities, sovereign or country risk is a relatively significant part of the credit
risk JBIC is exposed to in connection with these activities.
As a result, if the financial conditions of the individual borrower significantly deteriorate due to political and economic trends in the
borrower’s country or region, JBIC’s performance and financial conditions can be adversely affected.
(Note)

Sovereign risk refers to risk associated with credit extended to foreign governments. Country risk refers to risk associated with thecountry in which the corporation or project is located (risk, in addition to corporate risk or project risk, associated with the country
in which the corporation or the project is located). Corporate risk refers to the risk associated with credit to corporations and projectrisk refers to the risk that the cash flows generated from the project fail to generate the planned cash flows, in the case of project
finance, where the repayment of the borrowing is primarily secured by the cash flow of the project to which credit is extended.
②

Market risk

Market risk is the risk that the value of assets and liabilities (including off-balance sheet items) will fluctuate and losses will be
incurred, or profits derived from assets and liabilities (including off-balance sheet items) will fluctuate and losses will be incurred due tochanges in various market risk factors, such as interest rates and exchange rates.
The market risk borne by JBIC mainly consists of foreign exchange risk and interest rate risk, and JBIC may suffer losses from theserisks due to fluctuations in the markets such as market turmoil. However, in principle, these risks are hedged through interest rate swaps,
currency swaps, and forward foreign exchange contracts.
22

JBIC uses hedge accounting for interest rate hedges, where the hedging instrument is interest rate swaps to hedge the risk of changes ininterest rates associated with loans, borrowed money and bonds. The effectiveness of the hedges is assessed by measuring and comparing thechange in fair value or cumulative change in cash flows of both hedging instruments and corresponding hedged items from the date ofinception of the hedges to the assessment date.
JBIC uses hedge accounting for foreign exchange hedges, where currency swaps and forward foreign exchange contracts are used tohedge items such as loans and bonds for foreign exchange risk. The effectiveness of the hedging with currency swaps and forward foreignexchange contracts is assessed by comparing the foreign currency position of the hedged financial assets and liabilities with that of thehedging instruments.
③

Liquidity risk

Liquidity risk is the risk that losses will be incurred as a result of difficulties in obtaining the funds necessary due to a maturity
mismatch between financing and funding or unexpected outflow of funds, or being forced to fund at an interest rate significantly higher thanthat under normal circumstances (funding risk). It is also the risk that losses will be incurred from being unable to conduct market
transactions due to market turmoil or being forced to transact at far more unfavorable prices than those under normal circumstances (market
liquidity risk).
Long-term and stable funds, such as fiscal loan funds, government-guaranteed bonds and the fiscal investment and loan program(“FILP”) agency bonds, are secured to finance JBIC and deposits are not accepted. Therefore, JBIC considers liquidity risk to be limited.
However, financing costs could increase due to market turmoil and unexpected events.
(iii) Risk management structure for financial instruments
The risk management structure of JBIC is described below.
①

Credit risk management

The cornerstone of credit risk management at JBIC is the evaluation of an individual borrower’s creditworthiness in advance of credit
approval.
When a new credit application is processed, the relevant finance departments (sales promotion departments) and credit departments
collect and analyze information on the borrower. JBIC’s overseas representative offices also play a part in collecting information on foreign
governments and companies. Credit appraisal takes place based on the information that has been gathered and analyzed with the different
departments ensuring appropriate checks throughout the process, leading to the final decision by management.
In providing credit to foreign governments and companies, JBIC takes maximum advantage of its unique position as a public financial
institution. This includes exchanging views and information with governments and relevant authorities in the recipient countries, multilateralinternational institutions such as the International Monetary Fund (IMF) and the World Bank, other regional development banks such asexport credit agencies, and private financial institutions in developed countries. Using all these channels to exchange views and information,
JBIC evaluates sovereign and country risks (risk in addition to corporate risk associated with the country in which the corporation is located)based on the broad range of information collected on the borrowing governments, the government agencies and the political and economic
conditions in their countries.
The relevant finance departments and credit departments conduct proper credit risk management based on the credit risk rating system
for segmented risk categories and the asset self-assessment system. In addition, an Integrated Risk Management Committee is held regularly
to report the status of credit management to JBIC’s management. The credit management is also checked by an independent auditing
department.
In addition, a claims protection mechanism exists based on an international framework unique to official creditors, that is not applied to
private sector financial institutions, for public claims on foreign governments. This mechanism consists of international financial assistanceupon international approval by the Paris Club, an international group focusing on debt, to allow the debtor country to continue debt
repayment when the debtor country becomes temporarily unable to service its debt due to economic conditions. As part of this international
financial assistance, the debtor country conducts an economic reform program agreed by the IMF in order to secure the ability to sustainably
service its debt. In view of JBIC’s position as a public financial institution, it will use the framework of the Paris Club to preserve its public
claims on foreign governments.
23

In addition to the above credit risk management related to individual borrowers, JBIC quantifies credit risk with a view to evaluating therisk of the overall loan portfolio. To quantify credit risks, it is important to take into account the characteristics of JBIC’s loan portfolio,
which are not typically seen in other private financial institutions, namely that JBIC holds a significant proportion of long-term loans thatentail sovereign and country risks. Also to be taken into account are mechanisms for securing assets under an international supporting
framework, such as the Paris Club, which is unique to official creditors. JBIC uses a unique model to quantify the credit risk taking accountof the above factors and measures the amount of credit risk, which are utilized for credit risk management.
②

Market risk management

JBIC manages foreign exchange risk and interest rate risk through its ALM. Market risk management protocols contain detailed
stipulations in respect of risk management methods and procedures, and JBIC has established the ALM Committee to assess and confirm theexecution of ALM, and to discuss future responses to market risk. In addition, JBIC assesses and monitors the interest rate and terms offinancial assets and liabilities in detail through a gap analysis and an interest rate sensitivity analysis as well as market risk measurement
using Value at Risk (“VaR”). The results are reported to the ALM Committee on a regular basis.
The basic policy for managing foreign exchange risk and interest rate risk at JBIC is described below.
1)

Foreign exchange risk

Foreign currency-denominated loans conducted in JBIC involve risks related to exchange rate fluctuations. JBIC has a consistentpolicy of managing this risk by fully hedging this risk exposure through the use of currency swaps and forward foreign exchange
contracts.
2)

Interest rate risk

Interest rate risk arises from exposure to market interest rate fluctuations for yen-denominated loan and foreign currencydenominated loan operations and the policy for managing interest rate risk is described below.
a. Yen-denominated loan operations
Yen-denominated loan operations are mainly managed by using fixed-rate loans. However, swaps are used to hedge interest
rate risk for the portion of loans that are deemed to have high exposures to interest rate fluctuations and therefore interest rate risk islimited.
b. Foreign currency-denominated loan operations
For foreign currency-denominated loan operations, interest rate risk is hedged through the application of a consistent policy ofusing interest rate swaps and managing the funds with floating interest rates for both loans and related funding arrangements.
3)

Status of market risk

JBIC only maintains a banking book and does not have financial instruments in a trading book. While, in principle, JBIC holds
derivatives only for hedging purposes, as stated previously, market risk (VaR) that takes into account the correlation between interest raterisk and foreign exchange risk is measured in order to assess potential risk exposures. The following represents the market risk (VaR)
exposure in the current fiscal year.
a. Market risk (VaR)
As ofMarch 31, 2024
(In billions of yen)

As ofMarch 31, 2024
(In billions of
U.S. dollars)

¥

$

197.7

1.3

b. Market risk (VaR) measurement model
Historical model (Confidence interval: 99%, Holding period: 1 year, Observation period: 5 years)c. Risk management using market risk (VaR)
VaR is a market risk measure that assesses the maximum possible fluctuation of gains or losses in fair values that could beincurred after a certain period of time (“Holding period”) based on historical market movements of interest rates or exchange rates
and other market indices over a specific period in the past (“Observation period”) within a given probability (“Confidence interval”),
that is derived statistically by employing the theory of probability distribution.
The measurement assumes historical market trends and the theory of probability distribution. Based on the possibility that
future market trends could deviate from these assumptions, a back-test is performed to cross-check the model-measured VaR withactual profits or losses, in order to confirm the effectiveness of market risk measurements using VaR. In addition, a stress test, whichgoes beyond historical market movements, is carried out in order to capture risks from various perspectives.
24

The following points should generally be noted in measuring VaR:③•

VaR will differ depending on the choice of confidence interval, holding period or observation period;•

VaR indicates the maximum fluctuation of gains or losses in fair values at the time of measurement. In practice, theactual results at a point in the future may differ from the VaR calculation due to changes in the assumptions caused bymarket movements during the holding period; and•VaR indicates the maximum value based on specific assumption. As such, when utilizing VaR as a risk management
measure, it is imperative to keep in mind that VaR may underestimate the potential losses.

Liquidity risk management related to funding

Long-term and stable funds, such as fiscal loan funds, government-guaranteed bonds and FILP agency bonds, are used to finance theoperations and deposits are not accepted.
Cash flows are assessed and proper measures, including establishing overdraft facility accounts with multiple private sector financial
institutions, are taken to maintain daily cash flows for proper risk management.
④

Derivative transactions

For derivative transactions, the internal checks and balances are established by assigning the execution of transactions, the assessmentof hedge effectiveness and the management of administrative work to separate divisions. In addition, derivative transactions are carried out inaccordance with the derivatives related protocol.
(iv)

Supplementary explanation concerning fair value of financial instruments
Fair values of financial instruments have been calculated using certain assumptions, and may differ depending on the assumptions.

(b)Fair value of financial instruments

The carrying amount on the consolidated balance sheets as of March 31, 2023 and 2024 and the related fair value, and difference are as
follows. Note that equity and other securities and partnership investments (excluding those held by a certain consolidated foreign subsidiary)
whose market prices are not available are not included in the following tables (refer to Note 1). Further, Cash and due from banks, Cashcollateral paid for financial instruments and Cash collateral received for financial instruments are excluded from the note because they are settled
in a short period and thus their fair value approximates their carrying amount.
25

As of March 31, 2023
(In millions of yen)Amount on
consolidatedbalance sheet(1) Securities
Securities classified as trading
Available-for-sale securities(2) Loans and bills discounted
Allowance for loan losses (*1)

Fair value¥

Difference

¥

Total

17,939 ¥17,93945,621
45,621
15,587,788(383,842)
15,203,946
15,294,983¥15,267,507 ¥15,358,545(1) Borrowed money(2) Bonds payable
Total

8,513,677
6,191,755¥14,705,432(23,314)(310,059)¥(333,374)

Derivative transactions (*2)
Derivative transactions not qualifying for hedge accounting
Derivative transactions qualifying for hedge accounting (*3)
Total

—
—
(688,076)(688,076)¥ (688,076) ¥ (688,076) ¥8,490,362
5,881,695¥14,372,058——

91,037¥ 91,037———(*1) General allowance for loan losses and specific allowance for loan losses, and the allowance for possible loan losses on specific overseas loans
have been deducted from Loans and bills discounted.
(*2) Derivatives recorded in Other assets and Other liabilities are collectively presented. Assets and liabilities arising from derivative transactions arepresented on a net basis. The figures in parenthesis indicate net liabilities.
(*3) This represents interest rate swaps and other instruments designated as the hedging instrument to offset the market fluctuation of hedged loans andother items. The “Practical Solution on the Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR” (PITF No. 40 ofMarch 17, 2022) is applied to these hedging relationships.
As of March 31, 2024
(In millions of yen)Amount on
consolidatedbalance sheet(1) Securities
Securities classified as trading
Available-for-sale securities (*1)
(2) Loans and bills discounted
Allowance for loan losses (*2)

Fair value¥

Difference

Total

6,251 ¥
6,251
53,88053,88016,423,476(505,419)
15,918,056
16,039,193¥15,978,189 ¥16,099,325

121,136¥ 121,136(1) Borrowed money(2) Bonds payable
Total

9,193,988
6,636,856¥15,830,845(55,427)(325,596)¥(381,024)

Derivative transactions (*3)
Derivative transactions not qualifying for hedge accounting
Derivative transactions qualifying for hedge accounting (*4)
Total

—
—
(994,792)(994,792)¥ (994,792) ¥ (994,792) ¥26

9,138,561
6,311,260¥15,449,821

¥

—
—

—
—
—

As of March 31, 2024
(In millions of U.S. dollars)
Amount on
consolidatedbalance sheet(1) Securities
Securities classified as trading
Available-for-sale securities (*1)
(2) Loans and bills discounted
Allowance for loan losses (*2)

$

Total
(1) Borrowed money(2) Bonds payable
Total

Fair value

Difference

$

41 $
356
108,470(3,338)105,132
105,529 $105,932
106,329$$60,722
43,834
104,556

60,356
41,683102,039(366)(2,151)$ (2,517)$—(6,570)(6,570) $

$

41
356

$

—
—

800
800

Derivative transactions (*3)
Derivative transactions not qualifying for hedge accounting
Derivative transactions qualifying for hedge accounting (*4)
Total—
(6,570)(6,570) $———(*1) Available-for-sale securities include investment trusts whose net asset value is deemed as fair value based on paragraph 24-3 of the“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31 issued on June 17, 2021).
(*2) General allowance for loan losses and specific allowance for loan losses, and the allowance for possible loan losses on specific overseas loans
have been deducted from Loans and bills discounted.
(*3) Derivatives recorded in Other assets and Other liabilities are collectively presented. Assets and liabilities arising from derivative transactions arepresented on a net basis. The figures in parenthesis indicate net liabilities.
(*4) This represents interest rate swaps and other instruments designated as the hedging instrument to offset the market fluctuation of hedged loans andother items. The “Practical Solution on the Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR” (PITF No. 40 ofMarch 17, 2022) is applied to these hedging relationships.
(Note 1)Equity and other securities and partnership investments (excluding those held by a certain consolidated foreign subsidiary) whose market
prices are not available are as follows. They are not included in “Assets, (1) Securities.”

Classification

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

As of
March 31, 2023
(In millions of yen)

As ofMarch 31, 2024
(In millions of yen)

As ofMarch 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

¥

32,31384,397
78,25388,561
283,525¥

24,09985,93165,743
104,296
280,071

$

159
568
434
689
1,850

(*1) Based on paragraph 5 of the “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19 issued
on March 31, 2020), fair values are not presented for unlisted stocks.
(*2) Impairment loss of ¥3,486 million is recognized for unlisted stocks (unconsolidated subsidiaries and affiliates) for the fiscal year ended March 31,
2023.
Impairment loss is not recognized for unlisted stocks (unconsolidated subsidiaries and affiliates) for the fiscal year ended March 31, 2024.
(*3) Based on paragraph 24-16 of the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31 issued
on June 17, 2021), fair values are not presented for partnership investments.
27

(Note 2)

Redemption schedule for receivables and redeemable securities with future redemption dates

As of March 31, 2023

Securities
Available-for-sale securities
Loans and bills discounted (*1)
Total

Due within
one year

Due after
one year
but within
three years

Due after
three years
but within
five years

Due after
five years
but withinseven years(In millions of yen)
Due after
seven years
but within
Due after
ten yearsten years¥—
1,886,585¥1,886,585¥—
4,020,539¥4,020,539¥
200
3,152,268¥3,152,468¥ 30,900
2,571,749¥2,602,649¥
6,600
2,174,889¥2,181,489

¥

9,300
1,490,747¥1,500,047(*1) Loans and bills discounted of ¥291,008 million whose redemption is not estimable, such as claims against Bankrupt borrowers, Substantiallybankrupt borrowers, and Potentially bankrupt borrowers, are not included in the table above.
As of March 31, 2024

Securities
Available-for-sale securities
Loans and bills discounted (*1)
Total

Due within
one year

Due after
one year
but within
three years

Due after
three years
but within
five years

Due after
five years
but withinseven years(In millions of yen)
Due after
seven years
but within
Due after
ten yearsten years¥—
2,128,755¥2,128,755¥
200
4,468,732¥4,468,932¥ 30,900
3,328,272¥3,359,172¥
3,200
2,734,366¥2,737,566¥
9,600
1,898,720¥1,908,320

Due within
one year

Due after
one year
but within
three years

Due after
three years
but within
five years

Due after
five years
but withinseven years(In millions of U.S. dollars)
Due after
seven years
but within
Due after
ten yearsten years

$

$

$

$

$

¥

9,300
1,534,152¥1,543,452

As of March 31, 2024

Securities
Available-for-sale securities
Loans and bills discounted (*1)
Total

$

—
14,06014,060$1
29,51429,515$204
21,982
22,186$21
18,05918,080$64
12,54012,604$$62
10,132
10,194(*1) Loans and bills discounted of ¥330,476 million ($2,183 million) whose redemption is not estimable, such as claims against Bankrupt borrowers,
Substantially bankrupt borrowers, and Potentially bankrupt borrowers, are not included in the table above.
28

(Note 3)

Redemption schedule for Borrowed money and Bonds payable with future redemption dates

As of March 31, 2023

Borrowed money
Bonds payable
Total

Due within
one year

Due after
one year
but within
three years

Due after
three years
but within
five years

Due after
five years
but withinseven years(In millions of yen)
Due after
seven years
but within
Due after
ten yearsten years¥ 800,832
1,068,240¥1,869,072¥2,617,441
2,290,010¥4,907,451¥3,841,703
1,529,086¥5,370,789¥ 412,300
713,222¥1,125,522¥ 617,200
600,885¥1,218,085

Due within
one year

Due after
one year
but within
three years

Due after
three years
but within
five years

Due after
five years
but withinseven years(In millions of yen)
Due after
seven years
but within
Due after
ten yearsten years¥ 423,380
984,165¥1,407,545¥ 569,666
2,838,608¥3,408,274¥6,398,941
1,677,340¥8,076,281¥ 826,300
693,175¥1,519,475¥ 751,500
454,230¥1,205,730

Due within
one year

Due after
one year
but within
three years

Due after
three years
but within
five years

Due after
five years
but withinseven years(In millions of U.S. dollars)
Due after
seven years
but within
Due after
ten yearsten years

$

$

$

$

$

¥224,200—¥224,200

As of March 31, 2024

Borrowed money
Bonds payable
Total¥224,200—¥224,200

As of March 31, 2024

Borrowed money
Bonds payable
Total
(c)

$

2,796
6,500
9,296

$

3,762
18,74822,510$42,262
11,07853,340

$

5,457
4,578
10,035

$

4,963
3,000
7,963

$

1,482
—
$ 1,482

Breakdown of the fair value of financial instruments by level and other relevant matters

The fair value of financial instruments is classified into the following three levels in accordance with the observability and significance of
inputs used for determining the fair value.
Level 1 fair value: Of observable inputs for the fair value determination, this fair value is determined based on a quoted price formed in an
active market for assets or liabilities that are subject to the fair value determination.
Level 2 fair value: Of observable inputs for the fair value, this fair value is determined based on inputs for the fair value determination
other than those used to determine the Level 1 fair value.
Level 3 fair value: This fair value is determined using unobservable inputs for the fair value determination.
Where more than one input that has a significant impact on the fair value determination are used, of the levels respective inputs belong to,
the fair value is classified into the level with the lowest priority in the fair value determination.
29

(i)

Financial instruments recognized in the consolidated balance sheets at fair value

As of March 31, 2023
(In millions of yen)
Fair value
Level 1

Securities
Securities classified as trading
Equity and other securities
Available-for-sale securities
Samurai bonds
Total
Derivative transactions (*1)
Interest rate-related
Currency-related
Total

Level 2

Level 3

Total

¥

—

¥

—

¥

17,939¥17,939¥——¥45,621
45,621¥—
17,939¥45,621
63,561

¥

—
—
—

¥

(348,890)(339,186)(688,076)

¥

—
—
—

(348,890)(339,186)¥ (688,076)(*1) Derivatives recorded in Other assets and Other liabilities are collectively presented. Assets and liabilities arising from derivative transactions arepresented on a net basis. The figures in parenthesis indicate net liabilities.
As of March 31, 2024
(In millions of yen)
Fair value
Level 1

Securities
Securities classified as trading
Equity and other securities
Available-for-sale securities (*1)
Samurai bonds
Total
Derivative transactions (*2)
Interest rate-related
Currency-related
Total

Level 2

Level 3

Total

¥

—

¥

—

¥

6,251

¥

6,251

¥

—
—

¥

51,47651,476

¥

—
6,251

¥

51,47657,728

¥

—
—
—

¥

(381,153)(613,639)(994,792)

¥

—
—
—

(381,153)(613,639)¥ (994,792)

As of March 31, 2024
(In millions of U.S. dollars)
Fair value
Level 1

Securities
Securities classified as trading
Equity and other securities
Available-for-sale securities (*1)
Samurai bonds
Total
Derivative transactions (*2)
Interest rate-related
Currency-related
Total

Level 2

Level 3

Total

$

—

$

—

$

41

$

41

$

—
—

$

340
340

$

—
41

$

340
381

$

—
—
—

$

(2,517)(4,053)(6,570)

$

—
—
—

$

(2,517)(4,053)(6,570)(*1) Available-for-sale securities do not include investment trusts whose net asset value is deemed as fair value based on paragraph 24-3 of the“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31 issued on June 17, 2021). The
investment trust is ¥2,404 million ($16 million) for the fiscal year ended March 31, 2024.
30

(*2) Derivatives recorded in Other assets and Other liabilities are collectively presented. Assets and liabilities arising from derivative transactions arepresented on a net basis. The figures in parenthesis indicate net liabilities.
1)

Reconciliation between the beginning balance and the ending balance of the investment trusts subject to the treatment under paragraph 24-3

Profit or loss or othercomprehensive income
during the fiscal year
Balance
as ofApril 1,
2023

¥

—

Recognizedin profit orloss

Recognizedin othercomprehensive
income(*1)

Purchase,sale andredemption(Net)

Investment
trustssubject tothe treatment
underparagraph
24-3

¥

¥

¥

¥

—

35

2,368

Profit or loss or othercomprehensive income
during the fiscal year
Balance
as ofApril 1,
2023

$

—

—

Recognizedin profit orloss

Recognizedin othercomprehensive
income(*1)

Purchase,sale andredemption(Net)

Investment
trustssubject tothe treatment
underparagraph
24-3

$

$

$

$

—

0

16

—

Investment
trusts not
subject tothe treatment
underparagraph
24-3

Balance
as ofMarch 31,2024

(In millions of yen)
Of the amountrecognized in profit orloss during the fiscal
year, valuation gain
(loss) on theinvestment trust held
as of the date of theconsolidated balance
sheet

¥

¥ 2,404¥—

Investment
trusts not
subject tothe treatment
underparagraph
24-3

Balance
as ofMarch 31,
2024

$

$

—

—

(In millions of U.S. dollars)
Of the amountrecognized in profit orloss during the fiscal
year, valuation gain
(loss) on theinvestment trust held
as of the date of theconsolidated balance
sheet

16

$

—

(*1) Included in Valuation difference on available-for-sale securities under Other comprehensive income (loss) in the consolidated statements ofcomprehensive income.
2)

Breakdown of restriction on cancellation or repurchase rights as of March 31, 2024

Nature of restriction on cancellation or repurchase rights(In millions of yen)
Carrying amount on the
consolidated balance sheet

Cancellation or repurchase rights are not granted, and consent from the investment management company isrequired for transfer¥

Nature of restriction on cancellation or repurchase rights(In millions of U.S. dollars)
Carrying amount on the
consolidated balance sheet

Cancellation or repurchase rights are not granted, and consent from the investment management company isrequired for transfer

$

(ii)

2,404

16

Financial instruments other than those recognized in the consolidated balance sheets at fair value

As of March 31, 2023
(In millions of yen)
Fair value
Level 1Loans and bills discounted
Total
Borrowed money
Bonds payable
Total
31

Level 3

Total

¥
¥

—
—

¥
¥

Level 2——

¥ 15,294,983¥ 15,294,983¥15,294,983¥15,294,983

¥

—
—
—

8,490,362
5,881,695¥ 14,372,058———

8,490,362
5,881,695¥14,372,058¥

As of March 31, 2024
(In millions of yen)
Fair value
Level 1Loans and bills discounted
Total
Borrowed money
Bonds payable
Total

Level 3

Total

¥
¥

—
—

¥
¥

Level 2——

¥ 16,039,193¥ 16,039,193¥16,039,193¥16,039,193

¥

—
—
—

9,138,561
6,311,260¥ 15,449,821———

9,138,561
6,311,260¥15,449,821¥

As of March 31, 2024
(In millions of U.S. dollars)
Fair value
Level 1Loans and bills discounted
Total
Borrowed money
Bonds payable
Total(Note 1)

Level 2

$
$

—
—

$

—
—
—

Level 3

$
$

—
—

$

60,356
41,683102,039

Total

$
$

105,932
105,932

$

—
—
—

$
$

105,932
105,932$

60,356
41,683102,039

Valuation methodologies and inputs used for determining fair value

AssetsSecurities
When the market is not active even if a quoted price is used, or when quoted prices are not available but the Reference Statistical Prices[Yields] for OTC Bond Transactions are available, the fair value of securities is classified into Level 2. Such securities primarily include Samurai
bonds and listed stocks. The fair value of certain Samurai bonds is based on prices obtained from, among others, information vendors. In
consideration of the results of assessment using a fair valuation model that does not use unobservable inputs, such fair value is also classified into
Level 2.
When quoted prices are not available, the fair value is determined by using valuation methodologies, such as the one using the present valueof future cash flows. Observable inputs are used as much as practicable in valuation and inputs include a discount rate based on the weighted
average cost of capital. If any significant unobservable inputs are used in the calculation, the fair value of securities is classified into Level 3. Suchsecurities primarily include equity and other securities.
Loans and bills discounted
The fair value of loans and bills discounted is determined by discounting at a risk-free rate the sum of principal and interest after adjustingfor credit risk and other elements according to the classifications based on the type of loans and bills discounted, internal ratings and periods. Of
which, the fair value of those loans with variable interest rates is their carrying amount as such loans reflect market interest rates over the shortterm and approximates the carrying mount if the borrower’s credit conditions have not changed significantly since the issuance of loans.
For claims on Bankrupt borrowers, Substantially bankrupt borrowers, and Potentially bankrupt borrowers, credit losses estimated on suchclaims are calculated based on the discounted present value of estimated future cash flows or the expected collectible amount from the collateralor guarantee. Since fair value approximates the amount on the consolidated balance sheets at the fiscal year end after deducting the allowance forloan losses, this amount is used for fair value. This fair value is classified into Level 3 because the effects of unobservable inputs on the fair value
are considered to be material.
Liabilities
Borrowed money
As for borrowed money, the present value is calculated by discounting the sum of principal and interest of the borrowed money classified bycertain periods at a rate adjusted by the remaining period and credit risk of borrowed money. Of which, borrowed money with variable interest
rates reflect short-term market interest rates and the credit conditions of JBIC and its consolidated subsidiaries have not changed significantly
since the execution of borrowings. Therefore, the carrying amount is used as fair value because it is considered that the carrying amountapproximates the fair value. Since unobservable inputs are not used, this fair value is classified into Level 2.
32

Bonds payable
Of bonds issued by JBIC, the Reference Statistical Prices [Yields] for OTC Bond Transactions is used as fair value for the FILP agency
bonds and that fair value is classified into Level 2. As for government-guaranteed foreign currency bonds, the prices obtained from, among others,
information vendors are used as fair value and that fair value is classified into Level 2 in consideration of the result of assessment using a fairvaluation model that does not use unobservable inputs.
Derivative transactions
As derivative transactions by JBIC are OTC transactions whose quoted prices are not available, their fair value is determined by using thepresent value method and other valuation methodologies according to the transaction type and the term to maturity. Price adjustments are madebased on the counterparty’s credit risk and JBIC’s credit risk. Main inputs used in these valuation methodologies include interest rates, exchange
rates, and credit spreads. Since unobservable inputs are not used, this fair value is classified into Level 2. Such transactions include plain vanillainterest rate swaps, currency swaps, and forward foreign exchange contracts.
(Note 2)
(1)

Information on Level 3 fair value of financial instruments recognized in the consolidated balance sheets at fair value

Quantitative information on significant unobservable inputs

As of March 31, 2023
Category

Securities
Securities classified as trading
Equity and other securities

Valuation
methodologies

Significant
unobservable inputs

Range of inputs

Weighted average of
inputsPresent value
methodDiscount rate

4.3%-21.5%

12.1%

Valuation
methodologies

Significant
unobservable inputs

Range of inputs

Weighted average of
inputsPresent value
methodDiscount rate

4.3%-24.4%

15.3%

As of March 31, 2024
Category

Securities
Securities classified as trading
Equity and other securities

33

(2)

Reconciliation between the opening balance and the closing balance, and valuation gain (loss) recognized in profit or loss during the fiscal year

As of March 31, 2023
(In millions of yen)
Of theamountrecognized in
profit or loss
during the
fiscal year,
valuation
gain (loss)
on financial
assets andliabilities
held as ofthe date of
Recognized
Purchase,thein othersale,Transfer
consolidated
comprehensive issuance and Transfer to from Level 3 Balance asbalance
incomesettlement
Level 3 fair
fair valueof March 31,
sheet (*1)
(*2)
(Net)
value (*3)
(*4)
2023

Profit or loss or othercomprehensive income
during the fiscal year

Balance as Recognizedof April 1, in profit or
2022
loss (*1)

Securities
Securities classified as trading
Equity and other securities¥ 16,951 ¥ (3,416) ¥4,404 ¥

—

¥

—

¥

—

¥

17,939 ¥(3,416)(*1) Included in Other under Other expenses in the consolidated statements of operations.
(*2) Included in Foreign currency translation adjustment under Other comprehensive income (loss) in the consolidated statements of comprehensive
income.
(*3) This represents a transfer from Level 2 fair value to Level 3 fair value and did not occur during the fiscal year ended March 2023.
(*4) This represents a transfer from Level 3 fair value to Level 2 fair value and did not occur during the fiscal year ended March 2023.
As of March 31, 2024

Profit or loss or othercomprehensive income
during the fiscal year

Balance as Recognizedof April 1, in profit or
2023
loss (*1)

Securities
Securities classified as trading
Equity and other securities

Recognizedin othercomprehensive
income(*2)¥ 17,939 ¥ (8,576) ¥34(In millions of yen)
Of theamountrecognized in
profit or loss
during the
fiscal year,
valuation
gain (loss)
on financial
assets andliabilities
held as ofthe date ofPurchase,theTransfersale,
consolidated
issuance and Transfer to from Level 3 Balance asbalancefair valueof March 31,
settlement
Level 3 fairsheet (*1)
(*4)
2024
(Net)
value (*3)

(3,111) ¥

—

¥

—

¥

—

¥

6,251 ¥

(8,576)

As of March 31, 2024

Profit or loss or othercomprehensive income
during the fiscal year

Balance as Recognizedof April 1, in profit or
2023
loss (*1)

Securities
Securities classified as trading
Equity and other securities

$

118 $

Recognizedin othercomprehensive
income(*2)(57) $(In millions of U.S. dollars)
Of theamountrecognized in
profit or loss
during the
fiscal year,
valuation
gain (loss)
on financial
assets andliabilities
held as ofthe date ofPurchase,theTransfer
Transfer tosale,consolidated
issuance and Level 3 fair from Level 3 Balance asbalancefair valueof March 31,
value
settlement
sheet (*1)
(*4)
2024
(*3)
(Net)

(20) $

—

$

—

$

—

$

41 $

(57)

(*1) Included in Other under Other expenses in the consolidated statements of operations.
(*2) Included in Foreign currency translation adjustment under Other comprehensive income (loss) in the consolidated statements of comprehensive
income.
(*3) This represents a transfer from Level 2 fair value to Level 3 fair value and did not occur during the fiscal year ended March 2024.
(*4) This represents a transfer from Level 3 fair value to Level 2 fair value and did not occur during the fiscal year ended March 2024.
(3)

Fair valuation process
The JBIC Group has in place the policies and procedures for the fair value determination and each trading department determines fair value
in line with these policies and procedures. With respect to the fair value determined, an independent department, verifies the appropriateness of thevaluation methodologies, and the reasonableness of inputs, that are used in determining fair value and the appropriateness of the classification offair value by level. The verification results are escalated to management every fiscal year to ensure the appropriateness of the policies andprocedures for the fair value determination.
In determining fair value, a valuation model that best reflects the nature, characteristics, and risks of individual assets is used. When using
quoted prices obtained from third parties, JBIC verifies the reasonableness of such prices by reviewing the valuation methodologies and inputs
used or by other appropriate methods.

(4)

Effects on fair value arising from changes in significant unobservable inputs
The significant unobservable input used for determining the fair value of equity and other securities is the discount rate. The weighted
average cost of capital is primarily used as the discount rate. Generally, a significant increase (decrease) in the discount rate gives rise to asignificant decrease (increase) in the fair value.
3518. Market value of securities
Information relating to “Equity securities of and other investments in subsidiaries and affiliates” is presented in the notes to the consolidated
financial statements.
(a)Securities classified as trading

Unrealized gains or losses included in profit or loss for the fiscal year(b)

Fiscal year ended
March 31, 2023
(In millions of yen)

Fiscal year ended
March 31, 2024
(In millions of yen)

Fiscal year ended
March 31, 2024
(In millions of
U.S. dollars)¥¥(8,576)$

Acquisition cost

(In millions of yen)
Difference(3,416)(57)

Held-to-maturity debt securities

Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(c)

Available-for-sale securities

As of March 31, 2023

Type

Securities whose carrying amount exceeds their acquisition
cost

Carrying amount

Stocks¥Debt securities
Japanese government bonds
Corporate bonds
Other

Subtotal
Securities whose carrying amount does not exceed theiracquisition cost

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

Subtotal
Total

¥

— ¥
—
—
—
—
—
—
—
—
—
45,621
45,621
45,621 ¥

— ¥
—
—
—
—
—
—
—
—
—
47,00047,00047,000 ¥

—
—
—
—
—
—
—
—
—
—
(1,378)(1,378)(1,378)

As of March 31, 2024
Type

Securities whose carrying amount exceeds their acquisition
cost

Carrying amount

Stocks¥Debt securities
Japanese government bonds
Corporate bonds
Other

Subtotal
Securities whose carrying amount does not exceed theiracquisition cost

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

Subtotal
Total

¥
36

— ¥
—
—
—
2,404
2,404
—
—
—
—
51,47651,47653,880 ¥Acquisition cost

(In millions of yen)
Difference

— ¥
—
—
—
2,368
2,368
—
—
—
—
53,20053,20055,568 ¥

—
—
—
—
35
35
—
—
—
—
(1,723)(1,723)(1,688)

As of March 31, 2024

Type

Securities whose carrying amount exceeds their acquisition
cost

Carrying amount

Stocks$Debt securities
Japanese government bonds
Corporate bonds
Other

Subtotal
Securities whose carrying amount does not exceed theiracquisition cost

StocksDebt securities
Japanese government bonds
Corporate bonds
Other

Subtotal
Total
(d)

$

(In millions of U.S. dollars)
Acquisition cost
Difference

— $
—
—
—
16
16
—
—
—
—
340
340
356 $

— $
—
—
—
16
16
—
—
—
—
351
351
367 $

—
—
—
—
0
0
—
—
—
—
(11)
(11)
(11)

Held-to-maturity debt securities soldFiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(e)Available-for-sale securities soldFiscal year ended March 31, 2023

StocksDebt securities
Japanese government bonds
Corporate bonds
Other
Total

Amount of sales

Total gain on sales(In millions of yen)
Total loss on sales

¥

¥

¥

¥

—
—
—
—
734
734

¥

—
—
—
—
97
97

¥

—
—
—
—
—
—

Fiscal year ended March 31, 2024

StocksDebt securities
Japanese government bonds
Corporate bonds
Other
Total

Amount of sales

Total gain on sales(In millions of yen)
Total loss on sales

¥

¥

¥

¥

—
—
—
—
18,917
18,917

¥

—
—
—
—
3,150
3,150

¥

—
—
—
—
—
—

Fiscal year ended March 31, 2024

StocksDebt securities
Japanese government bonds
Corporate bonds
Other
Total

Amount of sales

Total gain on sales

$

$

$
37

—
—
—
—
125
125

$

—
—
—
—
21
21

(In millions of U.S. dollars)
Total loss on sales

$

$

—
—
—
—
—
—

(f)

Change in classification of securities

Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(g)

Impairment of securities

Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(h)Money held in trust(i)Money held in trust for trading purposes

Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(ii)

Money held in trust for holding-to-maturity purposes

Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(iii) Other money held in trust (other than trading and holding-to-maturity purposes)
Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
38

(i)

Net unrealized gains (losses) on available-for-sale securities are as follows:

Fiscal year ended March 31, 2023
(In millions of yen)

Valuation difference
Available-for-sale securities (*)
Other money held in trust(+) Deferred tax assets (or (-) Deferred tax liabilities)
Valuation difference on available-for-sale securities (before following adjustments)(-) Non-controlling interests(+) JBIC’s interest in valuation difference on available-for-sale securities held by affiliates accounted for using theequity method
Valuation difference on available-for-sale securities
(*)

¥

¥

¥

25,30025,300——25,300——25,300Foreign exchange translation differences and other related items for equity and other securities and partnership investments that are denominatedin foreign currencies and whose market prices are not available are included in, and presented as, “Available-for-sale securities” under “Valuationdifference.”
Fiscal year ended March 31, 2024
(In millions of yen)

Valuation difference
Available-for-sale securities (*)
Other money held in trust(+) Deferred tax assets (or (-) Deferred tax liabilities)
Valuation difference on available-for-sale securities (before following adjustments)(-) Non-controlling interests(+) JBIC’s interest in valuation difference on available-for-sale securities held by affiliates accounted for using theequity method
Valuation difference on available-for-sale securities

¥

¥

¥

41,226
41,226——
41,226——
41,226

Fiscal year ended March 31, 2024
(In millions of
U.S. dollars)

Valuation difference
Available-for-sale securities (*)
Other money held in trust(+) Deferred tax assets (or (-) Deferred tax liabilities)
Valuation difference on available-for-sale securities (before following adjustments)(-) Non-controlling interests(+) JBIC’s interest in valuation difference on available-for-sale securities held by affiliates accounted for using theequity method
Valuation difference on available-for-sale securities
(*)

$

$

$

272
272
—
—
272
—
—
272

Foreign exchange translation differences and other related items for equity and other securities and partnership investments that are denominatedin foreign currencies and whose market prices are not available are included in, and presented as, “Available-for-sale securities” under “Valuationdifference.”
3919. Derivative transactions
Notes to derivative transactions for the fiscal years ended March 31, 2023 and 2024 are as follows:(a)

Derivative transactions not qualifying for hedge accounting
For derivative transactions not qualifying for hedge accounting, the contract value at the fiscal year end or notional amount definedin agreements, and fair value and valuation gain (loss) and the fair value calculation method are as follows. The contract value does notindicate the market risk of the derivative transactions.
(i)Interest rate-related transactions

Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(ii)

Currency-related transactions

Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(iii) Equity-related transactions
Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(iv)

Bond-related transactions

Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(v)

Commodity-related transactions

Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(vi)

Credit derivative transactions

Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(b)

Derivative transactions qualifying for hedge accounting
For derivative transactions qualifying for hedge accounting, the contract value at the fiscal year end or notional amount defined inagreements, and fair value and its calculation method, by hedged item and by hedge accounting method, are as follows. The contract value
does not indicate the market risk of the derivative transactions.
40

(i)

Interest rate-related transactions

Fiscal year ended March 31, 2023
(In millions of yen)

Hedge accounting
Basic accounting method

TypeInterest rate swap

Majorhedged items
Loans and bills discounted
Bonds payable

Receive/fixed andpay/floating
Receive/floating andpay/fixed
Total

Contract
value¥

5,956,158

Contract value(Maturingafter oneyear)¥

592,441¥—

4,914,624

Fair value¥

567,460¥—(374,275)
25,385¥(348,890)

Fiscal year ended March 31, 2024
(In millions of yen)

Hedge accounting
Basic accounting method

TypeInterest rate swap

Majorhedged items
Loans and bills discounted
Bonds payable

Receive/fixed andpay/floating
Receive/floating andpay/fixed
Total

Contract value(Maturingafter oneyear)

Contract
value¥

6,402,658¥

563,873¥—

5,418,493

Fair value¥

548,665¥—(410,412)
29,259¥(381,153)

Fiscal year ended March 31, 2024

Hedge accounting
Basic accounting method

TypeInterest rate swap

Majorhedged items
Loans and bills discounted
Bonds payable

Receive/fixed andpay/floating
Receive/floating andpay/fixed
Total(In millions of U.S. dollars)
Contract value(Maturingafter oneyear)
Fair value

Contractvalue$

42,287

$

3,724
$

41

—

35,787

$

3,624
$

—

(2,711)
194$(2,517)(ii)Currency-related transactions

Fiscal year ended March 31, 2023
(In millions of yen)

Hedge accounting
Basic accounting method

Note

Type
Currency swap
Forward foreign exchange
contracts
Sell
Buy
Total

Major
hedged items
Loans and bills discounted
Investments in capital and other
items

Contract
value¥
4,329,610

Contract value(Maturingafter oneyear)¥
3,601,970

5,541
—
—

—
—
—

¥

¥

¥

Fair value(339,198)¥

12—(339,186)

These are mainly accounted for using the deferral method of hedge accounting under the Industry-specific Committee Practical Guideline
No. 25.
Fiscal year ended March 31, 2024
(In millions of yen)

Hedge accounting
Basic accounting method

Type
Currency swap
Forward foreign exchange
contracts
Sell
Buy
Total

Major
hedged items
Loans and bills discounted
Investments in capital and other
items

Contractvalue¥
5,076,131

Contract value(Maturingafter oneyear)¥
4,799,311

22,983
—
—

—
—
—

¥

¥

¥

Fair value(613,628)

¥

(11)
—
(613,639)

Fiscal year ended March 31, 2024

Hedge accounting
Basic accounting method

Note

Type
Currency swap
Forward foreign exchange
contracts
Sell
Buy
Total

Major
hedged items
Loans and bills discounted
Investments in capital and other
items

Contractvalue$
33,526$152——(In millions of U.S. dollars)
Contract value(Maturingafter oneyear)
Fair value$
31,697$(4,053)

$

—
—
—

$

These are mainly accounted for using the deferral method of hedge accounting under the Industry-specific Committee Practical Guideline
No. 25.
(iii) Equity-related transactions
Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
(iv)

Bond-related transactions

Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
42

(0)
—
(4,053)

20. Retirement benefits(a)Overview of retirement benefit plans
JBIC abolished the welfare pension fund plan effective October 1, 2014 and has established a defined benefit corporate pension plan
and a defined contribution pension plan.
JBIC has a defined benefit pension plan comprised of a corporate pension plan (transferred from a welfare pension fund plan
effective October 1, 2014) and a lump-sum severance indemnity plan. Although JBIC’s corporate pension plan is a multi-employer plan,
the amount of the pension assets corresponding to its own contribution can be reasonably calculated based on the ratio of the projected
benefit obligations, and therefore notes are included in the following notes related to the defined pension plan.
Under the corporate pension plan (funded type), pension or lump-sum payments are provided based on salary and service period.
Under the lump-sum severance indemnity plan (unfunded type), lump-sum payments are provided as retirement benefits based on salaryand service period. In addition, JBIC has established a defined contribution-type retirement benefit plan effective October 1, 2014.

