2022
Annual Report

2022
Annual Report1.
Profile of JBIC
1. Profile ······················································································2
2. History of JBIC··········································································4
3. Top Message·············································································6
4.	Directors, Managing Executive Officers andCorporate Auditors··································································125. Medium-term Business Plan (FY2021- FY2023)·····················14
6. NEW Sustainability······························································19
		Policies toward the Realization of Sustainability········19
		Environment································································21
		Social··········································································26
		Governance································································30
NEW JBIC’s Initiatives Related to Climate Change		(Information Disclosures Based on the TCFD
Recommendations)·····················································32

7. Outline of Operations in FY2021·············································37

2.
The Environment Surrounding JBIC
and Its Challenges
Numerical figures in this report
1. Numerical figures, other than percentages,
in this report are truncated to the nearest
whole number. (Figures prior to FY2008 wererounded off.) Percentage figures are rounded
off. Thus numerical and percentage figures
may not add up to the totals given. Amounts
denominated in foreign currencies are treatedas follows. Commitments are converted into
yen at the Basic Rate of Exchange (revised
semi-annually by the Minister of Finance,
based on the prevailing market rates during
the preceding six months) at the time financing
contracts are concluded. Disbursements,
repayments, and outstanding balances arecalculated based on book value.
2. Numerical figures less than the specified
units are denoted by “0”; “—” denotes thatdata is not available.
3. Due to the launch of the newly establishedSpecial Operations, JBIC started toperform separate accounting proceduresfor the Ordinary Operations and the Special
Operations on October 1, 2016. Data for
JBIC operations during the period until the
day before October 1, 2016 was recordedin the Ordinary Operations Account. In thisannual report, financial data after October
1, 2016 is presented separately in the
Ordinary Operations Account and theSpecial Operations Account. For financial
reporting in FY2016, data from the Ordinary
Operations Account covers the period from
April 1, 2016 to March 31, 2017, while thatfrom the Special Operations Account covers
the period from October 1, 2016 to March
31, 2017. In the supplementary document“Appendix 1: Statistics,” which can be foundlater in this annual report, JBIC’s businessdata is presented without separating theOrdinary Operations Account and theSpecial Operations Account.

1. Energy and Natural Resources Finance Group·······················46
2. Infrastructure and Environment Finance Group······················52
3. Industry Finance Group···························································58
4. Equity Finance Group······························································64

3.
Financial Instruments
1. Financial Instruments······························································70
2. Prominent Initiatives in Recent Years······································79
3.	Framework for Supporting Globalization
Efforts of Mid-tier Enterprises and SMEs ·······························81

4.
Operational and Administrative Policies
1. Corporate Governance····························································90
2. Risk Management···································································94
3. Public Information and Disclosure··········································98

1.
Profile of JBIC
1. Profile ······················································································2
2. History of JBIC··········································································4
3. Top Message·············································································6
4.	Directors, Managing Executive Officers andCorporate Auditors··································································125. Medium-term Business Plan (FY2021- FY2023)·····················14
6. NEW Sustainability······························································19
		Policies toward the Realization of Sustainability········19
		Environment································································21
		Social··········································································26
		Governance································································30
JBIC’s Initiatives Related to Climate Change		(Information Disclosures Based on the TCFD
Recommendations)·····················································32
NEW

7. Outline of Operations in FY2021·············································37

JBIC / Annual Report 2022

1

1. Profile
The Purpose of JBIC
Japan Bank for International Cooperation (JBIC) is a policy-based financial institution wholly owned by the Japanese
government, which has the objective of contributing to the sound development of Japan and the international economy
and society, by conducting financial operations in the following four fields:

1

Promoting the overseas
development andsecurement of resources which
are important for Japan

Maintaining and improving
the international competitivenessof Japanese industries

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

Preventing disruptions tointernational financial order or taking
appropriate measures with respect todamages caused by such disruptions

Corporate Slogan

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

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

Hands-on
PolicyCustomer1st
Approach
Offering customers one-of-a-kindsolutions by adopting their perspectives and integrating their views into
policy development

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JBIC / Annual Report 2022

Pioneering new value by participating
at the forefront of overseas project
development, and by engaging proactively in projects from the earlystagesForwardlooking
ActionContributing to the sustainable development of Japan and the world as awhole by deploying highly professional skills, with a view to realizing asecure and affluent future society

1. Profile of JBIC

Operational Principles
JBIC, as a policy-based financial institution and in accordance with the following principles, conducts speedy and wellfocused operations based on policy needs in response to economic and financial situations in Japan and abroad.
1

2

3

4

Supplementing the financial transactions implemented by private-sector financial institutions
To effectively perform the functions required for policy-based financing, JBIC shall take account of situations where
private-sector financial institutions are placed in their international finance activities and supplement their operations.
Ensuring financial soundness and certainty of repayment
Pursuant to the JBIC Act, JBIC shall make efforts to maintain the financial soundness of its operations, and when
making financial decisions, to conduct adequate screening regarding the outlook for the recovery of funds.
Maintaining and improving international creditworthiness and confidence
In order to conduct adequate operations and effective overseas funding operations, JBIC shall maintain and improve theinternational creditworthiness and confidence gained by JBIC over the years.
Conducting business operations by drawing on its expertise and initiatives
JBIC shall conduct operations by drawing on its own expertise and initiatives on international finance.

JBIC Code of Conduct

1
Profilel Act consistently in the public interest. Contribute to Japan and the international community by pursuing our Mission.
l Prioritize client satisfaction. Deliberate, decide, and act from the client’s perspective.
l Accept responsibility as a professional. Perform every task based on your own initiative.
l Undertake challenges daringly. Create new value without fear of failure.
l Work quickly and cost-effectively. Enhance your work quality with an eye to efficiency.
l Focus on teamwork. Share unified objectives with your colleagues to achieve significant successes.
l Maintain high ethical standards and a law-abiding spirit. Observe our moral code as a JBIC member at all times.

History
JBIC was established on April 1, 2012 in accordance with the Japan Bank for International Cooperation Act (JBIC Act),
which was promulgated and came into effect on May 2, 2011.
October 1999

December 1950

Export-Import
Bank of Japan(JEXIM)

October 2008

Japan Bank forInternational Cooperation(former JBIC)

Japan Finance Corporation(JFC)

International
Financial Operations

JBIC(International Wing)

March 1961

Overseas Economic
Cooperation Fund
(OECF)

April 2012

(Domestic Finance Units)

Overseas Economic
Cooperation Operations

Micro Business andIndividual Unit
Agriculture, Forestry, Fisheries
and Food Business Unit
Small and Medium Enterprise(SME) Unit

Japan Bank forInternational
Cooperation (JBIC)

Operations to Facilitate Crisis
Responses and Specific
Businesses Promotion, etc.
Japan International
Cooperation Agency (JICA)

ProfileName
OfficeCapital*Outstanding Loans and Equity Participations*
Outstanding Guarantees*

Japan Bank for International Cooperation (JBIC)
4-1, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, Japan¥2,023.8 billion (wholly owned by the Japanese government)¥15,146.4 billion* As of June 22, 2022
¥1,724.8 billion

JBIC / Annual Report 2022

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2. History of JBIC
The Japan Bank for International Cooperation (JBIC) was established in 1950 as the Export Bank of Japanto promote exports of various types of heavy machineries.
Since then, JBIC has fulfilled this responsibility by enhancing and transforming its functions in responseto the demands in each era, affected by the international political and economic environment surrounding
Japan, and changes in the overseas business strategies of Japanese companies.
With the objective of supplementing the financial transactions implemented by private financial
institutions, JBIC will continue to contribute to the sound development of the Japanese and international
economic and society.

● 1971 Set up a special account forthe d ebt relief to Indonesia● 1972 Started a foreign currency
lending system andapproved the first loan
based on this system(Electronic component
manufacturing business in
Malaysia)
Added Untied Loans● 1950 Establishment of the Export
Bank of Japan● 1951 Started operations inside thehead office building of theIndustrial Bank of Japan,
LimitedMade its first loan
commitment(for export of hydroelectric
generators to Argentina)

2
History of JBIC

● 1952 Changed its name to The
Export-Import Bank ofJapan (JEXIM)
Added Import Loans andGuarantees● 1982 Launched an emergency● 1977 Reorganized the Osakaimport foreign currency loan
office into the Osaka Branchsystem (secondary)Launched an emergency
import foreign currency loan ● 1983 Issued first foreign bonds
system (primary)● 1979 Relocated to Takebashi
Godo Building
USIMINAS project in Brazil● 1953 Added Overseas Investment
Loans and Overseas Project
Loans● 1954 Opened its first overseas
representative office(Karachi)1950● 1980 Outstanding amounts
exceeded 5 trillion yen

1980
1970

1960

● 1987 Signed an untied loanagreement with Indonesia
(first loan based on the
Japanese government’s
financial recycling scheme(-1992))● 1960 Outstanding amounts
exceeded 100 billion yen● 1963 Relocated to the JEXIM and
JDB (Japan Development
Bank) Godo Building
Opened the Osaka office● 1986 Signed a loan agreement forWestern Australian LNG
project (first project financing)● 1989 Added Equity P articipations
Amazon aluminum project in Brazil● 1966 Signed a loan agreement(first loan to international
institution) with the InterAmerican Development
Bank (IDB)
The head office building of the Industrial● 1968 Outstanding amounts
Bank of Japan, Limited

exceeded 1
 trillion yen● 1964 Tokyo Olympics and● 1952 Japan joined theParalympics
International Monetary Fund(IMF) and World BankJapan joined theOrganisation for● 1956 Japan joined the United
Economic Co-operation
Nations (UN)and Development(OECD)● 1967 The Association ofSoutheast Asian
Nations (ASEAN) wasestablished

Trends in the international economy and society

4

JBIC / Annual Report 2022

● 1971 The Nixon shock● 1973 The first oil crisis● 1979 The second oil crisis● 1982 The Latin American debt
crisis● 1985 The Plaza Accord● 1987 Black Monday● 1989 The fall of the Berlin Wall

1. Profile of JBIC

● 2010 Launched the Global action for ReconcilingEconomic growth and ENvironmental
preservation (GREEN)
Established the Guidelines for
Measurement, R eporting and Verification ofgreenhouse gas E
 mission Reductions in
JBIC’s GREEN (J-MRV Guidelines)

Panama Canal Expansion Project● 1992 Added Bridge Loans● 1993 Signed untied loan agreement with Bulgaria (firstloan based on theJapanese government’s
“Fund for Development
initiative” (-1997 ))● 2011 Reconstitutes organization structure(mission/sector-oriented business groupstructure)● 2001 The Reorganization andRationalization Plan forSpecial Public Institutions
decided by t he Cabinet● 2003 Established the JBIC
Guidelines for Confirmationof Environmental and Social
Considerations (Revised in2009 and in 2015)1990● 1991 The collapse of Japan’sbubble economy
The dissolution of theSoviet Union● 1992 Adoption of the United
Nations Framework
Convention on Climate
Change (UNFCCC)● 1993 Establishment of theEuropean Union (EU)● 1994 The Mexican peso crisis
(Tequila Effect)● 1997 The Asian Currency Crisis● 1999 Launch of the Euro currency● 2020 Launched the Growth
Investment Facility● 2021 Launched the Post● 2015 Formulated the Second
COVID-19 Growth Facility
Medium-term Business Plan
Formulated the Fourth
Medium-term Business● 2016 Established the Equity
Plan
Finance Group2

Added the Special Operations● 2022 Establishment of
Sustainability Management
Department
Launched the Global
Investment Enhancement
Facility● 2018 Formulated the Third Medium-

History of JBIC

● 2008 Establishment of Japan
Finance Corporation
merging JBIC and threedomestic policy-based● 1998 Implemented the assistancefinancial institutions
measures for Asia based on
Implemented emergency
the Japanese government’s
measures in response to
“New Miyazawa Initiative”
global financial turmoil
Outstanding amounts(-March 2011)
exceeded 10 trillion yen

Sakhalin- oil and gas field development
project

2020
2010

2000

● 1999 Established theEnvironmental guidelines
Established the Japan
Bank for International
Cooperation by merging theExport-Import B ank ofJapan and the Overseas
Economic Cooperation Fund

● 2012 Japan Bank for International
Cooperation (JBIC) w
 as spun off from theJapan Finance Corporation a nd made a
new start as the new JBIC.
Formulated the First Medium-term
Business Plan

● 2017 Established JBIC IG Partners
in collaboration with Industrial
Growth Platform, Inc.

term Business Plan
Launched the Global Facility toPromote Quality Infrastructure
Investment for Environmental
Preservation and Sustainable
Growth (QI-ESG)

Intercity Express Programme in theUK

Esperanza copper mine development
project in Chile

Moray East offshore wind power
generation project in the UK● 2001 The September 11
terrorist attacks● 2010 The European debt crisis
The Arab Spring● 2005 The Kyoto Protocol
entered into force● 2011 The Great East Japan
Earthquake● 2008 The Bankruptcy ofLehman Brothers● 2015 Adoption of “Paris
Agreement” at the COP21
(The 21st Conference of theParties)● 2020 Brexit
COVID-19 pandemic● 2021 Tokyo Olympics andParalympics● 2016 The Paris Agreement
entered into force

JBIC / Annual Report 2022

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3. Top Message
Support Environmental and Leading-Edge Technologies to Create
New Markets
On behalf of the Japan Bank for International Cooperation (JBIC), I would like to express my sincerest appreciation
for your support and understanding.
Global socioeconomic activities are now normalized after having been constrained by the COVID-19 pandemic.
Nonetheless, Russia’s invasion of Ukraine, which has upended the international order that seeks peace, coupledwith soaring commodity prices, have dealt a harsh blow to the global economy. Due in part to these factors, financial
markets are changing dramatically as authorities in various countries turn to monetary tightening.
On top of this, we are entering a new era in which any one country cannot attain prosperity alone unless it
endeavors to work toward achieving the sustainable development goals (SDGs) that include eradicating poverty andhunger, correcting inequality and disparities, and realizing a carbon-neutral society.
Japan will be unable to gain a respectable standing within the international community without directly and firmly
confronting an array of tough challenges such as its shrinking population, declining birthrate, and aging population
as well as hard-pressed supply of and demand for energy, disruptions of supply chains, and decarbonization.
Under the Fourth Medium-term Business Plan (FY2021-FY2023) formulated in June 2021, JBIC has set priority
targets that include realizing the SDGs, decarbonization, energy transformation, and digital transformation as it aims
to fulfill its mandates steadily and flexibly. During the first fiscal year of the business plan, JBIC supported theoverseas business deployment of Japanese companies affected by the pandemic as one of its COVID-19
countermeasures. At the same time, as we move into the post-COVID era JBIC provided wide-ranging support fortransforming the economic structure and realizing a virtuous cycle. This included supporting high-quality infrastructure
projects overseas for realizing a decarbonized society, supporting overseas M&A, and strengthening of the resilienceof supply chains.
In June 2022, the Cabinet Order was amended, allowing JBIC to expand the scope of eligible support for exportloans and overseas investment loans for projects in developed
countries in the fields of decarbonization, supply chain resilience,and innovation. JBIC also began providing support through the
Global Investment Enhancement Facility in July 2022 to support
the creation of new markets and overseas business deployment
utilizing environmental technologies, digital technologies, andother cutting-edge technologies.
In terms of sustainability, JBIC formulated the JBIC ESG
Policy in October 2021 that articulates its action policies forrealizing sustainability. Subsequently, in June 2022, JBIC newly
established the Sustainability Management Department toconsolidate sustainability-related knowledge and functions.
In conjunction, in July 2022, JBIC established the Energy
Transformation Strategy Office to promote businesses related tohydrogen, ammonia, and other forms of innovative energy as weestablished an organizational structure to further strengthen our
initiatives for the realization of a decarbonized society.
It is precisely in times like today characterized by increased
uncertainties and unclear prospects that JBIC, as a policy-based
financial institution, must live up to the expectations of Japanesecompanies and the people of Japan.
I look forward to your continued support and cooperation.

3
Top Message

HAYASHI Nobumitsu
Governor
Japan Bank for International Cooperation

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JBIC / Annual Report 2022

1. Profile of JBIC

Provide Financial and Knowledge-related Support to Compete Globally
Since 2020, liberal globalism has been significantly challenged by global socioeconomic
stagnation caused by the COVID-19 pandemic, the rise of autocracy as typified by Russian
invasion of Ukraine, or recurring food crises and debt problems in emerging countries. There
has also been a shift away from market-centered economies toward state and governmental
intervention, as the U.S. government has enacted the CHIPS and Science Act (note), which
allocates the equivalent of ¥5 trillion in subsidies for research and development in the domestic
semiconductor manufacturing business.
The survival of Japanese companies amid increasingly fierce government-led competition
requires that companies reassess traditional globalization policy, strengthen the resilience of
their supply chains, and lead the way in innovation by refining their own unique technologies. In
particular, the key will be to transform business models through digital technologies and contributetoward global-scale issues such as the SDGs and decarbonization.
JBIC’s mission is to support these efforts by Japanese companies. In recent years, the way ofoverseas expansion by Japanese companies has been evolving. To improve their competitivenessin international markets, a growing number of Japanese companies are now developing theiroverseas businesses while collaborating with other Japanese companies as well as withcompanies from other countries. Focusing on the environment surrounding Japanese companies,
JBIC identifies business-related barriers to overseas expansion, collects and analyzes informationsuch as on local legal systems, negotiates and coordinates with partner country governments
and institutions, and will provide financial support. This is a challenging task and a function that
only JBIC can serve.
In keeping with these roles and functions of JBIC, the Fourth Medium-term Business Plan
sets the priority goals of supporting Japanese companies’ supply chain resilience, cutting-edge
technology innovation, and green finance for decarbonization, which is a global issue, and social
impact finance for addressing social agenda.

3
Top Message

Note: A bill passed by the U.S. Congress in July 2022 to support advanced research, development, and production of semiconductors
in the U.S.

Support Mid-tier Enterprises and Small- and Medium-sized Enterprises in
Post-Pandemic TimesIn FY2021, the first year of the 4th Medium-term Business Plan, loans, equity participations, andguarantees surpassed ¥2 trillion for the second consecutive year as JBIC contributed towardsupporting the overseas business of Japanese companies, which have faced hardships during
the COVID-19 pandemic. JBIC also made numerous achievements that include supporting
decarbonization and digital transformation in anticipation of the post-pandemic world economy.
JBIC will strive to further enhance such initiatives going forward.
As responses to the COVID-19 pandemic, JBIC has focused on supporting large companies
as well as mid-tier enterprises and small and medium-sized enterprises (SMEs). A prime example
is JBIC’s support for SUGAWARA Industry Co., Ltd., a company that engages in public works
in Kesennuma City, Miyagi Prefecture. In the aftermath of the Great East Japan Earthquake in2011, SUGAWARA Industry accepted technical intern trainees from Indonesia to participate inreconstruction of the devasted regions. This connection ultimately led to SUGAWARA Industry’splan to start up a plant that uses recycled asphalt to pave and repair roads in Indonesia. JBIC
provided support for this plant in cooperation with local regional financial institutions. JBIC also
provided similar support for business development in India by a Saga Prefecture-based company

JBIC / Annual Report 2022

7

JBIC will actively support mid-tier enterprises
and SMEs and startup companies that
contribute toward local employment,
the reduction of environmental impacts,
and, ultimately, economic development.

3
Top Message

that produces precast concrete products.
JBIC has fostered relationships of trust with the governments and government institutions ofsuch countries as Indonesia over long years and is utilizing these ties to provide assistance froma variety of angles. JBIC provides finely tuned support such as offering advice on local regulations
and tax systems to Japanese companies and providing loans in local currencies. In the future as
well, JBIC aims to strengthen support for mid-tier enterprises and SMEs that contribute toward
local economies, reduce environmental impacts, and revitalize local economies.

Support Startup Companies that Open the Way to a New Era
For Japanese companies to contest with the rest of the world, there is an urgent need to spur
innovation and create new businesses that transcend the framework of existing businesses. Thismeans that supporting startup companies that lead the way in a new era is essential. However,Japan currently lags behind the U.S., China, and European countries in cultivating startups.
In 2017, JBIC and Industrial Growth Platform, Inc. (IGPI) established JBIC IG Partners, aninvestment advisory company. JBIC IG Partners has established a venture capital fund jointlywith fund managers in the Nordic and Baltic regions and has invested in a total of 18 startup
companies by the end of March 2022 while promoting collaboration with Japanese companies.
In 2020, JBIC also invested in the Irish subsidiary of Exergy Power Systems, Inc., a startup
established at the University of Tokyo that operates a business providing ancillary services to adjustelectric power supply using next-generation energy storage systems on the island of Ireland. In
2021, JBIC also provided financing to Spiber Inc., a startup company from Keio University. Spiber
uses plant-derived sugars to ferment and synthesize structural proteins for use in textiles andfur products. This is an epoch-making technology that does not release microplastics, which
are considered to be one of the causes for marine pollution, and also leads to the protection of

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1. Profile of JBIC

wildlife. JBIC provided a loan for Spiber’s plan to start full-scale production in the U.S.
JBIC will continue to actively support startup companies that have potential for the next era.

Bring into Operation “JBIC ESG Policy” for Decarbonization and
Resolving Social Issues
In October 2021, JBIC announced its ESG Policy that compiles action policies towards therealization of sustainability and policies for addressing climate change.
In working toward the realization of a decarbonized society, JBIC is promoting green financeand is supporting renewable energy projects such as geothermal power generation and wind
power generation projects in Asia and Africa as well as wind power generation projects in Europe
in which Japanese companies have participated. JBIC also supported a power transmission
network project for an offshore wind power plant in the UK in recognition of the importanceof strengthening the power transmission and distribution networks to utilize renewable energy,
which is easily affected by weather conditions.
Large-capacity batteries that store electricity are crucial for solar and wind power generation.
By supporting Japanese companies participating in renewable energy projects in Europe, whichis leading in this field, such as the previously mentioned power supply adjustment service using
high-performance storage batteries in Ireland, we will also contribute toward improving thetechnological capabilities of Japanese companies.
Hydrogen and ammonia are gaining the spotlight as next-generation energy in thediversification of the power supply mix. Utilizing hydrogen as a source of energy requires thebuilding of a hydrogen value chain, from production to storage, transportation, and utilization.
As part of efforts to build such a chain, JBIC has invested in a hydrogen station business in the
U.S. and also provided a loan for Iwatani Corporation’s hydrogen station business in the U.S. At
the same time, Australia and Middle East oil-producing countries also have keen interest in thehydrogen business and we will support Japanese companies involved in creating hydrogen value
chains in these regions.
Another key area is transition finance. For energy security, the stable lives of the citizenry,
and the continuous development of industry, conventional power generation is also necessary asa transitive measure. For this reason, there are instances when transition measures that replace
outdated facilities with high-efficiency ones is effective in reducing CO2 emissions.
Japan’s Prime Minister KISHIDA Fumio is advocating for the Asia Zero Emission Community(AZEC) and the Ministry of Economy, Trade and Industry is promoting technical cooperation withthe governments of various countries. Alongside initiatives in advanced countries, efforts bydeveloping nations to reduce their CO2 emissions and environmental impacts are also important.
As an example of such efforts, JBIC, together with French and German public institutions, invested
in a fund managed by BlackRock, one of the largest asset management companies in the U.S.,
that targets renewable energy power generation projects in developing countries. This marks
the first time a firm like BlackRock that pursues maximum investment returns has invested in a
renewable energy project in a developing country. This investment symbolizes a world in which
mobilizing and promoting private funds for the SDGs and social issues is essential. As the largest
investor, JBIC will support projects that help resolve global issues while supporting the economic
advance of developing countries.
For resolving social issues, JBIC supports Saraya Co., Ltd., which engages in manufacturing
and sales of hygiene products in Egypt, as well as NIPRO CORPORATION, which manufactures
medical equipment in Vietnam. JBIC seeks to further expand this kind of social impact finance.
To accelerate the promotion of sustainability in this manner, JBIC newly established theSustainability Management Department in June 2022 to effectively manage sustainability-related

Top Message

JBIC / Annual Report 2022

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9

knowledge and functions. In July, JBIC established the Energy Transformation Strategy Office forengaging in innovative energy such as hydrogen and ammonia in a holistic manner.
JBIC supports decarbonization and the SDGs initiatives of Japanese companies. At thesame time, I believe that actively disseminating JBIC’s own initiatives will also help facilitatea global understanding of ideas that are unique to Japan and excellent technologies of Japanesecompanies.

Expand Operations in Developed Countries under
the Global Investment Enhancement Facility
During the COVID-19 pandemic, JBIC has supported Japanese companies through the Growth
Investment Facility (COVID-19 Emergency Window) and the Post-COVID-19 Growth Facility.
The Global Investment Enhancement Facility, established in July 2022, aims to further advanceinitiatives undertaken to date as a crisis response and post-pandemic response in two key areas.
The first area is sustainability. This facility supports efforts to address global issues, including
decarbonization. The second area is support for strengthening of the resilience of supply chains.
As an example, given the critical importance of semiconductors as an industrial component, JBIC
provided the funds for the M&A of Dialog Semiconductor Plc, a British subsidiary of Renesas
Electronics Corporation. This fiscal year, we are providing loans to a U.S. subsidiary of JX Nippon
Mining & Metals Corporation that manufactures sputtering targets, which are a crucial component
in semiconductor manufacturing.
In addition, in June 2022, the Cabinet Order was amended to expand the scope of eligible
business sectors that JBIC can finance in developed countries. In a Survey Report on Overseas
Business Operations by Japanese Manufacturing Companies compiled by JBIC, the U.S. ranks
third after China and India in the ranking of promising countries/regions over the medium term andis attracting the attention of Japanese companies. The number of projects in advanced European
countries, which are at the vanguard of renewable energy, is also increasing. Given this, expanding
eligible business sectors in developed countries across industries enables JBIC to support a
broad range of initiatives by Japanese companies related to innovation, decarbonization, andsupply chain resilience. JBIC seeks to support a wider range of projects that have strategic andpolicy significance in developed countries.

3
Top Message

Aim for “Value Model” Work Style
JBIC has also set work style reforms as an important goal. I believe that we have steadily enhanced
our IT infrastructure, software as well as hardware, and this has facilitated teleworking even during
the COVID-19 pandemic. JBIC has also proactively set up systems so that it respects each andevery employee’s pursuit of values in their work and private lives.
Our theme for the future is to reform employees’ awareness. I will aim for what I call a “valuemodel” whereby we strive to realize an organization that focuses on how much each employee
can work in a pleasant, comfortable, and positive way and that enables them to get a true feel of
how their work brings value to the world. We will consider whether employees in all departments
and duties, not just those on the front lines who directly interact with clients, are contributing tosociety, and we will build a workplace where employees can perform their work even better. We
will also actively strive to create an environment that reduces unproductive tasks and improves
work efficiency.

10

JBIC / Annual Report 2022

1. Profile of JBIC

Be the Platformer for Overseas BusinessI would like to see JBIC play the role of a platformer for overseas business development.
For example, GAFA (Google, Amazon, Facebook, Apple) is building a business and life
platform using IT as an infrastructure. JBIC wishes to act as an intermediary between our clientsand overseas governments or partners, mainly in the field of finance, and consider and propose
ways that enable both sides to perform their duties more easily. We hope that by utilizing the
new Facility, we will be able to work together with clients to solve problems of which they may
be unaware.
Due in part to the recent weakening of the yen, Japan’s share of the world economy has
shrunk. Nevertheless, JBIC will continuously support companies possessing strengths unique toJapanese companies.
Australia was the first country I visited after taking over the role of JBIC’s Governor in June. For
Japan, Australia is an important source of imports of natural gas, coal, and iron ore. Australia isalso blessed with rare resources such as critical minerals and is attracting attention for producing
hydrogen energy from gas and coal. Furthermore, Australia is a key partner in supporting the
economic development of the Pacific nations under Japan-U.S.-Australia collaboration. In FY2021,
JBIC opened a Representative Office in Sydney. JBIC will strive to contribute toward the overseas
expansion of Japanese companies by building even better relationships with Australia and othercountries that seek investment from Japanese companies. In response to the diversifying needsof Japanese companies, we would like to meet your expectations by further enhancing theinvestment functions of JBIC as a government agency and its risk-assuming functions throughSpecial Operations.

3
Top Message

JBIC will expand transition finance andsocial impact finance and support
decarbonization and SDGs initiatives ofJapanese companies in countries
throughout the world.

JBIC / Annual Report 2022

11

4.

Directors, Managing Executive Officers andCorporate Auditors (As of September 1, 2022)

Directors

Executive Managing Director

Governor

Deputy Governor

HAYASHI Nobumitsu

AMAKAWA Kazuhiko

HASHIYAMA Shigeto

Senior Managing Director

Senior Managing Director

Senior Managing Director

OISHI Ichiro

TANAKA Kazuhiko

TANIMOTO Masayuki

4Directors, Managing Executive Officers and Corporate Auditors

Managing Executive Officers

12Managing Executive Officer

Global Head of Corporate Planning GroupKIKUCHI Yo

Managing Executive Officer

Global Head of Credit, Assessment andRisk Management Group

SASAKI Satoshi

Managing Executive Officer

Global Head of Treasury and
Systems Group

OGAWA Kazunori

Managing Executive Officer

Global Head of Energy andNatural Resources Finance GroupINABA Yutaka

Managing Executive Officer

Global Head of Infrastructure andEnvironment Finance Group

UCHIDA Makoto

Managing Executive Officer

Global Head of Industry Finance GroupASO KenichiManaging Executive Officer

Global Head of Equity Finance GroupMORITA Kentaro

JBIC / Annual Report 2022

1. Profile of JBIC

Non-Executive Directors

Managing Director, Chairmanof the Board of Directors

Managing Director(Outside Director)

Managing Director(Outside Director)

MAEDA Tadashi

KOIZUMI Shinichi

KAWAMURA Yoshinori

4

Corporate Auditors

Corporate Auditor(Outside Corporate Auditor)

Corporate Auditor(Outside Corporate Auditor)

NASU Noriko

TSUCHIYA Mitsuaki

MOTOMURA Aya

JBIC / Annual Report 2022

Directors, Managing Executive Officers and Corporate Auditors

Corporate Auditor(Full-Time Corporate Auditor)

135. Medium-term Business Plan (FY2021- FY2023)
COVID-19 is currently having a tremendous impact on
numerous countries and regions, and Japan is no
exception. At the same time, the need for structuralchanges in industry and society has become clearly
evident for proceeding with global rebuilding with an eye
toward the post-pandemic world. In the international
community, there is an urgent need for ambitious efforts torealize a smooth energy transition to respond to climatechange problems and to attain inclusive and sustainable
development and growth. Furthermore, in industry there
are ongoing moves to re-evaluate and optimize global
supply chains in view of consumer needs and risinggeopolitical risks in the age of the so-called new normal,
while efforts are also being made to pursue international
collaboration for adapting to the rapid advances ofdigitization and innovation.

To address these issues, JBIC formulated its Fourth
Medium-term Business Plan (FY2021- FY2023) in June
2021. This business plan sets out six Key Focus Areas
and 17 Action Plans under the focus areas and JBIC is
working to attain these goals. In FY2021, the first year of
the plan, JBIC steadily achieved results in both its businessand organization. On the business side, JBIC especiallystrived to steadily respond to the finance needs ofJapanese companies, which includes providing support
for supply chains, in view of the impact of the COVID-19
pandemic while also focusing on project formation. In its
organization as well, JBIC generally achieved the targets
set in the action plans (please refer to page 16 for the
results of the first fiscal year).