(b)

Defined benefit pension plan(i)

Changes in the projected benefit obligation

Category

Projected benefit obligation at the beginning of the fiscal year
Service cost
Interest cost
Actuarial gains (losses)
Retirement benefit paid
Projected benefit obligation at the end of the fiscal year(ii)

For the year ended
March 31, 2023
(In millions of yen)

For the year ended
March 31, 2024
(In millions of yen)

For the year ended
March 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

¥

10,971
452
46
(193)
(711)
10,564¥

10,564
439
72
(334)
(765)
9,976

$

70
3
0
(2)
(5)
66

Changes in the plan assets

Category

Pension assets at the beginning of the fiscal year
Expected return on plan assets
Actuarial gains (losses)
Contributions by the employer
Retirement benefit paid
Pension assets at the end of the fiscal year

For the year ended
March 31, 2023
(In millions of yen)

For the year ended
March 31, 2024
(In millions of yen)

For the year ended
March 31, 2024
(In millions of
U.S. dollars)

¥

¥

$

¥
43

4,914
98
(44)
134
(228)
4,873

¥

4,873
97
458
138
(223)
5,345

$

32
1
3
1
(2)
35

(iii) Reconciliation of the projected benefit obligation and plan assets and net defined benefit liability and net defined benefit asset in the
consolidated balance sheets
As ofMarch 31, 2023
(In millions of yen)

Category

Funded projected benefit obligation
Fair value of plan assets¥

Unfunded projected benefit obligation
Net amount of assets and liabilities in the consolidated balance sheets
Defined benefit liability
Defined benefit asset
Net amount of assets and liabilities in the consolidated balance sheets
(iv)

As of
March 31, 2024
(In millions of
U.S. dollars)¥

5,737 ¥
(4,873)863
4,826
5,690 ¥

5,429 $
(5,345)83
4,547
4,631 $

36
(35)
1
30
31

¥

5,690
—
5,690

4,631
—
4,631

31
—
31

¥

$

Components of retirement benefit expense
For the year ended
March 31, 2023
(In millions of yen)

Category

Service cost
Interest cost
Expected return on plan assets
Realized actuarial loss
Retirement benefit expense
(v)

As of
March 31, 2024
(In millions of yen)¥¥

For the year ended
March 31, 2024
(In millions of yen)

452 ¥
46
(98)
(149)
251 ¥

For the year ended
March 31, 2024
(In millions of
U.S. dollars)

439 $
72
(97)
(792)
(377) $

3
0
(1)
(5)
(3)

Plan assets①

Major components of plan assets

Percentages of components to the total are as follows:
As ofMarch 31, 2023

Category

Debt securities
StocksGeneral accounts of life insurance companies
Cash and due from banks
Other
Total
②

62%
26%
11%
1%
0%
100%

As of
March 31, 2024

62%
27%
10%
0%
1%
100%

Method of determining the long-term expected rate of return on plan assets

The long-term expected rate of return on plan assets is determined based on the current and projected pension asset allocations aswell as on the current and future rates of return expected from various assets that are components of plan assets.
(vi)

Principal assumptions used

Principal assumptions used in actuarial calculations
For the year ended
March 31, 2023

Category

Discount rate
Expected rate of return on plan assets
Expected rate of salary increase

0.69%
2.00%
4.05%
44

For the year ended
March 31, 2024

1.00%
2.00%
4.05%

(c)

Defined contribution plan
Fiscal year ended March 31, 2023
The amount of contribution required to be made to the defined contribution plan was ¥28 million.
Fiscal year ended March 31, 2024
The amount of contribution required to be made to the defined contribution plan was ¥28 million ($0 million).

21. Deferred tax accounting(a)Breakdown of deferred tax assets and deferred tax liabilities
As ofMarch 31, 2023
(In millions of yen)

Deferred tax assets
Leasehold deposits (Asset retirement obligations)
Accrued income recognized for tax purposes
Bad debt expenses not deducted for tax purposes
Other
Sub total
Valuation allowance
Total deferred tax assets

¥

As of
March 31, 2024
(In millions of yen)

3 ¥
49
1
0
55
(54)
0 ¥

¥

As of
March 31, 2024
(In millions of
U.S. dollars)

—
$
106
1
3
111
(108)
3 $

—
1
0
0
1
(1)
0

Deferred tax assets are included in, and presented as, Other assets in the consolidated balance sheets. Income taxes - deferred isincluded in, and presented as “Income taxes – current” in the consolidated statements of operations.
(b)

Breakdown of major items resulting in a significant difference between the effective statutory tax rate and the rate of income tax and othertaxes after applying deferred tax accounting
This information is not presented since JBIC is a nontaxable entity defined in the Article 2, Item 5 of the Corporation Tax Act (ActNo. 34 of 1965) and therefore there is no significant difference between the effective statutory tax rate and the rate of income tax and othertaxes after applying deferred tax accounting.

22. Revenue recognition
Information on the breakdown of revenue from contracts with customers is as follows:
For the year ended
March 31, 2023
(In millions of yen)

Category

Ordinary income
Of which, Fees and commissions
Financing and other similar activities
Investments and other similar activities
Notes

1.
2.

¥

659,923
22,746
22,64898

For the year ended
March 31, 2024
(In millions of yen)¥

1,133,061
29,62529,384240

For the year ended
March 31, 2024
(In millions of U.S. dollars)

$

7,483
196
194
2

Revenue presented in the above table has arisen from “Ordinary Operations.”
The above table includes revenue that is based on “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10).

23. Segment information(a)

Segment summary
The JBIC Group’s operating segments are those for which discrete financial information is available, and whose operating results are
regularly reviewed by JBIC’s management.
The JBIC Group is a policy-based financial institution wholly owned by the Japanese government, which has the purpose ofcontributing to the sound development of Japan and the international economy and society, while supplementing the financial transactions
implemented by private-sector financial institutions by performing financial operations from four viewpoints: i.e., “promotion of theoverseas development and securement of resources which are important for Japan”; “maintenance and improvement of the international
competitiveness of Japanese industries”; “promotion of the overseas business having the purpose of preserving the global environment,such as preventing global warming”; and “prevention of disruptions to international financial order or implementation of appropriate
measures with respect to damages caused by such disruption.” To achieve these purposes, for business operations defined under the Act on
Japan Bank for International Cooperation and other acts, JBIC has two reporting segments: “Ordinary Operations” account and “Special
Operations” account. Accounting operations are separately carried out for respective accounts.
45

The “Ordinary Operations” account covers the businesses which are not included in the “Special Operations” account of the JBIC
Group. The Ordinary Operations account also includes the investment business of the consolidated subsidiaries.
The “Special Operations” account includes the businesses that offer financing services such as lending to overseas infrastructurebusiness projects that has risks but generate a sufficient level of expected return.
(b)

Method of calculating ordinary income, profit or loss, assets, liabilities and other items by reportable segment
Accounting treatments applied to business segments reported are the same as those disclosed in “Notes to Consolidated Financial
Statements.” The amount of profit (or loss) of reportable segments is based on Net income attributable to owner of parent.

(c)Information about the amount of ordinary income, profit or loss, assets, liabilities and other items by reportable segment
Fiscal year ended March 31, 2023

Ordinary
Operations

Ordinary income(1) Ordinary income from customers(2) Intersegment ordinary income
Total

¥
¥

Segment profit
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Interest income
Interest expense
Profits of equity method investments
Impairment losses on equity and other securities
Extraordinary income
Gain on disposal of noncurrent assets
Extraordinary loss
Loss on disposal of noncurrent assets
Income tax expenses
Equity method investments
Increase in Property, plant and equipment and Intangible assets
Reversal of allowance for loan losses

Notes

SpecialOperations

657,719 ¥
62
657,782 ¥Sub-total forreportablesegments

2,234 ¥—
2,234 ¥(In millions of yen)Amountreported in the
consolidated
financial
Adjustments
statements

659,954 ¥62
660,016 ¥(30) ¥(62)(93) ¥

659,923—
659,923

155,621
19,826,521
17,202,608

964
331,398
5,917

156,585
20,157,920
17,208,526

—
(37)
(37)

156,585
20,157,883
17,208,488

3,445
568,495
459,290
2,058
3,486
13
13
0
0
13
44,2984,240
19,194

—
2,071
731
—
—
—
—
—
—
—
—
—
158

3,445
570,567
460,022
2,058
3,486
13
13
0
0
13
44,2984,240
19,352

—
—
—
—
—
—
—
—
—
—
—
—
—

3,445
570,567
460,022
2,058
3,486
13
13
0
0
13
44,2984,240
19,352

1. Ordinary income is disclosed in place of sales for non-financial companies. Adjustments for the difference represent adjustments related tothe difference between ordinary income and Ordinary income disclosed in the consolidated statements of operations.
2. Adjustments above are as described below.
(1) Adjustments to ordinary income from customers, which were ¥30 million, represent reclassification of accounts.
(2) Other adjustments represent elimination of intersegment transactions.
46

Fiscal year ended March 31, 2024

Ordinary
Operations

Ordinary income(1) Ordinary income from customers(2) Intersegment ordinary income
Total

¥
¥

Segment profit
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Interest income
Interest expense
Losses of equity method investments
Extraordinary income
Gain on disposal of noncurrent assets
Extraordinary loss
Impairment losses
Income tax expenses
Equity method investments
Increase in Property, plant and equipment and Intangible assets
Reversal of allowance for loan losses
Provision of allowance for loan losses

SpecialOperations

1,131,310 ¥55
1,131,366 ¥Sub-total forreportablesegments(In millions of yen)Amountreported in the
consolidated
financialstatements
Adjustments

1,796 ¥ 1,133,107 ¥—55
1,796 ¥ 1,133,162 ¥(45) ¥ 1,133,061(55)—(100) ¥ 1,133,061

62,13921,320,106
18,665,506

203
337,035
6,611

62,342
21,657,142
18,672,117

—
(34)
(34)

62,342
21,657,108
18,672,083

3,637
1,020,410
901,853
95
5
5
899
899
54
27,1679,596—
125,931

—
1,648
895
—
—
—
—
—
—
—
—
45
—

3,637
1,022,058
902,748
95
5
5
899
899
54
27,1679,596
45
125,931

—
—
—
—
—
—
—
—
—
—
—
(45)
(45)

3,637
1,022,058
902,748
95
5
5
899
899
54
27,167
9,596—
125,886

Fiscal year ended March 31, 2024

Ordinary
Operations

Ordinary income(1) Ordinary income from customers(2) Intersegment ordinary income
Total

$
$

Segment profit
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Interest income
Interest expense
Losses of equity method investments
Extraordinary income
Gain on disposal of noncurrent assets
Extraordinary loss
Impairment losses
Income tax expenses
Equity method investments
Increase in Property, plant and equipment and Intangible assets
Reversal of allowance for loan losses
Provision of allowance for loan losses

Notes

SpecialOperations

7,471 $
1
7,472 $

Sub-total forreportablesegments

12 $
—
12 $

(In millions of U.S. dollars)
Amountreported in the
consolidated
financial
Adjustments
statements

7,483 $
1
7,484 $

(0) $
(1)
(1) $

7,483
—
7,483

410
140,810
123,277

2
2,226
44

412
143,036
123,321

—
(0)
(0)

412
143,036
123,321

24
6,739
5,956
1
0
0
6
6
0
179
63
—
831

—
11
6
—
—
—
—
—
—
—
—
0
—

24
6,750
5,962
1
0
0
6
6
0
179
63
0
831

—
—
—
—
—
—
—
—
—
—
—
(0)
(0)

24
6,750
5,962
1
0
0
6
6
0
179
63
—
831

1. Ordinary income is disclosed in place of sales for non-financial companies. Adjustments for the difference represent adjustments related tothe difference between ordinary income and Ordinary income disclosed in the consolidated statements of operations.
2. Adjustments above are as described below.
(1) Adjustments to ordinary income from customers, which were ¥45 million ($0 million), represent reclassification of accounts.
(2) Other adjustments represent elimination of intersegment transactions.
47

(d)

Related information
Fiscal year ended March 31, 2023
(i)

Information about services
The information about services is not presented since ordinary income from outside customers in relation to the loan, guarantee andequity participation operations is more than 90% of Ordinary income on the consolidated statements of operations.

(ii)

Information about geographical areas①

Ordinary income:(In millions of yen)

Japan

¥

189,758

Notes

UnitedStatesAsia/
Oceania¥ 63,160¥ 191,701

Europe/Middle East
/Africa

North America/
Latin America(excluding
United States)¥¥

158,509

56,794

Total¥ 659,923

1. Ordinary income is disclosed in place of sales for non-financial companies.
2. Ordinary income is disclosed based on the location of the customers and is classified by country or region.
②

Property, plant and equipment
The information about property, plant and equipment is not presented since more than 90% of Property, plant equipment on
the consolidated balance sheets is located in Japan.

(iii) Information about major customers
The information about major customers is not presented since there are no transactions with a certain customer which result in morethan 10% of Ordinary income on the consolidated statements of operations.
Fiscal year ended March 31, 2024
(i)

Information about services
The information about services is not presented since ordinary income from outside customers in relation to the loan, guarantee andequity participation operations is more than 90% of Ordinary income on the consolidated statements of operations.

(ii)

Information about geographical areas①

Ordinary income:(In millions of yen)
UnitedStatesAsia/
Oceania

Europe/Middle East
/Africa

North America/
Latin America(excluding
United States)

117,337¥292,847

¥

¥

Japan

Total

¥
¥371,979

251,91498,982¥1,133,061(In millions of U.S. dollars)

UnitedStates

Japan

$

2,457

Notes

$

775

Asia/
Oceania

Europe/Middle East
/Africa

North America/
Latin America(excluding
United States)

$

$

$

1,934

1,664

653

Total

$

7,483

1. Ordinary income is disclosed in place of sales for non-financial companies.
2. Ordinary income is disclosed based on the location of the customers and is classified by country or region.

(Change in presentation)
Ordinary income attributable to “United States”, which was included in “North America/ Latin America” for the fiscal year ended March 31, 2023
is separately presented for the fiscal year ended March 31, 2024 since the amount is more than 10% of Ordinary income reported in the consolidated
statements of operations.
48

Therefore, “(ii) Information about geographical areas, ① Ordinary income” for the fiscal year ended March 31, 2023 is reclassified, and as aresult, of the ¥119,954 million, which was presented in “North America/ Latin America” for the fiscal year ended March 31, 2023, ¥63,160 million and¥56,794 million are reclassified to “United States” and “North America/ Latin America (excluding United States)”, respectively.
②

Property, plant and equipment
The information about property, plant and equipment is not presented since more than 90% of Property, plant equipment on
the consolidated balance sheets is located in Japan.

(iii) Information about major customers
The information about major customers is not presented since there are no transactions with a certain customer which result in morethan 10% of Ordinary income on the consolidated statements of operations.
(e)Information about impairment losses of property, plant and equipment in reportable segments
Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
The information about impairment losses is omitted because the amount is immaterial.

(f)Information about the amortization and balance of goodwill in reportable segments
Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.

(g)Information about gains from the recognition of negative goodwill in reportable segments
Fiscal year ended March 31, 2023
Not applicable.
Fiscal year ended March 31, 2024
Not applicable.
4924. Related-party information
1.

Related party transactions(1)

Related party transactions with JBIC(a)

Transactions with major shareholder

Fiscal year ended March 31, 2023

Principal shareholder

Relatedparty
nameMinistry of
Finance(Minister ofFinance)

Location
Chiyoda-ku,
Tokyo

CapitalBusiness— Administration forpolicy based
financing

Ratio toRelationship
with
total
votingrelatedrights (%)
parties
Transactions
100
Receipt ofCapital subscription(Direct)
funds(Note 1)
Receipt of funds(Note 2)
Repaymentof borrowed money
Payment of interest on
borrowed money(Note 2)
Guarantee for corporate
bonds (Note 3)

Notes

Amounts oftransactions(Note 4)¥85,0003,433,096 Borrowedmoney
2,999,052

8,513,677

186,843 Accrued
expense68,641

6,171,755

1. Ministry of Finance subscribed new shares issued by JBIC through an allotment to the shareholder for ¥1 per share.
2. Receipt of funds represents borrowings from the FILP special account and Foreign Exchange Funds Special Account (“FEFSA”). FILP interest rates areapplied in accordance with the FILP agreement, while the interest rates under the respective agreements related to the FEFSA are applied to borrowings
from foreign exchange funds.
3. No guarantee fee has been paid for the guarantee of bonds.
4. Figures in the table above do not include consumption taxes.

50(In millions of yen)
Balance
as ofMarch 31,
2023
Items
(Note 4)
— ¥
—

—

—

Fiscal year ended March 31, 2024

Relatedparty
namePrincipal shareholder Ministry of
Finance(Minister ofFinance)

Location
Chiyoda-ku,
Tokyo

CapitalBusiness— Administration forpolicy based
financing

Ratio tototal
votingrights (%)
100 (Direct)

Relationshipwithrelatedparties
Transactions
Capital subscription
Receipt of(Note 1)
funds
Receipt of funds(Note 2)
Repayment of borrowed
money
Payment of interest on
borrowed money(Note 2)
Guarantee for corporate
bonds (Note 3)

Amounts oftransactions(Note 4)
¥ 103,000(In millions of yen)
Balance
as ofMarch 31,
2024
Items
(Note 4)
— ¥—5,632,677 Borrowedmoney
5,728,455

9,193,988

362,856 Accrued
expense101,936

6,616,856——

Fiscal year ended March 31, 2024

Relatedparty
namePrincipal shareholder Ministry of
Finance(Minister ofFinance)

Location
Chiyoda-ku,
Tokyo

CapitalBusiness— Administration forpolicy based
financing

Ratio tototal
votingrights (%)
100 (Direct)

Relationshipwithrelatedparties
Transactions
Receipt ofCapital subscription
funds(Note 1)
Receipt of funds(Note 2)
Repayment of borrowed
money
Payment of interest on
borrowed money(Note 2)
Guarantee for corporate
bonds (Note 3)

Notes(In millions of U.S. dollars)
Balanceas ofAmounts ofMarch 31,transactions
2024
Items
(Note 4)(Note 4)
$
680
— $
—

37,201 Borrowedmoney
37,83460,722

2,397 Accrued
expenses

673

43,702

1. Ministry of Finance subscribed new shares issued by JBIC through an allotment to the shareholder for ¥1 ($0.007) per share.
2. Receipt of funds represents borrowings from the FILP special account and FEFSA. FILP interest rates are applied in accordance with the FILP
agreement, while the interest rates under the respective agreements related to the FEFSA are applied to borrowings from foreign exchange funds.
3. No guarantee fee has been paid for the guarantee of bonds.
4. Figures in the table above do not include consumption taxes.

51

—

—

(b)

Transactions with fellow subsidiaries and subsidiaries of any other associated companies

Fiscal year ended March 31, 2023
(In millions of yen)
Balance
Ratio to Relationship
as of
with
total
Corporate
March 31,relatedAmounts ofvotingnameLocation
Business2023
parties
Transactions transactions Items
rights (%)
CapitalEntities that had the majority of their voting rights held by Japan
Chiyoda-ku, ¥ 8,357,429 Official
None
Joint
Joint
¥
20,000— ¥—principal shareholder
International Tokyo
development
obligorobligations(Notes 1, 3)
Cooperation
assistanceAgencyJapan
Chiyoda-ku, 11,696,178 Finance
None
Joint
Joint
60,000——FinanceTokyoobligorobligations(Notes 2, 3)
Corporation
Notes 1. JBIC assumed the obligations of the JBIC bonds in accordance with Article 12 (1) of the Supplementary Provisions of the JBIC Act, and the Japan International Cooperation
Agency (“JICA”) is jointly responsible for the obligations of these bonds in accordance with the provision of Article 4 (1) of Supplementary Provisions of the Japan International
Cooperation Agency Act (Act No. 136 of 2002). Pursuant to Article 4 (2) hereof, all of JICA’s assets are pledged as general collateral for these joint obligations.
2. JBIC is jointly responsible for the obligations of JFC bonds in accordance with Article 17 (1) (ii) of Supplementary Provisions of the JBIC Act. In accordance with Article 17 (2)hereof, all of JBIC’s assets are all pledged as general collateral for these joint obligations.
3. In relation to these joint obligations, no transactions are recognized in the consolidated statements of operations.

Fiscal year ended March 31, 2024
(In millions of yen)
Ratio to Relationship
Balance
total
with
as of
Corporate
votingrelatedAmounts ofMarch 31,
nameLocation
Business rights (%)
Capitalparties
Transactions transactions Items
2024
Entities that had the majority of their voting rights held by Japan
Chiyoda-ku, ¥ 8,405,269 Official
None
Joint
Joint
¥
20,000— ¥—principal shareholder
International Tokyo
development
obligorobligations(Notes 1, 3)
Cooperation
assistanceAgencyJapan
Chiyoda-ku, 11,768,477 Finance
None
Joint
Joint
60,000——FinanceTokyoobligorobligations(Notes 2, 3)
Corporation

Fiscal year ended March 31, 2024
(In millions of U.S. dollars)
Ratio to Relationship
Balance
total
with
as of
Corporate
votingrelatedAmounts ofMarch 31,
nameLocation
Business
Capitalrights (%)
parties
Transactions transactions Items
2024
Entities that had the majority of their voting rights held by Japan
Chiyoda-ku, $55,513 Official
132
None
Joint
Joint
$
— $
—
principal shareholder)
International Tokyo
development
obligorobligations(Notes 1, 3
Cooperation
assistanceAgencyJapan
Chiyoda-ku,
77,726 Finance
None
Joint
Joint
396
—
—
FinanceTokyoobligorobligations(Notes 2, 3)
Corporation
Notes 1. JBIC assumed the obligations of the JBIC bonds in accordance with Article 12 (1) of the Supplementary Provisions of the JBIC Act, and the Japan International Cooperation
Agency (“JICA”) is jointly responsible for the obligations of these bonds in accordance with the provision of Article 4 (1) of Supplementary Provisions of the Japan International
Cooperation Agency Act (Act No. 136 of 2002). Pursuant to Article 4 (2) hereof, all of JICA’s assets are pledged as general collateral for these joint obligations.
2. JBIC is jointly responsible for the obligations of JFC bonds in accordance with Article 17 (1) (ii) of Supplementary Provisions of the JBIC Act. In accordance with Article 17 (2)hereof, all of JBIC’s assets are all pledged as general collateral for these joint obligations.
3. In relation to these joint obligations, no transactions are recognized in the consolidated statements of operations.

(2)

Transactions between consolidated subsidiaries and related parties
Not applicable.
52

2.

Notes to the parent company or significant affiliates(1)

Parent company information
Not applicable.

(2)

Condensed financial information of significant affiliates
Significant affiliates of JBIC are IFC Capitalization (Subordinated Debt) Fund, L.P. and IFC Capitalization (Equity) Fund, L.P in thecurrent fiscal year. Their condensed financial information is as shown below:
For the year ended
March 31, 2023
(In millions of yen)

Total assets
Total liabilities
Total net assets¥

42,325
111
42,214Gain on investment
Net income before income taxes
Net income

For the year ended
March 31, 2024
(In millions of yen)¥

23,584
88
23,495

2,945
1,430
1,430

For the year ended
March 31, 2024
(In millions of
U.S. dollars)

$

156
1
155

2,890
2,686
2,686

19
18
18

25. Amounts per share
Amounts per share as of and for the fiscal years ended March 31, 2023 and 2024 are calculated as follows:
For the year ended
March 31, 2023
(In yen)

Net assets per share of common stock
Net income per share of common stock
Note

¥

1.50
0.08

For the year ended
March 31, 2024
(In yen)

¥

1.44
0.03

For the year ended
March 31, 2024
(In U.S. dollars)

$

0.01
0.00

1. Net income per share of common stock is based on the following information.
Diluted net income per share of common stock is not presented since there are no dilutive shares.
For the year ended
March 31, 2023
(In millions of yen)

Net income attributable to owner of parent
Amount not attributable to common stock
Net income attributable to owner of parent related to common stock
Average number of outstanding shares of common stock(during the fiscal year)
Note¥

For the year ended
March 31, 2024
(In millions of yen)

156,585—
156,585
1,875,663,013
thousand shares¥

62,342—
62,342
1,960,488,524
thousand shares

For the year ended
March 31, 2024
(In millions of
U.S. dollars)

$

412
—
412

2. Net assets per share of common stock is based on the following information.
As ofMarch 31, 2023
(In millions of yen)

Net assets
Deductions from net assets(Non-controlling interests)
Net assets related to common stockYear-end number of outstanding shares of common stock based on which net
assets per share was calculated
53¥

2,949,394
283
283
2,949,110
1,958,800,000
thousand shares

As ofMarch 31, 2024
(In millions of yen)¥

2,985,025
258
258
2,984,767
2,061,800,000
thousand shares

As ofMarch 31, 2024
(In millions of
U.S. dollars)$

19,7152
2
19,713

26. Bonds payable
Bonds payable as of March 31, 2024 are as follows:(In millions of yen)
Name ofcompany

JBIC

Description ofbonds payable
Government guaranteed JBIC
foreign bonds 4th, 9th, 10th,
12th, 13th, 15th, 17th, 19th,
25th, 29th, 32nd, 34th - 38th,
40th, 41st, 43rd - 61st

Date ofissuance
July 31, 2013 –January 24, 2024

Balance at the
beginning of
the current
fiscal year
6,171,755(USD 43,735,356,000)(GBP 249,907,000)(EUR 1,992,853,000)

JBIC bonds 23rd

March 14, 2006

20,000

Total

—

¥

6,191,755

Balance atthe end of
the current
fiscal year
6,616,856[984,021](USD 41,236,059,000)[USD 6,499,053,000](GBP 249,935,000)(EUR 1,994,072,000)
20,000¥6,636,856

Interest
rate (%)
0.375~4.875

2.090
—

Collateral
Generalcollateral

Maturity date
May 22, 2023 –April 15, 2031

Generalcollateral—

December 19, 2025

Remarks*1——(In millions of U.S. dollars)Name ofcompany

JBIC

Description ofbonds payable
Government guaranteed JBIC
foreign bonds 4th, 9th, 10th,
12th, 13th, 15th, 17th, 19th,
25th, 29th, 32nd, 34th - 38th,
40th, 41st, 43rd - 61st

Date ofissuance
July 31, 2013 –January 24, 2024

JBIC bonds 23rd

March 14, 2006

Total

Notes 1.

—

Balance atthe end of
the current
fiscal year
43,702[6,499](USD
41,236,059,000)[USD 6,499,053,000](GBP 249,935,000)(EUR 1,994,072,000)
132

Balance at the
beginning of
the current
fiscal year
40,762(USD
43,735,356,000)(GBP 249,907,000)(EUR 1,992,853,000)
132$

40,894$

43,834

The amounts of foreign currency-denominated bonds are shown with original currencies in parentheses (Interest
rate (%)
0.375~4.875

2.090
—

Collateral
Generalcollateral

Maturity date
May 22, 2023 –April 15, 2031

Generalcollateral—

December 19, 2025—

Remarks

*1
—

).

2.

Figures indicated in brackets [] represent the amounts to be redeemed within one year.

3.

(*1)

4.

The redemption schedule of bonds payable for each of the next five years as of March 31, 2024 is as follows:

JBIC assumed the obligations in respect of the JBIC bonds which had been issued by JBIC before JFC was established, and JBIC and JICA are jointly responsible for theseobligations in accordance with the JBIC Act.

After 1 year
but within
2 years

Within 1 year

Bonds payable¥

984,165 ¥After 1 year
but within
2 years

Within 1 year

Bonds payable$

1,609,805 ¥

6,500 $
54

10,632 $After 2 years
but within
3 years

1,228,803 ¥After 2 years
but within
3 years

8,116 $

After 3 years
but within
4 years(In millions of yen)
After 4 years
but within
5 years

882,437 ¥794,902(In millions of U.S. dollars)
After 3 years
After 4 years
but within
but within
4 years
5 years

5,828 $

5,250

27. Borrowings
Borrowings as of March 31, 2024 are as follows:

Borrowed money
Borrowings
Lease obligation (Due within one year)
Lease obligation (Due after one year)
Other interest-bearing liabilities
Cash collateral received for financial
instruments
Notes

Balance at the
beginning of thecurrent
fiscal year
(In millionsof yen)Balance at the
beginning of thecurrent
fiscal year
(In millions of
U.S. dollars)

Balance at theend of thecurrent
fiscal year
(In millionsof yen)Balance at theend of thecurrent
fiscal year
(In millions of
U.S. dollars)¥$

56,229¥ 9,193,988$

8,513,677——
30,86056,229——204

30,860204

8,513,677

Average interest
rate (%)

Due date ofpayment

60,722

4.04

9,193,988
2
7
37,35060,722
0
0
247

4.04
—
—
0.07

—
May 2024 –February 2042—
June 2028—

37,350

247

0.07

—

1.

“Average interest rate” represents the weighted-average interest rates of debts calculated from “Interest rates” and “Balance at the endof the current fiscal year.”2.

As for the lease obligation, there is no average lease rate since the short-cut method is applied for the transaction.

3.

There is no fixed maturity date for the repayment of Cash collateral received for financial instruments.

4.

Maturities of borrowings and the lease obligation for the next five years as of March 31, 2024 are as follows:

Within 1 year

Borrowings
Lease obligation¥

423,3802

Within 1 year

Borrowings
Lease obligation

$

2,796
0

After 1 year
but within 2 years

After 2 years
but within 3 years

After 3 years
but within 4 years(In millions of yen)
After 4 years
but within 5 years

¥

¥

¥

¥

182,1822

387,4842

5,712,044
2

686,8960After 1 year
but within 2 years

After 2 years
but within 3 years(In millions of U.S. dollars)
After 3 years
After 4 years
but within 4 years
but within 5 years

$

$

$

1,203
0

2,559
0

37,726
0

$

4,537
0

28. Asset retirement obligations
This information is not presented because the amount of asset retirement obligations as of the beginning and end of the current fiscal year is equal
to, or less than, one hundredth of the aggregated amount of Liabilities and Net assets as of the beginning and end of the current fiscal year.
29. Other
Not applicable.
55

Exhibit 3
Consent of Independent Auditor
We consent to the incorporation by reference in the Registration Statement (No. 333-250107) of Japan Bank for International Cooperation of our report
dated August 5, 2024, with respect to the consolidated financial statements of Japan Bank for International Cooperation prepared in accordance withaccounting principles generally accepted in Japan included in its Annual Report on Form 18-K for the year ended March 31, 2024.
/s/ Ernst & Young ShinNihon LLC
Tokyo, Japan
August 5, 2024

Exhibit 4Exhibit 5[TRANSLATION]
JAPAN BANK FOR INTERNATIONAL COOPERATION ACT(Act No. 39 of 2011)
Amendments
May 30, 2014 by Act No. 44 of 2014;
June 27, 2014 by Act No. 91 of 2014;
May 18, 2016 by Act No. 41 of 2016;
May 24, 2017 by Act No. 37 of 2017;
December 11, 2019 by Act No. 71 of 2019;
May 26, 2021 by Act No. 46 of 2021; andApril 14, 2023 by Act No.11 of 2023
TABLE OF CONTENTS
Chapter 1:

General Provisions (Articles 1 through 5)

Chapter 2:

Officers and Employees (Articles 6 through 10)

Chapter 3:

Operations (Articles 11 through 14)

Chapter 4:

Finance and Accounting (Articles 15 through 37)

Chapter 5:

Miscellaneous Provisions (Articles 38 through 43)

Chapter 6:

Penal Provisions (Articles 44 through 47)

Supplementary Provisions

CHAPTER 1: GENERAL PROVISIONS
Article 1:

PurposeJapan Bank for International Cooperation shall be a Kabushiki-Kaisha, which has the purpose of contributing to the sound development of Japan and theinternational economy and society, by taking responsibility for the financial function to promote the overseas development and securement of resources
which are important for Japan, to maintain and improve the international competitiveness of Japanese industries and to promote the overseas businesshaving the purpose of preserving the global environment, such as preventing global warming, also providing the financial services that are necessary to
prevent disruptions to international financial order or to take appropriate measures with respect to damages caused by such disruption, while having theobjective of supplementing the financial transactions implemented by ordinary financial institutions.
Article 2:

Definitions

In this Act, the meaning of the terms listed in each of the following Items shall be as prescribed respectively in those Items.
(1)“Juridical Persons, etc.” means associations, such as juridical persons, or individuals.

(2)“Foreign Governments, etc.” means foreign governments, governmental agencies or local governments.

(3)“Banks, etc.” means the banks set forth in the Banking Act (Act No. 59 of 1981), long-term credit banks set forth in the Long Term Credit Bank
Act (Act No. 187 of 1952) and other financial institutions prescribed by a Cabinet Order.

(4)“Specific Purpose Company, etc.” means the specific purpose company (tokutei mokuteki kaisha) defined in Paragraph 3 of Article 2 of the Act on
Securitization of Assets (Act No. 105 of 1998) and the juridical persons that conduct the actions similar to the securitization of assets defined in
Paragraph 2 of the same Article as prescribed by the Ordinance of the Ministry of Finance.

(5)“Trust Company, etc.” means the trust companies defined in Paragraph 2 of Article 2 of the Trust Business Act (Act No. 154 of 2004), the foreign
trust companies defined in Paragraph 5 of the same Article or the financial institutions which have obtained the authorization set forth inParagraph 1 of Article 1 of the Act on Provision, etc. of Trust Business by Financial Institutions (Act No. 43 of 1943).

(6)“Small and Medium Enterprises” means those who fall under any of the following Items:a.

Any company whose capital or total amount of contributions does not exceed three hundred million yen (¥300,000,000) (fifty million yen(¥50,000,000) for an enterprise which is principally engaged in a retail or service business, and one hundred million yen (¥100,000,000) for an
enterprise which is principally engaged in a wholesale business), and any company and individual whose regular workforce does not exceed threehundred (300) persons (fifty (50) persons for an enterprise which is principally engaged in a retail business, and one hundred (100) persons for an
enterprise which is principally engaged in a wholesale or service business), any of which/whom is engaged in a business (hereinafter referred to as
the “Small and Medium Enterprise Specific Business”) belonging to the business category prescribed by a Cabinet Order (excluding those which
are principally engaged in a business belonging to the business category prescribed by the Cabinet Order provided for in b below); andb.

Among the companies whose capital or total amount of contributions do not exceed the amount prescribed by a Cabinet Order for each businesscategory, and the companies and individuals whose regular workforce does not exceed the number of employees prescribed by a Cabinet Order foreach business category, any of which/whom is principally engaged in a business belonging to the business category prescribed by such Cabinet
Order, those engaged in the Small and Medium Enterprise Specific Business.

(7)“New Enterprises, etc.” means those who fall under any of the following Items:a.

The Juridical Persons, etc. that have been incorporated or have been in business for less than ten (10) years (excluding those prescribed by theOrdinance of the Ministry of Finance as having a low necessity to supplement the private investment of their overseas business, taking into
account the content of their overseas business, equity investors and other circumstances); and
-2-

b.

In addition to those listed in the preceding Item a., the Juridical Persons, etc. prescribed by the Ordinance of the Ministry of Finance as having anespecially high necessity to supplement the private investment of their overseas business, taking into account the content of their overseas
business, equity investors and other circumstances.

(8)“Foreign Juridical Persons, etc. Invested in” means the Juridical Persons, etc. of foreign countries (including the Juridical Persons, etc. of foreigncountries having a continuous economic relationship, such as the supply of raw materials or the dispatching of officers, with the Juridical Persons,etc. of Japan) who are related to the contributions to the Juridical Persons, etc. of Japan.

(9)“Foreign Financial Institutions, etc.” means foreign banks, other financial institutions, and other foreign juridical persons specified by the Ministerof Finance.

(10) “Specific Foreign Juridical Persons” means foreign juridical persons (excluding Foreign Financial Institutions, etc.) engaged in a business whichfalls under any of the following Items:a.

Any business concerning the development of goods or technologies (with respect to goods, including the production of goods) which areimportant for the maintenance or improvement of the international competitiveness of Japanese industries, any of which is prescribed by theOrdinance of the Ministry of Finance as necessary to strengthen the supply network of goods which Juridical Persons, etc. of Japan or Foreign
Juridical Persons, etc. Invested in procure, or to promote the provision of technologies which Juridical Persons, etc. of Japan or Foreign Juridical
Persons, etc. Invested in utilize; andb.

Any business prescribed by the Ordinance of the Ministry of Finance as concerning the development of the foundation necessary for overseas
business activities by Juridical Persons, etc. of Japan or Foreign Juridical Persons, etc. Invested in, such as a business concerning the developmentof the foundation to utilize information and communications technologies.

(11) “Public/Corporate Bonds, etc.” means (i) public bonds, corporate bonds or any equivalent bond certificates or (ii) beneficial interests in trust.
(12) “Export of Equipment, etc.” means those that fall under any of the following Items:a.

the export of equipment (including aircraft, ships and rolling stock; the same shall apply hereinafter) and the parts thereof and accessories thereto
made in Japan and other goods made in Japan, the export of which is recognized to make a remarkable contribution to the development or
securement of Japan’s export or import markets;b.

the sale in overseas of equipment and the parts thereof and accessories thereto made in overseas by the Juridical Persons, etc. of Japan or Foreign
Juridical Persons, etc. Invested in, and any other products made in overseas by the Juridical Persons, etc. of Japan or Foreign Juridical Persons,etc. Invested in, that is recognized to make remarkable contribution to the development or securement of the sales markets overseas; orc.

the provision of the technologies which is recognized to contribute to the development or securement of Japan’s export or import markets or thesales markets overseas or to the promotion of Japan’s economic relations with foreign countries.

(13) “Import of Important Goods, etc.” means those which fall under any of the following Items:a.

the import or introduction of goods (including equipment) or technologies (hereinafter referred to as “Important Goods, etc.” in b. below), which
are essential for the sound development of Japan’s trade relations with foreign countries or the national economy; orb.

the receipt or introduction of Important Goods, etc. into foreign countries made or developed overseas so that Juridical Persons, etc. of Japan or
Foreign Juridical Persons, etc. Invested in can utilize them for their business in the foreign countries.

(14) “Guarantee, etc. of Liabilities” means the guarantee of liabilities (including any act to assume liabilities which is equivalent to the guarantee of
liabilities, only if the liabilities have a guarantee period of more than one (1) year) and the transactions with respect to which the other party(ies)promises to make payment, while Japan Bank for International Cooperation (hereinafter referred to as “JBIC”) promises to make payment in thecase any event related to the credit standing of the persons predetermined by JBIC and the other party(ies) has occurred (including those withrespect to which the other party(ies) promises to transfer monetary claims, such as loan receivables and Public/Corporate Bonds, etc., upon theoccurrence of such event) or similar transactions.
-3-

(15) “Specific Trust” means the trust established by the methods listed in Item (1) of Article 3 of the Trust Act (Act No. 108 of 2006) (limited to thoseestablished in a manner of executing a trust agreement set forth in the same Item with the Trust Company, etc.), the trust established by themethods listed in Item (3) of the same Article or any equivalent actions.
(16) “Co-financing” means the loan of funds (including those prescribed by the Ordinance of the Ministry of Finance as having an economic naturesimilar to a loan; the same shall apply hereinafter, excluding Article 32 and Paragraphs 1 and 6 of Article 33) by Banks, etc., concurrently with
JBIC.
Article 3:

Holding of Shares by Government

The Government shall, at all times, hold the total number of outstanding shares of JBIC.
Article 4:

Government’s Contribution

1.

The Government may, when it finds it to be necessary, make contributions to JBIC within the amount appropriated in the budget.