5
Medium-term Business Plan (FY2021- FY2023)¢ Direction of the Business in the Fourth Medium-term Business PlanIn FY2020, economic activities faced an unprecedented
degree of restrictions due to the COVID-19 pandemic.
Amidst expectations of strong recovery of the global
economy after such a year, the international community isconfronted by these common challenges: (1) exploring theway toward sustainable growth and development that
achieves balance between the economy, society, and theenvironment; (2) acceleration of energy transition toward

Challenges faced by the global
economy and society
Sharing of sustainable
development goals
Addressing climate change
and energy transition
Investment demand insustainable infrastructure
Slow-down of global economy brought
about by the COVID-19 pandemic
Rapid digitization of industry
and society
Increasingly complex, geopolitical risks

14

JBIC / Annual Report 2022

the realization of a decarbonized society; (3) responding toindustrial and social transformation due to advancement indigitization. Taking these challenges into consideration,
JBIC has set out the following objectives, from theperspective of policy-based finance. These objectives
have been incorporated as action plans into the Fourth
Medium-term Business Plan. JBIC is fully committed tothe achievement of the plan.

JBIC’s Objectives
n With a view to achieving the SDGs and realizing a decarbonizedsociety, address global issues such as the formation of ecosystems
that deploy decarbonized innovation created by Japanese companies, and effective energy transformation in the host country andresolution of social issuesn Offer proactive support for the overseas businesses of Japanesecompanies that are developing new global alliances with a view torealizing digital transformation and are reviewing and optimizing
global supply chainsn While keeping in mind the needs of the host country and awarenessof international cooperation, promote strategic initiatives to promote
investment in quality infrastructure that gives consideration to
openness, transparency, economic viability, and debt sustainabilityn Exert the risk-assuming function, as well as policy-based financefunctions that a ddress the damage caused by the prolonged
COVID-19 pandemic, create post-COVID new business opportunities
overseas, and facilitate mobilization of private capital1. Profile of JBIC

¢ Key Focus Areas
JBIC’s corporate philosophy is, “Positioned at thecrossroads of global business opportunities, JBIC is
opening new venues to the future for the Japanese andglobal economy.” Under this philosophy, it has establishedthe medium- to long-term vision, “To serve as a ‘navigator’
to build a brighter future with Japanese power in an
uncharted global situation,” which defines what JBIC
wishes to become over the next 10 years. Based on thisvision, the Fourth Medium-term Business Plan sets out six

key focus areas based on the theme “navigator in an eraof transformation,” in the context of objectives such as therealization of the SDGs and a decarbonized society, andthe irreversible advancements in energy transformationand digital transformation. Seventeen action plans havebeen positioned under these six key focus areas, andJBIC is committed to achieving these action plans incoming years.

JBIC Medium- to Long term Vision
To serve as a “navigator” to build a brighter future with Japanese power in an uncharted global situation

1. Address global issues toward realizing sustainable development for the global economy and society.
2. Support the strengthening of the international competitiveness of Japan’s industries in the era ofindustrial and social transformation.
3. Propel strategic initiatives to promote quality infrastructure projects overseas.
4. Execute policy-based finance functions that are adapted to changes in the economic situation.

5
Medium-term Business Plan (FY2021- FY2023)

Fourth Medium-term
Business Plan:
Navigator in an era oftransformation(JBIC Compass 2.0)

Key Focus
Areas(Business)

Key Focus Areas 5. Develop a business structure that can adapt to changes in the external environment.
(Organization) 6. Manage the organization efficiently in order to respond to the “new normal.”¢ Action Plans
Key Focus Areas
Address global issues toward realizing

1 sustainable development for the global
economy and society.

Business

Action Plans(1) Respond to energy transformation toward the realization of a decarbonized society.
(2) Support projects that contribute toward resolving social issues.

Support the strengthening of the
2 international competitiveness of Japan’s
industries in the era of industrial andsocial transformation.

(1) Address the strengthening of resilience and rebuilding of international supply
chains.
(2) Support M&A and technology acquisition by Japanese companies toward digitaltransformation, etc.

3 Propel strategic initiatives to promote(1) Support participation in overseas infrastructure projects that harness the strengths
of Japanese companies.
(2) Promote multilateral cooperation and cooperation with multilateral financial
institutions, etc.

quality infrastructure projects overseas.

Execute policy-based finance functions

4 that are adapted to changes in theeconomic situation.

(1) Respond swiftly to overseas businesses that have been impacted by the COVID-19
pandemic.
(2) Undertake strategic initiatives for countries/regions of great importance from a
policy perspective.
(3) Execute-business steadily as a policy-based financial institution, including support
for small and medium-sized enterprises.
(4) Strengthen the risk-assuming functions as a policy-based financial institution.
(5) Further promote the mobilization of private capital.

Develop a business structure that can
5 adapt to changes in the external
environment.

(1) Develop a business structure that is adapted to changes in the businessenvironment and customer needs.
(2) Respond appropriately to interest rate benchmark reforms.
(3) Conduct appropriate and efficient credit analysis and credit management during
and after the COVID-19 pandemic.

6 Manage the organization efficiently in(1) Digitalize the working environment that can adapt to the “new normal.”(2) Promote human resource development and work style reforms that can maximize
performance and draw out vitality of diverse employees.
(3) Strengthen the effectiveness of the compliance system.

Organization

order to respond to the “new normal.”

JBIC / Annual Report 202215

¢ Action Plans (Business)
Key Focus Area: 1 Address global issues toward realizing sustainable development
for the global economy and society.
Action Plan (1) Respond to energy transformation toward the realization of a decarbonized society.
• To contribute toward the creation of a new ecosystem, with a view to reducing greenhouse gases worldwide and realizing
decarbonization in Japan, support efforts to reduce greenhouse gases and popularize green innovation by financing
projects in fields such as renewable energy and energy savings, smart energy (power storage technology, etc.), green
mobility, smart cities, and promotion of the production, transportation, and utilization of hydrogen (Green finance)• While working to engage host countries to make the shift toward sustainable energy, provide support for initiatives toward
global energy transition by financing projects in areas such as energy conversion, CCUS/carbon recycling, ammonia andhydrogen co-combustion, in order to contribute toward expanding businesses that help to reduce environmental burden(Transition finance)

Action Plan (2) Support projects that contribute toward resolving social issues.
• To contribute toward efforts aimed at resolving social issues in host countries and realize sustainable growth, such asefforts to improve health, welfare and hygiene, create employment, and develop sustainable cities and living spaces,
provide support for projects that assist resolving social issues in the host countries. These include the development andenhancement of the medical care environment (infectious disease countermeasures, hospital and medical equipment),
access to basic infrastructure (water and sewage services, rural electrification and distributed power systems, information
communications), development of the living environment (urban development and disaster prevention, public transport),
improvement in the hygiene environment (waste disposal, reuse and recycling, countermeasures for marine plastic
waste), and food safety and sustainable food systems (food value chains) (Social impact finance)

5
Medium-term Business Plan (FY2021- FY2023)

Key Focus Area: 2 Support the strengthening of the international competitivenessof Japan’s industries in the era of industrial and socialtransformation.
Action Plan (1) Address the strengthening of resilience and rebuilding of international supply chains.
• To contribute toward efforts aimed at the restructuring of global supply chains by Japanese companies and the buildingof local supply chains in order to cultivate new markets, support Japanese companies to rebuild and strengthen theresilience of global supply chains. These efforts include new capital investment overseas by Japanese companies(investments related to the relocation, establishment, and expansion of business bases), and infrastructure development
for local supporting industries and industrial cluster overseas

Action Plan (2) Support
M&A and technology acquisition by Japanese companies toward digitaltransformation, etc.
• To cope with the rapid progress of digital transformation, and to support initiatives by Japanese companies to rebuild theirbusiness models as well as develop and acquire state-of-the-art technology, provide support to strengthen theinternational competitiveness of Japanese companies during the period of digital transformation by financing efforts forthe acquisition of advanced technologies and knowhow from overseas, including digital technology

16

JBIC / Annual Report 2022

1. Profile of JBIC

Key Focus Area: 3 
Propel strategic initiatives to promote quality infrastructure
projects overseas.
Action Plan (1) S upport participation in overseas infrastructure projects that harness the strengths
of Japanese companies.
• To secure debt sustainability in host countries and economic viability that reflects the life cycle costs of a project, and tocontribute toward the promotion of quality infrastructure overseas that takes environmental and social impact into
consideration, provide support for the quality infrastructure projects overseas through means such as the utilization ofcore technologies by Japanese companies and continued involvement in O&M

Action Plan (2) Promote
multilateral cooperation and cooperation with multilateral financial

institutions, etc.
•To meet global infrastructure needs through coordination and cooperation with diverse funding sources, promote
initiatives toward deal-sourcing and structuring of projects through multilateral cooperation, including Japan-U.S.Australia-India cooperation, and coordination with multilateral financial institutions, etc.

5Medium-term Business Plan (FY2021- FY2023)

Key Focus Area: 4 
Execute policy-based finance functions that are adapted tochanges in the economic situation.
Action Plan (1) Respondswiftly to overseas businesses that have been impacted by the COVID-19

pandemic.
• Implement emergency measures steadily (financing based on the Emergency Window)• Respond flexibly to changes in the global financial environment (including appropriate credit management)

Action Plan (2) Undertake
strategic initiatives for countries/regions of great importance from thepolicy perspective.
• Undertake strategic initiatives toward the formation of loan, equity participation, and guarantee projects in countries andregions of great importance from policy perspectives (including enhancing support for projects in Africa and initiatives
based on multilateral cooperation)

Action Plan (3) Executebusiness steadily as a policy-based financial institution, including support
for mid-tier enterprises and small and medium-sized enterprises.
• Implement policy-based finance steadily, including securing important resources and supporting overseas expansion by
Japanese industries• Support overseas expansion by small and medium-sized enterprises through efforts such as strengthening cooperation
with private financial institutions, including regional financial institutions, and knowledge sharing

Action Plan (4) Strengthen the risk-assuming functions as a policy-based financial institution.
• Strengthen the risk-assuming function through means such as the utilization of special operations, and diversify financing
products by utilizing local currency-denominated financing, etc.
• Strengthen external presence and negotiation leverage as a policy-based financial institution

Action Plan (5) Further
promote the mobilization of private capital.
• Actively promote the mobilization of private capital, including private investment and financing by private financial
institutions, through our loan, equity participation, and guarantee operations and the securitization of loan assets

JBIC / Annual Report 2022

17¢

Action Plans (Organization)

Key Focus Area: 5 Develop a business structure that can adapt to changes in theexternal environment.
Action Plan (1) D evelop a business structure that is adapted to changes in the businessenvironment and customer needs.
• Develop a business process and structure that takes the external environment into consideration, such as changes in thebusiness environment and customer needs, response to SDGs and climate change issues, and global trends related to
ESG investments

Action Plan (2) Respond
appropriately to interest rate benchmark reforms.
• Respond appropriately to interest rate benchmark reforms (LIBOR cessation), including the smooth transition to analternative interest rate benchmark in loans, equity participation, and guarantee operation, and system modification andthe review of credit analysis processes

Action Plan (3) Conduct
appropriate and efficient analysis and credit management during and
after the COVID-19 pandemic.

5
Medium-term Business Plan (FY2021- FY2023)• Conduct appropriate and efficient credit analysis and credit management under the constraints of a remote work
environment• Adjust risk-management framework to changes in the international situation and social environment, such as theprolonged COVID-19 pandemic and interest rate benchmark reforms

Key Focus Area: 6 Manage the organization efficiently in order to respond to the“new normal.”
Action Plan (1) Digitalizea working environment that can adapt to the “new normal.”• Agilely review, improve, and digitize work processes, and utilize RPA• Strengthen functions toward improving user experience for information systems, in anticipation of the normalization of
remote work, and secure stability and safety of information systems

Action Plan (2) Promote
human resource development and work style reforms that can maximize
performance and draw out vitality of diverse employees.
• Foster an organizational culture that harnesses the diversity of employees as a source of vitality, and support autonomous
career development and capacity development• Undertake initiatives toward improving the working environment to enable employees to continue working with vitality

Action Plan (3) Strengthen the effectiveness of the compliance system.
• Develop a compliance system that strikes a balance between effectiveness and efficiency

18

JBIC / Annual Report 2022

6. Sustainability
Policies toward the Realization of Sustainability
The world’s economies are facing the shared challenges ofdealing with climate change and pursuing sustainablegrowth and development while seeking to achieve abalance between the economy, society, and theenvironment. In response to these challenges, JBIC
promotes initiatives under its Fourth Medium-term
Business Plan and work with stakeholders toward fostering
global sustainable development and resolving global
challenges, to ensure the realization of sustainable
societies, as well as realizing “the colorful world” thatembraces diversified spectrum and gradation of countries
and people.

E

JBIC released its ESG Policy on October 28, 2021, in
advance of the 26th Conference of the Parties to theUnited Nations Framework Convention on Climate Change(COP26). JBIC is committed to pursuing ambitious andaccelerated efforts to achieve net zero emissions in its
finance portfolio by 2050.
JBIC contributes toward realizing global carbon
neutrality by supporting and accelerating the energy
transition of emerging and developing countries throughcontinued engagement with the relevant national
governments and authorities.

¢ Respond to energy transformation toward the realization of a decarbonized society by financing projects
Green financeSupport efforts to reduce greenhouse gas emissions and popularize green innovation

Transition finance rovide support for initiatives toward global energy transition while working toPengage host countries

6¢ Environmentally conscious financings and investments under Environmental and Social Guidelines*¢ Green bonds issuance

Sustainability* JBIC Guidelines for Confirmation of Environmental and Social ConsiderationsS¢ Support projects that contribute toward resolving social issues
Social impact finance	Provide support for projects that assist resolving social issues
to realize sustainable growth¢ Socially conscious financing and investments under
Environmental and Social Guidelines¢ Promote human resource development and work style reforms
that can maximize performance and draw out vitality of diverse
employees

Disclosures(e.g., the TCFD
recommendations)

Stakeholders

Foster an organizational culture that harnesses the diversity of
employees as a source of vitality
Support autonomous career development and capacity
development
Improve the working environment to enable employees tocontinue working with vitality

G¢ Strengthen its sustainability governance and management systems¢ Strengthen the effectiveness of the compliance system¢ Participation in international initiatives

JBIC ESG Policy
1. Policies towards the Realization of Sustainability The world’s economies are facing the sharedchallenge of dealing with climate change whilst
pursuing sustainable growth and development, andall the while seeking to achieve a balance between
the economy, society, and the environment. In lightof these challenges, JBIC’s Fourth Medium-term
Business Plan (announced in June 2021), identified
the addressing of “global issues toward realizing
sustainable development for the global economy andsociety” as its first key focus area. Accordingly, JBIC is
actively working to support this global agenda throughthe provision of green finance, transition finance, andsocial impact finance. In addition, as an organization,
under the Fourth Medium-term Business Plan and
the Second Plan for Work Style Reform, JBIC strives
to foster a culture that harnesses the diversity of its
employees, support individual career development
and knowledge development, and continue toimprove the working environment for its employees.

JBIC / Annual Report 202219 JBIC continues to review its organizational structure,systems and processes with a view to strengthening
its sustainability governance and management
systems, so that JBIC can actively support Japanesecompanies and the global economic community intheir efforts to achieve decarbonization and SDG
goals, and as appropriate, disclose the results of theprovision of such support to its stakeholders.
 With a view to fulfilling JBIC’s role as “a navigatorto build a brighter future with Japanese power” (asstated in JBIC’s Fourth Medium-term BusinessPlan), JBIC , through its risk-assuming function as apolicy-based financial institution and long-standing
relationships with its stakeholders and overseas
networks, proactively contributes to fostering global
sustainable development and resolving global
challenges, to ensure the realization of sustainable
societies.

2. Climate Change Policy Climate change is one of the most urgent challenges

facing the world’s economies. Following the adoptionof the Paris Agreement in December 2015, the global
effort to address climate change has accelerated. In
October 2020, the Japanese government made adeclaration to aim for carbon neutrality by 2050 (i.e., toachieve net zero greenhouse gas emissions). In orderto achieve the objectives of the Paris Agreement,
global collective action is urgently required throughnot only efforts led by developed countries, but also
through coordinated action taken by developing andemerging countries to ensure the energy transition
towards a decarbonized society.
 In recognition of the urgency to accelerate global
concerted efforts to combat climate change, and inalignment with Japanese government policy, JBIC set
out its plans to address climate change in paragraphs(1) to (4) below, in advance of the United Nations
Climate Change Conference (COP26) starting on
October 31, 2021. As Japan’s policy-based financial
institution, JBIC continues to be proactive in providing
financial support for efforts to tackle climate change,
based on Japanese government policy.

6
Sustainability(1) Contributing toward the Global Implementation of
the Paris Agreement In order to align with the international goals toachieve the objectives of the Paris Agreement, JBIC
is committed to pursuing ambitious and accelerated
efforts to reduce its operational emissions to net
zero by 2030, and to achieve net zero emissions
in its finance portfolio by 2050. Moreover, throughcontinued engagement with the relevant national
governments and authorities, JBIC will contributein realizing global carbon neutrality by supporting
and accelerating the energy transition towards a
decarbonized society of emerging and developing
countries.

20

JBIC / Annual Report 2022

(2) Strengthening Climate Change-related Finance Achieving the objectives of the Paris Agreement
requires substantial investment. As such, the flowof funds, including those through the mobilizationof private finance, needs to be redirected andapplied to pathways towards decarbonization. JBIC
harnesses its risk-assuming function as a policybased financial institution as well as its negotiation
leverage, to promote green innovation and accelerate
the energy transition of emerging and developing
countries through engagement with the relevant
national governments and authorities, and throughmultinational coordination. JBIC thereby takes the leadin global decarbonization through such actions andthe provision of finance, in addition to disseminatingclimate-related information, and issuing green bonds,
among other things.
 In addition to ending the provision of financing for
unabated international thermal coal power generation
as agreed at the G7 Summit in June 2021, JBIC also
backs efforts leading to the transition to clean energy
generation by harnessing new technologies.
(3) E nhanced Climate-related Financial Disclosures
Pursuant to the TCFD Recommendations In recognition of the importance of reporting on
climate-related financial information, JBIC announcedin October 2019 of its endorsement of the Task Forceon Climate-related Financial Disclosures (TCFD) thatwas established by the Financial Stability Board (FSB).
JBIC also engages in the TCFD Consortium, which
was set up as a forum for institutions who support the
TCFD recommendations to exchanges ideas. JBIC
will proceed in disclosing relevant information basedon the TCFD framework.
(4) E nvironmentally and Socially Conscious Financingsand Investments Since the formulation and publication of the JBIC
Guidelines for Confirmation of Environmental andSocial Considerations in 1999, JBIC has ensured
that the financing of its relevant projects have been
subject to the environmental and social impact
considerations required under such guidelines. JBIC
will be at the forefront of such environmental andsocial considerations by reviewing, as appropriate,
the guidelines and taking into consideration, among
other things, the international frameworks that are
in place with respect to environmental and social
considerations, the discussions taking place at
the Organisation for Economic Co-operation andDevelopment (OECD) regarding the Common
Approaches for Officially Supported Export Credits
and Environmental and Social Due Diligence, and awide public consultation process.

1. Profile of JBIC

E

Environment¢ JBIC’s Journey on Climate Change Issues
In recognition of the importance of global efforts to addressenvironmental issues, and in alignment with Japanese
government policy, JBIC has been working since the1990s to create a new finance menu and develop agovernance and management systems.

External
Environment	International

Development

	Japanese

Government’s
Response

1980s and 1990s
	Growinginternational
interest in climate
issues1992
	Adoption of
UNFCCC

1997	Adoption of Kyoto
ProtocolJBIC continues to be proactive in providing financial
support for efforts to tackle climate change, based on theJapanese government policy.

2008
	G8 Hokkaido
Toyako Summit

2009

	
Hatoyama
initiative

2005
	Entry into force of
Kyoto Protocol

2013	Announcement on
Actions for Cool
Earth (ACE)2015	Adoption of Paris
Agreement and SDGs

	Announcement on
ACE 2.0

Support throughFinancing andInvestment

2000s
-S
 upport for
projects under
Clean Development
Mechanism (CDM)-E
 stablishment of
Kyoto credit fund2008
Establishment of
JBIC Facility for Asia
Cooperation andEnvironment (FACE)

6

2010
-E
 stablishment of GREEN (Global
action for Reconciling Economic
growth and Environmental
preservation) and J-MRV Guidelines-S upport for Joint Crediting
Mechanism (JCM)

Sustainability

1990s
Support for projects
that mitigate
environmental
impacts

2018
Global Facility to Promote Quality
Infrastructure Investment for Environmental
Preservation and Sustainable Growth (QI-ESG)
2020
Growth Investment Facility “QI-ESG Window”
2021
Post-COVID-19 Growth Facility“Decarbonization Promotion Window”
2022
Global Investment Enhancement Facility“Sustainability Window”

Confirmation ofEnvironmental
and Social
Considerations

1988
Assigning dedicatedstaff for environment
assessment

1999
Establishment ofEnvironmental andSocial Guidelines

1992
Establishment ofEnvironment Office

2003- Entry into force ofEnvironmental andSocial Guidelines- Introduction ofgrievance mechanism

2009
1st revision ofEnvironmental andSocial Guidelines

2015
2nd revision ofEnvironmental andSocial Guidelines2022
3rd revision ofEnvironmental andSocial Guidelines

JBIC / Annual Report 2022

21

¢ Examples of Business Outcomes Relating to Green FinanceThrough green finance and transition finance, we are responding to energy transformation toward the realization of adecarbonized society.

Hydrogen-related Project

Sustainability

Renewable Energy / Energy Savings

6

Loan for Solar Photovoltaic (PV) Power Generation Project in State of Queensland,
Australia

Loan for Hydrogen Station Construction and Operation Project in State of California, U.S.

Point

JBIC concluded in December 2021 a loan agreement amounting up to approximately $36 million (JBIC
portion) with Sojitz Corporation (Sojitz). The loan is co-financed with a private financial institution, and the total
co-financing amount is approximately $60 million. This loan will also contribute to the Australian government’s
policy to transition to renewable energy.
As one of the leading resource-rich countries in the world,
Australia has been heavily dependent on coal fired power
generation for its power needs. However, in light of environmental
burden considerations, it has been promoting the transition to
renewable energy in recent years. Investment in solar PV projects
has been particularly strong in the country, leveraging its vastland with a lot of sunlight.
Sojitz seeks to utilize its experiences cultivated in developing
and operating large-scale solar PV projects in and outside
Japan. Through Edenvale Solar Park Pty Ltd., which is an
Australian company jointly invested in by Sojitz and ENEOS
Corporation, Sojitz will construct, own, and operate a 204MW
solar PV plant in Edenvale, located about 300 km west of
Brisbane in the State of Queensland, Australia. The electricity
generated by the project will be sold to multiple buyers including
a local electricity retailer and the electricity wholesale market.
Illustration of the completed solar PV plant
The provision of the loan by JBIC to Sojitz, which will
engage in the solar PV project in Australia, will not just contributetoward maintaining and improving the international competitiveness of Japanese industry but also to the energy transition policyof Australia, which is an important resource supplier and a friend for Japan, thereby serving to further strengthen the relationshipbetween the two countries.

Point

JBIC concluded in December 2021 a loan agreement amounting up to approximately $15 million (JBIC
portion) with Iwatani Corporation (Iwatani) for its U.S. subsidiary to construct and operate hydrogen stations.
The loan is co-financed with MUFG Bank, Ltd. and Mizuho Bank, Ltd., and the total co-financing amount isapproximately $26 million.
Hydrogen, which does not emit CO2, is drawing attention as theenergy solution of the future. The State of California of the U.S.
is leading the world in an effort to socially implement hydrogenfuel cell vehicles.
Iwatani acquired hydrogen stations in California throughIwatani Corporation of America (ICA), its U.S. subsidiary, in
March 2019. ICA is the first Japanese operator of hydrogenstations in the U.S., and Iwatani has also decided to promote theinstallation of hydrogen stations in California as it aims toreinforce its hydrogen business under its Medium-termManagement Plan.
The loan will contribute toward maintaining and improving
the international competitiveness of Japanese industry inhydrogen-related businesses.
Iwatani’s new hydrogen station constructed in California (© Iwatani
Corporation)

22

JBIC / Annual Report 2022

1. Profile of JBIC

Renewable Energy / Energy Savings

Supporting Low-carbonization in Electricity Transmission and Distribution Sector of
Saudi Arabia
Point
JBIC concluded in July 2021 a loan agreement amounting up to $500 million, of which JBIC’s
portion is $250 million, with Saudi Electricity Company (SEC) for projects to construct a new substation andtransmission lines to integrate renewable energy to the grid networks and to introduce smart meters. The loan
is co-financed with seven private financial institutions.

The Government of Saudi Arabia has formulated the Saudi<Finance Scheme>
Vision 2030 as its national development strategy andis proceeding with economic reform, including industry
MUFG Bank,
The Bank of
The Joyo Bank,
The Nanto
Ltd.
Yokohama, Ltd.
Ltd.
Bank, Ltd.
diversification, under the vision. As one such effort, Saudi
JBIC
Arabia is promoting projects that contribute toward the
THE NISHIThe San-in
The Hachijuni
NIPPON CITY
Godo Bank,
Bank, Ltd.
growth of renewable energy, energy efficiency, and more.
BANK, LTD.
Ltd.
As a vertically integrated electric utility that generates,
Partialguarantee
transmits, and distributes electricity throughout Saudi Arabia,
SEC is enhancing transmission and distribution networks for
Co-financing
a stable supply of power sources from renewable energy
in line with the government policy to promote renewable
SEC
energy. In December 2020, JBIC signed a memorandum of
understanding (MOU) on strategic partnerships in the power
sector with SEC. This loan, which is for a project in the field
Substation andSubstation andSubstation andIntroducing smartof electricity transmission and distribution contributing toward
transmission lines for transmission lines for transmission lines for…
meterssolar power
solar power
wind power
the mitigation of environmental impact, is one outcome of the
MOU and is provided as part of JBIC’s GREEN operations.
JBIC will promote energy transition and environmental and social sustainability in Saudi Arabia by developing solutions to
SEC’s challenges in the power sector through investments by Japanese companies and/or introduction of Japanese products andtechnologies.

6
Sustainability

Hydrogen-related Project

Equity Participation in a Fund Investing in Clean Hydrogen-related Projects around the WorldPoint

JBIC signed in March 2022 an agreement for equity participation in the Clean H2 Infra Fund S.L.P. afund investing in clean hydrogen-related projects worldwide. JBIC plans to invest up to €100 million.
Hydrogen, which does not emit CO2 when used as a fuel, is drawing
attention as the energy solution of the future. Recently, many
countries and regions focus on hydrogen as an essential energy
source for decarbonization, and the demand for financing forhydrogen-related projects is growing.
The fund, in which JBIC participates, is the world’s largest cleanhydrogen infrastructure investment fund and is committed to by aleading group of industrial and financial investors globally active in theclean hydrogen sector such as Air Liquide, TotalEnergies, VINCI
Concessions, and Plug Power. The fund is managed by Hy24, which
is a joint venture by FiveT Hydrogen AG, an investment manager
specializing purely in clean hydrogen investments, and Ardian, aworld-leading private investment house in Europe. It invests in cleanhydrogen-related projects around the world, from upstream projects
like green hydrogen production to downstream projects like captive
fleet and refueling stations. JBIC participates in the fund under its
GREEN operations.
The policy of the fund is to invest in hydrogen-related projects
that conform to one of the six environmental objectives of the EU
taxonomy, “Climate change mitigation,” and the fund will havesustainable investment as its objective in accordance with Article 9 of
the SFDR regulation*.
* The SFDR (Sustainable Finance Disclosure Regulation) was enacted by theEuropean Union with the aim of achieving more transparency of sustainability
characteristics of financial products including funds. Funds fall into threetaxonomic groups based on Article 6, Article 8, and Article 9 of the SFDR.
Article 9 Funds, to whom the applicable disclosure requirements are the mostrigorous, have sustainable investment as their objective and measure howmuch the objective is attained based on a quantitative benchmark.

A project image the fund invests in<Finance Scheme>
ArdianFiveT Hydrogen AG
Joint venture

JBIC
Equityparticipation

Hy24 asset management company
Establishment andmanagement
Fund
Clean H2 Infra Fund S.L.P.
Investment

Other investors

Targets: Clean hydrogen-related projects
around the world

JBIC / Annual Report 202223¢ Japan Bank for International Cooperation Guidelines for Confirmation ofEnvironmental and Social Considerations
As global concern over the environment and human rights
heightens, there are more than a few cases, in which
insufficient risk management of possible environmental
and social impacts has seriously affected project
implementation or undermined its social reputation.
In conducting its operations, JBIC confirms whether
appropriate consideration for local communities and thenatural environment has been made in all the JBICfinanced projects based on the “Japan Bank forInternational Cooperation Guidelines for Confirmation ofEnvironmental and Social Considerations” (Environmental
Guidelines).

The Environmental Guidelines set out the procedures,
criteria, and requirements that JBIC-financed projects
must meet in confirming environmental and social
considerations. When JBIC judges that the project
proponents have not made appropriate environmental
and social considerations, it will encourage them to takeremedial measures. If appropriate environmental andsocial considerations have not been taken, JBIC may
decide not to extend funding or may request early
redemption to the borrower.
As for nuclear sector projects, JBIC also establishedand made public the “Japan Bank for International

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

6
Sustainability

Project
Proponent

Screening Form is submitted at thetime of funding request.

Information necessary for theEnvironmental Review
is submitted.

Status report is presented on
implementation of measures forenvironmental and social
considerations (Monitoring).

For Category A projects, an environment and social
impact assessment (ESIA) report must be submitted.

Category A
Category B

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

Category FI

Environmental Review*

Categorization

Funding
Commitment

Confirmation of
Monitoring Results(Site inspections
conducted asnecessary.)

Category C

Disclosure

The project outline, category, and
ESIA report (required for CategoryA) are, in principle, disclosed on
the JBIC website.

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

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

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

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

24

Category A

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

Category B

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

Category C

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

Category FI

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

JBIC / Annual Report 2022

1. Profile of JBIC

Cooperation Guidelines for Confirmation of Information
Disclosure Considerations for Nuclear Sector Projects”(Information Disclosure Guidelines) in December 2017.
Based on the Information Disclosure Guidelines, JBIC
confirms that appropriate measures are carried out by
project proponents and other relevant parties to ensure
information disclosure and public participation for issues
specific to each project.
Also, every five years after the enforcement, theEnvironmental Guidelines are subject to a comprehensive
review based on a verification of the implementation
status during the period, in order to make revisions asnecessary according to the review result. In 2020, five
years after the enforcement, JBIC initiated the revision

process, disseminating it broadly to the public, andrevised the Environmental Guidelines in May 2022, whichbecame effective in July 2022. In order to ensure an open
and transparent process in making the revision, JBIC helda consultation forum for a total of 10 times between
February 2021 to February 2022 and solicited publiccomments on the draft revision. In keeping with therevision of the Environmental Guidelines, JBIC also
revised its “Summary of Procedures to Submit Objections
concerning JBIC Guidelines for Confirmation ofEnvironmental and Social Considerations” (Procedures) in
May 2022. The current Procedures were also enforced inJuly 2022.

¢ Green Bonds¢ Description of Issuance• Guarantor

Japanese government• Currency

US dollar• Maturity

5 years

allocated to eligible projects, including those related torenewable energy and clean transportation.
The issuance of green bonds in January 2022 hasbeen conducted based on a stringent framework
acknowledged by Sustainalytics, a company holding amajor share and highly recognized in the market.

¢ Sales by Region0

Americas 8.3
40

Asia

60

80

100 (%)

Europe and Middle East

47.0

• Coupon rate 1.625%• Amount

20

6
Sustainability

JBIC aims to contribute to realizing a sustainable society
and environment through green finance. To raise thenecessary funds for green finance, JBIC issued green
bonds for the first time as international bonds guaranteedby the Japanese government in January 2022. The funds
raised through the issuance of green bonds will be

44.7

USD500 million¢ Sales by Sector¢ Eligible Projects• Renewable energy (e.g. wind power projects in Africa,
geothermal power projects in Southeast Asia)• Clean transportation (e.g. high-speed railway projects in
Europe)020

Asset managers
40

6.4

60

80

Central banks, Public institutions

Commercial banks

41.3

46.4

100 (%)

Insurance companies, Pension funds 5.9
Others

0.1

JBIC / Annual Report 2022

25

S

Social¢ Examples of Business Outcomes Relating to Social Impact FinanceThrough social impact finance, we are providing support for projects that assist resolving social issues.