2.

When a contribution is made by the Government pursuant to the provisions of the preceding Paragraph, JBIC shall, notwithstanding the provisionsof Paragraph 2 of Article 445 of the Companies Act (Act No. 86 of 2005), be allowed not to record the amount exceeding half of such contribution
amount as the capital. In this case, “this Act” referenced in Paragraph 1 of the same Article shall be deemed to be replaced with “this Act or Japan
Bank for International Cooperation Act (Act No. 39 of 2011).”3.

When a contribution is made by the Government pursuant to the provisions of Paragraph 1, JBIC shall allocate the capital and reserves increased
thereby, to the accounts related to the operations listed in each Item of Article 26-2, in accordance with the separation of accounting set forth in
Article 26-2.

Article 5:

Limitation, etc. on Use of Name1.

No person other than JBIC shall use the words “Japan Bank for International Cooperation” in its name.

2.

The provisions of Paragraph 2 of Article 6 of the Banking Act shall not be applied to JBIC.

CHAPTER 2: OFFICERS AND EMPLOYEESArticle 6:

Resolution for Appointment and Removal, etc. of Officers, etc.

1.

The resolution for the appointment and removal of the Officers, etc. (meaning Directors, Executive Officers and Auditor(s); the same shall apply
hereinafter) of JBIC shall not take effect unless the authorization of the Minister of Finance is granted.

2.

The resolution for selection and displacement of a Representative Director or Representative Executive Officer of JBIC shall not take effect unlessthe authorization of the Minister of Finance is granted.

Article 7:

Provisions on Disqualification for Officer, etc.

No employees (other than persons in part-time employment) of the Government or a local government may be the Officers, etc. of JBIC.
Article 8:

Prohibition of Concurrent Holding of Positions by Officers, etc.

No Officers, etc. (other than part-time Officers; the same shall apply in this Article) of JBIC shall become an officer of any for-profit organization otherthan JBIC or shall engage, for his/her own account, in any business for profit; provided, however, that this shall not apply when the Minister of Financeapprove that such concurrent position will not interfere with such Officer’s execution of his/her duties as the Officers, etc. and gives approval.
-4-Article 9:

Confidentiality Obligations of Officers, etc., Accounting Advisor and Employees

No Officers, etc., Accounting Advisor (if the Accounting Advisor is a juridical person, a member who should execute its duties; the same shall apply inthe following Article and Article 45 hereof) or employees of JBIC shall disclose or misappropriate any secret they have learned in the course of theirduties. The same shall apply after they leave their offices.
Article 10:

Status of Officers, etc., Accounting Advisor and Employees

The Officers, etc., Accounting Advisor or employees of JBIC shall be deemed to be employees engaged in public service in accordance with laws andregulations, in so far as the application of penal provisions such as the Penal Code (Act No. 45 of 1907) is concerned.

CHAPTER 3: OPERATIONSArticle 11:

Scope of Operations

JBIC shall, for attaining its purpose, engage in the operations listed below:(1)

The loan of funds necessary for the Export of Equipment, etc., the acquisition by assignment of loan receivables related to such funds, theGuarantee, etc. of Liabilities related to such funds, in the case where the Foreign Financial Institutions, etc. or the Foreign Governments, etc.
provide the Guarantee, etc. of Liabilities with respect to such funds, the Guarantee, etc. of Liabilities related to such Guarantee, etc. of Liabilities,
or the acquisition of the Public/Corporate Bonds, etc. issued in order to procure such funds by certain measures, such as acquisition throughsubscription;(2)

The loan of funds necessary to ensure the reliable and timely Import of Important Goods, etc., the acquisition by assignment of loan receivables
related to such funds, the Guarantee, etc. of Liabilities related to such funds or the acquisition of the Public/Corporate Bonds, etc. to be issued inorder to procure such funds by certain measures, such as acquisition through subscription;(3)

The loan of funds to be used directly or indirectly for the business which the Juridical Persons, etc. of Japan, Foreign Governments, etc. or Foreign
Juridical Persons, etc. Invested in conduct outside Japan, the acquisition by assignment of loan receivables related to such funds, the Guarantee,
etc. of Liabilities related to such funds, in the case where the Juridical Persons, etc. of Japan, Foreign Juridical Persons, etc. Invested in, Foreign
Financial Institutions, etc. or Foreign Governments, etc. provide the Guarantee, etc. of Liabilities to the Juridical Persons, etc. of foreign countries
with respect to such funds, the Guarantee, etc. of Liabilities related to such Guarantee, etc. of Liabilities, or the acquisition of the Public/Corporate
Bonds, etc. to be issued in order to procure such funds by certain measures, such as acquisition through subscription;(4)(i) The loan to the Foreign Governments, etc., Foreign Financial Institutions, etc. or international organizations, such as the International Monetary
Fund, of long-term funds (meaning the funds required to be provided for more than one (1) year; the same shall apply hereinafter) required fortheir overseas business or the import of goods or introduction of technologies by the foreign country concerned, or funds required to attain theinternational balance of payments or achieve the stability of the currency of the foreign country concerned, (ii) the acquisition by assignment ofloan receivables related to such funds or the Guarantee, etc. of Liabilities related to such funds or (iii) the acquisition of the Public/Corporate
Bonds, etc. issued in order to procure such funds by certain measures, such as acquisition through subscription, or (iv) the loan to the Specific
Foreign Juridical Persons of long-term funds required for their overseas business (limited to businesses set forth in a. and b. of Item (10) of
Article 2), (v) the acquisition by assignment of loan receivables related to such funds or the Guarantee, etc. of Liabilities related to such funds or(vi) the acquisition of the Public/Corporate Bonds, etc. issued in order to procure such funds by certain measures, such as acquisition throughsubscription;(4-2) When international organizations, such as the International Monetary Fund, loan long-term funds necessary for the business which is required forthe overseas recovery or development, such as a business concerning the recovery from damage caused by wars, to foreign Juridical Persons, etc.,
such as Foreign Governments, etc. which are engaged in such business, the provision of Guarantee, etc. of Liabilities related to such funds(limited to those conducted to prevent disruptions to international financial order or to take appropriate measures with respect to damages causedby such disruption);
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(5)

When it is found remarkably difficult for a foreign government or foreign resident to conduct overseas transactions, such as import by reason of
the international balance of payments of the foreign country concerned, and it is found urgently necessary, the loan to the governments,
governmental agencies or banks of the foreign country concerned, of the short-term funds (meaning the funds required necessary to be provided
for one (1) year or less than one (1) year; the same shall apply hereinafter) necessary to facilitate overseas transactions, such as import, until theInternational Monetary Fund, etc. (meaning international organizations, such as the International Monetary Fund, or governments, governmental
agencies or banks of more than two (2) countries other than that foreign country concerned; the same shall apply hereinafter) provides funds toassist the development of the economy of the foreign country concerned (hereinafter referred to as the “Funds for Economic Assistance”);(6)

The provision of contributions to persons listed below who are carrying on business outside Japan of the funds required for their business (limited
to funds necessary for business newly carried outside Japan, with respect to those listed in b. below), or the provision of contributions to those
Juridical Persons, etc. of Japan whose sole purpose is to make overseas investments and who make contributions to those carrying on businessoutside Japan of funds required for their business;a.

foreign Juridical Persons, etc.; andb.

New Enterprises, etc. of Japan or Small and Medium Enterprises, etc. (meaning the Small and Medium Enterprises or medium enterprises
specified by the Minister of Finance; hereinafter the same shall apply) of Japan.

(7)

The carrying out of the necessary studies related to the operations listed in each of the preceding Items;(8)

The provision of information to the users of operations provided by JBIC that pertains to such operations; and(9)

Any other operations incidental to those listed in each of the preceding Items (excluding those listed in Item (7)).

Article 12:
1.

Among the operations listed in Item (1) of the preceding Article, those which are related to the Export of Equipment, etc. destined for any areaother than developing overseas areas (hereinafter referred to as the “Developing Areas”) may be conducted only in the cases listed below:(1)when necessary countermeasures are taken in accordance with multilateral arrangements in the case where the Foreign Governments, etc., inwhich exporters conduct the export destined for the said area, grant credit, underwrite insurance or provide an interest (including those prescribedby the Ordinance of the Ministry of Finance as having an economic nature similar to an interest; the same shall apply hereinafter in Paragraph 2 ofArticle 16) support with more favorable conditions than usual in order to promote the export from such foreign countries; or(2)when it is prescribed by a Cabinet Order as being a case recognized especially necessary in order to promote the policies of the Government
concerning the maintenance or improvement of the international competitiveness of Japanese industries.

2.

Among the operations listed in Item (1) of the preceding Article, those relating to the funds provided to the Juridical Persons, etc. of Japan may be
conducted only in the cases listed below:(1)

where Banks, etc. provide Foreign Juridical Persons, etc. with the loan of funds with respect to the Export of Equipment, etc. necessary for thebusiness with respect to the development of infrastructure and other foundation for socioeconomic activities overseas, and JBIC provides the loanof necessary funds for such loan to the Banks, etc.; or(2)where the execution of the export by the Juridical Persons, etc. of Japan has become remarkably difficult due to disruptions to international
financial order and the Minister of Finance determines that the exceptions of operations of JBIC are necessary in order to deal therewith.

3.

Among the operations listed in Item (2) of the preceding Article, other than those conducted in order to promote overseas development andsecurement of resources important for Japan, only those relating to the funds listed below that are the Guarantee, etc. of Liabilities may be
conducted:(1)

funds necessary to import the products, such as aircraft, specified by the Minister of Finance, with respect to which the products made in Japan are
not sufficient to replace and the import to Japan is essential; or(2)funds necessary to introduce such technologies specified by the Minister of Finance, with respect to which the technologies of Japan are notsufficient to replace and the introduction to Japan is essential.
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4.

Among the operations listed in Item (3) of the preceding Article, those relating to the short-term loans may be conducted only in the case where
JBIC has agreed to make loan of funds (excluding short-term funds) set forth in the same Item for the execution of business conducted by the
Juridical Persons, etc. of Japan and the Foreign Juridical Persons, etc. Invested in and such loan of funds is recognized especially necessary inorder to execute such business.

5.

Among the operations listed in Item (3) of the preceding Article, the loan of funds necessary for the overseas business to be conducted by the
Juridical Persons, etc. of Japan, other than those listed in Item (2) of the following Paragraph, may be conducted only if such loan is provided
directly to such Juridical Persons, etc.

6.

Among the operations listed in Item (3) of the preceding Article (excluding those conducted in order to promote overseas development andsecurement of resources important for Japan), loans to the Juridical Persons, etc. of Japan, other than the loans to the Small and Medium
Enterprises, etc. may be conducted only in the cases listed below.

(1)

When the Juridical Persons, etc. of Japan begin or expand overseas business, or improve the efficiency thereof by contributing to the foreignjuridical persons or accepting the assignment of all or part of the business of the foreign juridical persons (hereinafter referred to as“Contributions, etc.” in this Item), in the case where the loan of funds necessary for such Contributions, etc. is provided (only when it isprescribed by a Cabinet Order as being a case recognized especially necessary in order to promote the policies of the Government concerning themaintenance or improvement of the international competitiveness of Japanese industries).

(2)

When the Banks, etc. provide the loan of funds listed below, in the case where the loan of funds necessary for such loan by such Banks, etc. isprovided to such Banks, etc.:a.

loan of funds set forth in Item (3) of the preceding Article to the Small and Medium Enterprises, etc. or the Foreign Juridical Persons, etc. Invested
in related to the contribution of the Small and Medium Enterprises, etc.;b.

loan of funds set forth in the preceding Item to the Juridical Persons, etc. of Japan (limited to those prescribed by the Cabinet Order set forth in thesame Item); orc.

loan of funds set forth in Item (3) of the preceding Article to the Juridical Persons, etc. of Japan, Foreign Governments, etc., or Foreign Juridical
Persons, etc. Invested in (limited to those related to the business with respect to the development of infrastructure and other foundation forsocioeconomic activities overseas).

(3)

When the loan of necessary funds is provided to the Juridical Persons, etc. of Japan for such Juridical Persons, etc. to conduct a business of leasing
equipment made in Japan to overseas market (limited to those prescribed by a Cabinet Order as being a case recognized especially necessary inorder to promote the policies of the Government concerning the maintenance or improvement of the international competitiveness of Japaneseindustries).

(4)

When the Juridical Persons, etc. of Japan provides the Foreign Juridical Persons, etc. Invested in in which such Juridical Persons, etc. directly or
indirectly invests with the funds required for the following businesses conducted by such Foreign Juridical Persons, etc. Invested in, in the casewhere the loan of funds necessary for such provision of funds by such Juridical Persons, etc. is provided to such Juridical Persons, etc.:a.

business concerning the development (including production), transportation or procurement of goods, such as raw materials which are essential for
Juridical Persons, etc. of Japan or Foreign Juridical Persons, etc. Invested in to make products;b.

business concerning the development of the technologies which is essential for Juridical Persons, etc. of Japan or Foreign Juridical Persons, etc.
Invested in to make products; andc.

business concerning the processing or assembly, or transportation or sales of the products which Juridical Persons, etc. of Japan or Foreign
Juridical Persons, etc. Invested in make.

(5)

When the execution of overseas business of the Juridical Persons, etc. of Japan has become remarkably difficult due to disruptions to international
financial order, in the case where the Minister of Finance determines that the exceptions of operations of JBIC are necessary in order to deal
therewith.
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7.

Among the operations listed in Item (3) of the preceding Article (excluding those conducted in order to promote overseas development andsecurement of resources important for Japan), with respect to the business in any area other than the Developing Areas may be conducted only
when it is prescribed by a Cabinet Order as being a case recognized especially necessary in order to promote the policies of the Government
concerning the maintenance or improvement of the international competitiveness of Japanese industries.

8.

The loan to the governments, governmental agencies or banks of foreign countries listed in Item (5) of the preceding Article may be conducted byobtaining the authorization of the Minister of Finance only when the provision of the Funds for Economic Assistance from the International
Monetary Fund, etc. is expected to be certain and only in the cases listed below:(1)

where, by appropriating all or part of the Funds for Economic Assistance from the International Monetary Fund, etc. (excluding JBIC) for theredemption of the funds related to the loan, the redemption is expected to be secured; or(2)where adequate underlying assets are secured for the loan.

9.

Among the operations listed in Items (1) through (4) of the preceding Article, the Guarantee, etc. of Liabilities related to the liabilities of any
person other than the Juridical Persons, etc. of Japan (excluding those related to the Public/Corporate Bonds, etc.) may be provided only in thecases listed below:(1)

When the Banks, etc., Foreign Financial Institutions, etc. or Foreign Governments, etc. provide the loan of such funds set forth in Items(1) through (4) of the preceding Article, in the case where the Guarantee, etc. of Liabilities related to such loan is provided (including the case inwhich the loan receivables related to such loan are assigned to the persons specified by the Minister of Finance);(2)

In the case where the Guarantee, etc. of Liabilities related to the Guarantee, etc. of Liabilities set forth in Items (1) and (3) of the preceding Article
is provided;(3)

When, among the Guarantee, etc. of Liabilities related to the funds set forth in Item (3) of the preceding Article, the Juridical Persons, etc. ofJapan or the Foreign Juridical Persons, etc. Invested in assign the monetary claims related to the overseas business to be conducted by the Juridical
Persons, etc. of Japan or the Foreign Juridical Persons, etc. Invested in to the Banks, etc. or Foreign Financial Institutions, etc. and use theproceeds from the assignment for such business, in the case where the Guarantee, etc. of Liabilities related to such monetary claims is provided; or(4)When the Banks, etc. or Foreign Financial Institutions, etc. provide the loan of funds set forth in Item (3) of the preceding Article in foreign
currency, in the case where the Guarantee, etc. of Liabilities related to swap transactions (transactions listed in Item 5 of Paragraph 22 of Article 2of the Financial Instruments and Exchange Act (Act No. 25 of 1948)) related to such funds conducted by such Banks, etc. or Foreign Financial
Institutions, etc., is provided.

10.

Among the operations listed in Items (1) through (4) of the preceding Article, the Guarantee, etc. of Liabilities (limited to those related to the
Public/Corporate Bonds, etc.) and the acquisition of the Public/Corporate Bonds, etc. may be conducted only in the cases listed below (withrespect to the operations listed in Items (1) through (3) of the same Article, the cases listed in Items (2) through (8) below shall apply):(1)

where part of the Public/Corporate Bonds, etc. (limited to those with a redemption period of more than one (1) year; the same shall apply in thefollowing Item and Item (3) below) that were issued by the Foreign Financial Institutions, etc., the Foreign Governments, etc. or internationalorganizations, such as the International Monetary Fund, are acquired;(2)

where the Public/Corporate Bonds, etc. are acquired and then such Public/Corporate Bonds, etc. are assigned to the Specific Purpose Company,
etc. within the period specified by the Minister of Finance or where the Specific Trust is established, the Public/Corporate Bonds, etc. are
entrusted to the Trust Company, etc. as assets of such Specific Trust, and then all or part of beneficial interests in such Specific Trust is assigned;(3)

where the Public/Corporate Bonds, etc. to be issued by the Specific Purpose Company, etc. or the Trust Company, etc. which are secured by loan
receivables or the Public/Corporate Bonds, etc. are acquired;(4)

where the Guarantee, etc. of Liabilities relating to the Public/Corporate Bonds, etc. to be issued by the Foreign Juridical Persons, etc. Invested in,
the Foreign Financial Institutions, etc., the Foreign Governments, etc. or international organizations, such as the International Monetary Fund, isprovided;
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(5)

where the Guarantee, etc. of Liabilities related to such loan receivables, Public/Corporate Bonds, etc. or the monetary claims, which constitutesuch underlying assets, or the Public/Corporate Bonds, etc. to be issued by the Specific Purpose Company, etc. or the Trust Company, etc. isprovided (excluding the Guarantee, etc. of Liabilities related to the Public/Corporate Bonds, etc. to be issued by the Banks, etc.) when the SpecificPurpose Company, etc. or the Trust Company, etc. issues the Public/Corporate Bonds, etc. which are secured by loan receivables, thePublic/Corporate Bonds, etc. or the monetary claims set forth in Item (3) of the preceding Paragraph;(6)

where the Guarantee, etc. of Liabilities related to the borrowing of funds by the Specific Purpose Company, etc. for the purpose of acquiring byassignment, or acquiring, such loan receivables or Public/Corporate Bonds, etc., which constitute such underlying assets, is provided when theSpecific Purpose Company, etc. issues the Public/Corporate Bonds, etc., which are secured by loan receivables or the Public/Corporate Bonds,
etc.;

(7)

where corporate bonds, any equivalent bond certificates or beneficial interests in trust (limited to those with a redemption period of more than one(1) year; the same shall apply in the following Item) that were issued by Juridical Persons, etc. in order to procure the funds necessary for thebusiness with respect to the development of infrastructure and other foundation for socioeconomic activities overseas, are acquired; or(8)where corporate bonds, any equivalent bond certificates or beneficial interests in trust that were issued by New Enterprises, etc. or Small andMedium Enterprises, etc. of Japan in order to procure the funds necessary for the business outside Japan, are acquired.

11.

Among the operations listed in Items (1) through (4) of the preceding Article, those listed below shall be conducted only when the loan thereof or
the loan related to the loan receivables to be assigned is the Co-financing; provided, however, that this shall not apply, with respect to theoperations listed in Item (1) below, in the case where it is recognized that it is remarkably difficult for the Banks, etc. to provide a loan of funds
together with JBIC and the loan from JBIC is urgently necessary to attain the purpose of such loan, or if the case falls under any of the cases listed
in Item (1) of Paragraph 2 or Item (2) of Paragraph 6 hereof, with respect to the operations listed in Item (2) below, in the case where the loan
receivables to the Foreign Juridical Persons, etc. Invested in with a redemption period of more than one (1) year are acquired by assignment within
the period specified by the Minister of Finance for the purpose of assigning the same to the Specific Purpose Company, etc. or for the purpose of
establishing the Specific Trust, with respect to the same, in the Trust Company, etc. and assigning all or part of the beneficial interest in suchSpecific Trust:(1)loan of funds pursuant to the provisions of Items (1) through (3) of the preceding Article made to the Juridical Persons, etc. of Japan; or(2)acquisition by assignment of the loan receivables pursuant to the provisions of Items (1) through (4) of the preceding Article.

12.

The operations listed in Item (7) of the preceding Article may be conducted only if they are the minimum necessary to promote the performance ofthe operations listed in Items (1) through (6) of the same Article smoothly and effectively.

Article 13:

Practice of the Operation

1.

The loan of funds, the acquisition by assignment of loan receivables, the acquisition of the Corporate/Public Bonds, etc., the Guarantee, etc. of
Liabilities or the provision of contributions pursuant to the provisions of Items (1) through (6) of Article 11 hereof may be conducted only in thecases listed below:(1)when the repayment of the funds so loaned, the collection of loan receivables so acquired, the redemption of Corporate/Public Bonds, etc. soacquired, the performance of the liabilities so guaranteed, etc. or the realization of profits that enable the payment of dividends resulting frombusiness so contributed is recognized as being certain; or
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(2)

when the conditions, such as the interest rates (including those prescribed by the Ordinance of the Ministry of Finance as having an economic
nature similar to interest rates; the same shall apply hereinafter in the following Paragraph) of loans (including those prescribed by the Ordinanceof the Ministry of Finance as having an economic nature similar to a loan; the same shall apply hereinafter in the following Paragraph andParagraph 2 of Article 16) and yield on loan receivables related to such loan (excluding loan of funds pursuant to the provisions of Items (2) and(5) of Article 11, and limited to those related to the overseas businesses listed below), such acquisition by assignment (excluding acquisition by
assignment of loan receivables pursuant to the provisions of Item (2) of the same Article, and limited to those related to the overseas businesses
listed below), such acquisition (excluding the acquisition of the Public/Corporate Bonds, etc. pursuant to the provisions of the same Item, andlimited to those related to the overseas businesses listed below or the acquisition of corporate bonds, any equivalent bond certificates or beneficial
interests in trust that were issued by New Enterprises, etc.), such Guarantee, etc. of Liabilities (excluding Guarantee, etc. of Liabilities pursuant to
the provisions of the same Item and Item (4-2) of the same Article, and limited to those related to the overseas businesses listed below) or suchcontribution (limited to those related to the overseas businesses listed below or those made to New Enterprises, etc.), are recognized as being
appropriate, in light of the risks, etc. of such loans, such assigned loan receivables and other assets becoming irrecoverable (excluding the cases
listed in the preceding Item).

a.

business related to the development of infrastructure and other foundation for socioeconomic activities;b.

business related to the development of resources; andc.

business which utilizes innovative information and communications technologies and other businesses which utilize innovative technologies or
methods of implementing its business (meaning the methods of producing or selling goods or providing services), and such utilization enables the
upgrading of the business or the enhanced convenience of users.

2.

The conditions, such as the interest rates of loans and yield on assigned loan receivables related to the operations listed in Items (1) through (6) of
Article 11, shall be determined in light of usual conditions for transactions by the Banks, etc. or the trends of financial markets, so that revenue ofeach of the accounts of the respective operations listed in each of the Items of Article 26-2 will be sufficient to cover the expenses therefor.

Article 13-2:

Special Operations Guidelines

1.

The Minister of Finance shall prescribe and make public the guidelines (hereinafter referred to as the “Special Operations Guidelines” in thefollowing Paragraph and Paragraph 1 of the following Article) that JBIC shall follow upon conducting the operations listed below (hereinafterreferred to as the “Special Operations”):(1)

Operations listed in Items (1), (3), (4) and (6) of Article 11 that are conducted in the cases listed in Item (2), Paragraph 1 of the preceding Article;(2)

Operations listed in Item (7) of Article 11 related to the operations listed in the preceding Item;(3)

Operations listed in Item (8) of Article 11 related to the operations listed in the preceding two (2) Items; or(4)Operations listed in Item (9) of Article 11 related to the operations listed in the preceding three (3) Items (excluding operations listed in Item (2)).

2.

The Special Operations Guidelines shall set forth the following matters:(1)Standards to follow upon conducting the loan of funds, the acquisition by assignment of loan receivables, acquisition of the Public/Corporate
Bonds, etc., the Guarantee, etc. of Liabilities or conducting the contributions related to the Special Operations;(2)Matters regarding appropriate financial management of the Special Operations;(3)

Matters regarding supplement of financial transactions implemented by ordinary financial institutions in respect of the Special Operations;(4)Matters regarding the system for conducting evaluation and monitoring with respect to the status of the implementation of the Special Operations;(5)Matters regarding reports to the Minister of Finance with respect to the status of the implementation of the Special Operations; and(6)

Other matters necessary to ensure appropriate implementation of the Special Operations.
- 10 -

Article 13-3:

Basic Policy concerning the Special Operations

1.

JBIC shall set forth a basic policy concerning the Special Operations (hereinafter referred to as the “Special Operations Basic Policy” in thefollowing Paragraph) with respect to the implementation of matters regarding the Special Operations as prescribed by the Ordinance of the
Ministry of Finance, pursuant to the Special Operations Guidelines, and obtain the authorization of the Minister of Finance. The same shall apply
if JBIC intends to make any changes thereto.

2.

When the Minister of Finance determines that the Special Operations Basic Policy, approved pursuant to the provisions of the preceding
Paragraph, has become inappropriate for JBIC to conduct the Special Operations appropriately, the Minister of Finance may order JBIC to changeit.

Article 14:

Delegation of Operations

1.

JBIC may delegate part of its operations exclusively to the financial institutions and other juridical persons prescribed by the Ordinance of the
Ministry of Finance (hereinafter referred to as the “Juridical Person Delegated”).

2.

Notwithstanding the provisions of any other Acts, the Juridical Person Delegated may accept the delegation of operations that were delegated by
JBIC pursuant to the provisions of the preceding Paragraph.

3.

Any person who is an officer or employee of the Juridical Person Delegated to whom the operations were delegated in accordance with theprovisions of Paragraph 1 above and who engages in such delegated operations shall be deemed to be an employee who is engaged in public
service in accordance with laws and regulations, in so far as the application of penal provisions, such as the Penal Code, is concerned.

CHAPTER 4: FINANCE AND ACCOUNTING
Article 15:

Business YearThe business year of JBIC shall begin on April 1 of each year and end on March 31 of the following year.
Article 16:

Budget1.

JBIC shall prepare the budget for revenues and expenditures and submit it to the Minister of Finance for each business year.

2.

The revenues set forth in the preceding Paragraph mean interest on loans (including those prescribed by the Ordinance of the Ministry of Financeas having an economic nature similar to an interest), interest on the Corporate/Public Bonds, etc., dividends on contributions, debt guarantee feesand other incomes related to asset management and miscellaneous incidental income, and the expenditures set forth in the same Paragraph mean
expense of operations, business entrustment fees, interest on borrowings (including those prescribed by the Ordinance of the Ministry of Financeas having an economic nature similar to a borrowing; the same shall apply hereinafter in Paragraphs 1 and 3 of Article 33), interest on bonds andnotes and incidental expenses.

3.

Upon receipt of the budget submitted pursuant to the provisions of Paragraph 1 above, the Minister of Finance shall examine such budget andmake any necessary adjustments thereto, and obtain the Cabinet’s decision thereon.

4.

After the Cabinet’s decision is made pursuant to the provisions of the preceding Paragraph, the Cabinet shall submit such budget to the Diet
together with the national budget.

5.

The form and content of the budget and procedures for the preparation and submission thereof shall be specified by the Minister of Finance.

Article 17:
The documents listed below shall be attached to the budget set forth in the preceding Article:(1)

Documents concerning the business plan and financial plan for the then current business year;(2)

The profit and loss statement, balance sheet and list of assets for the business year prior to the preceding business year;- 11 -

(3)The estimated profit and loss statement and estimated balance sheet for the preceding and then current business years; and(4)

Any other reference materials for such budget.

Article 18:

Contingency

JBIC may include contingency in its budget to cover deficits in the budget which may arise from unforeseeable causes.
Article 19:

Decision on Budget

In obtaining the Diet’s approval of the budget of JBIC, the usual procedures for decision of the national budget shall be followed.
Article 20:

Notification Concerning Budget

1.

When the Diet’s approval of the budget of JBIC has been obtained, the Cabinet shall, as approved by the Diet, immediately notify JBIC of suchfact through the Minister of Finance.

2.

JBIC shall not implement its budget before it receives notification pursuant to the provisions of the preceding Paragraph.

3.

When notification has been made pursuant to the provisions of Paragraph 1 of this Article, the Minister of Finance shall notify the Board of Audit
of Japan of such fact.

Article 21:

Supplementary Budget

1.

JBIC may, if it is necessary to incorporate changes in its budget due to causes that have arisen after the preparation thereof, prepare a
supplementary budget and submit it to the Minister of Finance, together with the documents (excluding the estimated profit and loss statement andbalance sheet for the preceding business year) listed in Items (1), (3) and (4) of Article 17 hereof which have been modified in the course of the
preparation of the supplementary budget; provided, however, that a supplementary budget involving additions to the regular budget may be
prepared only when it is particularly imperative due to causes arising after the preparation of the regular budget.

2.

The provisions of Article 16 hereof (excluding Paragraph 1) and the preceding two (2) Articles shall apply mutatis mutandis to the supplementarybudget provided for in the preceding Paragraph. In this case, the documents set forth in the preceding Article shall be attached to the
supplementary budget to be submitted to the Diet pursuant to the provisions of Paragraph 4 of Article 16, which shall apply mutatis mutandis in
this Paragraph.

Article 22:

Provisional Budget

1.

JBIC may, as necessary, prepare a provisional budget related to specific period within a business year and submit it to the Minister of Finance,
together with the business plan and financial plan for such period and other documents concerning the reference matters relevant to suchprovisional budget.

2.

The provisions of Articles 16 (excluding Paragraph 1), 19 and 20 hereof shall apply mutatis mutandis to the provisional budget provided for in thepreceding Paragraph. In this case, the documents set forth in the preceding Article shall be attached to the provisional budget to be submitted to
the Diet pursuant to the provisions of Paragraph 4 of Article 16, which shall apply mutatis mutandis in this Paragraph.

3.

The provisional budget shall cease to be effective when the Diet’s approval of the regular budget for the relevant business year has been obtained;
any expenditure having been made under the provisional budget shall be deemed to have been made out of the regular budget for such relevantbusiness year.

Article 23:

Prohibition of Use of Budget Other Than its Purposes

JBIC shall not use the expenditure budget other than for the purposes specified for such budget.
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Article 24:

Appropriation

1.

JBIC may not, without obtaining the approval of the Minister of Finance, appropriate the amount of expenditures designated in the budget.

2.

When the Minister of Finance has given his/her approval pursuant to the preceding Paragraph, such Minister of Finance shall immediately notify
the Board of Audit of Japan of such fact.

Article 25:

Use of Contingency

1.

When JBIC makes use of contingency, it shall immediately notify the Minister of Finance of such fact.

2.

Upon receipt of the notification pursuant to the provisions of the preceding Paragraph, the Minister of Finance shall immediately notify the Board
of Audit of Japan of such fact.

Article 26:

Submission of Financial Statements

1.

JBIC shall prepare the list of assets every business year.

2.

JBIC shall, within three (3) months after the end of every business year, submit to the Minister of Finance the balance sheets, statements ofoperations and list of assets (hereinafter referred to as the “Balance Sheets, etc.”) and business report (including the Electro-Magnetic Record(which means the record specified by the Minister of Finance as a record which is produced by electronic, magnetic, or any other means
unrecognizable by human perception and which is used for data-processing by a computer; the same shall apply hereinafter) which has recorded
the matters to be described in such Balance Sheets, etc. and its business report) for each business year.

Article 26-2:

Separate Accounting

JBIC shall separate the accounting for each category of operations listed below and allocate it by establishing the respective accounts for each category:(1)

Operations other than the Special Operations (referred to in Article 33 as “Ordinary Operations”); and(2)

Special Operations.

Article 26-3:
1.

Mutatis Mutandis Application of the Companies Act, etc. in respect of Separate Accounting

The provisions of Article 295, 337, 374, 396, Articles 431 through 443, and Articles 446 and 447 of the Companies Act shall apply mutatis
mutandis to the separate accounting implemented by JBIC pursuant to the provisions of the preceding Paragraph. In such case, the term, “of aStock Company”, referenced in Article 446 of the same Act, shall be deemed to be replaced with “that belongs to the account established under theprovision of Article 26-2 of Japan Bank for International Cooperation Act (Act No. 39 of 2011)”; the term, “the amounts listed in item (v) through(vii) from the sum”, also referenced therein, shall be deemed to be replaced with “the amounts listed in item (v) through (vii), which is recorded in
the account to which the said surplus belongs to, from the sum which is recorded in the account to which the said surplus belongs to”; and theterm, “stated capital”, referenced in Paragraphs 1 and 2 of Article 447 of the same Act, shall be deemed to be replaced with “stated capitalbelonging to the account established pursuant to the provision of Article 26-2 of Japan Bank for International Cooperation Act”; the term,“reserves”, referenced in Item 2 of Paragraph 1 of the same Article, shall be deemed to be replaced with “reserves belonging to the accountestablished pursuant to the provision of the same Article”; and the term, “and the reserves”, also referenced therein, shall be deemed to be replacedwith “and such reserves”; the term “the stated capital”, referenced in Paragraph 3 of the same Article, shall be deemed to be replaced with “thestated capital belonging to the account established pursuant to the provision of Article 26-2 of Japan Bank for International Cooperation Act”; andthe term, “the stated capital”, also referenced therein, shall be deemed to be replaced with “the stated capital belonging to the account establishedpursuant to the provision of the same Article”; and any other necessary technical replacement of terms shall be specified by a Cabinet Order.
- 13 -

2.

The provisions of Article 448, 449, and Paragraphs 1 (limited to the portions related to Item 5 thereof) and 2 (limited to the portions related to
Item 5 thereof) of Article 828 of the Companies Act shall apply mutatis mutandis to the accounting practices implemented by JBIC by separating
it pursuant to the provisions of the preceding Article, except for the case where any surplus is accumulated as a reserve under the provisions ofParagraph 1 of Article 31 hereof and the case where such reserve is drawn down pursuant to the provision of Paragraph 2 of Article 31 hereof. In
this case, the term “the reserves”, referenced in Paragraphs 1 and 2 of Article 448 of the same Act, shall be deemed to be replaced with “thereserves belonging to the account established pursuant to the provision of Article 26-2 of Japan Bank for International Cooperation Act”; the term“the stated capital”, referenced in Item 2 of Paragraph 1 of the same Article shall be deemed to be replaced with “the stated capital that shallbelong to the account established pursuant to the provision of the same Article”; the term, “and the stated capital”, also referenced therein, shall bedeemed to be replaced with “and such stated capital”; the term, “the reserves”, referenced in Paragraph 3 of the same Article, shall be deemed tobe replaced with “the reserves belonging to the account established pursuant to the provision of Article 26-2 of Japan Bank for International
Cooperation Act”; and the term, “the reserves”, also referenced therein in the same Paragraph, shall be deemed to be replaced with “the reserves
belonging to the account established pursuant to the provision of the same Article”; and any other necessary technical replacement of terms shallbe specified by a Cabinet Order.

3.

In the case where JBIC increases or reduces the amount of its stated capital belonging to the account established pursuant to the provisions of thepreceding Article, an amount of JBIC’s stated capital shall be the sum of the amounts of stated capital belonging to all the accounts of JBIC after
the implementation of such increase or reduction; and in the case where JBIC increases or reduces the amount of its reserves belonging to theaccount established pursuant to the provision of the same Article, the amount of JBIC’s reserves shall be the sum of the amounts of the reserves
belonging to all the accounts of JBIC after the implementation of such increase or reduction. In this case, the provisions of Articles 447 through449, and Paragraphs 1 (limited to the portions related to Item 5) and 2 (limited to the portions related to Item 5) of Article 828 of the Companies
Act shall not apply.

Article 27:

Preparation and Submission of Report on Settlement of Accounts

1.

After submitting the Balance Sheets, etc. pursuant to the provisions of Paragraph 2 of Article 26, JBIC shall, every business year, prepare a reporton the settlement of accounts for the relevant business year (including the Electro-Magnetic Record which has recorded the matters to be
described in such report on the settlement of accounts; the same shall apply hereinafter) and submit it to the Minister of Finance, without delay, by
attaching the opinion of the Auditor(s), Audit and Supervisory Committee or Audit Committee concerning such report on the settlement ofaccounts, together with such submitted Balance Sheets, etc.

2.

Upon receiving the report on the settlement of accounts pursuant to the provisions of the preceding Paragraph, the Minister of Finance shall send it
to the Cabinet, together with the Balance Sheets, etc. referenced in the same Paragraph.

3.

Upon making the submission pursuant to the provisions of Paragraph 1 of this Article, JBIC shall, without delay, keep the report on the settlementof accounts and the document stating the opinion of the Auditor(s), Audit and Supervisory Committee or Audit Committee at its head office andbranch offices and make them available for public inspection during the period prescribed by the Ordinance of the Ministry of Finance.

4.

The form and content of the report on the settlement of accounts shall be specified by the Minister of Finance.

Article 28:

Sending of Report on Settlement of Accounts to Board of Audit of Japan

Upon receiving JBIC’s report on the settlement of accounts pursuant to the provisions of Paragraph 2 of the preceding Article, the Cabinet shall send it,
together with the Balance Sheets, etc. set forth in Paragraph 1 of the same Article, to the Board of Audit of Japan no later than November 30 of thefollowing business year.
Article 29:

Submission of Report on Settlement of Accounts to Diet

The Cabinet shall submit JBIC’s report on the settlement of accounts for which the Board of Audit of Japan has finished its inspection, to the Diet, by
attaching the Balance Sheets, etc. set forth in Paragraph 1 of Article 27 hereof, together with the settlement of accounts for national revenues andexpenditures.
Article 30:
1.

Carryover of Budget

JBIC may not use the expenditure budget for each business year in the following business year; provided, however, that if JBIC has made any
contract or conducted another act that leads to JBIC’s payment during the relevant business year and failed to complete the payment of theexpenditures during the relevant business year due to any inescapable accident, the expenditure budget related to such payment may be carriedover and used in the following business year.
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2.

When JBIC intends to perform the carryover pursuant to the proviso of the preceding Paragraph, JBIC shall prepare a carryover statement
clarifying the relevant event and amount for each matter, and shall send it to the Minister of Finance and obtain the approval thereof.

3.

When JBIC obtains the approval pursuant to the provisions of the preceding Paragraph, with respect to the expenditures listed in the carryoverstatement for which the approval has been obtained, a notification concerning the budget shall be deemed to have been provided pursuant to theprovisions of Paragraph 1 of Article 20 hereof.

Article 31:

Payment to National Treasury

1.

In each of the accounts related to the operations listed in each Item of Article 26-2, in the event that the amount of the surplus recorded in thesettlement of accounts for each business year exceeds zero, JBIC shall accumulate, as a reserve, the amount calculated in accordance with thestandards prescribed by a Cabinet Order, among such surplus, until it reaches the amount prescribed by the Cabinet Order, and if there is still asurplus, JBIC shall pay the amount of such surplus into the National Treasury within three (3) months after the end of such business year.

2.

In the event that the amount of the surplus recorded in the settlement of accounts for each business year falls below zero in the respective accounts
set forth in the preceding Paragraph, JBIC shall allocate such surplus by drawing down the reserve set forth in the same Paragraph until theamount of such surplus becomes zero.

3.

The procedures for the payment into the National Treasury pursuant to the provisions of Paragraph 1 of this Article, the account into which suchpayment is to be made and other necessary matters concerning the payment to the National Treasury shall be prescribed by a Cabinet Order.

4.

The reserves set forth in Paragraph 1 shall be allocated for each category of the accounts related to the operations listed in each Item of
Article 26-2.

5.

JBIC shall not be allowed to make any appropriation of its surplus, such as dividend of its surplus, nor any appropriation of its surplus belonging
to the accounts related to the operations listed in each Item of Article 26-2, such as dividends of such surplus, unless such disposition is madepursuant to the provisions of Paragraphs 1 and 2 of this Article.

Article 32:

Provision of Loans by Government

The Government may provide monetary loans to JBIC.
Article 33:

Borrowings and Corporate Bonds

1.

Borrowing of funds (including those prescribed by the Ordinance of the Ministry of Finance as having an economic nature similar to a borrowing;
the same shall apply hereinafter in this Article, Paragraph 1 of Article 35 and Item 5 of Article 46) made in order to meet JBIC’s fund requirements
for the performance of its operations shall be limited to the borrowings of short-term loans (including those prescribed by the Ordinance of the
Ministry of Finance as having an economic nature similar to short-term loans; the same shall apply hereinafter in the following Paragraph andParagraph 6), or long-term loans in foreign currency (meaning a borrowing of an amount in foreign currency with a repayment period of morethan one (1) year; the same shall apply hereinafter in this Article and Paragraph 1 of Article 35), from financial institutions, such as banks, or the
borrowings related to the monetary loans obtained from the Government pursuant to the provisions of the preceding Article.

2.

The short-term loans (excluding those in foreign currency) set forth in the preceding Paragraph shall be repaid during the business year in whichthese borrowings are made; provided, however, that in cases where repayment cannot be made due to shortage of funds, JBIC may reborrow(including those prescribed by the Ordinance of the Ministry of Finance as having an economic nature similar to an act of reborrowing; the same
shall apply hereinafter in the following Paragraph and Paragraph 7) only the amount which cannot be so repaid, with the authorization of the
Minister of Finance.