Improving the Hygiene Environment

6

Loan for Health and Hygiene Products Sales Business of Japanese Company inHong Kong
Point

JBIC concluded in September 2021 a loan agreement amounting up to $7 million (JBIC portion) witha subsidiary of Saraya Co., Ltd. (Saraya) in Hong Kong. The loan is co-financed with MUFG Bank, Ltd., and thetotal co-financing amount is approximately $10 million.

Sustainability

Saraya is an SME established in 1952 and is engaged in the manufacturing and sales
business of health and hygiene products. In 2003, it established a subsidiary in Hong
Kong, Saraya HongKong Co., Limited (SHK), and has been selling health and hygiene
products to combat infectious diseases and improve the health and hygiene environment
in countries and regions in Asia, including Hong Kong.
In these countries and regions, growth in demand for health and hygiene products,
such as liquid soaps, detergents, and disinfectants, is expected due to the spread of
COVID-19. JBIC provided the funds necessary for SHK to make additional investment for
expanding its sales business.
In March 2021, JBIC also provided a loan to another subsidiary of Saraya in Egypt,
Saraya Middle East for Industrial Investment J.S.C. (SMEI), for its manufacturing andsales business of health and hygiene products. This loan to SMEI, which commenced
operations in 2022, was JBIC’s first direct financing targeting mid-tier enterprises and
SMEs in Africa.
As Japan’s policy-based financial institution, JBIC will continue to focus on supporting
Japanese companies in expanding their businesses, which will lead to the resolution ofsocial issues in countries and regions in Asia, the Middle East, and Africa, including
improvement and enhancement of the medical care environment, improvement of thehygiene environment, and establishment of food delivery services.

Laundry and kitchen detergents
sold in Hong Kong

Hand disinfectants manufactured andsold in Egypt

Reuse and Recycling of Resources

Loan for Recycled Asphalt Mixture Manufacturing and Sales Business in Indonesia
Point

JBIC concluded in December 2021 a loan agreement amounting up to IDR13 billion with PT.
SUGAWARA KOGYO INDONESIA (PSKI), an Indonesian subsidiary of SUGAWARA Industry Co., Ltd. (Sugawara
Industry). The loan is co-financed with the 77 Bank, Ltd., and the total co-financing amount is approximately
IDR25.5 billion.
Sugawara Industry is an SME engaged in civil engineering and construction work
related to piping and water supply facilities, paving work for roads and building sites,
and collection and transportation of industrial waste.
Sugawara Industry established PSKI in 2017 in Indonesia, where infrastructuraldevelopment has been proceeding, and started manufacturing asphalt mixture thatrecycles asphalt waste as a road paving material. PSKI aims to expand its businessby utilizing this pavement recycling technology, and JBIC responded to this needand provided a loan in the local currency to support PSKI’s business expansion.
Sugawara Industry’s involvement with Indonesia began when it started
accepting and training technical interns from Indonesia. PSKI plans to proactively
employ these interns, who have gained skills at Sugawara Industry, and also launchasphalt paving and other new businesses.
JBIC will continue to cooperate with regional financial institutions and provide
support meticulously matched to the funding needs of Japanese companies,
including mid-tier enterprises and SMEs.

Paving works with recycled asphalt inIndonesia

26

JBIC / Annual Report 2022

1. Profile of JBIC

Medical Business

Loan for Medical Device Manufacturing and Sales Business of NIPRO’s Vietnamese
Subsidiary
Point
JBIC concluded in December 2021 a loan agreement amounting up to ¥6 billion (JBIC portion) with
NIPRO CORPORATION (NIPRO) for its business of manufacturing and sales of medical devices in Vietnam. The
loan is co-financed with Mizuho Bank, Ltd. and MUFG Bank, Ltd., and the total co-financing amount is ¥10 billion.

Since its founding in 1954, NIPRO has achieved significant growth by conducting business in the fields of medical devices,
pharmaceuticals, and pharmaceutical packaging. The
company was also quick to expand business overseas andhas established a global manufacturing, sales, and service
network covering Asia, Europe, Africa, and the Americas.
NIPRO established Nipro Vietnam Company Limited(NVC) in 2017 as a manufacturing and sales base of medical
devices in Vietnam. NVC manufactures aspiration cathetersand dialyzers and supplies its products broadly to Asia andother parts of the world.
NIPRO aims to further expand its business, and JBIC
provided the funds necessary for NVC to construct new
facilities. The loan to NVC is expected to contribute toward
the resolution of social issues by helping to raise the level of
NVC’s medical device manufacturing plant in Vietnam
health and hygiene in Asia.
As Japan’s policy-based financial institution, JBIC willcontinue to provide support to overseas businesses of Japanese companies in the medical and other fields, which will help
resolve social issues, by drawing on its various financial facilities and schemes.

6
Sustainability

Countermeasures for Marine Plastic Waste

Loan for Biotechnology Startup Aiming to Launch Synthetic Structural Protein
Material Manufacturing Business in the U.S.
Point
JBIC concluded in October 2021 a loan agreement amounting up to ¥5 billion (JBIC portion) to support
the synthetic structural protein material manufacturing business of a U.S. subsidiary of Spiber Inc. (Spiber). The
loan is co-financed with MUFG Bank, Ltd., and the total co-financing amount is ¥10 billion.

Spiber is a biotechnology startup established in 2007 by university researchers who succeeded in synthesizing spider thread.
Spiber has established a fermentation process to brew a large quantity of structural protein polymers using plant-derived raw
materials and microbes having its original, specially-designed DNA and has developed Brewed Protein™ materials, to which
various characteristics can be added. Using these materials, the development is undergoing to create spun yarn with a cashmereand wool-like texture, filament yarn with silky luster, and leather and fur alternatives. Spiber has tied up with a leading sports
goods manufacturer, and an outdoor jacket and T-shirt that use Brewed Protein™ fibers have already been commercialized.
As Brewed ProteinTM materials have been verified to be marine biodegradable, they will not remain in the marine environment
for a long period as compared to petroleum-based synthetic fibers and plastics. In the future, they are expected to cause less
GHG emissions than cashmere and wool, can be used in medical materials and automotive parts, and are drawing attention fromthe perspective of animal welfare as a fur alternative. They have also attracted attention as next-generation core materials fromJapan, which are capable of playing a role in the development of a sustainable society.

Synthetic structural protein, Brewed ProteinTM materials

Jacket and sweater made from Brewed ProteinTM fibers

JBIC / Annual Report 2022

27

¢ Promoting Active Engagement of Diverse Human Resources
Plan for Work Style Reform
JBIC has formulated the Second Plan for Work Style Reform(FY2021–FY2023) based on one of the action plans set out
in its Fourth Medium-term Business Plan (FY2021–FY2023):“Promote human resource development and work stylereforms to maximize performance and draw out the vitalityof diverse employees.”
The Second Plan for Work Style Reform aims tocreate organizations where all employees can work
sustainably and with vitality, in work styles that suit theirown values, and strengthen the resilience of organizationalfoundations under the “new normal.”Specifically, the second plan focuses on strengthening
our organizational foundations to contribute toward thesound development of Japan and the international
economy and society by simultaneously enabling work
styles more matched to the individual values of employees,
while going a step beyond the previous plan and capturing
the behavior change resulting from the COVID-19
pandemic, and by turning JBIC into an organization where
employees can fully demonstrate their respective
capabilities for more active engagement.
In order to allow all employees to show maximum
performance and take active roles based on their

6
Sustainability

individual values, we are undertaking various measureswhile continuously encouraging teleworking. These
measures include: strengthening information systems andimproving work processes mainly through digitalization;
digitalizing and improving the workplace environment;
promoting the mental and physical health of employees
while giving consideration to the teleworking environment;
supporting autonomous career development; supportingbalancing work and family life; and further promoting aflexible work style.
In FY2021, while working to improve the network
environment used by employees for teleworking, we
initiated efforts to provide an improved, more comfortableoffice environment to enable them to demonstrate highproductivity in their on-site work and implemented
measures to cultivate a sense of unity and foster
communication. We have also been undertaking initiatives
to develop human resources and support employees’autonomous career development and enhancing systems
to help them balance work and family life.
JBIC continues to promote various measures under
its Second Plan for Work Style Reform.

Objectives of the Plan
Creating organizations where all employees can work sustainably and with vitality,
in work styles that suit their own values, and strengthening the resilience oforganizational foundations under the “new normal”

Digitalize and improve
workplace environment
Address-free seating

Web conference boothStrengthen information
systems and improve
work processes

Support autonomous
career development

Digitize
work processes

Various communication
spacesAppropriate
human resource
development
and labor
management

Online training
Online meetingand e-decision

Promote flexible
work style

Promote human resource
development andemployee well-being

Balance of workand family care

28

JBIC / Annual Report 2022

Autonomous careerdevelopment

Support balancing workand family life

Balance of workand childcare

1. Profile of JBIC

Initiatives for Developing Human Resources and Supporting Their Active Engagement
The role of JBIC is to realize its corporate philosophy,“Positioned at the crossroads of global business
opportunities, JBIC is opening new venues to the future
for the Japanese and global economy,” in the global
business context by means of finance. This requires theactive engagement of human resources who possesshigh levels of specialized skills on finance as well as publicawareness and an international perspective needed tolook ahead for the development of Japan and theinternational economy and society amid complex
international relations. As such, we have included“Promote human resource development and work stylereforms to maximize performance and draw out the vitalityof diverse employees” as one of the action plans in our
Fourth Medium-term Business Plan and have been
conducting initiatives to secure and develop excellent
human resources and support their active engagement.

For Supporting Active Engagement of Human Resources
has obtained “Tomonin” certification as a company
striving to create a workplace environment that helps
employees to balance work with nursing care.
In response to COVID-19, we have been working toensure the safety of employees working or studying inrespective countries by monitoring the local situations. In
Japan, we have directed our efforts to preventing the
spread of infections among employees while fulfilling
responsibilities imposed on JBIC, by encouraging
teleworking and staggered working hours to the extent
possible.
We continue to accelerate our initiatives to support
the active engagement of employees, including enhancing
our systems to help balance work and family life.

JBIC / Annual Report 2022

6
Sustainability

With a view to enabling work styles matched to thediverse values of employees, we have established leaveand other personnel systems and a range of support
programs to help employees who are engaging inchildcare or nursing care to balance work with family life.
Our efforts in FY2021 under the Second Plan for Work
Style Reform included revising relevant systems toencourage both male and female employees to use
childcare leave, enhancing our programs to support
employees having children attending school to balance
work with childcare, and providing training for managers
to support balancing work with family life. In recognition ofthese and other efforts, JBIC has received “Kurumin”
certification as a company supporting child-rearing and29

G

Governance

Governance¢ Corporate Governance
JBIC’s Fourth Medium-term Business Plan identified“Develop a business structure that can adapt to changes
in the external environment” and “Manage the organization
efficiently in order to respond to the ‘new normal.’” as its
key focus areas.
We are developing a business process and structurethat takes the external environment into consideration,such as changes in the business environment andcustomer needs, response to the SDGs and climatechange issues, and global trends related to ESG
investments.
For details of JBIC’s corporate governance, pleaserefer to Section 1 “Corporate Governance” in Chapter 4(page 90) of this report.

¢ Establishment of the Sustainability Committee andSustainability Advisory Committee
As part of its efforts toward “strengthening its sustainability
governance and management systems” as set out in the
ESG Policy, JBIC newly established the Sustainability
Advisory Committee and Sustainability Committee inJune 2022. (For the overall picture of JBIC’s sustainability
governance and management systems, please refer topage 33.) We are accelerating sustainability management
throughout the entire organization toward the realizationof global sustainability, including sustainable developmentof the global economy and society and resolution of
global issues.

6

Sustainability Advisory Committee
As an advisory body to the Board of Directors, comprisingexternal experts, it provides advice on matters such as
JBIC’s policies for advancing initiatives toward therealization of sustainability.

Sustainability

Sustainability Committee
This committee deliberates on JBIC’s policies forpromoting sustainability and other important matters,
based on the mandate of the Executive Committee.

¢ Establishment of the Sustainability Management Department
As another effort to strengthen our sustainability
governance and management systems, we establishedthe Sustainability Management Department under the
Corporate Planning Group in June 2022. By centralizing

Corporate Planning Group

Corporate Planning Department

Credit, Assessment and Risk Management Group

Legal Affairs and Compliance OfficeTreasury and Systems Group

Human Resources Management Office

Energy and Natural Resources Finance Group

Sustainability Management Department

Infrastructure and Environment Finance Group

Strategic Research Department

Industry Finance Group
Equity Finance Group30

the knowledge and functions related to sustainability,
JBIC further promotes its initiatives toward the realizationof sustainability.

JBIC / Annual Report 2022

1. Profile of JBIC

¢ Participation in International Initiatives
TCFD Consortium
In October 2019, JBIC expressed its support for the objectivesof the Task Force on Climate-related Financial Disclosures(TCFD) and joined the TCFD Consortium.

Japan Hydrogen Association
The Japan Hydrogen Association is a forum for various
stakeholders in the public and private sectors to discuss the
direction of strategies for realizing a hydrogen-based society.

Japan Hydrogen Forum (JH2F)

6
Sustainability

Established by 15 Japanese companies engaging in hydrogen-related businesses in the U.S., JH2F aims to contributetoward the achievement of the country’s decarbonization goal. Among its five sub-committees of Hydrogen Production,
Land Transport, Port Decarbonization, Power Generation, and Finance, JBIC is a member of the Finance sub-committee.

Clean Fuel Ammonia Association
The Clean Fuel Ammonia Association was established in April 2019 as a general incorporated association (formerly
known as the Green Ammonia Consortium) to establish a value chain from the production to the use of CO2-free ammonia
and for its social implementation, thereby realizing a low-carbon society.

Sustainability Leaders Council
The Sustainability Leaders Council was jointly established by the Eurasia Group, GZERO Media, and Suntory Holdings
Limited in October 2021 to advance sustainability agenda in Asia. JBIC is contributing toward the activities of this council
as a sponsoring partner.

2X Challenge / 2X Collaborative
JBIC announced in June 2018 at the G7 summit in Charlevoix,
Canada, its participation in The G7 2X Challenge: Financing for
Women (the 2X Challenge), an initiative to promote women’ssocial empowerment.
JBIC also joined the 2X Collaborative, an extended platform
launched in January 2022, for promoting investments that
contribute toward gender equality by further collaborating with
relevant institutions.

African Clean Cities Platform
In July 2022, JBIC became an associate member of the African Clean Cities Platform, which was established for achieving
the SDGs by realizing clean and healthy cities, sharing knowledge on waste management, and promoting relevant
investment in African countries.

JBIC / Annual Report 2022

31

JBIC’s Initiatives Related to Climate Change(Information Disclosures Based on the TCFD Recommendations)
The world’s economies are facing the shared challenges ofdealing with climate change and pursuing sustainablegrowth and development while seeking to achieve abalance between the economy, society, and theenvironment. Even though the world has begun tonormalize social and economic activities constrained
under the COVID-19 pandemic, the Russian invasion of
Ukraine shocked the world, overtly challenging world
peace and prosperity and dealing a heavy blow on the
global economy. In an era of increasing uncertainty, thepursuit for sustainability, including the SDGs, is the key
driving force for the growth of the global economy,
countries, and companies. Climate change, in particular, is
one of the most urgent challenges facing the international
economy and society. Following the adoption of the Paris
Agreement in December 2015, the global effort to address
climate change has accelerated. In October 2020, theJapanese government made a declaration to aim forcarbon neutrality, or in other words, to achieve net zero
GHG emissions, by 2050. In order to achieve the objectivesof the Paris Agreement, global collective action is urgently
required through not only efforts led by developed
countries, but also through coordinated action taken by
developing and emerging countries to ensure the energy
transition toward a decarbonized society.
In line with our corporate philosophy: “Positioned at
the crossroads of global business opportunities, JBIC is
opening new venues to the future for the Japanese andglobal economy,” JBIC has been engaged in addressing
global issues toward realizing sustainable development for
the international economy and society as Japan’s policybased financial institution. In recognition of the urgency toaccelerate concerted international efforts to combat
climate change, and in alignment with the Japanese

6
Sustainability

government policy, in October 2021 we formulated the
ESG Policy and announced the climate change policy toshow our strong commitment to achieving sustainability.
Under the climate change policy, JBIC pursues
ambitious and accelerated efforts to reduce GHG
emissions from its operations to net zero by 2030 and toachieve net zero GHG emissions in its finance portfolio by2050. Moreover, through continued engagement with thehost countries’ governments and authorities, we contributetoward realizing global carbon neutrality by supporting andaccelerating the energy transition toward a decarbonizedsociety of emerging and developing countries. Achieving
the objectives of the Paris Agreement also requires
substantial investment. As such, we strengthen climatechange-related finance through our risk-assuming function
as a policy-based financial institution and throughmultinational coordination.
Recognizing the importance of disclosing climaterelated financial information, JBIC has declared in its ESG
Policy to promote information disclosures based on therecommendations of the Task Force on Climate-related
Financial Disclosures (TCFD). JBIC made disclosures
based on these recommendations for the first time in thisreport and will continue to make appropriate information
disclosures in the future as well.

¢ Governance
Strengthening Sustainability Governance and Management Systems
In June 2022, JBIC newly established the Sustainability
Advisory Committee, Sustainability Committee, andSustainability Management Department as part of its
efforts toward “strengthening its sustainability governanceand management systems,” as set out in the ESG Policy.
Under the supervision of multiple organs including theBoard of Directors, important matters related tosustainability, including those concerning climate change,
will be discussed at the Executive Committee,
Sustainability
Committee,
andCorporate
Risk
Management Committee.

32

JBIC / Annual Report 2022

Under the new sustainability governance andmanagement systems, JBIC proactively contributes
toward fostering global sustainable development andresolving global challenges, to ensure the realization ofsustainable societies by actively supporting Japanesecompanies and the global economy and society in theirefforts to achieve decarbonization and the SDGs andappropriately disclosing the outcomes of such support toits stakeholders.

1. Profile of JBIC

Sustainability Governance and Management Systems
Shareholder Meeting
Supervisory and Evaluative Function

Accounting Auditor

Board of Corporate Auditors

Management Advisory and
Evaluation Committee

Board of Directors

Risk Advisory Committee
Sustainability Advisory
Committee

Office of Corporate Auditor

NEW

Executive Function

6
Sustainability

Internal Audit
Committee

Executive Committee

Internal Audit
Department

Credit Committee

ALM Committee

Corporate Risk Management
Committee

Global Head Committee

Compliance andCustomer Protection
Management Committee

Information Security
and ICT Promotion
Committee

Personnel Committee

Sustainability Committee[Decision Committees][Deliberative Committees]NEW(As of June 22, 2022)

Roles of Each Organ Concerning Sustainability-related Matters, Including Climate Change
Board and Committees
Board of Directors
Supervisory and
Evaluative
Function

Executive
Function

Role
Passes resolutions on basic matters and changes thereof related to policies
toward the realization of sustainability, including the ESG Policy

Sustainability Advisory
Committee

Provides advice on matters inquired by the Board of Directors related to policies
for advancing initiatives toward the realization of sustainability

Executive Committee

Determines and deliberates on matters of managerial importance that relate topolicies for advancing initiatives toward the realization of sustainability, asdelegated by the Board of Directors

Sustainability Committee

Deliberates on policies for advancing initiatives toward the realization ofsustainability and other important matters, as delegated by the Executive
Committee

Corporate Risk
Management Committee

Determines and deliberates on important matters related to management ofcorporate risks (including climate change-related risks), as delegated by the
Executive Committee

JBIC / Annual Report 2022

33

¢ Strategies
In its Fourth Medium-term Business Plan announced inJune 2021, JBIC identified the addressing of “global
issues toward realizing sustainable development for the
global economy and society” as its first key focus area.
Accordingly, we regard climate change as an opportunity
to accelerate energy transition toward a decarbonizedsociety and actively work to support this global agenda
through the proactive provision of green finance, transition
finance, and social impact finance, and throughreinforcement of its organizational structure.
In addition, as one important role of JBIC as Japan’s
policy-based financial institution, we are promoting
engagement with the host countries’ governments andauthorities and collaboration with overseas governmentalorganizations and international organizations for achieving
global carbon neutrality.

Initiatives Related to Green Finance*
To contribute toward the creation of a new ecosystem,
and with a view to reducing Greenhouse gas (GHG)
emissions worldwide and realizing decarbonization in
Japan, we support efforts to reduce GHG emissions andpopularize green innovation by financing projects in fields
such as renewable energy and energy savings, smart
energy (power storage technology, etc.), green mobility,
smart cities, and promotion of the production,transportation, and utilization of hydrogen.

6
Sustainability

Initiatives Related to Transition Finance*
While working to engage host countries to make the shift
toward sustainable energy, we provide support for
initiatives toward global energy transition by financing
projects in areas such as energy conversion, CCUS/
carbon recycling, and ammonia and hydrogen cocombustion, in order to contribute toward expanding
businesses that help to reduce environmental burden.
* For details, please refer to the Fourth Medium-term Business Plan on
page 14.

Initiatives Related to Innovative Energy
In addition to its initiatives in the financial field, JBIC has
joined various meetings and study groups that contributetoward its support for the development of innovative
energy and smooth energy transition toward adecarbonized society.
As specific examples, we have joined the Japan
Hydrogen Association, a forum for various stakeholders in
the public and private sectors to discuss the direction ofstrategies for realizing a hydrogen-based society, and the
Clean Fuel Ammonia Association, which promotes theestablishment of a value chain from the production to theuse of CO2-free ammonia and its social implementation.
We have provided opinions from the standpoint of apolicy-based financial institution.
On July 1, 2022, we established the Energy
Transformation Strategy Office within the Energy Solutions
Finance Department of the Energy and Natural Resources
Finance Group, thereby strengthening our abilities tocollect and disseminate information and conduct studies

34

JBIC / Annual Report 2022

for structuring projects related to hydrogen, ammonia,
and other forms of innovative energy as well as associatedloan, guarantee, and research operations.

Initiatives Related to Engagement
We believe that engagement with stakeholders represents
our important responsibility as a policy-based financial
institution for accelerating energy transition in emerging
and developing countries toward the realization of adecarbonized society and for ultimately achieving global
carbon neutrality. Moreover, as achieving the objectives of
the Paris Agreement requires substantial investment, it isessential that the flow of funds, including those throughthe mobilization of private finance, needs to be redirected
and applied to pathways toward decarbonization. As
Japan’s policy-based financial institution, JBIC continues
to be proactive in providing financial support for efforts totackle climate change through the reinforcement ofcollaboration with overseas governmental organizations
and international organizations.
Engagement with the Host Countries’ Governments andAuthorities
Date
Outline
October 2020,
Australia-Japan-U.S. dialogues with theJanuary 2022
Central Economic Commission of theCommunist Party of the Socialist Republicof Vietnam
November 2021

Dialogue between then JBIC Governor
MAEDA Tadashi and Vietnamese Prime
Minister Pham Minh Chinh

September 2021 Dialogue with Indonesian state-owned
electricity utility PT PLN (Persero)
March 2022

Policy dialogue with the Indonesian
government

Reinforcement of Collaboration with Governmental
Organizations and International Organizations
Date
OutlineMarch 2021
Signing of a memorandum of understanding(MOU) with the State of California of theUnited States
October 2021

Signing of an MOU with the European
Investment Bank

November 2021

Signing of an MOU with Emirati oil company
Abu Dhabi National Oil Company

November 2021

Signing of an MOU with the Commission for
the Management of State Capital atEnterprises of Vietnam

February 2022

Signing of an MOU with the Public
Investment Fund of Saudi Arabia

1. Profile of JBIC

Strengthening Sustainability Governance andManagement Systems
In June 2022, JBIC newly established the Sustainability
Advisory Committee, Sustainability Committee, andSustainability Management Department as part of its
efforts toward “strengthening its sustainability governanceand management systems,” as set out in the ESG Policy.
For details, please refer to page 30.

Establishment of the Global Investment
Enhancement Facility (Sustainability Window)

digital technologies. Through the Sustainability Window
established under the Facility, we support Japanesecompanies’ projects* that are expected to contributetoward the preservation of the global environment,
including decarbonization.
* Eligible projects: 1) Projects that help reduce GHG and other emissions(renewable energy, energy savings, low-carbon technologies andmaterials, etc.); and 2) Other projects that contribute toward thepreservation of the global environment (prevention of air, water, andmarine plastic pollution, etc.)

In July 2022, JBIC established the Global Investment
Enhancement Facility in order to support the overseas
businesses of Japanese companies that make use of
cutting-edge or unique technologies such as green and¢ Risk Management

Top Risk Management
At JBIC, risk events that will significantly impact JBIC
when they become apparent and require particularattention are designated as Top Risks. Recognizing theimportance of responding to the climate-related risks, wehave specified this risk as one of the Top Risks.
Under this framework, we periodically monitor thesocial and regulatory trends related to climate issues, andat the same time, are advancing the use of scenario
analysis to capture the potential impacts of the climaterelated risks on JBIC’s portfolio and developing climaterelated risk management process.

Scenario Analysis
JBIC conducts scenario analysis on transition risks ofclimate change, in which the transition to a low-carbon
economy will impact corporate business activities. The
analysis uses the Net Zero 2050 Scenario assuming theachievement of global carbon neutrality by 2050 (1.5°C
scenario) and other scenarios provided by the Network ofCentral Banks and Supervisors for Greening the Financial
System (NGFS) to identify the medium- to long-term
impacts of climate change on JBIC’s portfolio andexamine future policies and actions for managing theclimate-related risks.
The uncertainties and complexities associatedwith climate-related risks in general make it difficult to
identify specific channels, touchpoints and time frames
in which climate change may affect an organization.

Moreover, the use of climate-related risk scenario analysis
to assess potential business implication and risks ofclimate change is still at an early stage throughout theworld. There are also challenges on access to data sets
and tools for organizations to conduct scenario analysis
more effectively. As such, JBIC continues to develop andrefine methods to conduct analysis and identify impacts
in a way to fit the characteristic of business and portfolio
of Japan’s policy-based financial institution, while taking
into consideration progress in international practices inscenario analysis and climate-related risk management.

6
Sustainability

Recognizing the importance of managing risks related toclimate change (collectively, “climate-related risks”), JBIC
has designated climate-related risks as one of the Top
Risks and has been monitoring them. Moreover, we use
scenario analysis on transition risks of climate change inorder to identify and assess the impact of climate change
on our portfolio over time.
We also recognize that JBIC’s engagement-related
activities described in the “Strategies” section areimportant not only from the perspective of realizing adecarbonized society but also in terms of mitigating theclimate-related risks in the future.

Initiatives Related to Thermal Coal Power
Generation Projects
JBIC has discontinued its financing to unabatedinternational thermal coal power generation projects asagreed at the G7 summit in June 2021. The outstandingof project financing to the thermal coal power generation
projects as of March 31, 2022 stood at JPY826 billion,
and we expect to reduce it to zero in the early 2040s.

Engagement
As described in the “Strategies” section, JBIC is promoting
its engagement with the host countries in order tocontribute toward realizing global carbon neutrality bysupporting and accelerating the energy transition toward
a decarbonized society of emerging and developing
countries. This engagement is regarded important both interms of realizing a decarbonized society and mitigating
JBIC’s future climate-related risk. For specific examples ofour engagement, please refer to page 34.

JBIC / Annual Report 2022

35

¢ Metrics and Targets
Number of Climate Change-related Finance
Projects Committed and Structured
As described in the “Strategies” section, JBIC has set
targets for green finance and transition finance under oneof the action plans, “Respond to energy transformation
toward the realization of a decarbonized society,” of its
Fourth Medium-term Business Plan. Using the numbersof projects committed and structured as our metrics, we

6have defined three-year targets covering the period of thebusiness plan and targets for each fiscal year and havebeen monitoring the status of achievement at the
Executive Committee.
The table below shows the targets and results
concerning the numbers of green finance and transition
finance projects committed and structured.

Sustainability

Evaluation Metrics

Three-year* Targets

FY2021 Targets

FY2021 Results

FY2022 Targets

Number of green finance projects committed

64

20

12

23

Number of green finance projects structured

66

23

31

23

Number of transition finance projects committed

19

4

4

10

Number of transition finance projects structured

45

19

22

12
* From FY2021 to FY2023

36

Climate FinanceGreenhouse Gas (GHG) Emissions

At the G7 Cornwall Summit, the Japanese government
declared that it provides climate finance, both public andprivate, totaling JPY6.5 trillion over the next five years,
from 2021 to 2025. At the World Leaders Summit held
during COP26, Japan again declared its additional
assistance on public and private finance of up to USD10
billion over the same five-year period. JBIC plays a role inthese support measures of the Japanese government.

JBIC is conducting analysis and examination on themeasurement of its GHG emissions as a metric to evaluate
and manage climate-related risks and opportunities.
We are committed to pursuing such efforts as climatechange-related finance and engagement to reduce GHG
emissions from our operations to net zero by 2030 and toachieve net zero GHG emissions in our finance portfolio
by 2050, toward the global implementation of the Paris
Agreement.

JBIC / Annual Report 2022

7. Outline of Operations in FY2021¢ Operational Highlights
COVID-19 era, JBIC supported Japanese companies in
the overseas expansion of high-quality infrastructure
toward a decarbonized society and the enhancement of
supply chain resilience, through the Post-COVID-19
Growth Facility established in January 2021.
The following is a report on JBIC’s major operations ineach sector during FY2021.

The total amount of commitments JBIC made during
FY2021 in loans, equity participations, and guarantees
was approximately ¥2,065.5 billion, which is a decrease of
20.5% from FY2020. As of March 31, 2022, theoutstanding amount of loans and equity participations wasapproximately ¥15,146.4 billion and the outstanding
amount of guarantees was approximately ¥1,724.8 billion,
for total of approximately ¥16,871.3 billion.
Until December 31, 2021, JBIC supported Japanesecompanies affected by COVID-19 in their overseas
business through the Emergency Window for Overcoming
the COVID-19 Crisis (COVID-19 Emergency Window),
which was established under the Growth Investment
Facility in April 2020 in order to address COVID-19.
Also, with the purpose of transforming the economic
structure and realizing a virtuous circle for the post-

Efforts in the Energy and Natural Resources
SectorAs Japan depends on imports from overseas for most of
its resources, it is an important challenge that the country
secures a stable supply of energy and mineral resources in
the medium to long term by increasing its self-development
ratio of those resources. JBIC contributes toward securing
a long-term stable supply of resources through financial

Commitments by Region(FY2021; unit: billions of yen)
出融資
・保証承諾状況（地域別）2018年度（平成30年度）

Untied Loans
47.8 (2%)

Asia
186.4

Others 16.3 (1%)

Equity Participations 35.2 (2%)
Guarantees
Export Loans89.1 (4%)
60.8 (3%)

Latin America andthe Caribbean 64.3

3%

Import Loans
239.0 (12%)

Total

9%

3%

Total

¥2,065.529%¥2,065.5

40%

Overseas
Investment
Loans
1,593.4 (77%)

7Outline of Operations in FY2021

Commitments by Purpose of Financing(FY2021; unit: billions of yen)
出融資
・保証承諾状況（金融目的別）2018年度（平成30年度）

North America
820.2

Oceania66.2

Europe593.6

15%
The Middle East
318.1

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

FY19551.0 (2%)

402.8

33.3

(74%)

356.4

FY1985

FY2000

¥61.3

(98%)

FY1970

174.0
(14%)

(6%)

182.4

233.5

(40%)

(Unit: billions of yen)

(21%)

523.7

(27%)

¥543.031.1 (6%)
7.4 (1%)
101.4

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

(26%)

321.4

68.5

(13%)

(43%)

67.4
(6%)

118.3
(10%)

¥888.4¥1,204.7

89.1 (4%)
1,593.4

FY2021¥2,065.5(77%)

239.0 (12%)
60.8 (3%)

47.8 (2%)
35.2 (2%)■ Export Loans ■ Import Loans ■ Overseas Investment Loans ■ Untied Loans ■ Governmental Loans ■ Guarantees ■ Equity Participations

JBIC / Annual Report 2022

37

support for acquisition of upstream interests in resources
development, diversification of supply sources andstrengthening of relationships with resource-rich countries.
In FY2021, JBIC made a total of nine financial commitmentsin the resources sector, amounting to approximately¥653.5 billion in loans.