3.

Loans reborrowed pursuant to the proviso of the preceding Paragraph shall be repaid within one (1) year.

4.

Pursuant to the provisions of a Cabinet Order, JBIC shall, every business year, prepare a basic policy concerning the issuance of corporate bonds
and the borrowing of long-term loans in foreign currency made in order to meet fund requirements for the performance of its operations andobtain the authorization of the Minister of Finance. When JBIC intends to make any change to the policy, the same shall apply.
- 15 -

5.

When JBIC has issued corporate bonds or borrowed the long-term loans in foreign currency pursuant to the provisions of preceding Paragraph, it
shall, without delay, make a notification of such fact to the Minister of Finance pursuant to the provisions prescribed by a Cabinet Order;
provided, however, that this shall not apply if JBIC issues the certificates of corporate bonds, as prescribed by a Cabinet Order, in order to deliver
to anyone who has lost such certificates of corporate bonds and, as a result of the issuance of such certificates of corporate bonds, JBIC assumes
new liabilities.

6.

The total amount of (i) the outstanding amounts of the short-term loans, the long-term loans in foreign currency and the borrowings related to themonetary loans obtained from the Government as set forth in Paragraph 1 of this Article that are made in order to meet JBIC’s fund requirements
for the performance of its Ordinary Operations, and (ii) the outstanding amount of liabilities relating to the principal amount of corporate bonds
set forth in Paragraph 4 of this Article that are issued in order to meet JBIC’s fund requirements for the performance of its Ordinary Operations
shall not exceed the amount (hereinafter referred to as the “Limitation Amount Related to Ordinary Operations” in this Article) equivalent to ten(10) times the total amount of the capital and reserves belonging to the account related to the Ordinary Operations of JBIC (hereinafter referred toas the “Base Amount Related to Ordinary Operations” in this Article).

7.

Notwithstanding the provisions of the preceding Paragraph, when the issuance of new bonds is necessary to reborrow the issued corporate bonds
with respect to corporate bonds set forth in Paragraph 4 of this Article that were issued in order to meet JBIC’s fund requirements for the
performance of its Ordinary Operations, the corporate bonds may be issued in excess of the Limitation Amount Related to Ordinary Operations
only within the period necessary to make such reborrowing.

8.

Among the Ordinary Operations, the total amount of the outstanding amounts of (i) monetary loans, (ii) acquisition of the receivables related toassignment and the Corporate/Public Bonds, etc., (iii) liabilities relating to the Guarantee, etc. of Liabilities and (iv) contributions, all of which are
made pursuant to the provisions of Items (1) through (6) of Article 11 hereof, shall not exceed the aggregate amount of the Base Amount Related
to Ordinary Operations and the Limitation Amount Related to Ordinary Operations.

9.

The provisions set forth in the preceding three (3) paragraphs shall apply mutatis mutandis to the Special Operations. In this case, the term, “BaseAmount Related to Ordinary Operations”, referenced in Paragraphs 6 and the preceding Paragraph, shall be deemed to be replaced with “BaseAmount Related to Special Operations”; the term, “Limitation Amount Related to Ordinary Operations”, referenced in the preceding three(3) paragraphs, shall be deemed to be replaced with “Limitation Amount Related to Special Operations”; and the term, “through (6)”, referenced
in the preceding Paragraph, shall be deemed to be replaced with “, Item (3), (4) and (6)”.

10.

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

Article 34:

Statutory Lien

1.

A holder of JBIC’s corporate bonds shall, with respect to the property of JBIC, have the right to have his/her receivables satisfied in preference toother creditors.

2.

The order of the statutory lien set forth in the preceding Paragraph shall be next to the general liens prescribed by the provisions of the Civil Code(Act No. 89 of 1896).

Article 35:
1.

Government Guarantee

Notwithstanding the provisions of Article 3 of the Act Concerning Restrictions on Financial Assistance by the Government to Corporations (ActNo. 24 of 1946), the Government may execute a guarantee agreement with respect to the liabilities related to JBIC’s corporate bonds (excluding
the liabilities with respect to which the Government may execute a guarantee agreement under Paragraph 2 of Article 2 of the Act on Special
Measures Pertaining to the Acceptance of Foreign Capital from the International Bank for Reconstruction and Development, etc. (Act No. 51 of
1953) (referred to as the “Foreign Capital Acceptance Act” in the following Paragraph and Paragraph 1 of Article 16 of the Supplementary
Provisions)) or the liabilities related to the long-term loans in foreign currency, within the scope of the amount fixed by the budget.
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2.

Among the amount fixed by the budget set forth in the preceding Paragraph, the amount of liabilities related to the corporate bonds issued in aforeign country and denominated in Japanese currency may be fixed by adding up to the amount fixed by the budget as set forth in Paragraph 2 ofArticle 2 of the Foreign Capital Acceptance Act, when it is difficult to fix the said amount of liabilities separately from the said amount fixed by
the budget set forth in the same paragraph of the Foreign Capital Acceptance Act.

3.

The Government may, in addition to the provisions of Paragraph 1 of this Article, execute a guarantee agreement with respect to the liabilities
related to the certificates of corporate bonds or coupons thereof, which are issued by JBIC, pursuant to the provisions prescribed by a Cabinet
Order, in order to deliver to a person who has lost the certificates of corporate bonds or coupons thereof.

Article 36:

Investment of Surplus Funds

JBIC shall not invest any surplus funds of its business except by means of:(1)

Acquisition of national government bonds, local government bonds or government-guaranteed bonds (which mean the bonds for which theredemption of its principal and payment of interest thereon are guaranteed by the Government) and other securities designated by the Minister ofFinance;(2)

Deposit with the Fiscal Loan Fund;(3)

Deposit with banks or other financial institutions designated by the Minister of Finance;(4)

Holding of negotiable deposit certificates;(5)

Money trust to the financial institutions engaging in trust business (which mean the financial institutions that have obtained the authorization set
forth in Paragraph 1 of Article 1 of the Act on Provision, etc. of Trust Business by Financial Institutions);(6)

Lending of call funds; or(7)

Means prescribed in the Ordinance of the Ministry of Finance as the means equivalent to the means listed in each of the preceding Items.

Article 37:

Delegation to Ordinance of Ministry of FinanceIn addition to those provided for in this Act and Cabinet Orders thereunder, the matters necessary with respect to the finance and accounting of JBIC
shall be prescribed by the Ordinance of the Ministry of Finance.

CHAPTER 5: MISCELLANEOUS PROVISIONS
Article 38:

Supervision

1.

The Minister of Finance shall supervise JBIC in accordance with the provisions of this Act.

2.

With respect to the management or administration of JBIC, in the case where the Minister of Finance finds that there is a violation of laws andregulations or the Articles of Incorporation or any grossly unjust matter exists and in other cases where they find it necessary for the enforcementof this Act, the Minister of Finance may issue JBIC orders concerning its operations as are necessary for the supervision.

Article 39:

Report and Inspection

1.

If the Minister of Finance finds it necessary for the enforcement of this Act, the Minister of Finance may cause JBIC or the Juridical Person
Delegated to submit reports or may cause its officials to enter the facilities of JBIC or of the Juridical Person Delegated, such as the offices toinspect the accounting books, documents and other necessary objects; provided, however, that, with respect to the Juridical Person Delegated,such action shall be limited to the scope of operations delegated to it by JBIC.

2.

When an official of the Minister of Finance carries out an on-site inspection pursuant to the provisions of the preceding Paragraph, he/she shallcarry with him/her identification certifying his/her status and present it to parties concerned.

3.

The authority to carry out the on-site inspection pursuant to the provisions of Paragraph 1 above shall not be construed to be that given for theinvestigation of a criminal offense.
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Article 40:

Delegation of Authority

1.

The Minister of Finance may, as prescribed by a Cabinet Order, delegate part of the authority to carry out an on-site inspection pursuant to theprovisions of Paragraph 1 of the preceding Article to the Prime Minister.

2.

If the Prime Minister has carried out an on-site inspection pursuant to the provisions of Paragraph 1 of the preceding Article on the basis of thedelegation pursuant to the provisions of the preceding Paragraph, he/she shall promptly submit a report of the results of the inspection to the
Minister of Finance.

3.

The Prime Minister shall delegate both the authority delegated pursuant to the provisions of Paragraph 1 above and the authority set forth in theprovisions of the preceding Paragraph to the Commissioner of Financial Services Agency.

4.

The Commissioner of Financial Services Agency may, as prescribed by a Cabinet Order, delegate all or part of the authority delegated pursuant to
the provisions of the preceding Paragraph, to Director-General of the Local Finance Bureau or the Director-General of the Local Finance Branch
Bureau.

5.

Part of the authority of the Minister of Finance set forth in this Act (excluding that delegated to the Prime Minister pursuant to the provisions ofParagraph 1 above) may, as prescribed by a Cabinet Order, be delegated to the Director-General of the Local Finance Bureau or the DirectorGeneral of the Local Finance Branch Bureau.

Article 41:

Articles of Incorporation

1.

In the Articles of Incorporation of JBIC, in addition to the matters listed in each of the Items of Article 27 of the Companies Act, matters relating
to the procedures and requirements for the appointment of a person to assume management responsibility from among the Representative
Directors or Representative Executive Officers shall be described or recorded.

2.

With respect to the matters related to the requirements for the appointment of a person to assume management responsibility set forth in thepreceding Paragraph, the provisions that the requirements listed below be satisfied shall be incorporated:(1)

A person who has discernment and the capability recognized as necessary in light of the purposes set forth in Article 1 hereof and the operations
set forth in Article 11 hereof shall be appointed; and(2)

Due consideration shall be required in order to avoid automatically appointing such persons who have held certain specific governmental
positions.

3.

The resolution for the amendment of the Articles of Incorporation of JBIC shall not take effect unless the authorization of the Minister of Financeis granted.

Article 42:

Merger, Company Split, Share Exchange, Share Delivery, Assignment and Acceptance of Assignment of Business and Dissolution

Notwithstanding the provisions of Part II, Chapters VII and VIII and Part V, Chapters II, III, IV, Section I and IV-II of the Companies Act, the merger,
company split, share exchange, share delivery, assignment and acceptance of assignment of all or part of business, to which JBIC becomes a party, anddissolution of JBIC shall be provided for separately by an Act.
Article 43:

Exclusion from Application, etc. of Financial Instruments and Exchange Act

1.

When JBIC performs the actions listed in each of the Items of Paragraph 8 of Article 2 of the Financial Instruments and Exchange Act pursuant to
the provisions of Article 11, the provisions of Article 29 of the same Act shall not apply.

2.

In the case set forth in the preceding Paragraph (excluding the case set forth in the following Paragraph or Paragraph 5), JBIC shall be deemed as
the Financial Instruments Business Operator defined in Paragraph 9 of Article 2 of the Financial Instruments and Exchange Act, and the provisionsof Chapter III, Section I, Subsection V and Section II (excluding Article 35, Article 35-2, Articles 36-2 through 36-4, Item (2) of Paragraph 1 of
Article 37, Item (2) of Paragraph 1 of Article 37-3, Article 37-7 and Item (7) of Article 38) of the same Act and the provisions of Chapters VIII
and VIII-II of the same Act relating to such provisions shall apply.
- 18 -

3.

When JBIC performs the actions listed in each of the Items of Paragraph 1 of Article 63 of the Financial Instruments and Exchange Act pursuant
to the provisions of Article 11 hereof, the provisions of Paragraph 2 of the said Article 63 shall not apply.

4.

In the case set forth in the preceding Paragraph (excluding the case set forth in the following Paragraph), JBIC shall be deemed as the Financial
Instruments Business Operator defined in Paragraph 9 of Article 2 of the Financial Instruments and Exchange Act, and the provisions of
Chapter III, Section I, Subsection V, Paragraph 1 of Article 36, Article 37 (excluding Item (2) of Paragraph 1), Article 37-3 (excluding Item (2) of
Paragraph 1), Article 37-4, Article 38 (limited to the portions related to Items (1), (2) and (9)), Article 39 (excluding Paragraphs 4 and 6),
Article 40, Article 40-3, Article 40-3-2, Article 42, Article 42-2, Article 42-4, Article 42-7 and Article 45 of the same Act and the provisions of
Chapters VIII and VIII-II of the same Act related to such provisions shall apply.

5.

When JBIC performs the actions listed in each of the Items of Paragraph 1 of Article 63-8 of the Financial Instruments and Exchange Act pursuant
to the provisions of Article 11 hereof, the provisions of Paragraph 1 of Article 63-9 of the same Act shall not apply.

6.

In the case set forth in the preceding Paragraph, JBIC shall be deemed as the Financial Instruments Business Operator defined in Paragraph 9 of
Article 2 of the Financial Instruments and Exchange Act, and the provisions of Chapter III, Section I, Subsection V, Article 35-3, Paragraph 1 of
Article 36, Article 37 (excluding Item (2) of Paragraph 1), Article 37-3 (excluding Item (2) of Paragraph 1), Article 37-4, Article 38 (limited to the
portions related to Items (1), (2) and (9)), Article 39 (excluding Paragraphs 4 and 6), Article 40, Article 40-3, Article 40-3-2, Article 42,
Article 42-2, Article 42-4, Article 42-7 and Article 45 of the same Act and the provisions of Chapters VIII and VIII-II of the same Act related tosuch provisions shall apply.

CHAPTER 6: PENAL PROVISIONS
Article 44:
Any person who has disclosed or misappropriated any secret in violation of the provisions of Article 9 hereof shall be punished by imprisonment withwork for not more than one (1) year or by a fine of not more than five hundred thousand yen (¥500,000).
Article 45:
A Director, Executive Officer, Accounting Advisor, Auditor or employee of JBIC, or an officer or employee of the Juridical Person Delegated who has
failed to submit reports pursuant to the provisions of Paragraph 1 of Article 39 hereof or submitted false reports on the matters to be reported pursuant to
the provisions of the same Paragraph, or refused, obstructed or evaded an inspection to be carried out pursuant to the provisions of the same Paragraphshall be punished by a fine of not more than three hundred thousand yen (¥300,000).
Article 46:
A Director, Executive Officer, Accounting Advisor or the member who should execute the duties of such Accounting Advisor, or Auditor of JBIC who
falls under any of the following Items shall be punished by a non-penal fine of not more than one million yen (¥1,000,000):(1)

When he/she has failed to obtain the authorization or approval of the Minister of Finance in the case where such authorization or approval isrequired by the provisions of this Act;

(2)

When he/she has failed to make a notification to the Minister of Finance in the case where such notification is required by the provisions of this
Act;

(3)

When he/she has conducted any operations other than those set forth in Article 11 hereof or has conducted the operations set forth in Article 11
hereof in violation of the provisions of Article 12 hereof;(4)

When he/she has violated an order of the Minister of Finance issued pursuant to the provisions of Paragraph 2 of Article 13-3 or Paragraph 2 ofArticle 38 hereof;- 19 -

(5)When he/she has borrowed funds or issued corporate bonds in violation of the provisions of Paragraph 6 of Article 33 hereof (including the casewhere the same Paragraph is applied mutatis mutandis pursuant to Paragraph 9 of the same Article), or he/she has provided monetary loans,acquired loan receivables by assignment, acquired the Corporate/Public Bonds, etc., provided the Guarantee, etc. of Liabilities or madecontributions in violation of the provisions of Paragraph 8 of the same Article (including the case where the same Paragraph is applied mutatis
mutandis pursuant to Paragraph 9 of the same Article); or(6)

When he/she has invested the surplus funds having arisen in the course of the conduct of operations in violation of the provisions of Article 36
hereof.

Article 47:
Any person who has violated the provisions of Paragraph 1 of Article 5 hereof shall be punished by a non-penal fine of not more than one hundred
thousand yen (¥100,000).
- 20 -

SUPPLEMENTARY PROVISIONS (Act No. 39 of 2011) (Extract)
Article 1:

Effective Date

This Act shall come into force as of the date of its promulgation; provided, however, that the provisions of Paragraph 1 of Article 5 and Article 47 hereof
and the provisions of Articles 22 through 51 of the Supplementary Provisions hereof shall come into force as of April 1, 2012.
Article 2:

Organizing Members

The Minister of Finance shall appoint the Organizing Members and cause them to perform the duties of incorporators with respect to the incorporationof JBIC.
Article 3:

Articles of Incorporation

1.

The Organizing Members shall prepare the Articles of Incorporation of JBIC and obtain the authorization of the Minister of Finance.

2.

When the Minister of Finance intends to grant the authorization set forth in the preceding Paragraph, the Minister of Finance shall consult with the
Minister of Defense in advance.

Article 4:

Shares Issued upon Incorporation of JBIC

The matters listed below concerning the shares issued upon the incorporation of JBIC and the total number of shares that JBIC may issue shall beprescribed in its Articles of Incorporation. In this case, the matters listed in Item (3) below shall, in accordance with the separation of accountingprescribed in Article 18-2 of the Act on Special Measures concerning Smooth Implementation of Realignment of United States Forces in Japan (ActNo. 67 of 2007) after revision (hereinafter referred to as the “New Force Realignment Special Measures Act”) by the provisions of Article 47 of the
Supplementary Provisions hereof, be allocated for each account related to the operations listed in each Item of Article 18-2 of the New ForceRealignment Special Measures Act:(1)

The number of shares (if JBIC intends to be incorporated as a company with class shares, the classes of such shares and the number of shares foreach of such classes);(2)

Amount to be paid in for shares (which means the amount of money to be paid in exchange for one (1) share or property (other than money)
delivered in exchange therefor); and(3)

The matters concerning the amount of capital and capital reserve.

Article 5:

Subscription for Shares

1.

The total number of shares issued upon the incorporation of JBIC shall be subscribed for by Japan Finance Corporation (hereinafter referred to as“JFC”), and the Organizing Members shall allocate such total number of shares to JFC.

2.

The Government shall exercise the right of share subscribers concerning the incorporation of JBIC through the shares allocated pursuant to theprovisions of the preceding Paragraph.

Article 6:

Contribution

JFC shall, upon the incorporation of JBIC, contribute to JBIC the properties of JFC (excluding the assets succeeded by the Government pursuant to theprovisions of Paragraph 6 of Article 12 of the Supplementary Provisions hereof) that are related to (i) the operations listed in Item (6) of Article 41 of theJapan Finance Corporation Act (Act No. 57 of 2007) prior to revision (hereinafter referred to as the “Former JFC Act”) by the provisions of Article 46 of
the Supplementary Provisions hereof (such Item (6) shall apply by making replacements pursuant to the provisions of Paragraph 2 of Article 37 of the
Supplementary Provisions of the Former JFC Act) and (ii)the Financial Operations for Facilitating Realignment of United States Forces in Japan that areprescribed in Article 16 of the Act on Special Measures concerning Smooth Implementation of Realignment of United States Forces in Japan prior torevision (hereinafter referred to as the “Former Force Realignment Special Measures Act”) by the provisions of Article 47 of the Supplementary
Provisions hereof. (The operations stated in (i) and (ii) above are hereinafter collectively referred to as the “Japan Bank for International Cooperation’s
Former Operations, etc.”)- 21 -

Article 7:

Organizational Meeting

When applying the provisions of Paragraph 1 of Article 65 of the Companies Act, which are related to the incorporation of JBIC, “on and after either thedate under Item (iii) of Article 58(1) or the last day of the period under such Item, whichever comes later” referenced in the same Paragraph shall bedeemed to be replaced with “after the allocation of shares made pursuant to the provisions of Paragraph 1 of Article 5 of the Supplementary Provisionsof Japan Bank for International Cooperation Act (Act No. 39 of 2011).”
Article 8:

Establishment of JBIC

The delivery of properties related to the contribution made by JFC pursuant to the provisions of Article 6 of the Supplementary Provisions hereof shallbe made at the time of the enforcement of the provisions of Article 46 of the Supplementary Provisions hereof and, notwithstanding the provisions ofArticle 49 of the Companies Act, JBIC shall be established at that time.
Article 9:

Registration of Incorporation

JBIC shall, notwithstanding the provisions of Paragraph 1 of Article 911 of the Companies Act, register its incorporation without delay after theestablishment of JBIC.
Article 10:

Transfer to Government Without Compensation

1.

JBIC’s shares acquired by JFC through making contributions shall, upon the establishment of JBIC, be transferred to the Government withoutcompensation.

2.

JBIC’s shares to be transferred to the Government without compensation pursuant to the provisions of the preceding Paragraph shall, as prescribedby a Cabinet Order, belong to the general account or the special account for fiscal investments and loan programs.

Article 11:

Exclusion from Application of Companies Act

The provisions of Article 30 of the Companies Act and Part II, Chapter I, Section 3 thereof shall not apply to the incorporation of JBIC.
Article 12:

Succession, etc. of Rights and Obligations

1.

Among the rights and obligations which JFC actually has upon the establishment of JBIC, those rights and obligations related to the Japan Bankfor International Cooperation’s Former Operations, etc., except for the assets succeeded by the Government pursuant to the provisions ofParagraph 6 of this Article, shall be succeeded by JBIC upon the establishment of JBIC, pursuant to the written succession plan that prescribes thenecessary matters concerning the succession of rights and obligations.

2.

The written succession plan set forth in the preceding Paragraph shall be prepared by JFC in accordance with the standards prescribed by a
Cabinet Order and shall be authorized by the Minister of Finance.

3.

If JBIC succeeds to any of the rights and obligations of JFC pursuant to the provisions of Paragraph 1 of this Article, JFC shall, upon the
succession, decrease its capital by the total amount of the amount of the capital belonging to the account related to the operations listed in Item(6) of Article 41 of the Former JFC Act and the amount of the capital belonging to the Financial Account Related to the Financial Operations for
Facilitating Realignment of United States Forces in Japan that is prescribed in Article 18 of the Former Force Realignment Special Measures Act,and shall decrease its reserves by the total amount of the amount of the reserve belonging to the account related to the operations listed in Item(6) of Article 41 of the Former JFC Act and the amount of the reserve belonging to the Financial Account Related to the Financial Operations for
Facilitating Realignment of United States Forces in Japan that is prescribed in Article 18 of the Former Force Realignment Special Measures Act.

4.

The provisions of Articles 447 through 449 of the Companies Act shall not apply to the decrease in the amounts of capital and reserves madepursuant to the provisions of the preceding Paragraph.

5.

The provisions of Article 70 of the Commercial Registration Act (Act No. 125 of 1963) shall not apply to the registration of a change due to thedecrease in the amount of capital made pursuant to the provisions of Paragraph 3 of this Article.
- 22 -

6.

Among the rights which JFC actually has upon the establishment of JBIC (limited to those rights related to the Japan Bank for International
Cooperation’s Former Operations, etc.), the assets recognized as unnecessary for JBIC to smoothly perform operations in the future shall be
succeeded by the Government upon the establishment of JBIC.

7.

The scope of assets succeeded by the Government pursuant to the provisions of the preceding Paragraph and other matters necessary for the
succession of such assets to the Government shall be prescribed by a Cabinet Order.

8.

The appropriation and payment to the national treasury of the surplus made pursuant to the provisions of Article 47 of the Former JFC Act that are
related to the business year of JFC commencing on April 1, 2011 (limited to such appropriation and payment related to the account related to theoperations listed in Item (6) of Article 41 of the Former JFC Act and the Financial Account Related to the Financial Operations for Facilitating
Realignment of United States Forces in Japan that is prescribed in Article 18 of the Former Force Realignment Special Measures Act) shall bemade by JBIC through the application of the provisions heretofore in force.

Article 13:

Values of Properties Succeeded1.

The values of the assets and liabilities succeeded by JBIC from JFC (in the following Paragraph, referred to as the “Succeeded Properties”) shallbe the values assessed by the Evaluation Committee.

2.

If the Evaluation Committee make an assessment pursuant to the provisions of the preceding Paragraph, the then current values of the Succeeded
Properties on the date of the establishment of JBIC shall be used as the base values; provided, however, that if it is admitted that, taking into
consideration the details of the Succeeded Properties, such as the kinds and uses thereof, use of the then current values of the Succeeded
Properties as base values is inappropriate, the Evaluation Committee shall be allowed not to base their assessment on the then current values of the
Succeeded Properties.

3.

In addition to the matters prescribed in the preceding two (2) Paragraphs, the Evaluation Committee and other matters necessary for an assessment
shall be prescribed by a Cabinet Order.

Article 14:

Accounts for Succeeded Properties

If the assets and liabilities are succeeded by JBIC from JFC, the assets and liabilities listed in each of the following Items shall, upon such succession, be
allocated as the assets and liabilities belonging to the account set forth in each of such Items, respectively:(1)

The assets and liabilities related to the operations listed in Item (6) of Article 41 of the Former JFC Act, which shall apply by making replacements
pursuant to the provisions of Paragraph 2 of Article 37 of the Supplementary Provisions of the Former JFC Act: The account related to theoperations listed in Item (1) of Article 18-2 of the New Force Realignment Special Measures Act; and(2)

The assets and liabilities related to the Financial Operations for Facilitating Realignment of United States Forces in Japan that are prescribed in
Article 16 of the Former Force Realignment Special Measures Act: The account related to the operations listed in Item (2) Article 18-2 of the New
Force Realignment Special Measures Act.

Article 15:
1.

In the case where an allocation is made pursuant to the provisions of the preceding Article, the amount obtained by reducing, for each accountrelated to the operations listed in each Item of Article 18-2 of the New Force Realignment Special Measures Act, the total amounts of (i) liabilities
belonging to such account and (ii) capital and capital reserve belonging to such account from the amount of assets belonging to such account shallbe allocated as the amount of the surplus belonging to such account.

2.

In the case of the preceding Paragraph, if the amount of the surplus belonging to each account exceeds zero, such amount shall be the retained
earnings reserve belonging to such account.

3.

In the cases of the preceding two (2) Paragraphs, the amount of the surplus at the time of the incorporation of JBIC shall be the total amount of thesurpluses belonging to all the accounts of JBIC, and the amount of the retained earnings reserve at the time of the incorporation of JBIC shall be
the total amount of the retained earnings reserves belonging to all the accounts of JBIC.
- 23 -

Article 16:

Transitional Measures Necessary in Connection with Succession of Rights and Obligations

1.

The guarantee contracts prescribed in each of the following Items and executed by the Government with respect to the liabilities related to thebonds listed in each of such Items and succeeded by JBIC pursuant to the provisions of Paragraph 1 of Article 12 of the Supplementary Provisions
hereof shall survive such succession with the conditions in force before such succession with respect to such liabilities related to such bonds. With
respect to public dues, such as taxes, on the interest and redemption gain on the bonds listed below and related to the guarantee contracts executed
pursuant to the provisions of Article 2 of the Foreign Capital Acceptance Act among such guarantee contracts, the provisions in force before suchsuccession shall remain applicable.

(1)

Corporate bonds set forth in Paragraph 2 of Article 50 of the Former JFC Act:
Guarantee contracts executed pursuant to the provisions of Article 55 of the Former JFC Act or Article 2 of the Foreign Capital Acceptance Act(2)

The Japan Bank for International Cooperation Bonds set forth in Paragraph 1 of Article 45 of Japan Bank for International Cooperation Act (ActNo. 35 of 1999) prior to the abolishment made pursuant to the provisions of Article 42 of the Supplementary Provisions of the Former JFC Act(hereinafter referred to as the “Former Japan Bank for International Cooperation Act”):
Guarantee contracts executed pursuant to the provisions of Article 47 of the Former Japan Bank for International Cooperation Act or Article 2 of
the Foreign Capital Acceptance Act prior to revision by the provisions of Article 13 of the Act Concerning Adjustment of Relevant Acts as aConsequence of the Japan Finance Corporation Act (Act No. 58 of 2007)(3)

Foreign currency bonds, etc. set forth in Paragraph 1 of Article 39-2 of the Export-Import Bank of Japan Act (Act No. 268 of 1950) prior to theabolishment made pursuant to the provisions of Article 15 of the Supplementary Provisions of the Former Japan Bank for International
Cooperation Act (hereinafter referred to as the “Former Export-Import Bank Act”):
Guarantee contracts executed pursuant to the provisions of Article 39-3 of the Former Export-Import Bank Act or Article 2 of the Foreign Capital
Acceptance Act prior to revision by the provisions of Article 23 of the Supplementary Provisions of the Former Japan Bank for International
Cooperation Act

2.

The provisions of Article 34 hereof shall apply to the bond listed in each of the Items of the preceding Paragraph, by deeming these bonds as thecorporate bonds of JBIC.

Article 17:
1.

If the obligations related to the Japan Bank for International Cooperation’s Former Operations, etc. are succeeded by JBIC pursuant to theprovisions of Paragraph 1 of Article 12 of the Supplementary Provisions hereof, the parties prescribed in each of the following Items shall jointly
and severally be liable for repayment of the liabilities related to all of the bonds listed in each of such Items that have been issued at the time ofsuch succession.

(1)

The Japan Bank for International Cooperation Bonds set forth in Paragraph 1 of Article 45 of Japan Bank for International Cooperation Act prior
to revision by the provisions of Article 11 of the Supplementary Provisions of the Act Concerning Partial Amendment of the Act on the Japan
International Cooperation Agency, Independent Administrative Agency (Act No. 100 of 2006) and the foreign currency bonds, etc. set forth inParagraph 1 of Article 39-2 of the Former Export-Import Bank Act:JBIC and the Japan International Cooperation Agency, Independent Administrative Agency(2)

Corporate bonds issued pursuant to the provisions of Articles 49 and 50 of the Former JFC Act:JBIC and JFC

2.

A holder of the bonds listed in each of the Items of the preceding Paragraph shall, with respect to the properties of the parties listed in each of such
Items, have the right to have his/her receivables satisfied in preference to other creditors.

3.

The order of the statutory lien set forth in the preceding Paragraph shall be next to the general statutory liens prescribed by the provisions of the
Civil Code.
- 24 -

Article 18:

Exclusion from Taxation1.

No registration license taxes shall be imposed with respect to the registration or recording made as a result of JBIC’s succession of rights under theprovisions of Paragraph 1 of Article 12 of the Supplementary Provisions hereof to the extent that such registration or recording is made within one(1) year from the time of the establishment of JBIC.

2.

No real property acquisition taxes or automobile acquisition taxes may be imposed on acquisition of real property or automobiles as a result of
JBIC’s succession of rights under the provisions of Paragraph 1 of Article 12 of the Supplementary Provisions hereof.

Article 19:

Special Provisions on JFC’s Operations

In addition to the operations set forth in Article 11 of the Japan Finance Corporation Act, JFC may, by obtaining the authorization of the Minister ofFinance, engage in the operations listed below for the period from the date of the enforcement of this Act through March 31, 2012, so that JBIC can start
its operations smoothly at the time of its establishment. In this case, in terms of applying the provisions, such as those of supervision, to the operations
listed below conducted by JFC, such operations shall be deemed as meaning the operations set forth in Item (4) of Paragraph 1 of the same Article.
(1)

Among the operations listed in Item (1) of Article 11 hereof, those which are related to the Export of Equipment, etc. destined for any area otherthan developing areas, except for the Guarantee, etc. of Liabilities related to the Guarantee, etc. of Liabilities (limited to the cases corresponding
to the case listed in Item (2) of Paragraph 1 of Article 12 hereof);(2)Among the operations listed in Item (3) of Article 11 hereof, loans of short-term funds made pursuant to the provisions of Paragraph 4 of
Article 12 hereof; and(3)Among the operations listed in Item (3) of Article 11 hereof, loans to the Juridical Persons, etc. of Japan, other than the loans to the Small andMedium Enterprises, etc. (limited to the cases corresponding to the case listed in Item (1) or (2) of Paragraph 6 of Article 12 hereof).

Article 20:

Special Provisions on JBIC’s Operations

1.

JBIC may, in addition to the operations set forth in Article 11 hereof, engage in the operations to perform the management and collection of theloan receivables related to the Japan Bank for International Cooperation’s Former Operations, etc. conducted by JFC before the enforcement of theprovisions of Article 46 of the Supplementary Provisions hereof (excluding those corresponding to the operations set forth in Article 11 hereof andincluding the operations incidental to the operations to perform such management and collection) until the collection of such loan receivables iscompleted.

2.

If JBIC engages in the operations to perform the management and collection set forth in the preceding Paragraph pursuant to the provisions of thesame Paragraph, for the purpose of applying the provisions of Paragraphs 1 and 3 of Article 43 and Item 3 of Article 46 hereof and the provisionsof Article 18-2 of the New Force Realignment Special Measures Act, “Article 11 hereof” referenced in Paragraphs 1 and 3 of Article 43 hereof
shall be deemed to be replaced with “Article 11 hereof or Paragraph 1 of Article 20 of the Supplementary Provisions hereof”; “other than those set
forth in Article 11 hereof” referenced in Item 3 of Article 46 hereof shall be deemed to be replaced with “other than those set forth in Article 11
hereof and Paragraph 1 of Article 20 of the Supplementary Provisions hereof”; and “The operations listed in each Item of Article 11 of Japan Bankfor International Cooperation Act” referenced in Item 1 of Article 18-2 of the New Force Realignment Special Measures Act shall be deemed to be
replaced with “The operations listed in each Item of Article 11 of Japan Bank for International Cooperation Act and the operations to perform the
management and collection set forth in Paragraph 1 of Article 20 of the Supplementary Provisions of the same Act.”

Article 21:

Delegation to Cabinet Orders

In addition to those prescribed in Article 2 of the Supplementary Provisions hereof through the preceding Article, the matters necessary with respect tothe incorporation of JBIC shall be prescribed by Cabinet Orders.
Article 51:

Transitional Measures Concerning Application of Penal Provisions

With regard to the application of penal provisions to the acts performed prior to the enforcement of the provisions of the proviso of Article 1 of the
Supplementary Provisions hereof, the penal provisions in force theretofore shall remain applicable.
- 25 -

Article 52:

Review on Status of JBIC’s Operations

After the establishment of JBIC, the Government shall, taking into consideration the status of the enforcement of this Act, review the status of JBIC’soperations, from the point of view that JBIC has the purpose of supplementing the financial transactions implemented by ordinary financial institutions,and the Government shall, when it finds necessary, implement the required measures, such as the abolishment of operations, based on the results thereof.
This English version of the Act has been prepared purely for information purposes, and should not be considered as an official translation of Japan
Bank for International Cooperation or any authorities of Japanese Government.
- 26 -

Exhibit 6
CERTIFICATE
I, Tomoyuki Miyazaki, Attorney-at-law, do hereby certify that attached hereto is a true and correct English translation of the Japan Bank forInternational Cooperation Act (Act No. 39 of 2011), as amended, and that such Act is in full force and effect as of the date hereof.
IN WITNESS WHEREOF, I have hereunto set my hand as of this 5th day of August, 2024.
/s/ Tomoyuki Miyazaki
Tomoyuki Miyazaki
Attorney-at-law

Exhibit 7
Independent auditor’s report
The Board of Directors
Japan Bank for International Cooperation
Report on the audit of the consolidated financial statements
OpinionWe have audited the consolidated financial statements of Japan Bank for International Cooperation and its subsidiaries (the Group), which comprise theconsolidated statements of financial position as of March 31, 2024 and 2023, and the consolidated income statements, consolidated statements ofcomprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the years then ended, and notes tothe consolidated financial statements, including a summary of material accounting policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of theGroup as of March 31, 2024 and 2023 and its consolidated financial performance and its consolidated cash flows for the years then ended in accordancewith International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further describedin the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group inaccordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (includingInternational Independence Standards) (IESBA Code) together with the ethical requirements that are relevant to our audit of the consolidated financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements ofthe current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed thematter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of ourreport, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of
the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed toaddress the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements.
1

Key audit matter

How our audit addressed the key audit matter

Assessment of allowance for loan losses
As of March 31, 2024, the Group reported total loans and other receivables of The audit procedures that we performed to examine the Group’s¥16,384,441 million and recorded an allowance for loan losses ofassessment of allowance for loan losses included the following, among¥435,339 million.
others:Management discloses information about credit risk in Note 37, “Financial
Risk Management”, Note 38, “Maximum Exposure to Credit Risk”, Note 39,“Collateral”, Note 40, “Concentration of Credit Risk”, and Note 41 “Exerciseof Rights to Obtain Collateral or Other Credit Enhancements”, Management
also discloses the details of the allowance for loan losses in Note 3, “Material
Accounting Policy Information, H. Impairment of financial assets”, Note 4,“Material Accounting Judgments, Estimates, and Assumptions”, Note 11,“Loans and Other Receivables”, and Note 30, “Impairment Losses(Reversals) on Financial Assets”.
The Group’s loan portfolio is characterized by a significant portion of longterm loans that entail sovereign and country risks.
IFRS 9 applies the expected credit loss (“ECL”) model, which is a model forthe recognition of impairment losses. IFRS 9 outlines a “three-stage” model
for impairment based on changes in credit quality since initial recognition ofloans.

- We obtained an understanding, evaluated the design, and tested
operating effectiveness of the controls over the Group’s borrower
category process. The controls tested included, but were not limited to,those controls over the accuracy of underlying internal credit rating dataand schedules used in determining the borrowers’ category as well as
controls over the completeness of the scope of self-assessment of asset
quality.
- We selected a sample of borrowers by taking into account the degree ofincrease in credit risk estimated considering the type of business, therepayment status, financial position/degree of deterioration in theirbusiness performance and external factors, including the ongoing
Russian invasion of Ukraine, to test management’s determination of thecategory of the sampled borrowers. We also considered the monetaryimpact of changes in the borrowers’ category on the amount recorded in
the allowance for loan losses.

- We evaluated sampled borrowers’ recent repayment status, financial
position, and business performance, by inspecting a set of materials
related to the Group’s self-assessment of asset quality, such as
explanatory materials including a description of the business, borrowing
The assessment of allowance for loan losses involves uncertainties injudgment and estimation by management primarily on the following matters: and repayment status, research materials providing an understanding ofactual financial position, financial statements, and the trial balance, and- Self-assessment of the quality of loans and other receivables, including the by evaluating the impact of the international situation related to Russia
future prospects of borrowers’ financial conditions and repayment abilities
and Ukraine on the future prospects of the borrowers’ businessused in the borrowers’ category determination;
performance and compared them with available external information- Future cash flows used in the discounted cash flow method (“DCF method”) including, as appropriate, trends in natural resource prices.
The Group estimates risk parameters in consideration of information
available as of March 31, 2024 and measures ECL.

for the impaired loans and other receivables assessed individually andclassified as Stage 3;
2

- Selection of forward looking macro-economic indicators and the approachto making adjustments based on statistical calculations using historical data
and forecasts to incorporate forward looking information in the ECL
measurement of loans and other receivables classified as Stage 1 or Stage 2.

In addition, we made inquiries to the Finance Group in charge of theloans and the Credit, Assessment and Risk Management Group as
necessary to supplement our understanding. Also, we compared internal
credit ratings on sovereign loans with external credit ratings.

With respect to the international situation related to Russia and Ukraine,
while the national governments have taken various measures, such as
economic sanctions against Russia, the effects of the international situation
related to Russia and Ukraine are reflected in the ECL by assessing in detailthe effects of such measures on the business of, or the performance ofobligations by, Russia-related borrowers in the process of the borrowers’
category determination and in assessing the effects on credit risk individually.

- For the loans and other receivables assessed individually and classified
as Stage 3, we assessed the future cash flows used in the DCF method aswell as the inputs used by management, evaluated the model used in the
DCF method, and tested their mathematical accuracy throughrecalculation. In addition, for samples of impaired loans and otherreceivables assessed individually, we performed procedures to compare
cash flows estimated in the previous years to actual results.

ECL measurement involves management’s judgment and estimating thefuture outlook of the macroeconomic indicators is subject to uncertainty.

- For the loans and other receivables classified as Stage 1 or Stage 2, weevaluated inputs applied by management related to ECL measurement
and assessed those models and tested their mathematical accuracy
Thus, we considered the assessment of allowance for loan losses as a key
through recalculations. We examined the Group’s approach to making
audit matter, due to the significance of its potential impact on the Group’s
adjustments based on statistical calculations using historical data andconsolidated financial statements as well as management’s judgment involved
forecasts to incorporate forward looking information into the ECL
and uncertainties in the estimates.
model.
- We compared the estimated timing of recovery of macroeconomic
indicators in the future in light of the effects of the international situation
related to Russia and Ukraine with available external information.
In addition to the above, we examined the disclosures in the notes related
to the assessment of allowance for loan losses.
Other information included in The Group’s 2024 Annual Report on Form 18-K
Other information consists of the information included in the Annual Report, other than the consolidated financial statements and our auditor’s reports
thereon. Management is responsible for the other information.
Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance
conclusion thereon.
3

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the consolidated financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs, and for suchinternal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate
the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:∎

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.