Supporting Strategic Overseas Business
Activities by Japanese Companies
To support the overseas business deployment of Japanesecompanies, JBIC supports Japanese companies, throughits various financial instruments, in implementing theiroverseas business as well as maintaining and strengthening
their global supply chains, thereby contributing toward
maintaining
andincreasing
theinternational
competitiveness of Japanese industries.
JBIC supported M&A transactions by Japanesecompanies through providing loans for the acquisition ofan analog semiconductor company in the U.K. and aconvenience store business in the U.S. JBIC also providedloans for businesses in which Japanese companies
participate, including a medical device manufacturing andsales business in Vietnam and a synthetic structuralprotein material manufacturing business in the U.S. In
addition, JBIC made a joint investment with Japanesecompanies in a fund that invests in advanced technology
companies mainly in Silicon Valley, the U.S.

7
Outline of Operations in FY2021

Supporting Overseas Business Deployment ofJapanese Mid-tier Enterprises and SMEs
To assist Japanese mid-tier enterprises and small- andmedium-sized enterprises (SMEs) in expanding overseas,
JBIC made a total of 116 financial commitments,
aggregating approximately JPY16.6 billion in loans andguarantees in co-financing with Japanese regional financial
institutions. The support includes loans for an automotive
parts manufacturing and sales business in Mexico and arecycled asphalt mixture manufacturing and sales businessin Indonesia. In addition, JBIC, in cooperation withJapanese regional financial institutions, hosted various

seminars and events to provide information that might
help Japanese companies expand overseas.

Efforts in the Environment-related Sector
Under its GREEN Operations (for details refer to page 73),
JBIC provided a loan to support low-carbonization in theelectricity transmission and distribution sector of Saudi
Arabia and invested in a fund that invests in climate
infrastructure in developing countries and another fundthat invests in clean hydrogen-related projects around theworld. JBIC made a total of six financial commitments
amounting to approximately ¥95.4 billion in loans, equity
participations and guarantees in FY2021 under thisframework.
To support the overseas expansion of high-quality
infrastructure and overseas business activities toward adecarbonized society, JBIC provided loans for multiple
businesses including a hydrogen station construction andoperation business in the U.S. invested in by a Japanesecompany.

Supporting Japanese Companies with Local
Currency Loans
JBIC made 47 local currency1 financial commitments
totaling to the equivalent of approximately ¥109.9 billion inloans and equity participations. The loans include an
Indian rupee loan for a steel distribution and processing
center operation business and a Thai baht loan for a drywarehouse business, both invested in by Japanesecompanies.

Supporting through facilities
In FY2021, JBIC made a total of 174 financial commitments
under the Growth Investment Facility, amounting toapproximately ¥1,365.1 billion in loans and guarantees,and 22 financial commitments under the Post-COVID-19
Growth Facility, amounting to approximately ¥563.4 billion
in loans, equity participations and guarantees.
1. Currencies other than JPY, USD and EUR.

¢ Examples of Business Outcomes Relating to Studies and Collaboration with
Overseas Governmental Organizations and International Organizations
JBIC conducts research and surveys related to overseas
investment and international finance. These efforts include
collection and analysis of a wide range of information, as
well as knowledge sharing, while interacting with overseas
government organizations, foreign and domestic research
institutes, and experts in various fields.

Survey Report on Overseas Business Operations
by Japanese Manufacturing Companies
JBIC conducted the 33rd Survey Report on Overseas
Business Operations by Japanese Manufacturing
Companies. Conducted since 1989, this survey attempts
to identify the strategies and challenges of Japanesemanufacturing companies expanding overseas, andappeals to a broad audience for its originality and

38

JBIC / Annual Report 2022

continuity.
The FY2021 survey shows that a recovery to the preCOVID-19 pandemic level seems to be postponed inoverseas business as a whole due to the prolonged impact
of COVID-19 and uncertainties about the pandemic’s
aftereffects. In the ranking of promising countries/regions,
China remains at the top following last year’s survey andthe U.S. rises to third. In terms of external shocks supply
chain, there is a recognition that "disruption and pressure
on logistics" is an even bigger risk than COVID-19 and thatthe semiconductor shortage affects all industries.
Regarding digital transformation (DX), half of the companies
are advancing their adoption and the other half has not
yet to be started. In particular, advanced companies are
more likely to collaborate with foreign companies in DX.

1. Profile of JBIC

The survey shows that about 80% of companies expect
decarbonization to have an impact on their businesses
and that many companies are enthusiastic about reducing
emissions in supply chains, which are called Scope 3
emissions.
JBIC publishes its survey results and widely
announces related information, such as by holding online
seminars in FY2021. JBIC also hosts explanatory meetings
for Japanese chambers of commerce located overseas aswell as for foreign governments, and the survey’s results
have been effectively utilized in policy recommendations toforeign governments.

economic growth in the Indo-Pacific and promotesustainable infrastructure investment in the region throughcooperation among countries that share values toward therealization of a free and open Indo-Pacific. From TIP, theconference was attended by top executives from JBIC,
the United States International Development FinanceCorporation (DFC), the Department of Foreign Affairs andTrade (DFAT) of Australia, and Export Finance Australia(EFA) and agreed to promote financial cooperation foraddressing the growing demand for power in Vietnam,with a focus on energy transition.
Furthermore, in February 2022 JBIC held an online
meeting titled “JBIC-IFC Deep Dive” with the International
Finance Corporation (IFC). The meeting consisted ofseveral sessions to discuss the potential of the twoorganizations’ cooperation in key areas of focus andspecific approaches for structuring cooperative projects insome regions. The attendees exchanged their views on
climate change measures and cooperation in theenvironmental and infrastructure sectors in developing
regions such as Asia and Africa in a lively and open
manner. JBIC and IFC agreed to continue to further
cooperate in structuring specific projects.

7
Outline of Operations in FY2021

Collaboration with Overseas Governmental
Organizations and International Organizations
In FY2021, MAEDA Tadashi, Governor of JBIC (at thattime), participated in the Sustainability Leaders Summit, avirtual event held by the Sustainability Leaders Council in
October 2021 to discuss climate change and other issues
toward the realization of sustainability. At this event,participants discussed topics such as plastic waste andclimate change in Asia. The Sustainability Leaders Council
was jointly established by Eurasia Group, GZERO Media,
and Suntory Holdings Limited to advance sustainability
agendas in Asia. JBIC participates as a sponsoring partnerof the Council.
In November 2021, JBIC participated in the 2021
French-Japanese Business Summit hosted by French
Chamber of Commerce and Industry in Japan. HAYASHI
Nobumitsu, JBIC Deputy Governor (at that time), delivereda presentation at the panel discussion about “Financing
the Future: Finance as a Key Pillar to Enable Sastainable
Transformations.” His presentation introduced (1) JBIC’s
Medium-term Business Plan that includes JBIC’s action
plan of green finance and transition finance, (2) JBIC’s
ESG Policy, in which JBIC declares that it is committed topursuing efforts to reduce its operational greenhouse gas
emissions to net zero by 2030, and to achieve net zero
emissions in its finance portfolio by 2050, and (3) financial
commitments JBIC had made in loans and equity
participation for green projects collaborating with French
and Japanese companies. Following the presentation, thepanelists and the moderator exchanged their views on
financing for realizing a sustainable society.
Also, the Australia-Japan-United States Trilateral
Infrastructure Partnership (TIP) held a virtual conferencewith the Deputy Chair of the Communist Party of Vietnam(CPV) Central Economic Commission (CEC) and senior
officials of the Ministry of Industry and Trade (MOIT) ofVietnam in January 2022. The TIP is an initiative to drive2021 French-Japanese Business Summit

JBIC / Annual Report 2022

39

¢ Operation Results
JBIC made total disbursements of ¥2,075.7 billion in FY2021
Planned and Actual Lending and Investments(Unit: billions of yen)

FY2018FY2019FY2020

FY2021

PlannedActualPlannedActualPlanned

352.9

100.0

345.3

174.1

308.0

71.2

308.0

71.2

1,730.0

1,269.6

1,681.3

1,490.0

1,900.0

1,699.5

1,700.0

1,898.5

Untied Loans

50.0

39.2

80.0

9.7

87.0

76.6

587.0

68.6

Equity Participations

124.0

42.4

115.0

30.2

105.0

12.7

105.0

37.3

2,256.9

1,451.3

2,221.6

1,704.1

2,400.0

1,860.2

2,700.0

2,075.7

Export Loans
Import Loans and Overseas
Investment Loans

Total

ActualPlannedActual¢ Financial Results

7

Principles of Accounting

Outline of Operations in FY2021(1) Separate Accounting
Pursuant to Article 26-2 of the Japan Bank for International
Cooperation Act, JBIC shall apply separate accounting toOperations other than the Special Operations (Ordinary
Operations) and Special Operations.
(2) Preparation of Financial Statements
Pursuant to the Companies Act and Article 26 of theJapan Bank for International Cooperation Act, JBIC
prepares financial statements and submits them to the
Minister of Finance. The report on the final settlement ofaccounts is submitted to the government of Japan,
together with the financial statements and, after
examination by the Board of Audit of Japan, to the Diet.
Pursuant to the Companies Act, JBIC prepares
consolidated financial statements and pursuant to Article
5 of the Ordinance of the Ministry of Finance regarding
Japan Bank for International Cooperation, JBIC submits
the consolidated balance sheet and the consolidated
statement of operations to the Minister of Finance.

Ordinary Operations(1) Statement of Operations
In FY2021, JBIC recorded ¥226.2 billion in Interest Incomeand ¥309.4 billion in Ordinary Income. This was for various
reasons including support for promoting the acquisition ofinterest, and the development of natural resources, andthe overseas operations of Japanese companies such as
infrastructure projects and efforts to facilitate businessoverseas to preserve the global environment. On the other
hand, JBIC recorded ¥294.8 billion in Ordinary Expenses
as a result of posting ¥135.3 billion in Interest Expenses,
such as Interest on bonds. As a result, Ordinary Profit andNet Income both amounted to ¥14.6 billion.

40

JBIC / Annual Report 2022

(2) Balance Sheet
Total Assets amounted to ¥18,103.7 billion. This was due
primarily to an increase in Loans and Bills Discounted(increased by ¥1,197.8 billion to ¥14,723.0 billion
compared with FY2020). Total Liabilities amounted to¥15,520.1 billion. This was mainly due to an increase in
Bonds Payable owing to the issuance of new bonds(increased by ¥670.0 billion to ¥5,634.9 billion from theend of FY 2020). Total Net Assets was ¥2,583.6 billion.
This was due mainly to the capital increase and Net
Income of ¥14.6 billion, despite the payment to nationaltreasury through appropriation of retained earnings in
FY2020.

Special Operations(1) Statement of Operations
In FY2021, Ordinary Income was ¥1.8 billion. This wasdue mainly to Interest Income of ¥1.8 billion. On the other
hand, JBIC recorded ¥1.7 billion in Ordinary Expenses asa result of posting ¥0.5 billion in Interest Expenses, such
as Interest on Interest Swaps. As a result, Ordinary Profit
and Net Income both amounted to ¥0.1 billion.
(2) Balance Sheet
Total Assets amounted to ¥320.0 billion. This was due
mainly to an increase in Loans and Bills Discounted(increased by ¥4.4 billion to ¥36.0 billion compared withthe end of FY2020) and an increase in Securities due to
new investments (increased by ¥13.2 billion to ¥15.8
billion compared with the end of FY2020). Total Liabilitieswas ¥6.2 billion. Total Net Assets was ¥313.7 billion. Thiswas due mainly to a Net Income of ¥0.1 billion.

1. Profile of JBIC

The Tenth Term for JBIC (FY2021)[Consolidated Financial Statements]
Consolidated Statement of Operations

Consolidated Balance Sheet(April 1, 2021–March 31, 2022; unit: millions of yen)

(As of March 31, 2022; unit: millions of yen)Accounts

Amounts

Assets
Accounts

Ordinary Income

313,480

Cash and Due from Banks

Interest Income

227,973

Securities

Fees and Commissions

26,100

Other Ordinary Income

31,416Loans and Bills Discounted
14,759,174 Other Liabilities

Note 8Other Income

27,989Ordinary Expenses
Interest Expenses

Note 7

Other Assets

Note 8.9

Liabilities and Net Assets
Accounts
Amounts

Amounts

1,451,153 Borrowed Money

7,554,208

328,053 Bonds Payable

Note 9609,336602,264 Provision for Bonuses

296,089

Property, Plant and Equipment

Note 10

29,229 Provision for Directors’ Bonuses

135,363

Intangible Assets

9,170 Net Defined Benefit Liability

Customers’ Liabilities
for Acceptances andGuarantees
Note 8

1,721,217

Allowance for Loan Losses

5,634,984

597
9
6,056

Fees and Commissions
Payments

3,492

Other Ordinary Expenses

1,988

General and Administrative
Expenses(470,834) Acceptances and Guarantees

1,721,217

21,713

Total Liabilities

15,526,462

Other Expenses

133,531

Capital Stock2,023,800

17,391Retained Earnings

Ordinary Profit

Provision for Directors’
Retirement Benefits

4

Total Shareholder’s Equity

0

Valuation Difference on
Available-for-sale Securities
Deferred Gains or Losses on
HedgesForeign Currency Translation
Adjustment
Total Accumulated Other
Comprehensive Income (Loss)

Income Taxes – Current

48

Total Income Taxes48

Net Income

17,345Net Income Attributable toNon-controlling Interests
Net Income Attributable to
Owner of Parent

46
17,299Non-controlling Interests
Total Net Assets
Total Assets

3,000,753
16,084

Outline of Operations in FY2021

Extraordinary Income

17,394

7

976,953

Extraordinary LossNet Income Before Income
Taxes

51

(116,730)
2,508(98,136)350
2,902,967

18,429,429 Total Liabilities and Net Assets 18,429,429

Note: See Notes 7 to 10 on pages 30 to 31 of Appendix for details.