∎

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

∎

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made bymanagement.
4∎Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

∎

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

∎

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an
opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remainsolely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, andto communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of theconsolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unlesslaw or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
The partner in charge of the audit resulting in this independent auditor’s report is Hiroshi Nishida.
/s/ Ernst & Young ShinNihon LLC
Tokyo, Japan
July 30, 20245

Consolidated Statements of Financial Position

Notes

Assets:Cash and due from banks
Derivative financial instrument assets
Financial assets at fair value through profit or loss
Securities
Loans and other receivables
Equity method investments
Property and equipment
Other assets
Total assets
Liabilities:
Derivative financial instrument liabilities
Borrowings
Bonds payable
Financial guarantee contracts
Other liabilities
Total liabilities
Equity:Capital stock
Retained earnings
Other reserves
Non-controlling interests
Total equity
Total liabilities and equity

6(Millions of yen)
As of March 31,
2023

7
8
9
10
11
13
15
16

2,565,369
104,008
474,551
53,19915,949,101
120,408
32,796
1,055,399
20,354,834

2,193,775
137,156475,260
46,99815,144,377
129,892
30,730667,093
18,825,285

8
17
18
19
20, 21

1,098,801
9,193,988
6,353,375
72,454299,464
17,018,084

825,233
8,513,677
5,934,320
75,514
246,889
15,595,635

22

2,211,800
1,083,074
41,616258
3,336,749
20,354,834

2,108,800
1,089,888
30,677283
3,229,650
18,825,285

22

See Notes to Consolidated Financial Statements.

As of March 31,2024

Consolidated Income Statements

Notes

For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

Interest income
Interest expense
Net interest income
Fee and commission income
Fee and commission expense
Net expense from derivative financial instruments
Net gain (loss) from financial assets at fair value through profit or loss
Net gain on derecognition of financial assets measured at amortized cost
Other income
Net non-interest expense
Total operating income *1

24
24
24
25
25
26
27
28
29

1,029,892
544,209
485,683
14,0094,319
396,647
18,915—39,954
328,087
157,595

576,869
334,401
242,467
12,8483,799
145,982(12,160)
558
30,787
117,748
124,719

Impairment losses on financial assets
Net operating income *2

30

59,13598,45922,174
102,545

Operating expenses
Other expenses
Total operating expenses

31
29

26,6592,112
28,772

24,5404,315
28,855

Profits (losses) of equity method investments
Profit before income tax
Income tax expense
Net profit

13

2,626
72,31354
72,258(1,186)72,503
13
72,49072,284(25)

72,557(66)

32

Attributable to:Shareholder of JBIC
Non-controlling interests*1*2

Aggregate of “Net interest income” and “Net non-interest expense”“Total operating income” less “Impairment losses on financial assets”

See Notes to Consolidated Financial Statements.
7

Consolidated Statements of Comprehensive Income

Net profit

For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

72,25872,490

Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit plans:Remeasurement arising during the year
Total of items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations:
Net gain arising during the year
Reclassification adjustments
Total of items that may be reclassified to profit or loss
Other comprehensive income

846
846

411
411

18,935(7,996)
10,93911,785

16,582(362)
16,21916,631

Total comprehensive income

84,044

89,121Attributable to:Shareholder of JBIC
Non-controlling interests

84,070(25)

89,188(66)

8Consolidated Statements of Changes in Equity(Millions of yen)

Notes

Capitalstock

Attributable to shareholder of JBIC
Other reserves
Exchangedifferences
Remeasurementon
Retainedof definedtranslationof foreignearnings
benefit plans

Other
reserves,
Total

Sub Total

April 1, 2022

2,023,800

1,024,249—

14,45814,4583,062,507

Net profit (loss)
Other comprehensive income
Total comprehensive income (loss)
Issuance of new shares
Payment to the National Treasury
Other
March 31, 2023———
85,000——2,108,800

72,557—72,557—(7,329)411
1,089,888

—
411
411
—
—
(411)
—

—
16,21916,219———30,677—
16,631
16,631——(411)
30,67772,557
16,631
89,18885,000(7,329)—3,229,366———
103,000——
2,211,800

72,284—72,284—(79,945)846
1,083,074

—
846
846
—
—
(846)
—

—
10,93910,939———41,616—
11,785
11,785——(846)
41,61672,284
11,78584,070103,000(79,945)—
3,336,491

Non controllinginterests

Total
equityNet profit (loss)
Other comprehensive income
Total comprehensive income (loss)
Issuance of new shares
Payment to the National Treasury
Other
March 31, 2024

22
23
22

22
23
22

Notes

April 1, 2022

350

3,062,857

Net profit (loss)
Other comprehensive income
Total comprehensive income (loss)
Issuance of new shares
Payment to the National Treasury
Other
March 31, 2023

(66)
—
(66)
—
—
—
283

72,490
16,631
89,12185,000(7,329)—3,229,650

(25)
—
(25)
—
—
—
258

72,258
11,78584,044
103,000(79,945)—
3,336,749

Net profit (loss)
Other comprehensive income
Total comprehensive income (loss)
Issuance of new shares
Payment to the National Treasury
Other
March 31, 2024

22
23
22

22
23
22

See Notes to Consolidated Financial Statements.
9Consolidated Statements of Cash Flows

Notes

Cash flows from operating activities
Profit before income tax
Depreciation and amortization
Impairment loss on property and equipment
Impairment loss on other assets
Increase (decrease) in liability for retirement benefits
Net loss (gain) from financial assets at fair value through profit or loss
Losses (profits) from equity method investments
Net decrease (increase) in loans and other receivables
Net increase (decrease) in borrowings
Net decrease (increase) in deposits (excluding demand deposits)
Net change in derivative financial instrument assets and liabilities
Net increase (decrease) in financial guarantee contracts
Net increase (decrease) in bonds payable
Other
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of financial assets at fair value through profit or loss
Sale of financial assets at fair value through profit or loss
Purchase of securities
Purchase of equity method investments
Proceeds from return of equity method investments
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from issuance of new shares
Payment to the National Treasury
Other
Net cash provided by (used in) financing activities
Exchange difference on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Net cash provided by (used in) operating activities includes the following:
Interest received
Interest paid
See Notes to Consolidated Financial Statements.
10

22
23

7

For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

72,313
4,171
230
668
(1,025)(18,915)(2,626)(804,723)
680,311(289,695)
306,716(3,060)419,055(401,676)(38,253)

72,503
3,932
—
—
(553)
12,1601,186(978,801)
959,468(100,185)
225,797
10,285
374,701(33,682)
546,813(13,862)
27,412(6,200)(2,891)
29,609(9,584)24,483(16,890)
14,821(10,000)(1,739)6,661(4,221)(11,368)

103,000(79,945)(582)
22,471
73,19681,898
1,726,420
1,808,319

85,000(7,329)(503)
77,16629,824642,437
1,083,983
1,726,420

977,918(495,408)

438,478(260,885)

Notes to Consolidated Financial Statements
1. Corporate Information
Japan Bank for International Cooperation (“JBIC”) was established on April 1, 2012 in accordance with the Japan Bank for International
Cooperation Act (2011 Act No. 39, or “JBIC Act”), which was promulgated and came into effect on May 2, 2011. Under the JBIC Act, the JBIC
Operations and the Financial Operations for Facilitating Realignment of United States Forces in Japan were transferred out of the Japan FinanceCorporation to establish JBIC, a policy-based financial institution, wholly owned by the Japanese government. JBIC is a joint-stock corporation
incorporated and domiciled in Japan with its headquarters registered at 4-1 Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, Japan.
The consolidated financial statements for the year ended March 31, 2024 were authorized for issue by the board of directors on July 30, 2024.
The objective of JBIC and its subsidiaries (the “JBIC Group”) is to contribute to the sound development of Japan and the international economy
and society by conducting financial operations in the following four fields, while supplementing the financial transactions of private sector financial
institutions:•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; and•preventing disruptions to international financial order or taking appropriate measures with respect to damage caused by such disruptions.

See Note 6 “Segment Information” for details on the JBIC Group’s major operations.
2. Basis of Preparation
The consolidated financial statements of the JBIC Group are prepared in accordance with the International Financial Reporting Standards(“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
The consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value. The
consolidated financial statements are presented in yen, the functional currency of JBIC. Unless otherwise stated, all amounts are rounded down byomitting figures less than one million and stated in millions of yen. As a result, the totals in yen do not necessarily agree with the sum of the individual
amounts. Items less than one million yen or whose balance is nil are presented as “-”.
3. Material Accounting Policy Information
The JBIC Group has applied the following new accounting standard and amendments from the fiscal year ended March 31, 2024.
IFRS 17 Insurance Contracts
On May 18, 2017, the IASB issued IFRS 17 “Insurance Contracts” that replaces IFRS 4 and sets out new principles for the recognition,measurement, presentation and disclosure of insurance contracts. IFRS 4 allowed entities to account for insurance contracts using national accounting
standards, resulting in a wide variety of accounting practices. IFRS 17 requires that all insurance contracts be accounted for in a consistent manner. In
principle, insurance contracts are required to be measured at the total of the fulfilment cash flows and the contractual service margin and are required tobe remeasured at the end of each reporting period.
The application of IFRS 17 had no impact on the JBIC Group’s consolidated financial statements.
Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies
On February 12, 2021, the IASB issued “Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2).” These
amendments require entities to disclose their material accounting policy information rather than their significant accounting policies. Accounting policy
information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected toinfluence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments to
IFRS Practice Statement 2 provide guidance on how to apply the concept of materiality to accounting policy disclosures.
The application of the above amendments had no impact on the JBIC Group’s consolidated financial statements.
Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
On February 12, 2021, the IASB issued “Accounting Policies, Changes in Accounting Estimates and Errors (Amendments to IAS 8).” These
amendments help distinguish changes in accounting policies from changes in accounting estimates. This distinction is important because changes inaccounting estimates are applied prospectively to future transactions and other future events, but changes in accounting policies are generally applied
retrospectively to past transactions and other past events as well as to those of the current period.
11

The application of the above amendments had no impact on the JBIC Group’s consolidated financial statements.
A.

Basis of consolidationi.

Subsidiaries

A subsidiary is an entity (including a structured entity) controlled by the JBIC Group. The JBIC Group controls an entity when it is
exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its powerover the entity. Currently exercisable potential voting rights are taken into account in considering whether the JBIC Group has power overan entity. Even if the JBIC Group does not have voting rights in an investee, the JBIC Group determines that the investee is its subsidiaryif, as a result of considering the scope of its decision-making rights over the investee, the rights held by other parties and other factors, the
JBIC Group determines that another entity with decision-making rights is acting as an agent for the JBIC Group.
Inter-company transactions entered into with consolidated companies, the inter-company balance of receivables and payables and, if
any, unrealized gains included in assets acquired as a result of transactions executed with consolidated companies are eliminated inconsolidation. The JBIC Group consolidates a subsidiary from the date it obtains control over the subsidiary until the date JBIC ceases tocontrol the subsidiary. If the JBIC Group ceases to control a consolidated subsidiary, it recognizes any investment retained in the former
subsidiary at its fair value.
ii.

Associates and joint arrangements

An associate is an entity over which the JBIC Group has significant influence in respect of managerial decisions related to thefinancial and operating policies of the entity but does not have control or joint control of the entity. Indications, such as ownership interestor participation in decision-making bodies, are considered in determining the existence of significant influence.
Joint control is an arrangement that constitutes contractually-agreed sharing of control, which exists only when decisions about theactivities that significantly affect the variable returns of the arrangement require the unanimous consent of the parties sharing control. The
classification of a joint arrangement investment as a joint operation or a joint venture depends upon the rights and obligations of each
investor to the arrangement. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement haverights to the assets and obligations for the liabilities relating to the arrangement. A joint venture is a joint arrangement whereby the parties
that have joint control of the arrangement have rights to the net assets of the arrangement. JBIC does not have joint operation investments.
The JBIC Group’s investments in associates and joint ventures are accounted for using the equity method, except for the investments
made through the Russia-Japan Investment Fund, L.P., a subsidiary of the JBIC Group, as explained below. Under the equity method, theinvestments in the associates and joint ventures are carried at cost in the consolidated statement of financial position and are adjusted forchanges in the JBIC Group’s share of the net assets of the investees since their respective acquisition dates. The consolidated income
statement reflects the JBIC Group’s share of the results of operations of the investees. Where there has been a change in the othercomprehensive income of the associates and joint ventures, the JBIC Group recognizes its share of the change in other comprehensive
income. The profits (losses) of equity method investments are shown on the face of the consolidated income statements and represent the
profits (losses) attributable to the investors of the associates and the joint ventures.
Where there is a joint arrangement among investors, including the Russia-Japan Investment Fund, L.P., as an investor, and theinvestors have rights to the net assets of the arrangement, such investees are joint ventures of the JBIC Group. However, investments insuch joint ventures through the Russia-Japan Investment Fund, L.P. are accounted for as financial assets at fair value through profit or loss(“FVPL”) and presented in “Financial assets at fair value through profit or loss” in the consolidated statement of financial position
pursuant to the exemption in IAS 28.
The consolidated financial statements of the JBIC Group include investments in associates and joint ventures for which the reporting
date is different from that of JBIC because it is impracticable to change the reporting date of those associates and joint ventures to coincidewith that of the JBIC Group in conjunction with other shareholders or for other reasons. The reporting date of certain associates and joint
ventures included in the JBIC Group’s consolidated financial statements is December 31, and therefore adjustments are made for theeffects of significant transactions or events which occurred during the period between the reporting dates.
The JBIC Group determines whether it is necessary to recognize impairment losses on its investments in associates and joint
ventures. At each reporting date, the JBIC Group determines whether there is objective evidence that its investments in associates and joint
ventures are impaired. If there is such evidence, the JBIC Group recognizes impairment losses for the differences between the recoverable
amounts of investments in associates or joint ventures and their carrying values.
12Upon loss of significant influence or joint control over the associates and the joint ventures, the JBIC Group measures and recognizes
any retained investments at their fair values. Any differences between the carrying amounts of its investments in associates or joint
ventures upon the loss of significant influence or joint control and total of the fair values of the retained investments and proceeds from
disposal are recognized in profit or loss.
B.

Foreign currency translation
The consolidated financial statements of the JBIC Group are presented in yen, which is the functional currency of JBIC.
Transactions in foreign currencies are initially recorded in the functional currency using the exchange rate at the transaction date.

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at thereporting date. Any gains or losses arising from the foreign currency translation are recognized in profit or loss.
Non-monetary items measured at historical cost in a foreign currency are translated using the exchange rate at the date of the initialtransaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value
is determined, and any translation differences are recognized in other comprehensive income.
The assets and liabilities of foreign operations are translated into yen using the exchange rate at the reporting date. Income and expenses
are translated into yen at the exchange rate (or the rate that approximates the exchange rate) at the transaction date. The exchange differences
arising on translation are recognized in other comprehensive income.
As of March 31, 2024 and 2023, there were no non-monetary items measured at fair value in a foreign currency.
C.

Financial assets

The JBIC Group classifies its financial assets into the following three categories: i. amortized cost, ii. financial assets at fair value throughother comprehensive income (“FVOCI”), and iii. FVPL. The classification of financial instruments at initial recognition depends on the businessmodel within which they are held and their contractual cash flow characteristics.
The JBIC Group has assessed business models based on facts and circumstances at a portfolio level. Factors that are considered indetermining the business model include policies and objectives for the relevant portfolio, how the performance and risks of the portfolio aremanaged, evaluated and reported to management, and the level of sales activity.
The JBIC Group has assessed the contractual cash flow characteristics of financial assets with reference to whether the contractual cash
flows are solely payments of principal and interest (“SPPI”). Principal is the fair value of the financial asset at initial recognition but this maychange over the life of the instrument as amounts are repaid. Interest is defined as consideration for the time value of money and the credit risk
associated with the principal amount outstanding during a particular period of time. It can also include consideration for other basic lending risks
such as liquidity risk and costs such as administrative costs associated with holding the financial asset for a particular period of time, as well as aprofit margin. In assessing whether the contractual cash flows meet the condition for SPPI, the JBIC Group considers the contractual terms that
could change the contractual cash flows so that it would not meet the condition for SPPI, including leverage features, contingent events that wouldchange the amount and timing of cash flows, contractual terms that limit the JBIC Group’s claim to cash flows from specified assets, and featuresthat modify consideration of the time value of money.
The JBIC Group recognizes a financial asset in its consolidated statement of financial position when, and only when, the JBIC Group
becomes a party to the contractual provisions of the financial instrument. The JBIC Group derecognizes a financial asset when contractual rights
to cash flows from the financial asset expire, or it transfers substantially all the risks and rewards of ownership of the financial asset. In
transactions in which substantially all the risks and rewards of ownership of a financial asset are neither retained nor transferred, the JBIC Groupderecognizes a financial asset if control over that asset is not retained. If the terms of the financial asset are significantly modified, the existing
financial asset is derecognized and a new asset is recognized, and difference in the respective carrying amounts is recognized in profit or loss.
Regular way purchases or sales of financial assets at amortized cost, FVOCI, and FVPL are recognized and derecognized using trade dateaccounting. Trade date accounting refers to the recognition of an asset to be received and the liability to pay for it on the trade date, derecognitionof an asset that is sold, and recognition of a receivable from the buyer for payment on the trade date.
i.

Financial assets measured at amortized cost

Financial assets are measured at amortized cost if they are held within a business model whose objective is to hold the assets in order
to collect contractual cash flows, and their contractual cash flows are SPPI. These financial assets are included in “Cash and due frombanks,” “Securities,” “Loans and other receivables” and “Other assets” in the consolidated statement of financial position. They are
initially recognized at fair value plus directly attributable transaction costs, and are subsequently measured at amortized cost using theeffective interest method. Interest income on these financial assets is recognized in “Interest income” in the consolidated income statement
using the effective interest method.
13

The JBIC Group engaged in a number of loan and borrowing transactions referencing LIBOR. If an interest rate benchmark used as
the basis for determining the contractual cash flows is replaced, IFRS 9 requires entities to determine the effects on cash flows attributable
to that change and consider whether to derecognize the financial instrument or to recognize any resulting gain or loss. The JBIC Groupapplies the reliefs provided in Interest Rate Benchmark Reform—Phase 2 from the fiscal year ended March 31, 2022. The reliefs permit apractical expedient to allow an entity to not recognize any modification gain or loss attributable to amendments to the contractual terms of
the financial asset or financial liability if, and only if, the replacement of the interest rate benchmark is necessary as a direct consequenceof interest rate benchmark reform and the new basis for determining the contractual cash flows is economically equivalent to the previous
basis. The JBIC Group completed contract changes related to the replacement with alternative interest rates to the existing contracts for
those transactions referencing LIBOR settings that ceased to be published at the end of December 2021 by the date. For the majority oftransactions referencing U.S. dollar LIBOR settings that ceased to be published at the end of June 2023, the JBIC Group completed
contract changes related to the replacement with alternative interest rates by that date. The JBIC Group has developed a policy on how totreat remaining transactions after the cessation of the relevant LIBOR reference rates, including referencing synthetic LIBOR settings. The
JBIC Group continues to monitor the progress of replacement with alternative interest rates for its remaining contracts. However, overall,compliance risk, conduct risk, and legal risk have been significantly reduced. The JBIC Group will continue to monitor all of the contracts
until they are fully replaced.
ii.

Financial assets measured at fair value through other comprehensive income

Financial assets are measured at FVOCI if they are held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets, and their contractual cash flows are SPPI. They are initially recognized at fair value
plus directly attributable transaction costs and are subsequently measured at fair value. Gains and losses arising from changes in the fairvalue of these financial assets are recognized in other comprehensive income, until they are derecognized. When they are derecognized,
the cumulative gains or losses previously recognized in other comprehensive income are reclassified to profit or loss. However, interest
income calculated using the effective interest method, foreign currency gains and losses, and impairment gains and losses are recognizedin the consolidated income statement.
In addition, the JBIC Group has an option to make an irrevocable election, at initial recognition, for particular non-trading equity
instruments that would otherwise be measured at FVPL, to present subsequent changes in fair value in other comprehensive income. They
are initially recognized at fair value plus directly attributable transaction costs and are subsequently measured at fair value. Amounts
presented in other comprehensive income shall not be subsequently reclassified to profit or loss. The JBIC Group does not make thisdesignation.
As of March 31, 2024 and 2023, there were no financial assets measured at FVOCI.
iii.

Financial assets measured at fair value through profit or loss

Any financial assets that do not meet the criteria of amortized cost or FVOCI are classified as FVPL, unless an entity makes anirrevocable election for non-trading equity instruments to be measured at FVOCI. Derivatives are measured at FVPL and included in“Derivative financial instrument assets” in the consolidated statement of financial position. Financial assets measured at FVPL, other thanderivatives, are included in “Financial assets at fair value through profit or loss” in the consolidated statement of financial position.
Additionally, financial assets measured at amortized cost or FVOCI can be designated at initial recognition to be measured at FVPL inorder to eliminate or significantly reduce an accounting mismatch. The JBIC Group does not make this designation.
Financial assets measured at FVPL are initially recognized at fair value with transaction costs being recognized in the consolidated
income statement and are subsequently measured at fair value. Gains or losses arising from derivatives are included in “Net expense fromderivative financial instruments”, “Other income” or “Other expenses” in the consolidated income statement. Gains or losses arising fromfinancial assets measured at FVPL are included in “Net gain (loss) from financial assets at fair value through profit or loss” in the
consolidated income statement.
D.

Financial liabilities

Financial liabilities are measured at fair value less directly attributable transaction costs at initial recognition and subsequently measured atamortized cost using the effective interest method, except for financial liabilities at FVPL and financial guarantee contracts. Amortization using
the effective interest method and any gains or losses arising from the derecognition of a financial liability are recognized in profit or loss.
i.

Financial liabilities at fair value through profit or loss
Financial liabilities that the JBIC Group classifies as held for trading or designates as FVPL are classified as financial
liabilities at FVPL.
14

a.

Financial liabilities classified as held for trading

In the JBIC Group, financial liabilities classified as held for trading only include derivatives and are included in “Derivative
financial instrument liabilities” in the consolidated statement of financial position.
b.

Financial liabilities at fair value through profit or loss

Financial liabilities can be designated as financial liabilities at FVPL upon initial recognition, if they meet either of thefollowing criteria:(i)a measurement or recognition inconsistency is eliminated or significantly reduced by the designation; or(ii)

a group of financial liabilities is managed and its performance is evaluated on a fair value basis, in accordance with adocumented risk management or investment strategy.

When the JBIC Group is required to separate an embedded derivative from its host contract but is unable to measure theembedded derivative separately either at acquisition or at a subsequent reporting date, the JBIC Group designates the entire hybrid
contract as FVPL. Financial liabilities at FVPL are initially and subsequently measured at fair value for which changes in theliability’s credit risk from initial recognition are recognized in other comprehensive income. Transaction costs are recognized in
profit or loss.
As of March 31, 2024 and 2023, there were no financial liabilities that had been designated as FVPL.
ii.

Financial guarantee contracts

A financial guarantee contract requires its issuer to reimburse the contract holder for a loss caused by a specific debtor’s failure to
make payment on the due date pursuant to the original or modified terms of a debt instrument. Upon initial recognition, financial liabilities
associated with financial guarantee contracts are measured at fair value. They are subsequently measured at the higher of (a) the amount of
the loss allowance determined in accordance with IFRS 9 and (b) the amount initially recognized less, when appropriate, the cumulative
amount of income recognized in accordance with the principles of IFRS 15 “Revenue from Contracts with Customers.”
E.

Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount is presented in the consolidated statement of financial position when,and only when, there is a currently enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize
the asset and settle the liability simultaneously.
F.

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
The fair values of financial instruments traded in active markets are based on their quoted market prices. A financial instrument is regarded
as quoted in an active market if transactions take place with sufficient frequency and volume to provide pricing information on an ongoing basis,for example, quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, or pricing service. If an active
market for a financial instrument is not available, the JBIC Group determines the fair value using valuation techniques, such as using recent
arm’s-length market transactions between independent parties, discounted cash flow (“DCF”) analyses, and other valuation techniques commonlyused by market participants.
See a detailed discussion in Note 35 “Fair Value of Financial Assets and Liabilities” and Note 36 “Fair Value Hierarchy.”G.

Hedge accounting

The JBIC Group applies fair value hedge accounting and hedge accounting of net investments in foreign operations in order to reflect theeffect of risk management activities on its consolidated financial statements.
i.

Fair value hedges

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the consolidated income
statement, together with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. If the hedge nolonger meets the criteria for hedge accounting, the adjustments to the carrying amount of a hedged item for which the effective interest
method is used is amortized to profit or loss over the period to maturity and recorded as interest expense.
ii.

Net investment hedges in foreign operations

The effective portion of the gain or loss on the hedging instruments is recognized in other comprehensive income, whereas theineffective portion of the gain or loss on the hedging instruments is recognized in “Net income (expense) from derivative financial
instruments” in the consolidated income statement. The cumulative gain or loss recognized in other comprehensive income is recognizedin the profit or loss on the disposal or partial disposal of the foreign operations.
15

iii.

Interest rate benchmark reform

The JBIC Group applies Interest Rate Benchmark Reform—Phase 1 from the fiscal year ended March 31, 2020. In applying hedge
accounting, IFRS 9 requires an assessment in a forward-looking manner, and that there is an economic relationship between the hedged
item and the hedging instrument. Pursuant to the Phase 1 amendments, the JBIC Group assumes that hedged items, hedging instruments
and interest rate benchmark-based cash flows, which are the hedged risk, are not affected by interest rate benchmark reform.
The JBIC Group applies Interest Rate Benchmark Reform—Phase 2 from the fiscal year ended March 31, 2022. IFRS 9 requires
entities to consider discontinuing hedge accounting if the designation of a hedging relationship is amended as a result of the replacementof an interest rate benchmark. Given that the replacement of interest rate benchmarks is a direct consequence of interest rate benchmark
reform and the new basis for determining the contractual cash flows is economically equivalent to the previous basis, the JBIC Group
completed amendments to its hedge documentation by the cessation of interest rate benchmarks and considered that these amendments
would not result in the discontinuation of hedge accounting.
H.

Impairment of financial assets

IFRS 9 applies the expected credit loss (“ECL”) model, which is a model for the recognition of impairment losses. The impairment
requirements apply to financial assets measured at amortized cost, and FVOCI debt instruments, certain loan commitments and financial guarantee
contracts. Under the ECL model, an entity is required to account for expected credit losses from initial recognition of financial instruments and torecognize full lifetime expected losses on a timely basis.
IFRS 9 outlines a “three-stage” model for impairment based on changes in credit quality since initial recognition. A financial asset that is
not credit-impaired on initial recognition is classified in “Stage 1” and has its credit risk continuously monitored by the JBIC Group. If asignificant increase in credit risk since initial recognition is identified, the financial asset is moved to “Stage 2” but is not yet deemed to be creditimpaired. If the financial asset is credit-impaired, the financial asset is then moved to “Stage 3.” ECL of financial assets in Stage 1 is measured at
an amount equal to the portion of lifetime expected credit losses that result from default events possible within the next 12 months. ECL offinancial assets in Stages 2 or 3 is measured based on expected credit losses on a lifetime basis. A pervasive concept in measuring ECL in
accordance with IFRS 9 is that it should consider forward looking information.
The assessment of significant increases in credit risk and the measurement of ECL are performed on an individual financial instrument
basis. The JBIC Group considers asset type, credit risk ratings, collateral collectibility, past-due status and other relevant characteristics offinancial instruments and assesses whether there have been significant increases in credit risk on an individual financial instrument basis.
The JBIC Group determines whether there has been a significant increase in credit risk by comparing the risk of a default occurring on afinancial instrument at the reporting date with that at the date of initial recognition, based on quantitative and qualitative assessments. As for thequantitative assessment, the JBIC Group measures whether the probability of default (“PD”) has increased since initial recognition. A significant
increase in credit risk is recognized if the increase of PD exceeds the threshold defined by the JBIC Group. In addition, if a borrower has been
downgraded to a certain degree, reflecting an increase in its PD, the assessment of whether there has been a significant increase in credit risk is
performed for such a borrower. A borrower’s grade is determined under the JBIC Group’s internal credit rating system. As for the qualitative
assessment, the JBIC Group evaluates credit risk characteristics in accordance with the JBIC Group’s credit risk management practices and takes
them into consideration for determining whether there has been a significant increase in credit risk. A backstop is applied, and a financial asset isconsidered to have experienced a significant increase in credit risk if the borrower is more than 30 days past due on its contractual payments.
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of thefinancial asset have occurred. The criteria that the JBIC Group uses to determine that a financial asset is credit-impaired include:(i)significant financial difficulty of the issuer or borrower;(ii)

a breach of contract, such as a default or past due event;(iii) the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the borrower a concession that thelender would not otherwise consider;(iv)

it becoming probable that the borrower will enter into bankruptcy or other financial reorganization;(v)

the disappearance of an active market for that financial asset because of financial difficulties; or(vi)

the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses.

A quantitative criterion that the borrower is more than 90 days past due on its contractual payments is also applied.
16

The JBIC Group’s definition of “default” of a financial asset is consistent with the definition of credit-impaired described above that isused for ECL recognition and measurement and is also consistent with that used for internal credit risk management purposes. The JBIC Groupmanages credit risk with the internal credit rating system, whereby loans to substandard borrowers, potentially bankrupt borrowers, substantiallybankrupt borrowers and bankrupt borrowers are defined as default for the purpose of the ECL model.
If the contractual cash flows on a financial asset have been renegotiated or modified, but the financial asset is not derecognized because themodification is not considered to be substantial, the JBIC Group assesses whether there has been a significant increase in the credit risk of themodified asset at the reporting date. Specifically, a risk of default of the modified asset is assessed by comparing with the risk under the originalterms at initial recognition. In addition, the JBIC Group monitors the subsequent performance of modified assets, in particular for those that havebeen moved from Stage 3 or Stage 2 to Stage 1 as a result of being determined that the credit risk has significantly improved after restructuring.
For such assets, the JBIC Group continues to monitor if there is a subsequent significant increase in credit risk using specific models for modified
assets.
The JBIC Group measures ECL of a financial asset in a way that reflects an unbiased and probability-weighted amount, the time value ofmoney, and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts offuture economic conditions.
ECL is measured on either a 12-month or lifetime basis depending on whether a significant increase in credit risk has occurred since initialrecognition or whether an asset is considered to be credit-impaired. The ECL models have been built by using PD, loss given default (“LGD”) and
exposure at default (“EAD”). For financial assets at Stage 1 and Stage 2, the JBIC Group uses 12-month PDs and lifetime PDs developed tomeasure 12-month ECL and lifetime ECL, respectively, and considers forward looking macro-economic information. For financial assets at Stage
3, the JBIC Group applies the DCF method for individually significant impaired financial assets.
To incorporate forward looking information into the ECL models, an approach based on multiple scenarios is introduced. In this approach,three scenarios (upside, downside, and base scenarios) are modelled to ensure an unbiased ECL calculation. Under each scenario, the relationshipbetween credit losses and macroeconomic factors such as world gross domestic product (“GDP”) growth rates and West Texas Intermediate Crude
Oil Prices (“WTI”) growth rates are analyzed. The analysis is based on statistical calculations by using historical data and forecasts. The outcomesare utilized for ECL calculation on a probability-weighted basis.
The DCF method is used to measure ECL, which is the difference between the asset’s carrying amount and the present value of estimatedfuture cash flows discounted at the financial asset’s original effective interest rate. If financial assets have a variable interest rate, the discount rate
for measuring any impairment loss is the effective interest rate determined under the contract for the current period. The estimated future cash
flows are individually calculated taking into account factors including historical loss information, the appropriateness of the borrower’s businessplan or operational improvement plan, the status of progress of its plan, the overall support from financial institutions, and the realizable value ofany collateral held.
ECL is recognized through allowance accounts. Changes in the carrying amount of the allowance accounts are recognized as impairment
gain or loss in “Impairment losses (reversals) on financial assets” in the consolidated income statement.
The JBIC Group writes off financial assets, in whole or in part, when it has implemented all practical recovery efforts and has concluded
that there is no reasonable expectation of recovery after any collateral is foreclosed and the amount of the loss has been determined. Those assets
primarily include loans for borrowers that have been legally or formally declared bankrupt and borrowers that may not have been legally orformally declared bankrupt but are essentially bankrupt.
The measurement of ECL allowance for financial instruments is an area that requires the use of complex models and significant
assumptions about future economic conditions and credit behavior. Management estimates and judgments may change from time to time as the
economic environment changes or new information becomes available. Changes in these estimates and judgments may have a direct impact on
impairment charges. For further information about estimates and assumptions for ECL models, refer to Note 4 “Material Accounting Judgements,
Estimates, and Assumptions.”
I.

Property and equipment

Property and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses. The cost of an item ofproperty and equipment includes costs directly attributable to the acquisition of the item.
Depreciation is generally calculated on a straight-line basis over the estimated useful lives of the assets as follows:•

Buildings (including leasehold improvements): 3 to 50 years•

Other: 2 to 75 years
17

An item of property and equipment and any significant part thereof initially recognized is derecognized upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset, which is calculated as thedifference between the net disposal proceeds and the carrying amount of the asset, is recognized in profit or loss when the asset is derecognized.
The residual values, useful lives, and methods of depreciation of property and equipment are reviewed at each reporting date and adjusted
prospectively, if appropriate.
J.

LeasesLease transactions entered into by the JBIC Group as a lessee primarily consist of rental offices. The lease liabilities are initiallyrecognized at the discounted present value of the remaining lease payments in the lease term at the commencement date of the lease and aresubsequently measured at amortized cost using the effective interest method. The lease liabilities are included in “Other liabilities” in the
consolidated statement of financial position. The discount rate used to calculate the discounted present value is the lessor’s interest rate implicit in
the lease, if that rate can be readily determined. If that rate cannot be readily determined, the JBIC Group’s incremental borrowing rate is used.
The right-of-use assets are initially recognized at the amount of the initial measurement of the lease liabilities, plus any lease payments
made at or before the commencement date, an estimate of costs to be incurred in, for example, restoring the underlying asset, and any initial direct
costs. The right-of-use assets are subsequently measured at cost, less any accumulated depreciation and any accumulated impairment losses, andare included in “Other assets” in the consolidated statement of financial position.
The JBIC Group does not enter into lease transactions as a lessor.
K.

Impairment of non-financial assets

The JBIC Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, animpairment test is performed. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset is written
down to its recoverable amount and an impairment loss is recognized.
L.

Post-employment benefits
JBIC has defined benefit plans and defined contribution plans to secure funds to pay employees’ retirement benefits.
i.

Defined benefit plans

JBIC determines the present value of its defined benefit obligations and the related current and past service costs for each plan using
the projected unit credit method. Remeasurements of defined benefit plans are recognized in full in other comprehensive income in theyear incurred, and immediately transferred to retained earnings. Past service costs are recognized in full in the year incurred.
The liability for retirement benefits is the present value of the defined benefit obligation less the fair value of the plan assets (thepresent value is determined using a discount rate based on market yields on high-quality corporate bonds. See the detailed discussion in
Note 21 “Employee Benefits”). The plan assets comprise assets held by a long-term employee benefit fund and qualifying insurance
policies. The plan assets are not used to repay JBIC’s creditors and are not returned to JBIC, except under certain circumstances. The fairvalue of the plan assets is based on market price information. The recognition of the net defined benefit asset is limited to the total amountof the present value of any economic benefits available in the form of refunds from the plan or reductions in the future contributions to the
plan.
ii.

Defined contribution plans

JBIC recognizes contributions to the defined contribution plans as expenses in the periods in which employees render the related
services.
M.

Taxes

JBIC is a nontaxable entity according to Paragraph 2, Item 5 of the Corporate Tax Act of Japan (Act No. 34, 1965) and has no obligation to
pay corporate taxes. JBIC IG Partners, a subsidiary of the JBIC Group, is a taxable entity and has an obligation to pay corporate taxes asapplicable under relevant laws. The Russia-Japan Investment Fund, L.P. is a tax-exempt limited partnership established under Cayman Islands
laws and has no obligation to pay corporate taxes.
18

N.

Interest income and interest expense

Interest income and expense for all financial instruments, except for financial assets and financial liabilities at FVPL, is recognized in“Interest income” and “Interest expense” using the effective interest rate method. For financial assets, the interest rate is applied to the grosscarrying amount of financial assets, except for:a.

Purchased or originated credit-impaired (“POCI”) financial assets, for which the original credit-adjusted effective interest rate isapplied to their amortized cost.

b.

Financial assets that are not POCI but have subsequently become credit-impaired or Stage 3, for which interest income is calculated
by applying the effective interest rate to their amortized cost (i.e. net of the expected credit loss provision).

The effective interest rate method is a method for calculating the amortized cost of a financial asset or a financial liability (or a group offinancial assets or financial liabilities) and allocating the interest income or interest expense over the relevant period.
O.

Fee and commission income

Fee and commission income is mainly attributable to guarantee income arising from financial guarantee contracts. Guarantee income isrecognized over the time period stipulated in the relevant contract.
P.

Fee and commission expense

Fee and commission expense is mainly attributable to outsourcing expenses. Outsourcing expenses are recognized as the services are
rendered on an accrual basis in accordance with the terms of the relevant agreement.
Q.

Net income (expense) from derivative financial instruments

Net income (expense) from derivative financial instruments comprises gains and losses arising from changes in the fair values ofderivatives and interests on these derivatives, except for gains or losses arising from the foreign currency translation of notional amounts of thecurrency swap contracts by using the exchange rate at the reporting date. This account also includes adjustments of the carrying amounts ofhedged items under fair value hedge.
R.

Net gain (loss) from financial assets at fair value through profit or loss

Net gain (loss) from financial assets at fair value through profit or loss includes all gains and losses arising from changes in the fair valueof these financial assets and sales of such assets, as well as interest and dividend income, and upfront and commitment fee on these financial
assets.
S.

Net gain (loss) on derecognition of financial assets measured at amortized cost

Net gain (loss) on derecognition of financial assets measured at amortized cost comprises gains or losses on the sale, redemption or otherevents which resulted in the derecognition of financial assets measured at amortized cost.
T.

Cash and cash equivalents

Cash and cash equivalents as stated in the consolidated statement of cash flows consist of cash on hand and demand deposits included in“Cash and due from banks” in the consolidated statement of financial position.
4. Material Accounting Judgments, Estimates, and Assumptions
The preparation of the consolidated financial statements requires the JBIC Group to make judgments, estimates, and assumptions that affect thereported amounts of revenues, expenses, assets, and liabilities, and the disclosure of contingent liabilities, at the reporting date.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk ofresulting in a material adjustment to the carrying amounts of assets and liabilities within the next fiscal year, are described below. The JBIC Group based
its key assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances andassumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the JBIC Group.
Such changes are reflected in the assumptions when they occur.
Fair value of financial instruments
Where the fair value of financial assets and financial liabilities cannot be measured based on quoted prices in active markets, their fair value isdetermined using valuation techniques including DCF models. The JBIC Group uses its judgment in selecting valuation techniques and the inputs tothese models are derived from observable markets, where possible. However, inputs that are not derived from observable markets are used for theestimation of the fair value for some financial instruments based on the JBIC Group’s estimates and judgments.
The JBIC Group’s estimates and judgments are continually evaluated and updated in line with market conditions, and these changes could directly
affect the fair values of these financial instruments.
See a detailed discussion in Note 35 “Fair Value of Financial Assets and Liabilities” and Note 36 “Fair Value Hierarchy.”
19

Expected Credit Losses
ECL represents the JBIC Group’s estimates of expected credit losses on financial instruments subject to impairment at the reporting date. The
JBIC Group is required to exercise judgment in making assumptions and estimates.
Judgments in making assumptions and estimates made by the JBIC Group’s include:•

Self-assessment of the quality of loans and other receivables, including the future prospects of borrowers’ financial condition andrepayment abilities used in the borrowers’ category determination;•

Future cash flows used in the DCF method for the impaired loans and other receivables assessed individually classified as Stage 3;•

Selection of forward looking macro-economic indicators and the approach to making adjustments based on statistical calculations using
historical data and forecasts to incorporate forward looking information in the ECL measurement of loans and other receivables classified
as Stage 1 or Stage 2.

The JBIC Group’s estimates and judgments are continually evaluated and updated in response to changes in the economic environment and in thelight of new information. These changes could lead to a revision of the amount of impairment losses.
ECL is disclosed in more detail in Note 11 “Loans and Other Receivables,” Note 19 “Financial Guarantee Contracts” and Note 30 “Impairment
Losses (Reversals) on Financial Assets.” Credit risk is described in more detail in Note 38 “Maximum Exposure to Credit Risk”, Note 39 “Collateral”,
Note 40 “Concentration of Credit Risk” and Note 41 “Exercise of Rights to Obtain Collateral or Other Credit Enhancements.”
With respect to the international situation related to Russia and Ukraine, while the national governments have taken various measures, such as
economic sanctions against Russia, the effects of the international situation related to Russia and Ukraine are reflected in the ECL in the fiscal year
ended March 31, 2024 by assessing in detail the effects of such measures on the business of, or the performance of obligations by, Russia-related
borrowers in the process of the borrowers’ category determination and in assessing the effects on credit risk individually. In the future, the expansion of
the scope, or extension, of economic sanctions may have direct and indirect effects on the borrowers’ category.
In addition, the impact of COVID-19 is being carefully examined and reflected in the ECL in the process of determining the borrowers’ category
for affected individual borrowers.
As the future outlook of these events is uncertain, if the developments in the international situation related to Russia and Ukraine and the situationof COVID-19 differ significantly from the assumptions, the ECL as of the end of the fiscal year ending March 31, 2025 may change.
The amount of ECL as of March 31, 2024 is the current best estimate. However, given a high estimation uncertainty related to other factors in
addition to the international situation related to Russia and Ukraine and the effects of COVID-19, there is a risk that the borrowers’ results of operations,financial position or other items may change more than what was assumed at the time of estimation and such changes, if occurred, may have asignificant effect on the consolidated financial statements for the next fiscal year.
Post-employment benefits
The present value of defined benefit obligations and related costs are determined using actuarial valuations. An actuarial valuation involves
making various assumptions, which may differ from actual developments in the future. These include the determination of the discount rate, futuresalary increases, mortality rates, and future pension increases. Due to the complexity of the valuation, the underlying assumptions, and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
In determining the appropriate discount rate, the JBIC Group considers the market yield of high-quality corporate bonds in the respective
currency, with extrapolated maturities corresponding to the expected duration of the defined benefit obligation.
See Note 21 “Employee Benefits” for further details about the assumptions used.
20

5. Standards Issued but Not Yet Effective
Early application of standards and interpretations
The JBIC Group has not applied any standards early.
Standards and interpretations issued but not yet applied
The following is a listing of standards and interpretations issued but not yet applied by the JBIC Group as of the date of the issuance of theconsolidated financial statements. The JBIC Group intends to apply the standards and interpretations from the date they become effective.
IFRS 18 Presentation and Disclosure in Financial Statements
On April 9, 2024, the IASB issued IFRS 18 “Presentation and Disclosure in Financial Statements” that replaces IAS 1 “Presentation of Financial
Statements” to improve the usefulness of information presented and disclosed in financial statements. IFRS 18 introduces three sets of new requirementsthat give investors more transparent and comparable information about entities’ financial performance, and a better basis for analyzing and comparing
entities by:•requiring defined subtotals in the statement of profit or loss;•

requiring disclosure about management-defined performance measures; and•adding new principles for aggregation and disaggregation of information.

IFRS 18 carries forward many requirements from IAS 1 unchanged. IFRS 18 is effective for fiscal years beginning on or after January 1, 2027.
As of the date of the issuance of the consolidated financial statements, the JBIC Group is evaluating the potential impact that the adoption of IFRS
18 will have on the JBIC Group’s consolidated financial statements.
Amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments
On May 30, 2024, the IASB issued “Classification and Measurement of Financial Instruments (Amendments to IFRS 9, and IFRS 7).” These
amendments address diversity in accounting practice by making the requirements more understandable and consistent. The IASB issued amendments to
IFRS 9 and IFRS 7 to:•clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities
settled through an electronic cash transfer system;•

clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;•

add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with featureslinked to the achievement of environment, social and governance (ESG) targets); and•update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).

These amendments are effective for fiscal years beginning on or after 1 January 2026.
As of the date of the issuance of the consolidated financial statements, the JBIC Group is evaluating the potential impact that the adoption of theamendmetns to IFRS 9 and IFRS 7 will have on the JBIC Group’s consolidated financial statements.
21

6. Segment Information
The JBIC Group’s operating segments are those for which discrete financial information is available, and whose operating results are regularly
reviewed by the JBIC Group’s management. Figures reported to management, including those used for purposes of budget management andperformance evaluation, are prepared under Japanese GAAP. Therefore, Japanese GAAP-based figures are reported in operating segments. For business
operations defined under the Act on Japan Bank for International Cooperation and other acts, the JBIC Group has two reporting segments: “Ordinary
Operations” account and “Special Operations” account. Accounting operations are separately carried out for respective accounts.
The Special Operations account includes the businesses that offer financing services such as lending to overseas infrastructure business projects
that have risks but generate a sufficient level of expected return. The Ordinary Operations account covers the businesses that are not included in theSpecial Operations account. The Ordinary Operations account also includes the investment business of the subsidiaries.
The reconciliation tables show differences between the amounts reported in the reportable segments and those reported in the IFRS-based
consolidated financial statements.
A.

Reportable segment information(Millions of yen)
For the year ended March 31, 2024

Ordinary income
Ordinary income from customers
Intersegment ordinary income
Total
Segment profit
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Interest income
Interest expense
Losses of equity method investments
Extraordinary income
Gain on disposal of noncurrent assets
Extraordinary loss
Impairment Loss
Income tax expenses
Equity method investments
Increase in property, equipment and intangible assets
Reversal of allowance for loan losses
Provision of allowance for loan losses**

Ordinary
operations

Specialoperations

Sub-total forreportablesegments

Adjustments *Amountreported in theJapanese
GAAP-based
consolidated
financialstatements

1,131,310
55
1,131,366
62,13921,320,106
18,665,506

1,796
—
1,796
203
337,035
6,611

1,133,107
55
1,133,162
62,342
21,657,142
18,672,117

(45)
(55)
(100)
—
(34)
(34)

1,133,061—
1,133,061
62,342
21,657,108
18,672,083

3,637
1,020,410
901,853
95
5
5
899
899
54
27,1679,596—
125,931

—
1,648
895
—
—
—
—
—
—
—
—
45
—

3,637
1,022,058
902,748
95
5
5
899
899
54
27,1679,596
45
125,931

—
—
—
—
—
—
—
—
—
—
—
(45)
(45)

3,637
1,022,058
902,748
95
5
5
899
899
54
27,167
9,596—
125,886

The “Adjustments” above represent elimination of intersegment transactions.
Adjustments to ordinary income from customers, which were ¥45 million, represent reclassification.
22

(Millions of yen)
For the year ended March 31, 2023

Ordinary income
Ordinary income from customers
Intersegment ordinary income
Total
Segment profit
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Interest income
Interest expense
Profits of equity method investments
Impairment losses on equity and other securities
Extraordinary income
Gain on disposal of noncurrent assets
Extraordinary loss
Loss on disposal of noncurrent assets
Income tax expenses
Equity method investments
Increase in property, equipment and intangible assets
Reversal of allowance for loan losses**

Ordinary
Operations

SpecialOperations

Sub-total forreportablesegments

Adjustments *Amountreported in theJapanese
GAAP-based
consolidated
financialstatements

657,71962
657,782
155,621
19,826,521
17,202,608

2,234
—
2,234
964
331,398
5,917

659,95462
660,016
156,585
20,157,920
17,208,526

(30)
(62)
(93)
—
(37)
(37)

659,923—
659,923
156,585
20,157,883
17,208,488

3,445
568,495
459,290
2,058
3,486
13
13
—
—
13
44,2984,240
19,194

—
2,071
731
—
—
—
—
—
—
—
—
—
158

3,445
570,567
460,022
2,058
3,486
13
13
—
—
13
44,2984,240
19,352

—
—
—
—
—
—
—
—
—
—
—
—
—

3,445
570,567
460,022
2,058
3,486
13
13
—
—
13
44,2984,240
19,352The “Adjustments” above represent elimination of intersegment transactions.
Adjustments to ordinary income from customers, which were ¥30 million, represent reclassification.
B.

Reconciliation of reportable segment information to consolidated statement of financial position and consolidated income
statement

Reconciliation of ordinary income
For the year ended
March 31, 2024

Ordinary income under Japanese GAAPInterest income
Fees and commission income
Net gain (loss) from financial assets at fair value through profit or loss
Net income (expense) from derivative financial instruments *2
Impairment losses (reversals) on financial assets *3
Profits (losses) of equity method investments
OthersOrdinary income under IFRS *1
231,133,061
13,142(15,555)(5,025)(178)(10,195)—(9,850)1,105,397(Millions of yen)
For the year ended
March 31, 2023

659,923
6,860(9,898)(2,643)(6,674)(19,352)(2,058)(5,092)621,063

Reconciliation of net profit attributable to shareholder of JBIC
For the year ended
March 31, 2024

Segment profit under Japanese GAAPInterest income
Fees and commission income
Net income (expense) from derivative financial instruments *2
Net gain (loss) from financial assets at fair value through profit or loss
Impairment losses (reversals) on financial assets *3
Other expenses
OthersNet profit attributable to shareholder of JBIC under IFRS

62,342
13,142(15,555)(36,399)
4,056
56,555
1,030(12,889)
72,284(Millions of yen)
For the year ended
March 31, 2023

156,585
10,007(9,762)(24,780)(11,793)(41,526)
1,345(7,519)72,557

Reconciliation of assets
As of March 31, 2024

Segment assets under Japanese GAAP
Derivative financial instrument assets *4
Financial assets at fair value through profit or loss
Securities
Loans and other receivables *5
Equity method investments
OthersTotal assets under IFRS

21,657,108
65,90130,454
1,722(1,432,338)
30,564
1,421
20,354,834(Millions of yen)
As of March 31, 2023

20,157,883
105,869
24,691
1,376(1,485,770)
19,326
1,908
18,825,285

Reconciliation of liabilities
As of March 31, 2024

Segment liabilities under Japanese GAAP
Derivative financial instrument liabilities *4
Bonds payable
Financial guarantee contracts *5
Other liabilities
Total liabilities under IFRS

18,672,083
65,901(283,481)(1,459,914)
23,496
17,018,084(Millions of yen)
As of March 31, 2023

17,208,488
105,869(257,435)(1,474,192)
12,905
15,595,635

Reconciliation of interest income
For the year ended
March 31, 2024

Interest income under Japanese GAAP
Loans and other receivables
Financial assets at fair value through profit or loss
OthersInterest income under IFRS

1,022,058
13,825(6,704)712
1,029,892(Millions of yen)
For the year ended
March 31, 2023

570,567
9,324(3,705)683
576,869

Reconciliation of interest expense
For the year ended
March 31, 2024

Interest expense under Japanese GAAP
Derivative financial instrument liabilities
OthersInterest expense under IFRS

902,748(360,427)
1,888
544,209
24(Millions of yen)
For the year ended
March 31, 2023

460,022(127,876)
2,255
334,401

Reconciliation of equity method investments
As of March 31, 2024

Equity method investments under Japanese GAAP
Difference in the scope of the equity method
Equity method investments under IFRS

27,167
93,241
120,408(Millions of yen)
As of March 31, 2023

44,29885,594
129,892

Reconciliation of impairment losses (reversals) on financial assets
For the year ended
March 31, 2024

Provision (reversal) of allowance for loan losses under Japanese GAAP
Securities
Loans and other receivables*3
Financial guarantee contracts
Impairment losses on financial assets under IFRS

*1

*2
*3
*4
*5

125,886—(62,751)(3,999)59,135(Millions of yen)
For the year ended
March 31, 2023

(19,352)—
26,022
15,503
22,174“Ordinary income under IFRS” is an aggregate of “Interest income,” “Fee and commission income,” “Net gain from financial assets at fair value
through profit or loss,” “Net gain on derecognition of financial assets measured at amortized cost,” “Other income,” “Impairment reversals on
financial assets,” and “Profits(losses) of equity method investments” reported in the consolidated income statement.
This primarily represents an impact of reversing “Deferred gains (losses) on hedges” recognized as a result of applying hedge accounting underJapanese GAAP.
This primarily represents a difference between “Provision of allowance for loan losses” under Japanese GAAP and “Impairment losses (reversals)
on financial assets” under IFRS.
This primarily represents a difference in presentation of derivative financial instrument assets and derivative financial instrument liabilities
between a net basis under Japanese GAAP and a gross basis under IFRS.
This primarily represents a difference between the amounts of financial guarantee contracts recognized under Japanese GAAP and thoserecognized under IFRS.
C.

Information about geographical areasi.

Interest income*For the year ended
March 31, 2024

Japan
United States
Asia and Oceania (excluding Japan)
Europe, the Middle East, and Africa
North America and Latin America (excluding United States)
Total interest income in the consolidated income statement345,716
111,895
258,887
227,359
86,033
1,029,892(Millions of yen)
For the year ended
March 31, 2023

169,344
56,787
168,561
136,115
46,059576,869* The above information is based on the locations of customers.
(Change in presentation)
Interest income from “United States,” which was included in “North America and Latin America” for the fiscal year ended March 31,
2023, is separately presented for the fiscal year ended March 31, 2024, since the amount is more than 10% of Interest income reported in
the Consolidated Income Statement. Comparative figures previously reported for the fiscal year ended March 31, 2023 have been
reclassified to conform to the current year presentation.
ii.

Noncurrent assets

Noncurrent assets mainly consist of property and equipment. The majority of the noncurrent assets on the consolidated statement offinancial position are located in Japan and hence, further information is not presented.
D.

Information about major customers
There are no transactions with a single external customer resulting in more than 10% of ordinary income.
25

7. Cash and Due from Banks
Cash and due from banks as of March 31, 2024 and 2023 consisted of the following:(Millions of yen)
As ofMarch 31, 2023

As ofMarch 31, 2024

Cash and due from banks
Due from banks
Total cash and due from banks

2,565,369
2,565,369

2,193,775
2,193,775

Cash and cash equivalents in the consolidated statement of cash flows reconcile to cash and due from banks in the consolidated statement offinancial position as of March 31, 2024 and 2023, respectively, as follows:(Millions of yen)
As ofMarch 31, 2023

As ofMarch 31, 2024

Cash and due from banks
Due from banks (excluding demand deposits)
Cash and cash equivalents

2,565,369(757,050)
1,808,319

2,193,775(467,355)
1,726,420

8. Derivative Financial Instrument Assets and Liabilities
Derivative financial instrument assets and derivative financial instrument liabilities as of March 31, 2024 and 2023 consisted of the following:

Notional
amounts

Interest rate-related transactions
Interest rate swaps
Currency-related transactions
Currency swaps
Forward foreign exchange contracts
Total(Millions of yen)
As of March 31, 2024
Derivative financial
Derivative financial
instrument assets
instrument liabilities

6,966,531

30,557411,711

5,076,131
22,983—73,4491
104,008

687,077
12
1,098,801(Millions of yen)

Notional
amounts

Interest rate-related transactions
Interest rate swaps
Currency-related transactions
Currency swaps
Forward foreign exchange contracts
Total

As of March 31, 2023
Derivative financial
instrument assets

Derivative financial
instrument liabilities

6,548,599

26,812375,7024,329,610
5,541—

110,332
12
137,156

449,531—825,233

Hedge Accountingi.

Fair value hedge

The JBIC Group issues long-term fixed rate bonds and therefore is exposed to changes in fair value due to movements in market interest
rates. The JBIC Group manages this risk exposure by entering into pay floating/receive fixed interest rate swaps. For more information about thebenchmark interest rates to which the JBIC Group’s hedging relationships are exposed, see “Interest Rate Benchmark Reform” in this note.
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments toensure that an economic relationship exists between the hedged item and hedging instrument. The JBIC Group enters into hedge relationships
where the critical terms of the hedging instrument match exactly with the terms of the hedged item, and therefore a qualitative assessment ofeffectiveness is performed. If changes in circumstances affect the terms of the hedged item such that the critical terms no longer match exactlywith the critical terms of the hedging instrument, the JBIC Group uses the hypothetical derivative method to assess effectiveness.
26

The JBIC Group establishes the hedging ratio by matching the notional of the derivatives with the principal of the portfolio being hedged.
Possible sources of ineffectiveness are as follows:a.

the JBIC Group or counterparty credit risk which impacts the fair value of interest rate swaps; andb.

tenor differences between the hedging instruments and the hedged items.

The JBIC Group held the following interest rate swaps to hedge its interest rate risk on bonds payable as of March 31, 2024 and 2023.
(Millions of yen)
Currency

Interest rate swap

USD
EUR
GBP
Total

As of March 31, 2024
Notional amounts

4,201,627
81,62047,8054,331,052

Maturity

April 2024 to April 2031
June 2029
July 2026(Millions of yen)
Currency

Interest rate swap

USD
EUR
GBP
Total
27

As of March 31, 2023
Notional amounts

3,905,752
72,86041,3904,020,002

Maturity

May 2023 to April 2031
June 2029
July 2026

The amounts related to items designated as hedging instruments were as follows.
(Millions of yen)
As of March 31, 2024
Currency

Interest rate swap

Interest rate swap

USD
EUR
GBP
Total

Notional
amounts

4,201,627
81,62047,8054,331,052

Carrying amount ofhedging instruments
AssetsLiabilities

641
—
—
641

Line item in the statement of financial position

267,444 Derivative financial instrument assets or liabilities
4,721 Derivative financial instrument liabilities
4,707 Derivative financial instrument liabilities
276,872
Hedge ineffectivenessHedge ineffectivenessrecognized in profit orloss

Currency

Change in fair value ofhedging instruments for
ineffectiveness assessment

USD(27,625)

(126)

EUR

1,385

315

GBP

491

(1)

Total

(25,748)

187

Line item in profit or loss that includes hedge
ineffectivenessNet income (expense) fromderivative financial instruments
Net income (expense) fromderivative financial instruments
Net income (expense) fromderivative financial instruments(Millions of yen)
As of March 31, 2023
Currency

Interest rate swap

Interest rate swap

USD
EUR
GBP
Total

Notional
amounts

3,905,752
72,86041,3904,020,002

Carrying amount ofhedging instruments
AssetsLiabilities

—
—
—
—

Line item in the statement of financial position

239,177 Derivative financial instrument liabilities
6,107 Derivative financial instrument liabilities
5,198 Derivative financial instrument liabilities
250,483
Hedge ineffectivenessHedge ineffectivenessrecognized in profit orloss

Currency

Change in fair value ofhedging instruments for
ineffectiveness assessment

USD(171,259)

(505)

EUR

(6,107)(1,679)GBP(2,207)

(1)

Total

(179,573)(2,186)28

Line item in profit or loss that includes
hedge ineffectivenessNet income (expense) fromderivative financial instruments
Net income (expense) fromderivative financial instruments
Net income (expense) fromderivative financial instruments

The amounts related to items designated as hedged items were as follows.
(Millions of yen)
As of March 31, 2024
Carrying amount ofhedged items

Bonds payable in USD
Bonds payable in EUR
Bonds payable in GBP
Total

Accumulated amountof fair value

AssetsLiabilities

Assets————3,958,719
157,541
43,167
4,159,428

266,979
6,715
4,707
278,402

Liabilities

—
—
—
—

Line item in thestatement offinancial position

Bonds payable
Bonds payable
Bonds payable

Change infair value ofhedged itemforineffectivenessassessment(27,498)
1,070
492(25,935)(Millions of yen)

As of March 31, 2023
Carrying amount ofhedged items

Bonds payable in USD
Bonds payable in EUR
Bonds payable in GBP
Total

Accumulated amountof fair value

AssetsLiabilities

Assets————3,683,541
138,674
36,2293,858,446

239,480
7,786
5,199
252,467

Liabilities

—
—
—
—

Line item in thestatement offinancial position

Bonds payable
Bonds payable
Bonds payable

Change infair value ofhedged itemforineffectivenessassessment(171,764)(7,786)(2,209)(181,760)Interest Rate Benchmark Reform
The replacement with alternative interest rates is giving rise to uncertainties about interest rate benchmark-based cash flows of hedged
items or of hedging instruments. The JBIC Group adopted the Phase 2 amendments. The Phase 2 amendments provide relief from applying
specific requirements when the basis for determining the contractual cash flows or hedging relationships changes as a result of interest ratebenchmark reform. The reliefs are intended to permit the use of a practical expedient for the effective interest rate method and the continuation ofhedge accounting when interest rate benchmarks are replaced as a result of interest rate benchmark reform.
The JBIC Group engages in a number of loans, borrowings and derivatives transactions that reference LIBOR. In response to thepermanent cessation of LIBOR, reference rates for these financial instruments are replaced, which may have an impact on elements such as
profitability, liquidity, and fair value.
The JBIC Group has developed an internal policy on changes to contractual interest rates of financial instruments and is amending
applicable contracts for replacement with alternative interest rates. The JBIC Group has modified its systems and is establishing a post-transition
structure in order to engage in transactions for financial instruments referencing risk-free rates.
With respect to the JBIC Group’s fair value hedges where interest-linked derivatives are designated as hedging instruments, the JBIC
Group has monitored technical guidance issued by, and the progress of considerations made by, national authorities and industry associations inrelation to the U.S. dollar and GBP LIBOR rates as they are significant interest rate benchmarks affecting hedging relationships. Regarding thetwo LIBOR rates above, the JBIC Group has recognized when the rates will no longer be representative (June 2023 and December 2021 for U.S.
dollar LIBOR and GBP LIBOR, respectively) and the alternative reference rates announced by the respective national authorities. The actions
taken by the JBIC Group included adherence to the IBOR Fallbacks Protocol published by the International Swaps and Derivatives Association,
Inc. The JBIC Group has completed the replacement of GBP LIBOR at the end of December 2021 and U.S. dollar LIBOR at the end of June 2023
with alternative interest rates in accordance with the IBOR Fallbacks Protocol. Therefore, the uncertainties arising from interest rate benchmark
reform for U.S. dollar LIBOR at the loss of representativeness of the LIBOR rates has been resolved.
29

The following table provides quantitative information on those financial instruments that have not transitioned to alternative benchmark
rates as of March 31, 2024 and 2023, excluding the hedge transactions above.
As of March 31, 2024
Nominal amount of transactions
that refer to LIBOR
USD LIBOR
OthersNon-derivative financial assets
Loans and other receivables
Non-derivative financial liabilities
Borrowings
Derivatives
ii.

(Millions of yen)
As of March 31, 2023
Nominal amount of transactions
that refer to LIBOR
USD LIBOR
Others561,196—

4,364,132

—

—
—

—
—

5,020,364
4,822,712——

Net investment hedges in foreign operations

The JBIC Group has investments in foreign operations which are equity method investments in its consolidated financial statements andwhose functional currency is the U.S. dollar. The foreign exchange rate exposures arising from these investments were hedged through the use of
forward foreign exchange contracts. These contracts were entered into to hedge designated layer components of the exposure arising from the net
assets held in the foreign operations and were rolled forward on a periodic basis.
The JBIC Group designates the spot element of the foreign exchange forwards only as hedging instruments. Changes in the fair value ofthe hedging instruments attributable to changes in forward points are recognized directly in profit or loss, in principle, as “Net expense fromderivative financial instruments” in the consolidated income statement. These amounts are, therefore, not included in the hedge ineffectivenessassessment.
The JBIC Group establishes the hedging ratio by matching the notional amounts of the forward foreign exchange contracts with designatedlayer component of the net assets of the foreign operation. Given that only the spot element of the forward foreign exchange contracts isdesignated in the hedge relationship and the amount of hedging instruments and hedged items are equivalent in U.S. dollars, no ineffectiveness is
expected except for credit risk of the JBIC Group or counterparty of forward foreign exchange contracts, which is included in fair value of
forward foreign exchange contracts.
The JBIC Group cancelled the net investment hedges in foreign operations in the fiscal year ended March 31, 2023.
Since the JBIC Group cancelled the net investment hedges in foreign operations in the fiscal year ended March 31, 2023, the JBIC Group
did not hold the forward foreign exchange contracts to hedge its net investments in foreign operations as of March 31, 2024 and 2023.
30

The amounts related to items designated as hedging instruments were as follows.
(Millions of yen)
As of March 31, 2024

Carrying amount of hedging
instrument
Notional
amounts

Forward foreign exchange contracts

Assets—Liabilities—

Line item in thestatementof financial
position

Change in fairvalue of hedging
instrument
recognized inothercomprehensive
income———Hedge ineffectivenessChange in fairvalue of hedging
instrument for
ineffectivenessassessment

Hedge
ineffectivenessrecognized in
profit or loss——

Forward foreign exchange contracts

Reclassification
Amountreclassified fromthe hedge
reserve to profit
or loss

Line item in
profit or loss that
includes hedge
ineffectiveness

—

2,550

Line item affects
profit or loss
because ofreclassification

Net expensefrom derivative
financial
instruments(Millions of yen)

As of March 31, 2023

Carrying amount of hedging
instrument
Notional
amounts

Forward foreign exchange contracts

Assets——Line item in thestatementof financial
position

Liabilities—

Hedge ineffectivenessChange in fairvalue of hedging
instrument for
ineffectivenessassessment

Hedge
ineffectivenessrecognized in
profit or loss

Line item in
profit or loss that
includes hedge
ineffectiveness

3,455

—

Net income(expense)from derivative
financial
instruments

Forward foreign exchange contracts—

Change in fairvalue of hedging
instrument
recognized inothercomprehensive
income(1,973)

Reclassification
Amountreclassified fromLine item affects
profit or loss
the hedge
reserve to profit
because ofreclassification
or loss

1,482

Other expenses

The amounts related to items designated at hedged items were as follows.
(Millions of yen)
As of March 31, 2024
Change in fair value of hedged items
Exchange differences on
for ineffectiveness assessment
translation of foreign operations

Net investments in USD—(1,906)(Millions of yen)

As of March 31, 2023
Change in fair value of hedged items
Exchange differences on
for ineffectiveness assessment
translation of foreign operations

Net investments in USD(3,456)(4,457)

The following table provides a reconciliation by risk category of components of equity and analysis of other comprehensive income items
resulting from hedge accounting.

Exchange differences on translation of foreign operations
Beginning of the year
Net gains (losses) arising during the year
Reclassification adjustments
End of the year
Discontinued hedges
31

For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

(4,457)—2,550(1,906)(1,906)(2,483)(3,456)
1,482(4,457)(4,457)

9. Financial Assets at Fair Value through Profit or Loss
Financial assets at fair value through profit or loss as of March 31, 2024 and 2023 consisted of the following:
As ofMarch 31, 2024

(Millions of yen)
As ofMarch 31, 2023

229,294245,257474.551

215,593259,666
475,260

As ofMarch 31, 2024

(Millions of yen)
As ofMarch 31, 2023

53.19953.19946,99846.998

Listed and unlisted equity securities
Unlisted debt instruments
Total
10. Securities
Securities as of March 31, 2024 and 2023, which were classified as amortized cost consisted of the following:

Securities
Unlisted debt securities
Securities. total
11. Loans and Other Receivables
Loans and other receivables as of March 31, 2024 and 2023 consisted of the following:

Sovereign
Non-sovereign
Total sovereign and non-sovereign
Allowance for loan losses
Loans and other receivables, total

As ofMarch 31, 2024

(Millions of yen)
As ofMarch 31, 2023

425,081
15,959,359
16,384,441(435,339)
15,949,101

464,478
15,042,701
15,507,179(362,802)
15,144,377

The portfolio of loans and other receivables is disclosed in more detail in Note 40 “Concentration of Credit Risk.”
Details of changes in the loss allowance for loans and other receivables for the year ended March 31, 2024 were as follows:
Loss allowance:(Millions of yen)
For the year ended of March 31, 2024
ECL staging
Stage 112-month
ECL

As of April 1, 2023
Transfers:
Transfer to Stage 1
Transfer to Stage 2
Transfer to Stage 3
Net remeasurement from stage
Modification of contractual cash flows
Decrease in exposures
Increase in exposures
Write-offs
Changes in risk parameters
Other changes
As of March 31, 2024
32

Stage 2Lifetime ECLStage 3
Lifetime ECL

7,486

108,011247,303—362,802

146
(86)
—
(137)
—
(1,681)
1,083
—
(782)
900
6,928

(146)
840
(28,925)
16,657—(6,418)1,359—(6,795)
12,50097,083—(753)
28,925(9,704)34(8,860)4,807—(1,666)47,414
307,499

—
—
—
—
—
—
—
—
—
23,827
23,827

—
—
—
6,815
34
(16,960)
7,249—(9,244)
84,642435,339

POCI

Total

The following table provides changes in the gross carrying amount of the loans and other receivables to show their impact on the changes in theloss allowance presented above.
Gross carrying amount:(Millions of yen)
For the year ended of March 31, 2024
ECL staging
Stage 112-month
ECL

As of April 1, 2023
Transfers:
Transfer to Stage 1
Transfer to Stage 2
Transfer to Stage 3
Modification of contractual cash flows
Decrease in exposures
Increase in exposures
Write-offs
Other changes*
As of March 31, 2024*

Stage 2Lifetime ECLStage 3
Lifetime ECL

13,453,702

1,535,832

494,506

23,137

15,507,179

52,181(235,063)(412)—(2,044,535)
1,195,397—
1,657,402
14,078,672(52,097)
257,512(129,824)—(176,799)
15,185—
207,456
1,657,265(83)(22,448)130,237
2,260(56,730)
9,865—
66,505624,112

—
—
—
—
—
330
—
922
24,390———2,260(2,278,065)
1,220,779—
1,932,287
16,384,441

POCI

Total

“Other changes” mainly comprise foreign exchange translations.
Details of changes in the loss allowance for loans and other receivables for the year ended March 31, 2023 were as follows:
Loss allowance:(Millions of yen)
For the year ended of March 31, 2023
ECL staging
Stage 112-month
ECL

As of April 1, 2022
Transfers:
Transfer to Stage 1
Transfer to Stage 2
Transfer to Stage 3
Net remeasurement from stage changes
Modification of contractual cash flows
Decrease in exposures
Increase in exposures
Write-offs
Changes in risk parameters
Other changes
As of March 31, 2023
33

Stage 2Lifetime ECLStage 3
Lifetime ECL

6,430

111,407

231,703—349,542

21,945(15)—(21,374)—(1,202)
459
—
610
632
7,486

(18,503)
15
(137)
8,621
—
(5,629)
438
—
3,047
8,752
108,011(3,442)
—
137
4,311
(158)
(56,737)
12,460—(5,145)64,174
247,303

—
—
—
—
—
—
—
—
—
—
—

—
—
—
(8,441)(158)(63,569)
13,357—(1,487)73,559362,802

POCI

Total

The following table provides changes in the gross carrying amount of the loans and other receivables to show their impact on the changes in theloss allowance presented above.
Gross carrying amount:(Millions of yen)
For the year ended of March 31, 2023
ECL staging
Stage 112-month
ECL

As of April 1, 2022
Transfers:
Transfer to Stage 1
Transfer to Stage 2
Transfer to Stage 3
Modification of contractual cash flows
Decrease in exposures
Increase in exposures
Write-offs
Other changes*
As of March 31, 2023*

Stage 2Lifetime ECLStage 3
Lifetime ECL

12,297,808

1,616,308

581,312

19,68914,515,118

332,201(219,947)(6,744)—(1,638,718)
1,666,787—
1,022,316
13,453,702(298,989)
219,947(5,524)—(174,991)
45,130—133,951
1,535,832(33,211)—
12,269(2,049)(229,523)
83,429—82,279494,506

—
—
—
1,930
—
884
—
633
23,137———(118)(2,043,233)
1,796,232—
1,239,181
15,507,179

POCI

Total

“Other changes” mainly comprise foreign exchange translations.

The following table includes summary information for loans and other receivables with lifetime ECL whose cash flows were modified during theperiod:(Millions of yen)
For the year ended
March 31, 2023

For the year ended
March 31, 2024

Loans and other receivables
Amortized cost before modification
Net modification gains (losses)**

291,8892,260

273,400(2,049)Net modification gains (losses) were included in “Impairment losses on financial assets” in the consolidated income statement.

The gross carrying amount of loans and other receivables with 12-month ECL whose cash flows were modified and moved from Stage 3 or Stage
2 to Stage 1 for the fiscal year ended March 31, 2024 and 2023 were nil and ¥28,941 million, respectively.
The policy for managing credit risk is disclosed in Note 37 “Financial Risk Management.”
12. Interests in Other Entities
The JBIC Group’s principal subsidiaries as of March 31, 2024 are shown in the table below. The JBIC Group consolidates all entities over which
the JBIC Group has control. See Note 3 “Material Accounting Policy Information” for additional information.

Votingrights (%)

Japan

51

51

Cayman Islands

100—Country ofincorporation

Name of entity

JBIC IG Partners
Russia-Japan Investment Fund, L.P.**

Ownership
interest heldby the JBIC
Group (%)

Principal activities

Management services
for investments
Investments

Although JBIC does not have direct decision-making rights in the Russia-Japan Investment Fund, L.P., JBIC has determined that the Russia-Japan
Investment Fund, L.P. is its subsidiary because another entity that is considered to be an agent of JBIC has all of the decision-making rights.
34

13. Equity Method Investments
Investments in Associates
Investments in associates are accounted for using the equity method. The JBIC Group does not have any investments in associates that are
individually material. Investments in associates that were not individually material were as follows:

Total carrying amount

As ofMarch 31, 2024

(Millions of yen)
As ofMarch 31, 2023

100,198

110,844

Financial information of associates that were not individually material was as follows (the amount presented is based on the JBIC Group’s
ownership interest):

Total comprehensive income

As ofMarch 31, 2024

(Millions of yen)
As ofMarch 31, 2023

2,626

(1,186)

Associates did not record other comprehensive income. Therefore, profits (or losses) of equity method investments were equal to the associates’
total comprehensive income presented above.
Investments in Joint Ventures
Investments in joint ventures are accounted for using the equity method except for the investments made through the Russia-Japan Investment
Fund L.P. The JBIC Group does not have any joint ventures that are individually material, and the aggregate balance of investments in joint venturesthat are not individually material are not significant. Accordingly, the carrying amount of the investment and the financial information of the joint
ventures are not presented.
14.

Unconsolidated Structured Entities

The JBIC Group has interests in structured entities formed by other entities (“unconsolidated structured entities”) for the purpose of providing
project financing, mainly to resources and infrastructure projects, aircraft leasing, ship leasing, and others. These unconsolidated structured entities
obtain funds mainly through bank borrowings. The JBIC Group has interests in these unconsolidated structured entities in the form of loans, financial
guarantees, or investments, and therefore the JBIC Group is exposed to credit risk and market risk of these unconsolidated structured entities.
The JBIC Group’s maximum exposure to losses from its interests in these unconsolidated structured entities consists of the carrying amounts of its
investments in equity securities, the amounts of loans and loan commitments, and the amount of financial guarantee obligations. The maximum
exposure represents the possible amount of total losses the JBIC Group could ever incur without considering any collateral held and other credit
enhancements, and does not represent the probability of loss occurrence. Income received from interests in unconsolidated structured entities is mainlyinterest income and guarantee fees.
The following table summarizes the carrying amounts of assets and liabilities recognized in the consolidated statement of financial position of the
JBIC Group and its maximum exposure to losses from its interests in the unconsolidated structured entities.
As of March 31, 2024
Carrying amountMaximum exposure

Financial assets at fair value through profit or loss
Loans and other receivables
Equity method investments
Assets, total
Financial guarantee contracts
Liabilities, total(Millions of yen)
As of March 31, 2023
Carrying amountMaximum exposure

764
7,053,983—
7,054,748

764
8,633,374—
8,634,138

2,584
6,608,749
8,111
6,619,445

2,584
7,765,314
8,111
7,776,010

53,94953,949481,050
481,050

53,25353,253

406,420
406,42035

15. Property and Equipment
Changes in the carrying amounts of property and equipment for the years ended March 31, 2024 and 2023 were as follows:
Land

Cost
As of April 1, 2022
Additions
Disposals
Other decreases
As of March 31, 2023
Additions
Disposals
Other decreases
As of March 31, 2024
Accumulated depreciation and impairment loss
As of April 1, 2022
Depreciation
Disposals
As of March 31, 2023
Depreciation
Disposals
Impairment losses
As of March 31, 2024
Carrying amount
As of April 1, 2022
As of March 31, 2023
As of March 31, 2024

Buildings

Others(Millions of yen)Total

24,311———
24,311———
24,311

5,537
215
—
—
5,752
2,330
(9)
—
8,074

3,154
2,495
(55)
(515)
5,079
4,877
(114)
(4,103)
5,738

33,003
2,711
(55)
(515)
35,143
7,208(123)(4,103)38,125

—
—
—
—
—
—
—
—

1,822
247
—
2,069
284
(9)
112
2,457

1,951
444
(52)
2,342
521
(111)
117
2,871

3,773
691
(52)
4,412
805
(120)
230
5,328

24,311
24,311
24,311

3,714
3,682
5,616

1,203
2,736
2,867

29,22930,73032,796

16. Other Assets
Other assets as of March 31, 2024 and 2023 consisted of the following:

Other assets
Cash collateral paid for financial instruments
Intangible assets
Right-of-use assets
Other
Other assets, total

As ofMarch 31, 2024

(Millions of yen)
As ofMarch 31, 2023

1,033,820
11,462
1,421
8,695
1,055,399

651,110
8,461
1,908
5,612
667,093

17. Borrowings
Borrowings, including the currency of denomination and maturity dates, as of March 31, 2024 and 2023 consisted of the following:(Millions of yen)
Currency

As of March 31, 2024
Maturity dates

USD
October 2024 to September 2028
EUR
October 2027
JPY
May 2024 to Feburary 2042
Borrowings, total

Carrying amount6,231,694
9,794
2,952,500
9,193,988

As of March 31, 2023
Maturity dates

May 2023 to January 2028
October 2027
June 2023 to February 2042

Carrying amount

6,021,290
17,4862,474,900
8,513,677

Weighted-average contractual interest rates as of March 31, 2024 and 2023 were 4.04% and 3.74%, respectively.
The amounts of undiscounted contractual cash flows for borrowings by maturity date are disclosed in Note 43 “Maturity Analysis of Financial
Liabilities.”36

18. Bonds Payable
Bonds payable, including the currency of denomination, maturity dates and associated contractual interest rates, as of March 31, 2024 and 2023
consisted of the following:(Millions of yen)
As of March 31, 2024
Contractual
Maturity dates
interest rates

Currency

USD

April 2024 to April 2031

EUR

February 2028 to June 2029

GBP

July 2026

JPY

December 2025

Bonds payable, total(Fixed)0.500% – 4.875%(Fixed)1.500% – 3.125%(Fixed)0.375%(Fixed)2.090%

Carrying
amountAs of March 31, 2023
Contractual
Maturity dates
interest rates

5,971,842 May 2023 to April 2031

Carrying
amount(Fixed)0.375% – 4.375%(Fixed)1.500% – 3.125%(Fixed)0.375%(Fixed)2.090%

318,401 February 2028 to June 2029
43,042 July 2026
20,089 December 2025
6,353,375

5,595,847
282,20736,122
20,142
5,934,320

JBIC’s bonds are secured by JBIC’s assets in the form of general liens in accordance with Article 34 of the JBIC Act.
The amounts of undiscounted contractual cash flows for bonds payable by maturity date are disclosed in Note 43 “Maturity Analysis of Financial
Liabilities.”
19. Financial Guarantee Contracts
Financial guarantee contracts as of March 31, 2024 and 2023 consisted of the following:

Sovereign
Non-sovereign
Financial guarantee contracts, total

As ofMarch 31, 2024

(Millions of yen)
As ofMarch 31, 2023

6,148
66,30672,454

11,32064,19375,514

Financial guarantee contracts are initially measured at fair value and subsequently measured at the higher of: (a) the amount initially recognized
less accumulated amortization recognized in accordance with IFRS 15 and (b) the loss allowance determined in accordance with IFRS 9 required forsettling the guarantee obligation at the reporting date.
Details of changes in the loss allowance for financial guarantee contracts for the year ended March 31, 2024 were as follows:
Loss allowance:(Millions of yen)
For the year ended of March 31, 2024

As of April 1, 2023
Transfers:
Transfer to Stage 1
Transfer to Stage 2
Transfer to Stage 3
Decrease in exposures
Increase in exposures
Net remeasurement
Other changes
As of March 31, 2024
37

Stage 112-month
ECL

ECL staging
Stage 2Lifetime
ECL

Stage 3
Lifetime
ECL

3,048

52,092353

55,494

—
—
—
(518)
501
(384)
47
2,693

—
—
—
(3,184)—(7,265)
4,441
46,084

—
—
—
—
—
(100)
47
299

—
—
—
(3,702)
501(7,751)
4,536
49,078Total

The following table provides changes in the exposure amount of the financial guarantee contracts to show their impact on the changes in the loss
allowance presented above.
Exposure amount:(Millions of yen)
For the year ended of March 31, 2024
ECL staging
Stage 1
Stage 2
Stage 312-month
Lifetime
Lifetime
ECL
ECL
ECL
Total

As of April 1, 2023
Transfers:
Transfer to Stage 1
Transfer to Stage 2
Transfer to Stage 3
Decrease in exposures
Increase in exposures
Other changes
As of March 31, 2024

1,185,919

337,768

10,5681,534,256———(191,000)
169,001
17,6691,181,588———(34,078)—
25,266
328,956

—
—
—
—
—
1,415
11,983———(225,078)
169,001
44,3501,522,529

Details of changes in the loss allowance for financial guarantee contracts for the year ended March 31, 2023 were as follows:
Loss allowance:(Millions of yen)
For the year ended of March 31, 2023
ECL staging
Stage 1
Stage 2
Stage 312-month
Lifetime
Lifetime
ECL
ECL
ECL
Total

As of April 1, 2022
Transfers:
Transfer to Stage 1
Transfer to Stage 2
Transfer to Stage 3
Decrease in exposures
Increase in exposures
Net remeasurement
Other changes
As of March 31, 2023

3,783

30,490550

34,824

—
(756)
—
(429)
169
257
23
3,048

—
756
—
(648)
1,173
17,605
2,716
52,092

—
—
—
—
—
(246)
50
353

—
—
—
(1,078)
1,343
17,6152,789
55,494

The following table provides changes in the exposure amount of the financial guarantee contracts to show their impact on the changes in the loss
allowance presented above.
Exposure amount:(Millions of yen)
For the year ended of March 31, 2023
ECL staging
Stage 1
Stage 2
Stage 312-month
Lifetime
Lifetime
ECL
ECL
ECL
Total

As of April 1, 2022
Transfers:
Transfer to Stage 1
Transfer to Stage 2
Transfer to Stage 3
Decrease in exposures
Increase in exposures
Other changes
As of March 31, 2023
38

1,525,012

186,517

9,686

1,721,217—(137,400)—(334,517)
121,197
11,626
1,185,919—
137,400—(8,995)
6,688
16,158337,768

—
—
—
—
—
881
10,568———(343,512)
127,885
28,666
1,534,256

20. Other Liabilities
Other liabilities as of March 31, 2024 and 2023 consisted of the following:
As ofMarch 31, 2024

Other liabilities
Accrued expenses
Unearned revenue
Cash collateral received for financial instruments
Liability for retirement benefits
Lease liabilities
Other
Other liabilities, total(Millions of yen)
As ofMarch 31, 2023

158,037
25,96537,3504,650
1,926
71,535
299,464

113,819
18,44430,8605,675
2,248
75,841
246,889

21. Employee Benefits
Post-employment Benefitsi.

Defined benefit plans

JBIC has defined benefit pension plans composed of funded-type defined benefit corporate pension plans and unfunded-type lump-sum
severance indemnity plans. Benefits provided under the plans are determined based on multiple factors, such as the employees’ number of years ofservice and their salary levels.
In accordance with Japanese laws and regulations, JBIC’s defined benefit corporate pension plans are operated by corporate pension funds
that are legally separate from JBIC. The laws and regulations require that JBIC or the board of the corporate pension funds and pension-managing
trustees act in the best interests of the plan members and are responsible for managing the plan assets based on the prescribed policy.
JBIC is responsible for contributing funds determined based on a prescribed proportion of the salaries stipulated in JBIC’s pension rules. If
the funded balance is below the minimum funding requirement at the annual close of the pension fund, JBIC is required to pay an additional
contribution. Further, the contribution is calculated to maintain the balance in future periods and is recalculated every five years at the fiscal
year-end of the pension fund.
JBIC’s defined benefit corporate pension plans are multi-employer plans, which are different from single-employer plans from thefollowing perspectives:a.

Assets contributed to multi-employer plans may be used to provide benefits to employees of other entities participating in the plan.

b.

When certain employers discontinue contributions, other employers may bear the unfunded obligations.

c.

When multi-employer plans are wound up or when an entity withdraws from a multi-employer plan, the entity may be required to
pay for unfunded obligations as a special contribution.

The plans expose JBIC to the following actuarial risks, including investment risk, interest rate risk, and longevity risk:a.

Investment risk

The present value of defined benefit obligations is calculated using a discount rate, which is determined based on market yields onhigh-quality corporate bonds. Should the return on plan assets fall below this discount rate, a deficit in the defined benefit plan could arise.
b.

Interest rate risk

A decline in market yields on high-quality corporate bonds leads to an increase in defined benefit obligations. The increase in
obligations, however, is partly offset by an increase in the fair value of debt instruments (i.e., plan assets).
c.

Longevity risk

JBIC’s defined benefit plans include lifelong annuity plans, which require JBIC’s guarantee at the time of the employees’ retirement
to pay retirement benefits to plan members over their lifetime. The present value of defined benefit obligations is determined based on
JBIC’s best estimate of the mortality of plan members both during and after their employment. An extended average longevity of plan
members will cause an increase in defined benefit obligations.
39

Changes in the present value of defined benefit obligations and the fair value of plan assets

For the year
ended
March 31, 2024

(Millions of yen)
For the year
ended
March 31, 2023

5,675

6,229

5,832
111
64

6,245
125
43

—
(294)
41
(223)
5,532

—
(430)
76
(228)
5,832

4,873
53

4,914
34

502
138
(223)
5,345
186

19
134
(228)
4,873
958

4,716
328
—
51

4,898
332
—
33

—
(98)
8
(542)
4,463
4,650

—
(140)
101
(508)
4,716
5,675

(a) Net defined benefit liability for funded and unfunded type plans (beginning) (b) - (d)+(g)Changes in the present value of defined benefit obligations for funded type plans:(b) Beginning balance
Current service cost
Interest expense
Remeasurements
Actuarial gains and losses arising from changes in demographic assumptions
Actuarial gains and losses arising from changes in financial assumptions
Other
Payments by the plan(c) Ending balance
Changes in the fair value of plan assets:(d) Beginning balance
Interest income
Remeasurements
Return on plan assets
Contributions by the employer
Payments by the plan(e) Ending balance(f) Net defined benefit liability for funded type plans (ending) (c) - (e)Changes in the present value of defined benefit obligations for unfunded type plans:(g) Beginning balance
Current service cost
Past service cost
Interest expense
Remeasurements
Actuarial gains and losses arising from changes in demographic assumptions
Actuarial gains and losses arising from changes in financial assumptions
Other
Payments by the plan(h) Ending balance(i) Net defined benefit liability for funded and unfunded type plans (ending) (f)+(h)Significant actuarial assumptions used in determining the present value of defined benefit obligations
As ofMarch 31, 2024

Items

Discount rate (%)
Salary increase rate (%)

1.4%
4.1%

As of
March 31, 2023

1.1%
4.1%

An assessment of defined benefit obligations requires judgments in respect of uncertain future events. The following table shows the impact in theform of a sensitivity analysis of changes in discount rates on the defined benefit obligations at each reporting date. The sensitivity analysis is preparedbased on the assumption that other variables remain constant; however, in practice, variables do not necessarily change in isolation. Negative amounts
represent a decrease, while positive amounts show an increase in the defined benefit obligations.
40Sensitivity analysis (discount rate)
0.5% increase(Millions of yen)
0.5% decrease

(617)
(665)

666
719

Effect on defined benefit obligations as of March 31, 2024
Effect on defined benefit obligations as of March 31, 2023
Fair value by plan asset category(Millions of yen)

Categories of plan assets

With quoted market
prices in an active
marketAs of March 31, 2024
Without quoted market
prices in an active
market

Total

721
737
1,458
2,238
1,057
3,295
—
17
—
4,771

—
—
—
—
—
—
551
—
22
573

721
737
1,458
2,238
1,057
3,295
551
17
22
5,345

With quoted market
prices in an active
marketAs of March 31, 2023
Without quoted market
prices in an active
market

Total

643
614
1,258
2,100
924
3,025
—
29
—
4,313

—
—
—
—
—
—
545
—
14
559

643
614
1,258
2,100
924
3,025
545
29
14
4,873

Equity securities (Japan)
Equity securities (foreign countries)
Total equity securities
Debt securities (Japan)
Debt securities (foreign countries)
Total debt securities
General accounts of life insurance companies
Cash and due from banks
Other
Plan assets, total(Millions of yen)

Categories of plan assets

Equity securities (Japan)
Equity securities (foreign countries)
Total equity securities
Debt securities (Japan)
Debt securities (foreign countries)
Total debt securities
General accounts of life insurance companies
Cash and due from banks
Other
Plan assets, total¥173 million

Expected contribution to plan assets for the fiscal year ending March 31, 2025:
Weighted-average duration of defined benefit obligations
As of March 31, 2024
As of March 31, 2023
ii.

13 years
14 years

Defined contribution plans

On October 1, 2014, JBIC introduced defined contribution plans. JBIC recognized costs of ¥28 million related to the defined contributionplans for the years ended March 31, 2024 and 2023.
Employee Benefit Expenses
Total employee benefit expenses included in operating expenses in the consolidated income statement were as follows:

Employee benefit expenses
41

For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

8,274

7,842

22. Capital Stock and Other Reserves
Total number of authorized shares
As ofMarch 31, 2024

Common stock with no stated value

5,164,000,000(Thousands of shares)
As ofMarch 31, 2023

5,164,000,000

Shares of common stock issued and fully paid (common stock with no stated value)
For the year ended March 31, 2024
Thousands ofsharesAmountBeginning of the year
Issuance of new shares
End of the year

1,958,800,000
103,000,000
2,061,800,000

1,958,800
103,000
2,061,800(Millions of yen)
For the year ended March 31, 2023
Thousands ofsharesAmount

1,873,800,000
85,000,000
1,958,800,000

1,873,800
85,0001,958,800

Total amount of capital stock
As ofMarch 31, 2024

Capital stock

2,211,800(Millions of yen)
As ofMarch 31, 2023

2,108,800

Other reserves presented in the consolidated statement of changes in equity
Remeasurement of defined benefit plans
Remeasurement of defined benefit plans represents the changes in actuarial gains and losses and the return on plan assets, excluding amounts
included in interest income. Actuarial gains and losses represent experience adjustments to the defined benefit obligations (i.e., differences between theactuarial assumptions at the beginning of the year and what has actually occurred) and the effects of changes in actuarial assumptions. Actuarial gains
and losses are recognized in other comprehensive income as incurred and are immediately transferred from other reserves to retained earnings.
Exchange differences on translation of foreign operations
The amount represents the JBIC Group’s share of the translation differences arising on translating the consolidated financial statements of foreignsubsidiaries, associates and joint ventures into the functional currency of JBIC. The amount includes gains or losses on the hedging instruments that are
determined to be effective hedges of the net investments in foreign operations.
Capital controls
JBIC is not subject to either the Banking Act or capital adequacy regulations; however, JBIC is subject to the JBIC Act, and it has the following
agreements with the Japanese government:•

The government, at all times, holds the total number of outstanding shares of JBIC (Article 3 of the JBIC Act).

•The government may make contributions to JBIC, if necessary, limited to the amount appropriated in the budget (Article 4 of the JBIC
Act).

•

JBIC prepares a budget for revenues and expenditures and submits it to the Minister of Finance each fiscal year. After the Cabinet’s
decision is made, the Cabinet submits the budget to the Diet together with the national budget (Article 16 and Article 19 of the JBIC Act).
JBIC’s business plans and financial plans (e.g., borrowings from the fiscal loan funds and foreign exchange funds, corporate bonds, capital
contribution from the general account, and loans) are attached to the above-mentioned budget and submitted to the Diet (Article 17 of the
JBIC Act).

JBIC manages the equity presented in the consolidated statement of financial position as its capital. Capital stock as of March 31, 2024 and 2023
is as presented above.
23. Dividend Distribution
JBIC is restricted in its ability to distribute dividends in accordance with Article 31 of the JBIC Act.
JBIC paid ¥7,329 million on June 29, 2022, for the year ended March 31, 2022, and ¥79,945 million on June 29, 2023, for the year ended
March 31, 2023, and ¥31,467 million on June 27, 2024, for the year ended March 31, 2024 in accordance with the JBIC Act as noted below. Theseamounts are calculated based on the amount of the retained earnings under Japanese GAAP.
42

In the event that the amount of the retained earnings recorded at each year-end closing in respective accounts for operations defined in each itemof Article 26-2 of the JBIC Act:i.

exceeds zero, JBIC accumulates an amount calculated in accordance with the standards prescribed by the Cabinet Order as a reserve, until
it reaches a certain amount stipulated by the Cabinet Order; and if there is a surplus, JBIC pays such a surplus into the National Treasury
within three months after the annual closing date (Paragraph 1 of Article 31 of the JBIC Act); orii.

falls below zero, the reserve is transferred to the retained earnings to the extent that the amount of retained earnings becomes zero(Paragraph 2 of Article 31 of the JBIC Act).

24. Interest Income and Interest Expense
Interest income and interest expense for the years ended March 31, 2024 and 2023 consisted of the following:
For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

Interest income
Due from banks
Securities
Loans and other receivables
Other
Interest income, total

42,0886,931
980,83834
1,029,892

16,332
1,057
559,46711
576,869

Interest expense
Borrowings
Bonds payable
Financial guarantee contracts
Other
Interest expense, total
Net interest income

362,856
176,217712
4,423
544,209
485,683

186,866
144,755683
2,094
334,401
242,467

25. Fee and Commission Income and Fee and Commission Expense
Fee and commission income, as well as fee and commission expense for the years ended March 31, 2024 and 2023 consisted of the following:
For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

Fee and commission income
Guarantee fees
Other
Fee and commission income, total

11,5662,442
14,00911,7081,140
12,848

Fee and commission expense
Outsourcing expenses
Other
Fee and commission expense, total

2,941
1,378
4,319

2,620
1,178
3,799

43

26. Net Expense from Derivative Financial Instruments
Net expense from derivative financial instruments for the years ended March 31, 2024 and 2023 consisted of the following:

Net expense from derivative financial instruments
Net interest income from interest rate swaps
Net loss on valuation of derivative financial instruments
Other *Net expense from derivative financial instruments, total*

For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

360,406
62,356(26,114)396,647

127,836
206,580(188,434)
145,982

The amount includes adjustments of the carrying amounts of hedged items under fair value hedge.

27. Net Gain (Loss) from Financial Assets at Fair Value through Profit or Loss
Net gain (loss) from financial assets at fair value through profit or loss for the years ended March 31, 2024 and 2023 consisted of the following:

Net gain (loss) from financial assets at fair value through profit or loss
Net gain (loss) from listed and unlisted equity securities
Net gain (loss) from unlisted debt instruments
Net gain (loss) from financial assets at fair value through profit or loss, total

For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

23,898(4,982)
18,915(1,699)(10,462)(12,160)

28. Net Gain on Derecognition of Financial Assets Measured at Amortized Cost
The JBIC Group realized gains of ¥558 million on the derecognition of the assets for the fiscal year ended March 31, 2023. There is no net gain onderecognition of financial assets measured at amortized cost for the fiscal year ended March 31, 2024. The derecognition of the assets are aligned with
the JBIC Group’s objective of collecting the contractual cash flows and credit risk management policies.
29. Other Income and Other Expenses
Other income and other expenses for the years ended March 31, 2024 and 2023 consisted of the following:
For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

Other income
Gain on foreign exchange transactions *Other
Other income, total

39,224730
39,95430,474313
30,787

Other expenses
Impairment loss on equity method investments
Impairment loss on property and equipment
Impairment loss on other assets
Other
Other expenses, total

—
230
668
1,214
2,112

3,486
—
—
828
4,315

*

The amount includes gains or losses arising on the foreign currency translation of notional amounts of the currency swap contracts by using theexchange rate at the reporting date.
44

30. Impairment Losses (Reversals) on Financial Assets
Impairment losses (reversals) on financial assets for the years ended March 31, 2024 and 2023 consisted of the following:

Impairment losses (reversals) on financial assets
Loans and other receivables *Financial guarantee contracts
Securities
Impairment losses (reversals) on financial assets, total*

For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

63,135(3,999)—59,135

6,669
15,503—
22,174

Impairment losses on loans and other receivables increased for the fiscal year ended March 31, 2024 due to factors including an increase in theallowance for loan losses from a deterioration in credit risk of a certain large-scale borrower and the impact of Russia-related borrowers on credit
risk that were assessed individually with respect to the international situation related to Russia and Ukraine.

31. Operating Expenses
Operating expenses for the years ended March 31, 2024 and 2023 consisted of the following:

Operating expenses
Salaries and allowances
Retirement benefit costs
Welfare expenses
Depreciation and amortization
Travel expenses
Other *
Operating expenses, total*

For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

6,820
531
979
4,171
1,861
12,29426,659

6,411
529
959
3,932
1,554
11,152
24,540“Other” includes professional and other contractors costs, costs related to overseas secondments, transaction fees and taxes, supplies andcommunication costs.

32. Income Taxes
JBIC is a nontaxable entity in accordance with Paragraph 2, Item 5 of the Corporate Tax Act of Japan (Act No. 34, 1965) and has no obligation to
pay corporate taxes. JBIC IG Partners is a taxable entity and has an obligation to pay corporate taxes as applicable under relevant laws. The RussiaJapan Investment Fund, L.P. is a tax-exempt limited partnership established under Cayman Islands laws and has no obligation to pay corporate taxes. As
the balances of income taxes are immaterial, information for income taxes is not presented.
4533. Analysis of Financial Assets and Liabilities by Measurement Basis
Subsequent to initial recognition, financial assets and liabilities are measured either at fair value or amortized cost in accordance with themeasurement classifications defined in IFRS 9. Note 3 “Material Accounting Policy Information” describes how these classifications of financial assets
and liabilities are measured, and how income and expenses are recognized in profit or loss.
The following tables present the carrying amounts of the financial assets and liabilities in the consolidated statement of financial position, by
category and by line item, as of March 31, 2024 and 2023:(Millions of yen)
Financial assets
and liabilities
measured at
FVPL

Financial assets
Cash and due from banks
Derivative financial instrument assets
Financial assets at fair value through profit or loss
Securities
Loans and other receivables
Financial assets, total
Financial liabilities
Derivative financial instrument liabilities
Borrowings
Bonds payable
Financial liabilities, total

As of March 31, 2024
Financial
Financial assets
liabilities
measured atmeasured atamortized costamortized cost

Total

—
104,008
474,551——578,560

2,565,369——
53,19915,949,101
18,567,669

—
—
—
—
—
—

2,565,369
104,008
474,551
53,19915,949,101
19,146,230

1,098,801——
1,098,801

—
—
—
—

—
9,193,988
6,353,375
15,547,364

1,098,801
9,193,988
6,353,375
16,646,165

In addition to the above, JBIC had ¥72,454 million of financial guarantee contracts measured in accordance with IFRS 9 as of March 31, 2024.
(Millions of yen)
Financial assets
and liabilities
measured at
FVPL

As of March 31, 2023
Financial
Financial assets
liabilities
measured atmeasured atamortized costamortized cost

Total

Financial assets
Cash and due from banks
Derivative financial instrument assets
Financial assets at fair value through profit or loss
Securities
Loans and other receivables
Financial assets, total—
137,156475,260——
612,417

2,193,775——
46,99815,144,377
17,385,152

—
—
—
—
—
—

2,193,775
137,156475,260
46,99815,144,377
17,997,569

Financial liabilities
Derivative financial instrument liabilities
Borrowings
Bonds payable
Financial liabilities, total

825,233——
825,233—————
8,513,677
5,934,320
14,447,997

825,233
8,513,677
5,934,320
15,273,230

In addition to the above, JBIC had ¥75,514 million of financial guarantee contracts measured in accordance with IFRS 9 as of March 31, 2023.
46

34. Offsetting Financial Assets and Financial Liabilities
The following tables present quantitative information in respect of financial instruments that are subject to enforceable master netting
arrangements or similar agreements as of March 31, 2024 and 2023. Of the financial assets held by the JBIC Group, amounts related to master netting
agreements in respect of derivative transactions are disclosed in the following tables. The right to offset in accordance with these master netting
agreements only becomes effective in the event of default or certain other events outside the normal course of business. The excess portion of thecollateral received and collateral pledged is excluded.
(Millions of yen)

Financial assets
Derivative financial instrument assets
Financial assets, total
Financial liabilities
Derivative financial instrument liabilities
Financial liabilities, total

As of March 31, 2024
Amounts subject to an
enforceable master netting
agreement or similar agreement
and not included in (b)(d)
Amounts
related to
Net amounts
Amounts
financialpresented inrelated to
instruments
the consolidated
financialrecognized thatstatement
collateral
do not meet theof financial(including cash
offsetting
positioncollateral)
criteria(c)=(a)-(b)Grossamounts offinancialassets andliabilities
recognized(a)Amounts thatare offset(b)104,007—

104,007(65,901)(37,350)756

104,007—

104,007(65,901)(37,350)756

1,098,789
1,098,789——

1,098,789
1,098,789(65,901)(65,901)(1,033,820)(1,033,820)——

Net amount(e)=(c)-(d)(Millions of yen)
As of March 31, 2023
Amounts subject to an
enforceable master netting
agreement or similar agreement
and not included in (b)(d)
Amounts
related to
Net amounts
financial
Amountspresented in
instruments
related tothe consolidated
recognized that
financialstatement
do not meet thecollateralof financial
offsetting(including cash
positioncriteria
collateral)(c)=(a)-(b)Grossamounts offinancialassets andliabilities
recognized(a)Amounts thatare offset(b)Financial assets
Derivative financial instrument assets
Financial assets, total

137,144
137,144——

137,144
137,144(105,869)(105,869)(30,860)(30,860)

415
415

Financial liabilities
Derivative financial instrument liabilities
Financial liabilities, total

825,233
825,233——

825,233
825,233(105,869)(105,869)(651,110)(651,110)

68,254
68,25447

Net amount(e)=(c)-(d)35. Fair Value of Financial Assets and Liabilities
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.
The fair values stated below represent the best estimate determined using various valuation methods and assumptions, and the JBIC Group gives thehighest priority to quoted prices in active markets. If such prices are not available, the fair values are determined using valuation techniques. The
valuation techniques, if used, maximize the use of observable inputs and minimize the use of unobservable inputs.
The following table below sets forth the carrying amounts and fair values of major financial assets and liabilities as of March 31, 2024 and 2023:
As of March 31, 2024
Carrying
amountFair value(Millions of yen)
As of March 31, 2023
Carrying
amountFair value

Financial Assets
Derivative financial instrument assets
Financial assets at fair value through profit or loss
Securities
Loans and other receivables
Financial Assets, total

104,008
474,551
53,19915,949,101
16,580,861

104,008
474,551
51,476
16,042,447
16,672,484

137,156475,260
46,99815,144,377
15,803,793

137,156475,260
45,621
15,242,916
15,900,955

Financial Liabilities
Derivative financial instrument liabilities
Borrowings
Bonds payable
Financial guarantee contracts
Financial Liabilities, total

1,098,801
9,193,988
6,353,375
72,454
16,718,620

1,098,801
9,138,561
6,311,260
8,300
16,556,923

825,233
8,513,677
5,934,320
75,514
15,348,745

825,233
8,490,362
5,881,695
8,671
15,205,962

Valuation methods used in determining the fair values of financial assets and liabilities
Derivative financial instrument assets and liabilities
As derivative transactions by JBIC Group are OTC transactions whose quoted prices are not available, their fair value is determined by using thepresent value method and other valuation methodologies according to the transaction type and the term to maturity. Price adjustments are made based on
the counterparty’s credit risk and JBIC’s credit risk. Main inputs used in these valuation methodologies include interest rates, exchange rates, and credit
spreads. Such transactions include plain vanilla interest rate swaps, currency swaps, and forward foreign exchange contracts.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss comprise listed and unlisted equity securities (i.e., some stocks, investments in partnerships,
and investment trusts), which include financial assets classified as debt instruments in accordance with IAS 32 Financial Instruments: Presentation, andcertain loans and other receivables.
Fair values of listed equity securities are determined using quoted market prices if the market prices are appropriate for valuation. Otherwise or as
it pertains to stocks included in unlisted equity securities, their fair values are determined using valuation techniques, including the DCF method. The
inputs used include unobservable inputs, such as the expected rate of return. For certain unlisted equity securities, the reported net asset values or the
recent transaction prices are considered to represent the fair values of these investments at the reporting date.
Since loans with variable interest rates reflect market interest rates in the short term, amounts calculated by applying the floating rate note method
and a risk-free rate adjusted by unobservable inputs, such as the default ratio and collateral coverage ratio, represent the fair values of the loans.
The fair value of loans is determined by discounting at a risk-free rate the sum of principal and interest after adjusting for credit risk and otherelements according to the classifications based on the type of loans, internal ratings and periods. Of which, the fair value of those loans with variableinterest rates is their carrying amount as such loans reflect market interest rates over the short term and approximates the carrying mount if theborrower’s credit conditions have not changed significantly since the issuance of loans.
For claims on Bankrupt borrowers, Substantially bankrupt borrowers, and Potentially bankrupt borrowers, credit losses estimated on such claims
are calculated based on the discounted present value of estimated future cash flows or the expected collectible amount from the collateral or guarantee.
Since fair value approximates the amount on the consolidated balance sheets at the fiscal year end after deducting the allowance for loan losses, thisamount is used for fair value.
48

Securities
Securities held by JBIC Group are unlisted debt securities. Quoted prices that are made available by third parties, such as brokers, are used formeasuring fair values of the securities.
Loans and other receivables
The fair value of loans is determined by discounting at a risk-free rate the sum of principal and interest after adjusting for credit risk and otherelements according to the classifications based on the type of loans, internal ratings and periods. Of which, the fair value of those loans with variableinterest rates is their carrying amount as such loans reflect market interest rates over the short term and approximates the carrying mount if theborrower’s credit conditions have not changed significantly since the issuance of loans.
For claims on Bankrupt borrowers, Substantially bankrupt borrowers, and Potentially bankrupt borrowers, credit losses estimated on such claims
are calculated based on the discounted present value of estimated future cash flows or the expected collectible amount from the collateral or guarantee.
Since fair value approximates the amount on the consolidated balance sheets at the fiscal year end after deducting the allowance for loan losses, thisamount is used for fair value.
Borrowings
As for borrowed money, the present value is calculated by discounting the sum of principal and interest of the borrowed money classified bycertain periods at a rate adjusted by the remaining period and credit risk of borrowed money. Of which, borrowed money with variable interest rates
reflect short-term market interest rates and the credit conditions of JBIC and its consolidated subsidiaries have not changed significantly since theexecution of borrowings. Therefore, the carrying amount is used as fair value because it is considered that the carrying amount approximates the fairvalue.
Bonds payable
Of bonds issued by JBIC Group, the Reference Statistical Prices [Yields] for OTC bond Transactions is used as fair value for the fiscal investment
and loan program (FILP) agency bonds. As for government-guaranteed foreign currency bonds, the prices obtained from, among others, information
vendors are used as fair value.
Financial guarantee contracts
The fair value of financial guarantee contracts is determined by discounting the estimated future losses arising from guarantee obligations using arisk-free rate adjusted by the credit default swap spread of government bonds. Unobservable inputs, such as the default ratio and coverage ratio, are used
to determine the estimated future losses associated with guarantee obligations. The fair value hierarchy of financial assets and liabilities is described in
Note 36 “Fair Value Hierarchy.”4936. Fair Value Hierarchy
The inputs used in the valuation techniques that measure the fair values of assets and liabilities are categorized into the following three-level
hierarchy:•

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;•

Level 2: inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly or indirectly;
and•Level 3: unobservable inputs.

The fair value hierarchy of an asset or liability is determined based on the hierarchy of inputs used in the fair value measurement of that asset or
liability. If the inputs used to measure the fair value of an asset or a liability are categorized within different levels of the fair value hierarchy, the fairvalue measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire
measurement.
The following tables show a breakdown of assets and liabilities measured at fair value by level of the fair value hierarchy as of March 31, 2024
and 2023:

Level 1

AssetsDerivative financial instrument assets
Interest-related derivatives
Interest rate swaps
Currency-related derivatives
Currency swaps
Forward foreign exchange contracts
Derivative financial instrument assets, total
Financial assets at fair value through profit or loss
Liabilities
Derivative financial instrument liabilities
Interest-related derivatives
Interest rate swaps
Currency-related derivatives
Currency swaps
Forward foreign exchange contracts
Derivative financial instrument liabilities, total—

30,557—30,557————73,4491
104,008————
474,551

73,4491
104,008
474,551—

411,711—

411,711———

687,077
12
1,098,801———

687,077
12
1,098,801

Level 1

AssetsDerivative financial instrument assets
Interest-related derivatives
Interest rate swaps
Currency-related derivatives
Currency swaps
Forward foreign exchange contracts
Derivative financial instrument assets, total
Financial assets at fair value through profit or loss
Liabilities
Derivative financial instrument liabilities
Interest-related derivatives
Interest rate swaps
Currency-related derivatives
Currency swaps
Forward foreign exchange contracts
Derivative financial instrument liabilities, total
50(Millions of yen)
As of March 31, 2024
Level 2
Level 3
Total

(Millions of yen)
As of March 31, 2023
Level 2
Level 3
Total—

26,812—

26,812————

110,332
12
137,156————475,260

110,332
12
137,156475,260—

375,702—375,702———449,531—825,233———

449,531—825,233

Transfers between Level 1 and Level 2
There were no transfers between Level 1 and Level 2 during the years ended March 31, 2024 and 2023.
Quantitative Information about the Significant Unobservable Inputs Used in the Fair Value Measurement of Level 3 Financial Assets
The following tables present the significant unobservable inputs used in the fair value measurement of Level 3 financial assets that are recorded in
the consolidated statement of financial position at fair value:

Fair value(Millions of yen)

Financial assets at fair value through profit or loss
Listed equity securities (stocks)

As of March 31, 2024
Valuation
Unobservable
Method
input

6,277

DCF method

Unlisted equity securities (stocks)

115,504

DCF method

Unlisted equity securities (investments in partnerships)
Unlisted equity securities (Investment trusts)
Unlisted debt instruments (loans)

811
104,296
2,404
244,960

Net asset value
Net asset value
Net asset value
DCF method

297
Fair value(Millions of yen)

Financial assets at fair value through profit or loss
Listed equity securities (stocks)

Recent transaction priceAs of March 31, 2023
Valuation
Unobservable
Method
input

8,921

DCF method

Unlisted equity securities (stocks)

115,776

DCF method

Unlisted equity securities (investments in partnerships)
Unlisted debt instruments (loans)

2,333
88,561
259,249

Net asset value
Net asset value
DCF method

417

Discount rates
Expected cash flows
Discount rates
Expected cash flows
— *2
— *2
— *2
Discount rates
Expected cash flows— *3

Recent transaction price

Discount rates
Expected cash flows
Discount rates
Expected cash flows
— *2
— *2
Discount rates
Expected cash flows
— *3

Range

16.1%
— *1
4.3%-25.4%
— *1
— *2
— *2
— *2
0.1%–5.3%
— *1
— *3

Range

16.2%
— *1
4.3%-21.1%
— *1
— *2
— *2
(0.0)%–3.2%
— *1
— *3

*1

Expected cash flows used in the valuation based on the DCF method are unobservable inputs, and accordingly, various scenarios reflecting theperformance of the issuers are taken into account in performing the valuation.

*2

The net asset values reported by the investments are deemed to represent the fair value as of the reporting date.

*3

The fair value as of the reporting date is based on recent transaction prices.
51

Movements in the Fair Value of Level 3 Financial Assets
The following table presents a reconciliation of the beginning and ending amounts of Level 3 financial assets that are recorded at fair value in the
consolidated statement of financial position for the years ended March 31, 2024 and 2023:(Millions of yen)
Financial assets at fair value through profit or loss
Listed equity
Unlisted equity
Unlisted debt
securities
securities
instruments

As of March 31, 2022
Total gains (losses) recorded in profit or loss
Purchases
Sales and redemptions
As of March 31, 2023
Total gains (losses) recorded in profit or loss
Purchases
Sales and redemptions
Other
As of March 31, 2024

6,333
2,587
—
—
8,921
(5,705)
—
—
3,061
6,277

197,338
4,346
16,890(11,901)
206,672
26,032
13,849(20,475)(3,061)
223,016

276,355(11,450)
23,362(28,600)
259,666(10,058)
27,019(31,369)—
245,257

Total

480,027(4,516)40,252(40,502)475,260
10,26840,868(51,845)—474,551

Sensitivity Analysis of Level 3 Instruments
The fair value measurements of Level 3 financial assets are performed using valuation techniques based on inputs, such as prices and rates that are
not observable in the market. The following sensitivity analysis provides the impact on the profit or loss and other comprehensive income whenchanging the unobservable inputs used in determining the fair value measurements of Level 3 financial assets recorded at fair value in the consolidated
statement of financial position, to the extent reasonably possible.
The nature of the sensitivity analysis is determined based on the type of financial instrument and the market conditions at the time. As of
March 31, 2024 and 2023, the sensitivity analysis was performed by increasing or decreasing the discount rates used in the DCF method by 1%.
(Millions of yen)
As of March 31, 2024
Total fair value
Impact on profit or loss
measured using
valuation
Favorable
Unfavorable
techniqueschangechangeFinancial assets at fair value through profit or loss
Listed equity securities (stocks)
Unlisted equity securities (stocks)
Unlisted debt instruments (loans)

6,277
115,504
244,960

256
3,084
10,531(218)(2,934)(10,001)(Millions of yen)
As of March 31, 2023
Total fair value
Impact on profit or loss
measured using
valuation
Favorable
Unfavorable
techniqueschangechangeFinancial assets at fair value through profit or loss
Listed equity securities (stocks)
Unlisted equity securities (stocks)
Unlisted debt instruments (loans)

8,921
115,776
259,249

898
4,262
13,598(741)(3,971)(12,800)

For the listed equity securities, certain unlisted equity securities (i.e., some stocks, investments in partnerships, and investment trusts) and debt
securities, the sensitivity analysis was not performed since the effect of changing the unobservable inputs to reflect reasonably possible alternative
assumptions did not change their fair values significantly.
Unrealized Gain (Loss) of Level 3 Instruments
The following table presents changes in unrealized gain (loss) included in profit or loss for the years ended March 31, 2024 and March 31, 2023
related to Level 3 financial assets.

Net gain (loss) from financial assets at fair value through profit or loss
52

For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

11,124(4,144)

Fair Value Hierarchy of Assets and Liabilities that are Not Measured at Fair Value
The breakdown by fair value hierarchy of assets and liabilities that were not measured at fair value in the consolidated statement of financial
position as of March 31, 2024 and 2023 was as follows:(Millions of yen)
Level 1

AssetsLoans and other receivables
Securities
Liabilities
Borrowings
Bonds payable
Financial guarantee contracts

As of March 31, 2024
Level 2
Level 3

Total

—
—

—
51,476

16,042,447—

16,042,447
51,476———

9,138,561
6,311,260
—

—
—
8,300

9,138,561
6,311,260
8,300(Millions of yen)

Level 1

AssetsLoans and other receivables
Securities
Liabilities
Borrowings
Bonds payable
Financial guarantee contracts

As of March 31, 2023
Level 2
Level 3

Total

—
—

—
45,621

15,242,916—

15,242,916
45,621———8,490,362
5,881,695
—

—
—
8,671

8,490,362
5,881,695
8,671

37. Financial Risk Management
JBIC is a policy-based financial institution, conducting financial operations to achieve policy objectives, and its operations involve various risks,
including credit risk, market risk (interest rate risk and exchange rate risk), liquidity risk, and operational risk. As such, JBIC has the following risk
management policies in place.
Risk Management Structure
The types and magnitude of the risks associated with JBIC’s financial operations and its risk mitigation measures are different from those of risks
associated with private financial institutions’ operations and their risk mitigation measures. Nonetheless, JBIC, as a financial institution, recognizes theimportance of managing risk appropriately, and has built an organizational structure for risk management tailored to the types of risks and integrated risk
management.
More specifically, JBIC identifies, measures, and monitors various risks to which JBIC is exposed in its operations, and defines ensuring thesoundness and integrity of its operations and increasing transparency as the risk management objective. For this purpose, JBIC has designated staff
responsible for managing various risks and established a department responsible for controlling the risk management efforts. In addition, the Corporate
Risk Management Committee and the Asset Liability Management (ALM) Committee have also been set up to facilitate evaluations and discussions
regarding successful risk management. JBIC has also established the Risk Advisory Committee, which mainly consists of external experts, to provide
JBIC’s board of directors with advice for matters requiring their review, such as a risk assessment and the management structure of large credit
exposures and issues related to the risk of large-scale projects.
Credit Risk Management
Credit risk refers to the potential loss from a decline or loss in the value of credit assets due to deterioration in the financial conditions of a debtor.
This risk is inherent in JBIC’s operations as it primarily engages in lending activities. The credit risk exposure of JBIC may be classified into thefollowing categories: sovereign risk, which involves financing to foreign governments; corporate risk, which involves financing to business firms;
project risk, which occurs when a project is financed by project financing—a financing structure in which a loan is primarily secured by the cash flows
generated from the project—fails to generate the planned cash flows; and country risk, which involves financing to foreign firms as well as projects
located in foreign countries (a risk arising from the country where the debtor resides and the project is located that adds to corporate risk and projectrisk). Given the very nature of the financial support the JBIC Group provides, including support for developing and securing strategically importantresources for Japan overseas, for maintaining and improving the international competitiveness of Japanese industries, and for promoting overseas
business in order to preserve the global environment, such as preventing global warming, the JBIC Group frequently extends loans to foreign
governments, government agencies, and foreign companies. As such, sovereign and country risks account for a significant portion of the credit risk
accompanying JBIC’s lending activities.
53

Credit risk management structure
The cornerstone of credit risk management at JBIC is the evaluation of an individual borrower’s creditworthiness in advance of credit approval.
When a new credit application is processed, the relevant finance departments (sales promotion departments) and credit departments collect and analyze
information on the borrower. JBIC’s overseas representative offices also play a part in collecting information on foreign governments and corporations.
Credit appraisal takes place based on the information that has been gathered and analyzed with the different departments ensuring appropriate checks
throughout the process, leading to the final decision by the management. In providing credit to foreign governments and other governmental entities,
JBIC takes maximum advantage of its unique position as a public financial institution. This includes exchanging views and information with thegovernments and relevant authorities in the recipient countries, multilateral institutions such as the IMF and the World Bank, other regional developmentbanks such as export credit agencies, and private financial institutions in developed countries. Using all these channels to exchange views andinformation, JBIC evaluates sovereign and country risks based on the broad range of information collected on the borrowing governments, thegovernment agencies, and the political and economic conditions in their countries.
In providing credit to domestic and foreign companies, JBIC evaluates their creditworthiness and the appropriateness of the collateral andguarantees they offer. In respect of the credit provision related to overseas projects, credit evaluation involves examining the certainty of transactions to
be financed, feasibility studies of the projects, and the industry in which the borrower operates. The concentration of credit risk is managed by setting acertain ratio to capital. The relevant finance departments and credit departments conduct proper credit risk management based on the credit risk rating
system for segmented risk categories and the asset self-assessment system. In addition, an Integrated Risk Management Committee is held regularly toreport the status of credit management to the management. The credit management situation is also checked by an independent auditing department.
Credit risk management methodology
A.

Credit risk assessment
Internal credit rating
JBIC has established an internal credit rating system, which covers, in principle, all borrowers. Internal credit ratings are thecornerstone of credit risk management, being used for individual credit appraisals and quantifying credit risk as described below.
Self-assessment of asset quality
JBIC performs a self-assessment of asset quality to ensure that the characteristics of its assets will be accurately reflected in its
assessment results. In carrying out the self-assessment of the asset quality, the first-stage of the assessment is conducted by the financedepartments, while the second-stage of the assessment is conducted by the credit department, and the internal inspection is performed by
the internal audit department. The results of the self-assessment of the asset quality are used for determining the existence of evidence
indicating that a financial asset or group of financial assets classified into loans and receivables is credit-impaired. In addition, they areused for the continuous reviews of the loan portfolio as well as actively used in the disclosures of assets to enhance the transparency of the
JBIC Group’s financial position.
54

The “borrower category” is used to classify borrowers by their repayment abilities used in the self-assessment of asset quality, andborrowers are classified depending on their financial conditions as below:
Borrower Category

Normal borrowers
Borrowers needing attention
Substandard borrowers
Potentially bankrupt borrowers
Substantiallybankrupt borrowers
Bankrupt borrowers
B.

Borrowers’ financial condition

Borrowers with good business performances and no significant financial problems
Borrowers requiring close monitoring, excluding substandard borrowers
Borrowers in the “borrowers needing attention category” with loans that are completely or partiallymore than three months past due or borrowers whose loans have been restructured
Borrowers perceived to have a high risk of becoming bankrupt
Borrowers who may not have legally or formally declared bankruptcy but are essentially bankrupt
Borrowers who have legally or formally declared bankruptcy

Quantifying credit risk
In addition to the above credit risk management related to individual borrowers, JBIC quantifies credit risk with a view to evaluating
the risk of the overall loan portfolio. To quantify credit risk, it is important to take into account the characteristics of JBIC’s loan portfolio,
which are not typically seen in other private financial institutions, namely that JBIC holds a significant portion of long-term loans thatentail sovereign and country risks. Also to be taken into account are mechanisms for securing assets under an international supporting
framework, such as the Paris Club*, which is a unique framework of debt management by official creditors. JBIC’s own credit risk
quantification model, incorporating these factors, measures credit risk and is utilized for internal control purposes.
* The Paris Club is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment
difficulties encountered by debtor nations. Since the first meeting took place in 1956 to resolve the debt problem of Argentina, themeeting has been held in Paris, with the French Treasury (in Paris) acting as its secretariat. Hence, it is known as the Paris Club.

Credit Risk Management in Financial Markets
Credit risk in financial markets is the risk that JBIC will suffer losses if a counterparty to a derivative financial instrument transaction is unable toexecute the transactions in accordance with the terms of the contract due to its financial difficulties or bankruptcy. As such, JBIC continuously gathers
information on the market value of derivative financial instruments, the credit risk amount in respect of each counterparty and counterparties’ financial
conditions. JBIC also monitors and utilizes such data in assessing the appropriateness of counterparties. JBIC mitigates credit risk in financial markets
arising from derivatives transactions by entering into master netting agreements. Under IFRS, JBIC’s derivative financial instrument assets andliabilities do not meet the offsetting criteria and they are presented on a gross basis in the consolidated statement of financial position. In addition to theabove, collateral is pledged by both parties to a transaction in accordance with market trends and risk levels.
38. Maximum Exposure to Credit Risk
The following tables summarize the JBIC Group’s maximum exposure to credit risk before recognizing risk mitigation by collateral or other credit
enhancements as of March 31, 2024 and 2023:
Financial instruments not subject to impairment
As of March 31, 2024
Carrying amountMaximum exposure

Financial assets at fair value through profit or loss*1*1

474,551

677,468(Millions of yen)
As of March 31, 2023
Carrying amountMaximum exposure475,260

Maximum exposure represents the total of investments, loans, equity participation commitments and loan commitments.
55

601,009

Financial instruments subject to impairment
As of March 31, 2024
Carrying amountMaximum exposure

Securities*2
Loans and other receivables*3
Financial guarantee contracts*4

53,19915,949,101
72,45453,19919,006,181
1,680,577*2

Maximum exposure represents the amounts of investments.

*3

Maximum exposure represents the total of loans and loan commitments.

*4

Maximum exposure represents the total of guarantee obligations and guarantee commitments.

(Millions of yen)
As of March 31, 2023
Carrying amountMaximum exposure

46,99815,144,377
75,514

46,99817,445,663
1,636,457

The tables above exclude financial instruments whose carrying amounts best represent their maximum exposure to credit risk.
39. Collateral
Financial assets pledged as collateral
JBIC held ¥1,033,820 million and ¥651,110 million in cash collateral for derivatives transactions as of March 31, 2024 and 2023, respectively,
which was included in “Other assets” in the consolidated statement of financial position. The general collateral in respect of bonds payable is describedin Note 18 “Bonds Payable.”
Collateral and other credit enhancements
JBIC obtains collateral, such as financial assets and real estate, and utilizes guarantees to strengthen loan recovery and minimize the credit risk.
JBIC also obtains collateral, such as movable property, for credit enhancement purposes in order to minimize the credit risk in relation to the financial
guarantee contracts.
The JBIC’s policies regarding collateral have not significantly changed during the reporting period and there has been no significant change in theoverall quality of the collateral held by JBIC since the prior period.
A portion of the JBIC Group’s financial assets are fully covered by collateral, which results in no loss allowance being recognized in accordancewith the JBIC Group’s expected credit loss model. The carrying amount of such financial assets was ¥3,429,935 million and ¥3,253,963 million as ofMarch 31, 2024 and 2023, respectively.
The following tables present financial effects of collateral and other credit enhancements in respect of credit-impaired loans and loans measured at
FVPL on which the impairment requirements in IFRS 9 are not applied as of March 31, 2024 and 2023. If the value of the collateral exceeds the
carrying amount of the loan, the maximum amount of collateral is limited to the carrying amount of the corresponding loan.

Credit-impaired loans and other receivables
Loans and other receivables measured at FVPL
56

As of March 31, 2024

(Millions of yen)
As of March 31, 2023

29,595
186,627

8,921
183,470

40. Concentration of Credit Risk
The following tables present the analysis of the concentration of credit risk in respect of loans and other receivables by borrowers’ key
characteristics as of March 31, 2024 and 2023:
Analysis of loans and other receivables by borrowers’ grade of the internal credit rating system as of March 31, 2024;(Millions of yen)Stage 112-month ECL

Sovereign
S to BB3
B1 to C
D to F
Total sovereign
Allowance for loan losses
Non-sovereign
S to BB3
B1 to C
D to F
Total non-sovereign
Allowance for loan losses
Total loans and other receivables

As of March 31, 2024
ECL staging
Stage 2
Stage 3
Lifetime ECL Lifetime ECL

91,961
216,742
27,363
336,067(3,312)

—
7,405
—
7,405
(1,291)

13,024,261
718,320
23
13,742,605(3,616)
14,071,743—
1,649,859—
1,649,859(95,792)
1,560,181——
81,60881,608
(472)

POCI

—
—
—
—
—

Total

91,961
224,147
108,972
425,081(5,075)——13,024,261——
2,368,179
542,504
24,390566,917542,504
24,390 15,959,359(307,027) (23,827)(430,264)
316,612562 15,949,101

Analysis of loans and other receivables by borrowers’ geographic area and industry as of March 31, 2024;(Millions of yen)Stage 112-month ECL

Sovereign
Asia and Oceania
Europe, the Middle East, and Africa
North America and Latin America
Total sovereign
Allowance for loan losses
Non-sovereign
Manufacturing industry
Mining industry
Electricity, gas, heat supply, and water industry
Transport industry
Wholesale and retail industry
Finance and insurance industry
Other
Total non-sovereign
Allowance for loan losses
Total loans and other receivables
57

As of March 31, 2024
ECL staging
Stage 2
Stage 3
Lifetime ECL Lifetime ECL

242,851
93,215—336,067(3,312)

3,438
—
3,967
7,405
(1,291)

1,908,851
1,654,031
3,088,188455,377
1,308,508
3,831,533
1,496,113
13,742,605(3,616)
14,071,743

641,381
252,345
662,023
60,944
3,097
5,001
25,065
1,649,859(95,792)
1,560,181

22,752
31,62827,22781,608
(472)

POCI

—
—
—
—
—

Total

269,042
124,843
31,194425,081(5,075)

103,909
24,3902,678,532
155,009—
2,061,386
17,103—
3,767,316——
516,32120—
1,311,626
259,545—
4,096,080
6,915—
1,528,095
542,504
24,390 15,959,359(307,027) (23,827)(430,264)
316,612562 15,949,101

Analysis of loans and other receivables by borrowers’ grade of the internal credit rating system as of March 31, 2023;(Millions of yen)Stage 112-month ECL

Sovereign
S to BB3
B1 to C
D to F
Total sovereign
Allowance for loan losses
Non-sovereign
S to BB3
B1 to C
D to F
Total non-sovereign
Allowance for loan losses
Total loans and other receivables

As of March 31, 2023
ECL staging
Stage 2
Stage 3
Lifetime ECL Lifetime ECL

94,020237,035
21,577
352,633(3,558)

—
7,200
—
7,200
(1,474)

12,099,880
1,001,188—
13,101,069(3,927)
13,446,216—
1,528,632—
1,528,632(106,537)
1,427,820——
104,644
104,644
(714)

POCI

Total

—
—
—
—
—

94,020244,236
126,221464,478(5,747)——
167—
389,694 23,137
389,862 23,137(246,588)—
247,202 23,137

12,099,880
2,529,988
412,831
15,042,701(357,054)
15,144,377

Analysis of loans and other receivables by borrowers’ geographic area and industry as of March 31, 2023;(Millions of yen)Stage 112-month ECL

Sovereign
Asia and Oceania
Europe, the Middle East, and Africa
North America and Latin America
Total sovereign
Allowance for loan losses
Non-sovereign
Manufacturing industry
Mining industry
Electricity, gas, heat supply, and water industry
Transport industry
Wholesale and retail industry
Finance and insurance industry
Other
Total non-sovereign
Allowance for loan losses
Total loans and other receivables
58

As of March 31, 2023
ECL staging
Stage 2
Stage 3
Lifetime ECL Lifetime ECL

269,595
83,037—
352,633(3,558)

3,260
—
3,939
7,200
(1,474)1,700,717
1,668,685
2,881,708
430,951
1,217,879
3,931,949
1,269,176
13,101,069(3,927)
13,446,216

535,761
406,456
505,558
44,4091,792
5,001
29,651
1,528,632(106,537)
1,427,820

31,54040,92932,174
104,644
(714)

POCI

Total

—
—
—
—
—

304,397
123,967
36,113
464,478(5,747)

108,783 23,137
4,397—
15,251—
29,282—
103—
225,556—
6,487—
389,862 23,137(246,588)—
247,202 23,137

2,368,400
2,079,538
3,402,519
504,643
1,219,775
4,162,508
1,305,316
15,042,701(357,054)
15,144,377

The following tables present an analysis of the concentration of credit risk in respect of financial guarantee contracts by the guaranteed parties’
key characteristics as of March 31, 2024 and 2023:
Analysis of financial guarantee contracts by guaranteed parties’ grade of the internal credit rating system as of March 31, 2024;(Millions of yen)Stage 112-month ECL

Sovereign
S to BB3
B1 to C
D to F
Total sovereign
Non-sovereign
S to BB3
B1 to C
D to F
Total non-sovereign
Total financial guarantee contracts

As of March 31, 2024
ECL staging
Stage 2
Stage 3
Lifetime ECL Lifetime ECL

Total

1,443
2,051
—
3,495

—
2,653
—
2,653

—
—
—
—

1,443
4,704
—
6,148

18,853
3,539—
22,39325,888—43,431—43,431
46,084

—
—
481
481
481

18,853
46,971481
66,30672,454

Analysis of financial guarantee contracts by guaranteed parties’ geographic area and industry as of March 31, 2024;(Millions of yen)Stage 112-month ECL

Sovereign
Asia and Oceania
Europe, the Middle East, and Africa
North America and Latin America
Total sovereign
Non-sovereign
Manufacturing industry
Mining industry
Electricity, gas, heat supply, and water industry
Transport industry
Finance and insurance industry
Other
Total non-sovereign
Total financial guarantee contracts
59

As of March 31, 2024
ECL staging
Stage 2
Stage 3
Lifetime ECL Lifetime ECL

Total

1,443
2,051
—
3,495

—
2,526
126
2,653

—
—
—
—

1,443
4,578
126
6,148

—
4,295
8,860
2,925
4,754
1,557
22,39325,888——43,431———43,431
46,084

481
—
—
—
—
—
481
481

481
4,295
52,291
2,925
4,754
1,557
66,30672,454

Analysis of financial guarantee contracts by guaranteed parties’ grade of the internal credit rating system as of March 31, 2023;

Stage 112-month ECL

Sovereign
S to BB3
B1 to C
D to F
Total sovereign
Non-sovereign
S to BB3
B1 to C
D to F
Total non-sovereign
Total financial guarantee contracts(Millions of yen)
As of March 31, 2023
ECL staging
Stage 2
Stage 3
Lifetime ECL Lifetime ECL
Total

1,993
2,739
—
4,733

—
6,586
—
6,586

—
—
—
—

1,993
9,326
—
11,32017,376820—
18,19622,930—45,505—45,50552,092

—
—
490
490
490

17,37646,326490
64,19375,514

Analysis of financial guarantee contracts by guaranteed parties’ geographic area and industry as of March 31, 2023;

Stage 112-month ECL

Sovereign
Asia and Oceania
Europe, the Middle East, and Africa
North America and Latin America
Total sovereign
Non-sovereign
Manufacturing industry
Mining industry
Electricity, gas, heat supply, and water industry
Transport industry
Finance and insurance industry
Other
Total non-sovereign
Total financial guarantee contracts(Millions of yen)
As of March 31, 2023
ECL staging
Stage 2
Stage 3
Lifetime ECL Lifetime ECL
Total

2,413
2,320
—
4,733

—
6,381
205
6,586

—
—
—
—

2,413
8,701
205
11,320

—
6,156
6,461
3,657
742
1,178
18,19622,930——45,505———45,50552,092

490
—
—
—
—
—
490
490

490
6,156
51,967
3,657
742
1,178
64,19375,514

41. Exercise of Rights to Obtain Collateral or Other Credit Enhancements
The JBIC Group did not obtain any material financial or non-financial assets through exercise of rights to collateral or other credit enhancements.
42. Market Risk and Liquidity Risk
Market risk is the risk that the value of assets and liabilities (including off-balance-sheet items) will fluctuate and losses will be incurred, or profits
derived from assets and liabilities (including off-balance-sheet items) will fluctuate and losses will be incurred, due to changes in various market risk
factors, such as interest rates and foreign exchange rates.
The market risk borne by JBIC mainly consists of foreign exchange risk and interest rate risk, and JBIC may suffer losses from these risks due tofluctuations in the markets, such as market turmoil. These risks are hedged, in principle, by interest rate swaps, currency swaps, and forward foreignexchange contracts.
Liquidity risk is the risk that losses will be incurred as a result of difficulties in obtaining the funds necessary due to a maturity mismatch between
financing and funding, or unexpected outflow of funds, or being forced to fund at an interest rate significantly higher than that under normal
circumstances (funding risk). It is also the risk that losses will be incurred from being unable to conduct market transactions due to market turmoil orbeing forced to transact at far more unfavorable prices than those under normal circumstances (market liquidity risk).
Long-term and stable funds, such as fiscal loan funds, government-guaranteed bonds and the FILP agency bonds, are secured to finance JBIC.
Deposits are not accepted. Therefore, JBIC considers liquidity risk to be limited. However, financing costs could increase due to market turmoil andunexpected events.
60

Overview of market risk and liquidity risk managementi.

Market risk management

JBIC manages foreign exchange risk and interest rate risk through its ALM. Market risk management protocols contain detailed
stipulations in respect of risk management methods and procedures, and JBIC established an ALM Committee to assess and confirm the executionof ALM, and to discuss future responses to market risk. In addition, JBIC assesses and monitors the interest rate and terms of financial assets andliabilities in detail through a gap analysis and an interest rate sensitivity analysis as well as Value at Risk (“VaR”). The results are reported to the
ALM Committee on a regular basis.
The basic policy for managing foreign exchange risk and interest rate risk at JBIC is described below:a.

Foreign exchange risk

Foreign currency-denominated loans conducted in the JBIC Group involve risks related to exchange rate fluctuations. The JBIC
Group has a consistent policy of managing this risk by fully hedging this risk exposure through the use of currency swaps and forward
foreign exchange contracts. Furthermore, a portion of the foreign exchange risk arising from investments in affiliates denominated inforeign currencies is hedged using forward foreign exchange contracts as hedging instruments.
b.

Interest rate risk

Interest rate risk arises from exposure to market interest rate fluctuations for yen-denominated loan and foreign currencydenominated loan operations and the policy for managing interest rate risk is described below.
(i)Yen-denominated loan operations

Yen-denominated loan operations are managed based on fixed interest rates by matching the maturities of the loans and funds.
As a result, JBIC’s exposure to interest rate risk is limited. For any loan operations that are significantly impacted by interest rate
fluctuations, JBIC hedges the interest rate risk through hedging instruments, such as swaps.
(ii)

Foreign currency-denominated loan operations

For foreign currency-denominated loan operations, interest rate risk is hedged through the application of a consistent policy ofusing interest rate swaps and managing the funds with floating interest rates for both loans and related funding arrangements.
c.

Status of market risk

JBIC only maintains a banking book and does not have financial instruments in a trading book. While in principle JBIC holds
derivatives only for hedging purposes, as stated previously, market risk is measured in order to assess potential risk exposures. The
following represents the market risk exposure (VaR) as of March 31, 2024 and 2023. JBIC measures market risk (VaR) by taking into
account the degree of correlation between interest rate risk and foreign exchange risk.
Risk management using VaR
VaR is a market risk measure that assesses the maximum possible fluctuation of gains or losses in fair values that could occur after acertain period of time (“holding period”) based on historical market movements of interest rates or exchange rates, etc., over a specificperiod in the past (or observation period) within a given probability (confidence interval), that is derived statistically by employing thetheory of probability distribution.
The measurement assumes historical market trends and the theory of probability distribution. However, bearing in mind that future
market trends could deviate from these assumptions, JBIC validates the effectiveness of its market risk measurements using the VaR modelby back-testing, which cross-checks the measured VaR against the actual gains or losses. In addition, a stress test, which goes beyond theprobability distribution of historical market movements, is carried out in order to capture risks from various perspectives.
The following points should generally be noted in measuring VaR•VaR will differ depending on the choice of confidence interval, holding period, and observation period;•

VaR indicates the maximum fluctuation of gains or losses in fair values at the time of measurement. In practice, the actual
results at a point in the future may differ from the VaR calculation due to changes in the assumptions caused by market
movements during the holding period; and•VaR indicates the maximum value based on specific assumptions. As such, when utilizing VaR as a risk management
measure, it is imperative to keep in mind that VaR may underestimate the potential losses.

The table below provides VaR calculated as of March 31, 2024 and 2023.

VaR
61

As of
March 31, 2024

(Billions of yen)
As ofMarch 31, 2023

197.7

164.6

JBIC calculated VaR based on a historical model. The calculation is based on a 99% confidence interval, a one-year holding period
and a five-year observations period.
ii.

Liquidity risk management

Long-term and stable funds, such as fiscal loan funds, government-guaranteed bonds and FILP agency bonds, are used to finance JBIC’soperations and deposits are not accepted.
Cash flows are assessed and proper measures, including establishing overdraft facility accounts with multiple private sector financial
institutions, are taken to maintain daily cash flows for proper risk management.
43. Maturity Analysis of Financial Liabilities
The following tables present the amounts of financial liabilities by contractual maturity based on undiscounted contractual cash flows as ofMarch 31, 2024 and 2023.
For financial liabilities, payments related to financial guarantee contracts are made when all the relevant contractual requirements for payment are
met. Accordingly, total guarantee amounts do not indicate the settlement amounts. Financial guarantee contracts represent the total of guarantee
obligations and guarantee commitments.
For off-balance-sheet items, loan commitments and equity participation commitments are exercised based on the status of the corresponding
businesses. Accordingly, total commitment amounts do not indicate the settlement amounts.
(Millions of yen)

Financial liabilities
Derivative financial instrument liabilities
Borrowings
Bonds payable
Financial guarantee contracts
Off-balance-sheet items
Loan commitments
Equity participation commitments

As of March 31, 2024
Later than
Later than
three years
five years
and not
and not
later thanlater than
five years
seven years

OndemandNot later
than oneyear

Later than
one yearand not
later than
three years

Later thanseven years
and not
later than Later thanten yearsten years———
1,680,577

440,420
786,963
1,153,260—

627,785
1,106,437
3,081,702—

359,749
6,645,199
1,794,058—

244,745838,662
734,611—

190,730
759,978
458,488—

136,169
227,593——

1,999,601
10,364,835
7,222,122
1,680,577

3,096,208
163,788

—
—

—
—

—
—

—
—

—
—

—
—

3,096,208
163,788

Total(Millions of yen)

Financial liabilities
Derivative financial instrument liabilities
Borrowings
Bonds payable
Financial guarantee contracts
Off-balance-sheet items
Loan commitments
Equity participation commitments

As of March 31, 2023
Later than
Later than
three years
five years
and not
and not
later thanlater than
five years
seven years

OndemandNot later
than oneyear

Later than
one yearand not
later than
three years———
1,636,457

425,896
1,115,538
1,204,847—

316,405
3,032,777
2,496,750—

245,555
3,995,509
1,632,128—

99,589420,465
748,983—

76,827625,590
614,655—

96,752
228,550——

1,261,027
9,418,432
6,697,364
1,636,457

2,347,605
79,619

—
—

—
—

—
—

—
—

—
—

—
—

2,347,605
79,61962

Later thanseven years
and not
later than Later thanten yearsten years

Total

44. Related-Party Disclosures
Shares held by the Government
The total number of outstanding shares of JBIC is required to be held, at all times, by the Japanese government (Article 3 of JBIC Act).
Accordingly, all the shares outstanding are wholly owned by the Japanese government (the Ministry of Finance). Transactions between JBIC and theJapanese government or entities controlled by the Japanese government were as follows:
Transactions with the Japanese government, which controls JBIC
Transactions and transaction amounts

Ministry of Finance(Minister of Finance)(Millions of yen)
BalanceOtherliabilities(interest
payable)Borrowings

Underwritingof capitalincrease*1

Receipt offunds*2

Year ended March 31, 2024

103,000

5,632,677

5,728,455

362,856

6,616,856

9,193,988

101,936

Year ended March 31, 2023

85,0003,433,096

2,999,052

186,843

6,171,755

8,513,677

68,641

Payment of Guarantee of
Repaymentinterest on
corporateof borrowings borrowings
bonds*3*1

The underwriting of capital increase represents the increase in capital through shareholder allocation by JBIC at an allocation amount of ¥1 pershare.

*2

The receipt of funds represents borrowings from the FILP special account and the Foreign Exchange Funds Special Account (FEFSA). FILP
interest rates are applied to the borrowings from the FILP, while the interest rates in accordance with the respective agreements related to the
FEFSA are applied to the borrowings from the FEFSA.

*3

No guarantee fees have been paid in respect of the guarantee of bonds.

Transactions with entities controlled by the Japanese government

Japan International Cooperation Agency (JICA)
Japan Finance Corporation (JFC)

Transactions

As ofMarch 31, 2024

(Millions of yen)
As ofMarch 31, 2023

Joint obligations
Joint obligations

20,000*1,*3
60,000*2,*3

20,000*1,*3
60,000*2,*3*1

JBIC assumed the obligations of the JBIC bonds in accordance with Article 12 (1) of the Supplementary Provisions of the JBIC Act, and JICA is
jointly responsible for the obligations of these bonds in accordance with Article 4 (1) of Supplementary Provisions of the JICA Act. According to
Article 4 (2) hereof, all of JICA’s assets are pledged as general collateral for these joint obligations.

*2

JBIC is jointly responsible for the obligations of the JFC bonds in accordance with Article 17 (1) (ii) of Supplementary Provisions of the JBIC
Act. In accordance with Article 17 (2) hereof, all of JBIC’s assets are pledged as general collateral for these joint obligations. Accordingly, thecreditors of the bonds are entitled to JBIC’s assets prior to other creditors. The statutory lien is secondary to the general statutory lien under the
Civil Code of Japan.

*3

No transactions are recognized in the consolidated income statement for these joint obligations.

Remuneration of the JBIC Group’s key management personnel

Short-term employee benefits
Post-employment benefits
Total

For the year ended
March 31, 2024

(Millions of yen)
For the year ended
March 31, 2023

163
13
176

157
7
164

The above represents the remuneration expenses of the members of board of directors of JBIC recognized in the consolidated income statement.
6345. Current and Noncurrent Distinction
Carrying amounts expected to be recovered or settled in no more than and more than 12 months after March 31, 2024 and 2023 were as follows:(Millions of yen)
As of March 31, 2024
No more thanMore than
12 months*1
12 months*2
Total

AssetsCash and due from banks
Derivative financial instrument assets
Financial assets at fair value through profit or loss
Securities
Loans and other receivables
Equity method investments
Property and equipment
Other assets
Liabilities
Derivative financial instrument liabilities
Borrowings
Bonds payable
Financial guarantee contracts
Other liabilities

2,565,369
553
55,679—2,352,308——
1,042,001—
103,454418,872
53,19913,596,792
120,408
32,796
13,3982,565,369
104,008
474,551
53,19915,949,101
120,408
32,796
1,055,399

71,158423,380
6,544
72,454
292,888

1,027,643
8,770,607
6,346,831—
6,576

1,098,801
9,193,988
6,353,375
72,454299,464(Millions of yen)
As of March 31, 2023
No more thanMore than
12 months*1
12 months*2
Total

AssetsCash and due from banks
Derivative financial instrument assets
Financial assets at fair value through profit or loss
Securities
Loans and other receivables
Equity method investments
Property and equipment
Other assets
Liabilities
Derivative financial instrument liabilities
Borrowings
Bonds payable
Financial guarantee contracts
Other liabilities*1

Includes demand deposits.

*2

Includes amounts with no fixed maturity dates.

46. Events after the Reporting Period
There were no reportable events after the reporting period.
64

2,193,775
7,668
49,621—2,072,933——
656,204—
129,488425,638
46,99813,071,444
129,892
30,73010,8882,193,775
137,156475,260
46,99815,144,377
129,892
30,730667,093

182,542
800,832
8,046
75,514239,489642,690
7,712,844
5,926,273—
7,399

825,233
8,513,677
5,934,320
75,514
246,889

Exhibit 8
Consent of Independent Auditor
We consent to the incorporation by reference in the Registration Statement (No. 333-250107) of Japan Bank for International Cooperation of our report
dated July 30, 2024, with respect to the consolidated financial statements of Japan Bank for International Cooperation prepared in accordance with
International Financial Reporting Standards included in its Annual Report on Form 18-K for the year ended March 31, 2024.
/s/ Ernst & Young ShinNihon LLC
Tokyo, Japan
August 5, 2024

Exhibit 9
Reconciliation of assets, liabilities, and equity of Japan Bank for International Cooperation (“JBIC”) and its subsidiaries (the “JBIC Group”) as ofMarch 31, 2024 and 2023, and reconciliation of net profit of the JBIC Group for the fiscal years ended March 31, 2024 and 2023, between accounting
principles generally accepted in Japan (“Japanese GAAP”) and International Financial Reporting Standards (“IFRS”) as issued by the International
Accounting Standards Board (the “Reconciliation”).**

The JBIC Group has applied Japanese GAAP for reporting purposes in Exhibit 2. The audited consolidated financial statements prepared inaccordance with IFRS are included in Exhibit 7 for reference purposes in order to improve comparability with international issuers.

Reconciliation of assets, liabilities, and equity as of March 31, 2024
(Millions of yen)Japanese GAAP

AssetsCash and due from banks

Securities
Loans and bills discounted
Property, plant and equipment
Intangible assets
Other assets
Customers’ liabilities for
acceptances and guarantees
Allowance for loan losses
Total assets

Reclassifications

Adjustments

2,565,369
104,008

Net defined benefit liability
Provision for directors’ retirement
benefits
Other liabilities
Provision for bonuses
Provision for directors’ bonuses
Acceptances and guarantees
Total liabilities
Net assets
Capital stock
Retained earnings
Valuation difference on
available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation
adjustment
Non-controlling interests
Total net assets
Total liabilities and net assets

AssetsCash and due from banks
Derivative financial instrument assets
Financial assets at fair value throughprofit or loss
Securities
Loans and other receivables
Equity method investments
Property and equipment

2,565,369——
104,008———
340,203
16,423,476—
32,796
11,462
1,297,682

468,416(306,400)(564,566)
83,197—(11,462)(243,704)

6,135
19,39590,191
37,211——
1,421

474,551
53,19915,949,101
120,408
32,796—
1,055,399 Other assets

1,522,529(536,412)
21,657,108—
536,41265,901(1,522,529)—(1,368,174)——
20,354,834 Total assets

Liabilities

Borrowed money
Bonds payable

1,098,801———(4,631)——(283,481)
72,454—52
1,313,353
660
10
1,522,529
18,672,083(52)(1,027,545)
(660)
(10)
—
65,901—
13,657——(1,522,529)(1,719,899)—
299,464 Other liabilities———
17,018,084 Total liabilities

2,211,800
1,108,607———(335,640)—(25,532)
377,257

Equity2,211,800 Capital stock
1,083,074 Retained earnings
41,616 Other reserves

41,226(382,907)(41,226)
382,907

—
—

6,040
258
2,985,025
21,657,108(6,040)——65,9012

1,098,801
9,193,988
6,353,375
72,454—

Liabilities
Derivative financial instrument
liabilities
Borrowings
Bonds payable
Financial guarantee contracts—
9,193,988
6,636,856
—
4,631

—
—
351,724(1,368,174)

Notes

IFRS

—
—
—
258 Non-controlling interests
3,336,749 Total equity
20,354,834 Total liabilities and equity

A
B, C
B, C
B, D
C, E

A, D, F
H
D

A
G
H
I

A, F, I

H

E, I
C
A
E

Reconciliation of assets, liabilities, and equity as of March 31, 2023
(Millions of yen)Japanese GAAP

AssetsCash and due from banks

Securities
Loans and bills discounted
Property, plant and equipment
Intangible assets
Other assets
Customers’ liabilities for acceptancesand guarantees
Allowance for loan losses
Total assets

Reclassifications

Adjustments

2,193,775——

2,193,775—

137,156—

137,156—
347,087
15,587,788—
30,7308,461
866,306

477,256(318,933)(491,899)
101,346—(8,461)(201,122)(1,996)
18,84548,48728,546——
1,908

475,260
46,99815,144,377
129,892
30,730—667,093 Other assets

B, C
B, C
B, D
C, E

1,534,258(410,526)
20,157,883—
410,526
105,869(1,534,258)—(1,438,466)——
18,825,285 Total assets

H
D

Liabilities

Borrowed money
Bonds payable
Net defined benefit liability
Provision for directors’ retirement
benefits
Other liabilities
Provision for bonuses
Provision for directors’ bonuses
Acceptances and guarantees
Total liabilities
Net assets
Capital stock
Retained earnings
Valuation difference on
available-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustment
Non-controlling interests
Total net assets
Total liabilities and net assets

Notes

IFRS

AssetsCash and due from banks
Derivative financial instrument
assetsFinancial assets at fair value
through profit or loss
Securities
Loans and other receivables
Equity method investments
Property and equipment—
8,513,677
6,191,755—
5,690

825,233———(5,690)——(257,435)
75,514—37
962,446614
101,534,258
17,208,488(37)(713,012)
(614)
(10)
—
105,869—(2,544)——(1,534,258)(1,718,722)—
246,889 Other liabilities———
15,595,635 Total liabilities

2,108,800
1,126,210——
411(286,311)—(36,733)
316,989

Equity2,108,800 Capital stock
1,089,888 Retained earnings
30,677 Other reserves

25,300(323,123)
11,923283
2,949,394
20,157,883(25,300)
323,123(11,923)——
105,869————
280,256(1,438,466)
3825,233
8,513,677
5,934,320
75,514—

Liabilities
Derivative financial instrument
liabilities
Borrowings
Bonds payable
Financial guarantee contracts———
283 Non-controlling interests
3,229,650 Total equity
18,825,285 Total liabilities and equity

A

A, D, FA
G
H
I

A, F, I

H

E, I
C
A
E

Reconciliation of net profit for the year ended March 31, 2024
(Millions of yen)Japanese GAAPInterest income
Interest expense

Reclassifications

Adjustments(5,308)(360,427)

13,142
1,888

Fees and commissions
Fees and commissions payments

29,625
4,319

(60)
—

(15,555)—

1,029,892
544,209
485,683
14,0094,319

Gain on investments in partnerships *1—
12,749360,248(12,749)

36,399—396,647——
53,6633,373
5—14,858(53,663)(3,373)(5)50,221

4,056———(10,266)

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

11,591
125,886—(11,591)(125,886)
115,691——(56,555)

Other ordinary expenses
General and administrative expenses
Other expenses *2
Extraordinary loss

1,991
25,925
8,829
899—(1,991)—(8,829)
(899)
3,143

—
734
—
—
(1,030)18,915———39,954
328,087
157,595——
59,13598,459—26,659——2,112
28,77295(2,721)—(2,626)72,313

Other expenses
Total operating expenses
Losses (profits) on equity method
investments
Profit before income tax

—
—

—
9,941

54
72,258

Income tax expense
Net profit

Other ordinary income
Other income *1
Extraordinary income

Losses on equity method investments *2

Income tax expense
Net income

54
62,316*1

These accounts are included in “Other income” under Japanese GAAP.

*2

These accounts are included in “Other expenses” under Japanese GAAP.
4

Notes

IFRS

1,022,058
902,748

Interest income
Interest expense
Net interest income
Fee and commission income
Fee and commission expense
Net expense from derivative
financial instruments
Net gain (loss) from financial assets
at fair value through profit or loss

B, D
A, G
B

A
B
B
B

Other income
Net non-interest expense
Total operating income
D
D
Impairment losses on financial assets D
Net operating income
Operating expenses

I
BE

Reconciliation of net profit for the year ended March 31, 2023
(Millions of yen)Japanese GAAP

Reclassifications

Adjustments

570,567
460,022(3,705)(127,876)

10,007
2,255

Fees and commissions
Fees and commissions payments

22,746
3,799

(135)
—

(9,762)—576,869
334,401
242,467
12,848
3,799

Loss on investments in partnerships *2

—
6,129

121,202(6,129)24,780—145,982——

367

11,793

12,160—44,744
454
13
—

558
(44,744)(454)(13)
35,894————(5,106)

19,352(19,352)

—

558
—
—
—
30,787
117,748
124,719—

Other ordinary income
Other income *1
Extraordinary income

Reversal of allowance for loan losses *1

Other ordinary expenses
General and administrative expenses
Other expenses *2—(19,352)

41,526

2,111
24,382
6,959—(2,111)—(6,959)
5,661

—
157
—
(1,345)

2,058(3,244)—

13
156,518———(84,028)

Profits of equity method investments *1

Income tax expense
Net income*1

These accounts are included in “Other income” under Japanese GAAP.

*2

These accounts are included in “Other expenses” under Japanese GAAP.
5

Notes

IFRS

Interest income
Interest expense

22,174
102,545—
24,540—4,315
28,855Interest income
Interest expense
Net interest income
Fee and commission income
Fee and commission expense
Net expense from derivative
financial instruments

BA
B

Net loss (gain) from financial assets
at fair value through profit or loss B
Net gain on derecognition offinancial assets measured atamortized cost
D
B
Other income
Net non-interest expense
Total operating income
D
Impairment losses on financial
assetsNet operating income
Operating expenses

Other expenses
Total operating expenses
Profits (losses) of equity method(1,186)
investments
72,503 Profit before income tax
13
72,490B, D
A, G

Income tax expense
Net profit

D

I
B

E

Notes to the reconciliation of assets, liabilities, and equity as of March 31, 2024 and 2023, and the reconciliation of net profit for the fiscal years
ended March 31, 2024 and 2023
A.

Derivative financial instrument assets and liabilities
i.

Hedge accounting

The JBIC Group uses derivative financial instruments in order to hedge interest rate risk and foreign exchange risk. The JBIC Grouphas been applying hedge accounting under Japanese GAAP, which mostly follows macro hedge accounting, for 99.9% or more of its
derivative transactions on a fair value basis, in order to eliminate accounting mismatches in its consolidated financial statements.
From the adoption of IFRS in 2012 to March 31, 2018, the JBIC Group had not applied hedge accounting under IAS 39 and did notpresent the effect of its risk management activities involving derivative financial instruments in its consolidated financial statements. Since
the adoption of IFRS 9, the JBIC Group has applied hedge accounting mainly to fair value hedges of interest rate risk for bonds payableissued on or after April 1, 2018.
Refer to Notes 3.G and 8 to the consolidated financial statements for details on hedge accounting under IFRS. In addition, refer toNote 26 to the consolidated financial statements for “Net Expense from Derivative Financial Instruments,” which does not reflect profit orloss deferred by hedge accounting under Japanese GAAP, and adjustments to the carrying amounts of hedged items under fair value hedge
accounting.
ii.

Offsetting derivative financial instrument assets and liabilities

Derivative financial instrument assets and liabilities that meet the offset requirements under Japanese GAAP are presented on a net
basis by counterparty and included in “Other assets” or “Other liabilities.” Derivative financial instrument assets and liabilities that do notmeet the offset requirements under IFRS are presented on a gross basis as “Derivative financial instrument assets” and “Derivative
financial instrument liabilities.”
B.

Financial assets at fair value through profit or loss

Under IFRS, if contractual cash flows of financial assets are not solely payments of principal and interest, the JBIC Group measures suchfinancial assets at fair value through profit or loss. If contractual cash flows of financial assets are solely payments of principal and interest, andfinancial assets are held within a business model whose objective is to hold the assets in order to collect contractual cash flows, financial assets aremeasured at amortized cost. Whereas, Japanese GAAP sets out the approach to measure financial assets according to their legal form and theentity’s intention to hold the financial assets.
Stocks, investments in partnerships, an investment trust and certain loans, excluding investments held by the JBIC Group and accounted
for using the equity method, are measured at fair value and presented as “Financial assets at fair value through profit or loss” under IFRS, whereas
they are measured at either cost or fair value according to their legal form and holding intention and presented as “Securities” or “Loans and bills
discounted” under Japanese GAAP. Under Japanese GAAP, if the net asset value of shares has declined significantly due to a deterioration in thefinancial position of an issuer, the carrying amount is written down and such valuation difference is recognized as impairment loss for the current
period.
Under IFRS, the JBIC Group presents gains and losses arising from such assets as “Net gain (loss) from financial assets at fair value
through profit or loss.” Under Japanese GAAP, the JBIC Group presents interest income and dividend income as “Interest income,” upfront andcommitment fees as “Fee and commissions,” and realized gains and losses arising from changes in fair value and sales of such assets as “Other
income” (when it is a gain) or “Other expenses” (when it is a loss).
C.

Securities

The JBIC Group presents investments in associates and joint ventures as “Securities” under Japanese GAAP and “Equity method
investments” under IFRS. For the differences in the measurement method between the accounting standards, see “E. Equity method investments.”
Stocks, investments in partnerships and an investment trust other than investments in associates and joint ventures are presented as“Securities” under Japanese GAAP and “Financial assets at fair value through profit or loss” under IFRS. For the differences in the measurement
method between the accounting standards, see “B. Financial assets at fair value through profit or loss.”
Debt securities included in “Securities” under Japanese GAAP are also presented as “Securities” under IFRS. For the measurement
method, debt securities are measured at fair value and valuation gains and losses are recognized as “Valuation difference on available-for-salesecurities” under Japanese GAAP, whereas these debt securities are measured at amortized cost under IFRS.
Under IFRS, impairment losses are recognized for securities measured at amortized cost under the expected credit loss model. Impairment
losses are estimated at the amount of the expected credit losses expected to occur within the next 12-months from the reporting date or on alifetime basis depending on whether a significant increase in credit risk has occurred since initial recognition of the financial assets. Such
impairment losses measured are deducted from securities using an allowance account, which represents such impairment losses and which isdeducted from securities, resulting in net presentation.
6

D.

Loans and other receivables“Loans and other receivables” under IFRS include accrued interest income on loans in “Other assets” under Japanese GAAP, and alsofinancial assets associated with financial guarantee contracts described in “H. Financial guarantee contracts,” but do not include loans and otherreceivables measured at fair value through profit or loss.
Under IFRS, the JBIC Group measures loans and other receivables initially at fair value plus transaction costs directly attributable to loan
origination, and subsequently at amortized cost using the effective interest method. The JBIC Group amortizes loan origination fees, which areconsidered integral to the origination using the effective interest method. If contractual terms are amended after initial recognition of loans andother receivables, loans and other receivables are derecognized when, and only when, contractual rights to the cash flows from such loans andother receivables expire, or applicable requirements under the related accounting standard are met, and the difference between the carrying amountallocated to the part derecognized and a financial asset newly recognized is recognized in profit or loss.
Under Japanese GAAP, the JBIC Group recognizes a general allowance as well as a specific allowance for loan losses.
In accordance with the expected credit loss model under IFRS, the JBIC Group recognizes impairment losses, and the carrying amount ofloans and other receivables is reduced by the amount of impairment losses measured through the allowance for loan losses. See “C. Securities” forthe method for recognizing expected credit losses. If certain conditions are met, amendments to contractual terms after initial recognition of loans
and other receivables may be determined as not meeting the criteria for derecognizing financial assets.
E.

Equity method investments

The JBIC Group’s investments in associates and joint ventures are comprised mainly of investments in partnerships. Under Japanese
GAAP, the JBIC Group applies the equity method to certain investments in partnerships. Under IFRS, the JBIC Group adopts the equity method
for all of its investments in partnerships that are determined as investments in associates and joint ventures, except for investments held through a
subsidiary of JBIC for which the exemption in IAS 28 to measure such entities at fair value is applied. Gains or losses on investments inpartnerships to which the equity method is not applied under Japanese GAAP but applied under IFRS are recognized as “Profits (losses) of equity
method investments” under IFRS.
The JBIC Group presents exchange differences on translation of foreign operations from applying the equity method as “Other reserves”
under IFRS, whereas they are presented as “Foreign currency translation adjustment” under Japanese GAAP.
F.

LeasesLease transactions entered into by the JBIC Group as a lessee primarily consist of rental offices. Under Japanese GAAP, lease transactions
are classified as either finance leases or operating leases based on the risk and economic value approach. The significant lease transactions enteredinto by the JBIC Group are classified as operating leases and are expensed when lease payments occur. Under IFRS, on the other hand,right-of-use assets and lease liabilities are presented in “Other assets” and “Other liabilities,” respectively, in the consolidated statement offinancial position at the commencement date of the lease. Those assets and liabilities are subsequently measured at cost less any accumulated
depreciation and any accumulated impairment losses, and amortized cost using the effective interest method, respectively.
The JBIC Group does not enter into lease transactions as a lessor.
G.

Bonds payable
Under Japanese GAAP, the JBIC Group expenses bond issuance costs as incurred.

Under IFRS, the JBIC Group measures bonds payable initially at fair value less transaction costs directly attributable to bond issuance,such as fees paid to underwriters and discounts at issuance, and subsequently at amortized cost using the effective interest method. For bonds
payable to which hedge accounting is applied in accordance with IFRS 9, their carrying amount is adjusted to reflect changes in fair value arisingfrom the underlying hedged risks.
H.

Financial guarantee contracts

Under Japanese GAAP, the JBIC Group records the same contractual amounts of financial guarantee obligations in both “Customers’
liabilities for acceptances and guarantees” as assets and in “Acceptances and guarantees” as liabilities.
Under IFRS, the JBIC Group initially measures financial liabilities associated with financial guarantee contracts at fair value as well as
financial assets associated with financial guarantee contracts. They are subsequently measured at the higher of (a) the amount of the loss
allowance determined in accordance with IFRS 9 and (b) the amount initially recognized less, when appropriate, the cumulative amount of income
recognized in accordance with the principles of IFRS 15 Revenue from Contracts with Customers.
7

I.

Liability for retirement benefits
Under Japanese GAAP, the JBIC Group expenses actuarial gains or losses on defined benefit plans in profit or loss as incurred.

Under IFRS, the JBIC Group recognizes the remeasurement of defined benefit plans directly in “Other reserves” as incurred andreclassifies them immediately to retained earnings. The JBIC Group remeasures retirement benefit obligations based on IFRS, and charges fordifferences caused by the period allocation method of retirement benefit obligations, etc. as “Operating expenses.” The JBIC Group includes aliability for retirement benefits in “Other liabilities.”
J.

Difference between the reporting date of consolidated financial statements and of subsidiaries

Under Japanese GAAP, if the difference between the reporting date of consolidated financial statements and of the subsidiary does notexceed three months, only material inter-company transactions made during that period need to be reflected in the financial statements of thesubsidiary. Accordingly, the JBIC Group adjusts only material inter-company transactions in the consolidated financial statements under Japanese
GAAP.
On the other hand, IFRS requires that financial statements of consolidated subsidiaries be prepared on the reporting date of the parent
company, except when it is impracticable. For this reason, the JBIC Group prepares the financial statements of the subsidiaries whose reporting
dates are different from JBIC to conform to the reporting date of JBIC.
8