[Non-consolidated (JBIC only)]Statement of Operations

Balance Sheet(April 1, 2021–March 31, 2022; unit: millions of yen)

(As of March 31, 2022; unit: millions of yen)Accounts

Amounts

Assets
Accounts

Ordinary Income

309,943

Cash and Due from Banks

Interest Income

227,537

Securities

Fees and Commissions

25,770Loans and Bills Discounted

Other Ordinary Income

31,394

Other Assets

601,519 Provision for Bonuses

Amounts

Liabilities and Net Assets
Accounts
Amounts

1,450,470 Borrowed Money

7,554,208

323,829 Bonds Payable

5,634,984

14,759,174 Other Liabilities

609,212597

Other Income

25,240Property, Plant and Equipment

29,206 Provision for Directors’ Bonuses

9

Ordinary Expenses

295,171

Intangible Assets

9,169 Provision for Retirement Benefits

6,056Interest Expenses

135,363

Customers’ Liabilities for
Acceptances and Guarantees

1,721,217

Provision for Directors’
Retirement Benefits

51

Allowance for Loan Losses(470,834) Acceptances and Guarantees

1,721,217

Fees and Commissions
Payments

2,829

Other Ordinary Expenses

1,988

Total Liabilities

15,526,338

General and
Administrative Expenses

21,458

Capital Stock2,023,800

Other Expenses

133,531

Ordinary Profit
Extraordinary Income
Extraordinary LossNet Income

Retained Earnings

974,259

Total Shareholder’s Equity

14,7714
0
14,774

Total Assets

2,998,059

Valuation Difference on
Available-for-sale Securities
Deferred Gains or Losses on
HedgesTotal Valuation and Translation
Adjustments(116,730)

Total Net Assets

2,897,414

16,084(100,645)

18,423,753 Total Liabilities and Net Assets 18,423,753

JBIC / Annual Report 2022

41

[Ordinary Operations Account]
Statement of Operations

Balance Sheet(April 1, 2021–March 31, 2022; unit: millions of yen)Accounts

Amounts

Ordinary Income

309,480

Cash and Due from Banks

Interest Income

226,273

Securities

Fees and Commissions

25,770Loans and Bills Discounted

Other Ordinary Income

32,146

Other Assets

598,283 Provision for Bonuses

Other Income

25,289Property, Plant and Equipment

29,206 Provision for Directors’ Bonuses

9

Ordinary Expenses

294,854

Intangible Assets

9,169 Provision for Retirement Benefits

6,023Interest Expenses

135,362

Customers’ Liabilities
for Acceptances andGuarantees

1,721,217

Provision for Directors’
Retirement Benefits

51

Allowance for Loan Losses(470,492) Acceptances and Guarantees

1,721,217

Total Liabilities

15,520,116

Capital Stock

1,710,500

Fees and Commissions
Payments

2,752

Other Ordinary Expenses

1,988

General and Administrative
Expenses

21,136

Other Expenses

133,614

Ordinary Profit

7(As of March 31, 2022; unit: millions of yen)

Assets
Accounts

1,185,333 Borrowed Money

7,550,008

307,946 Bonds Payable

5,634,984

14,723,082 Other Liabilities

607,234

Retained Earnings

14,625Extraordinary Income

4

Extraordinary Loss0

Outline of Operations in FY2021

Net Income

Amounts

Total Shareholder’s Equity

14,629Total Assets[Special Operations Account]
Statement of Operations

Liabilities and Net Assets
Accounts
Amounts

974,230
2,684,730

Valuation Difference on
Available-for-sale Securities
Deferred Gains or Losses on
HedgesTotal Valuation and Translation
Adjustments(116,848)

Total Net Assets

2,583,630

15,748(101,100)

18,103,746 Total Liabilities and Net Assets 18,103,746

Balance Sheet(April 1, 2021–March 31, 2022; unit: millions of yen)

(As of March 31, 2022; unit: millions of yen)Accounts

Amounts

Assets
Accounts

Ordinary Income

1,896Cash and Due from Banks

265,137 Borrowed Money

4,200

Interest Income

1,809

Securities

15,882 Other Liabilities

2,018

Loans and Bills Discounted

36,092 Provision for Bonuses

10

Other Assets

3,276 Provision for Directors’ Bonuses

0

Allowance for Loan Losses(342) Provision for Retirement Benefits

32

Other Income

86

Ordinary Expenses

1,750Interest Expenses

545

Amounts

Liabilities and Net Assets
Accounts
Amounts

Fees and Commissions
Payments

77

Provision for Directors’
Retirement Benefits

Other Ordinary Expenses

752

Total Liabilities

6,262

General and Administrative
Expenses374

Capital Stock

313,300

Other Expenses

Retained Earnings

0

Ordinary Profit

145

Net Income

145

Total Shareholder’s Equity
Valuation Difference on
Available-for-sale Securities
Deferred Gains or Losses on
HedgesTotal Valuation and Translation
Adjustments
Total Net Assets
Total Assets

42

587

JBIC / Annual Report 2022

320,046 Total Liabilities and Net Assets

028
313,328336
118
454
313,783
320,046

1. Profile of JBIC

¢ Funding Sources
JBIC finances its operations through various sources,
including borrowings from the Fiscal Investment and Loan
Program (FILP) Fiscal Loan, Government-guaranteed
Foreign Bond issuance, Government-guaranteed Longterm Loans in Foreign Currency, FILP Agency Bondissuance, Capital Contributions from FILP Industrial
Investment, and borrowings from the Foreign Exchange
Fund Special Account.
As JBIC provides long-term financing, its operations
are financed by long-term funds to match maturities
between funding and lending instruments.

Borrowings from FILP Fiscal Loan, Governmentguaranteed Foreign Bond issuance, Governmentguaranteed Long-term Loans in Foreign Currency, andCapital Contributions from FILP Industrial Investment,
etc., are included in the national budget (either as an itemin the General Account budget or the Special Accountbudget), and requests for them are submitted to the Diet
for approval along the operating budget of JBIC. Recent
funding results and plans for FY2022 are shown in thetable below.

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

FY2018 Actual

FY2019 Actual

FY2020 Actual

FY2021 Actual FY2022 Planned

20.1

98.5

80.0

60.0

85.0

109.6

43.7

14.9

11.5

401.0

Borrowing from Foreign Exchange Fund Special
Account

654.9

422.9

2,051.1

1,299.1

—

—

—

—

—

40.0

724.2

849.4

833.4

642.3

1,836.0

Government-guaranteed Long-term Loans in
Foreign Currency
Government-guaranteed Foreign Bonds*
FILP Agency Bonds*

—

—

—

—

20.0

(57.4)

289.5(1,119.2)

62.7(82.0)

1,451.3

1,704.1

1,860.2

2,075.7

2,300.0

Other Sources of Funds, Including Repayments
Total

7
Outline of Operations in FY2021

Capital Contribution from FILP Industrial Investment
Borrowing from FILP Fiscal Loan

* Figures for bonds are indicated at face value.

Funding Sources

Financial Market
FILP Bonds
Special Account for Fiscal
Investment and Loan
Program (FILP) Fund
Investment
Fund AccountFiscal Loan
Fund Account

CapitalContribution

Loans

Foreign
Exchange Fund
Special Account
Loans

Governmentguaranteed
Foreign Bonds

FILP Agency
Bonds

Governmentguaranteed
Long-term
Loans in Foreign
Currency

Internal Funds** Repayments, etc.

Loans /
Equityparticipations

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

JBIC / Annual Report 2022

43

Government-guaranteed Foreign Bonds
JBIC raises part of its funds by issuing Governmentguaranteed foreign bonds in international capital markets.
Outstanding Government-guaranteed foreign bonds atthe end of FY2021 amounted to ¥5,584.4 billion at facevalue, which accounts for 42.31% of the total outstanding
borrowings and bonds. JBIC provides foreign currency
loans when necessary to effectively implement policy, andfunds raised by issuing Government-guaranteed foreign
bonds are used as a source of those loans.
In October 2021, JBIC developed the JBIC Green
Bond Framework aligned with the Green Bond Principles
2021 published by the International Capital Market
Association (ICMA) and in January 2022 JBIC issued its
first Green Bond. This Green Bond is also the first initiative
for a Government-guaranteed foreign green bond. The
proceeds from the issuance of this Green Bond will be
used as funds needed for renewable energy projects
toward a decarbonized society and green finance towardgreen mobility.
In the FY2022 budget, JBIC plans to issue in the
total amount of up to ¥1,836.0 billion in Governmentguaranteed foreign bonds.
JBIC’s Government-guaranteed foreign bonds
receive the same ratings as the Government of Japan
from the rating agencies (A1 from Moody’s Japan K.K.
(Moody’s) and A+ from S&P Global Ratings Japan Inc.

7
Outline of Operations in FY2021
44

JBIC / Annual Report 2022

(S&P) as of September 1, 2022). Since they are treatedas assets for which the Bank for International Settlements(BIS) assigns zero risk weight in calculating the capital
adequacy ratio for depository institutions, these bonds
provide a quality investment opportunity for investors ininternational capital markets.

FILP Agency Bonds
In compliance with the government policy to reform FILP,JBIC has issued bonds without government guarantees(FILP agency bonds) in the Japan’s capital market
since FY2001, thereby raising funds based on its own
creditworthiness. JBIC plans to issue up to ¥20.0 billion
in FY2022.
FILP agency bonds that JBIC has already issued
received the same ratings as the Government of Japan(as of September 1, 2022) as shown below. They aretreated as assets for which BIS assigns 10% risk weightin calculating the capital adequacy ratio for depository
financial institutions.
Rating & Investment Information, Inc. (R&I) ......... AA+
Japan Credit Rating Agency, Ltd. (JCR) ............. AAA
Moody’s ................................................................A1
S&P ..................................................................... A+

2.
The Environment Surrounding JBIC
and Its Challenges
1. Energy and Natural Resources Finance Group·······················46
2. Infrastructure and Environment Finance Group······················52
3. Industry Finance Group···························································58
4. Equity Finance Group······························································64

JBIC / Annual Report 202245

1. Energy and Natural Resources Finance Group
Message from the Global Head of the Group
Since Japan’s postwar reconstruction and high-growth periods,
the Energy and Natural Resources Finance Group has been
responsible for providing financing for promoting the overseas
development and securement of resources which are importantfor Japan, including energy resources, such as oil and naturalgas, as well as mineral resources while maintaining andimproving the international competitiveness of the steel, nonferrous metals, and paper industries that turn these resources
into materials.
Nowadays, in addition to the growing importance of energy
transition toward the realization of a decarbonized society, thecircumstances are changing rapidly around the world, such as
the surge of resource prices and the trend toward diversifying
resource suppliers, attributable partly to the Russian invasionof Ukraine, and the initiatives on solutions to social issues,
such as healthcare and food security. Against this backdrop,
the Energy and Natural Resources Finance Group continues
the measures for securing important natural resources, suchas LNG, and is also placing greater focus on supporting theidentification and formation of projects in four fields: (1) securing
clean energy sources, such as hydrogen and fuel ammonia,
and building a supply chain for such resources, (2) supporting
energy transitions in emerging countries, (3) rebuilding the
supply chain for critical minerals and enhancing its resilience, and (4) supporting businesses that contribute toward
solving social issues in emerging countries, such as African and South American nations. JBIC will contribute to
the achievement of the above aim by providing long-term funding to supplement private-sector funds and further
enhancing risk taking ability.
In addition, on July 1, 2022, the Oil and Gas Finance Department was renamed as the Energy Solutions Finance
Department, and the Energy Transformation Strategy Office was established to centrally take charge of hydrogenand ammonia-related projects. With this restructuring, we will further enhance our support for the smooth transitionof energy and for future clean energy toward the realization of a decarbonized society.

1
Energy and Natural Resources Finance Group		INABA Yutaka				Managing Executive Officer
Global Head of Energy and Natural Resources Finance Group

Business Environment and Key Challenges
As agreed during the 26th Conference of the Parties tothe United Nations Framework Convention on Climate
Change (COP26) in November 2021, in order to achieve
the 1.5°C target of the Paris Agreement, countries aroundthe world are continually pushing forward climate change
initiatives. In its Strategic Energy Plan, the governmentof Japan aims to utilize renewables, such as wind,solar, and biomass, as major sources of power and toachieve decarbonization through power generation usinghydrogen and ammonia and innovative thermal power
generation with CO2 emission reduction measures, such
as CCUS and carbon recycling. At the same time, theworld’s energy situation is undergoing a significant shiftsince the Russian invasion of Ukraine, as the supply anddemand for resources, such as oil, gas, and mineral
resources, have tightened and energy prices have surged,
urging multiple countries to quicken their pace to securesuppliers of these commodities without relying on Russia.
This is a momentous time for Japan, a large importer

46

JBIC / Annual Report 2022

of natural resources, as it has to direct its attention to
the current energy security, while endeavoring to attainenergy transition toward the realization of a decarbonizedsociety.
In these global circumstances and market
conditions, the roles that JBIC is required to play diversify
to encompass, amongst other things, proposing energy
solutions to secure important resources and address
climate change in a balanced manner, helping thedevelopment of zero emission energy from hydrogenand fuel ammonia, and supporting the security of thestrategic resources, such as semiconductors and battery
materials, while strengthening the resilience of the entire
supply chain. To address these issues, flexible andproactive financial support of JBIC is essential.
1. CCUS (Carbon dioxide Capture, Utilization and Storage) is a technology
for utilizing separated and stored carbon dioxide.

2. The Environment Surrounding JBIC and Its Challenges

JBIC’s Activities
JBIC is endeavoring to identify and form new projects thatwill contribute toward securing a stable supply of energy
sources, mineral resources, etc. and to cultivate relations
with governmental dignitaries and government-related
entities of each country in order to address global issues,

such as energy transformation toward the realization of adecarbonized society, and social issues and to strengthen
the resilience of strategic materials’ value chain. Below
are the major achievements of the Energy and Natural
Resources Finance Group in FY2021.

¢ Addressing Global Issues
MOU with ADNOC of the UAE and PIF of Saudi Arabia
Building Relationships with Governmental Institutions in Resource-rich Countries toward theRealization of a Decarbonized Society
JBIC concluded a memorandum of understanding (MOU) with Abu Dhabi National Oil Company (ADNOC) of the
UAE with the aim of strengthening the strategic partnership on multiple sectors, including decarbonization, energy
transition, and energy efficiency. JBIC also signed an MOU with the Public Investment Fund (PIF), Saudi Arabia’s
sovereign wealth fund that plays a leading role in advancing Saudi Arabia’s economic transformation. The purposeof this MOU is to strengthen the partnership between the two organizations in such sectors as decarbonization,
digital transformations, and smart city development.
The Middle East, which has high potential in the decarbonization sector with abundant resources for renewableenergy and subterranean structures suitable for CCS1 and CCUS, has been an important energy source supplierfor Japan. JBIC aims to cultivate relations with governmental institutions of resource-rich countries that play animportant role in such sectors to support Japanese companies in their business expansion in the Middle East.

1
Energy and Natural Resources Finance Group

Note 1. Carbon dioxide Capture and Storage (CCS) is a technology for separating and recovering carbon dioxide, which is a greenhouse gas, andstoring this in the deep ocean or ground.

MOU with FONPLATA Development Bank
Collaboration in South America for Realizing Decarbonized Society
JBIC concluded an MOU with FONPLATA Development Bank (FONPLATA) for enhancing active collaboration
for promoting the business of Japanese companies in a wide range of areas, particularly in the realization ofa decarbonized society. Under this MOU, JBIC will establish a further enhanced relationship with FONPLATA
and its member countries, namely, Argentina, Bolivia, Brazil, Paraguay, and Uruguay, through dialogue, and it isexpected to further promote the activities
of Japanese companies that aim to
expand their business in South America.
Moreover, this MOU is also expected
to contribute toward the activation ofbusinesses related to decarbonization,such as in areas of renewable energies
and hydrogen.

Concluding the MOU with FONPLATAJBIC / Annual Report 2022

47

Loans for Gas Field Development Projects of Australian Companies AWE Perth Pty
Ltd and JERA Barossa Pty Ltd
Securing Natural Gas and LNG as Sources of Transition Energy
JBIC concluded a loan agreement to provide the funds required to implement the second-stage development
project of the Waitsia gas field in Australia, in which Mitsui & Co., Ltd. holds interests, and another loan agreement
for JERA Barossa Pty Ltd, an Australian company invested in by JERA Co., Inc. to acquire a stake in the Barossa/
Caldita gas field, also in Australia.
With global initiatives accelerating toward the realization of a decarbonized society and carbon neutrality,
natural gas is attracting attention as a source of energy during the energy transition, and the growing global
demand for LNG is projected to continue. In addition, impacted by the Russian invasion of Ukraine, the stabilityof the LNG market has become a pressing issue. By supporting natural gas and LNG projects where Japanesecompanies participate, JBIC contributes toward securing energy sources and promoting the energy transition.

Loan for Afforestation and Woodchip Manufacturing and Sales Business of Brazilian
Company Amapá Florestal e Celulose S.A.

1
Energy and Natural Resources Finance Group

Supporting a Japanese Company for Securing a Long-term Stable Supply of Woodchips
JBIC concluded a loan agreement with Amapá Florestal e Celulose S.A. (AMCEL), a Brazilian subsidiary of
Nippon Paper Industries Co., Ltd. The loan is intended to finance the funds necessary for AMCEL to expand its
afforestation and woodchip manufacturing andsales business in the State of Amapá in Brazil.
Part of the woodchips produced by thisproject are planned to be imported to Japanfor producing paper and as a biomass fuel, andthe project is expected to contribute toward
the long-term stable securing of woodchips.
Also, Nippon Paper Industries plans to supply
the woodchips manufactured by AMCEL
to a biomass mono-fuel combustion power
plant in Tomakomai-shi in Hokkaido, which
will contribute toward preserving the global
environment.
Afforestation in the State of Amapá in Brazil

Partial Acquisition of Publicly Offered Samurai Bonds Issued by the Government of
Uruguay
Supporting Vitalization of Samurai Bond Market and Strengthening the Cooperation with
Government of Uruguay
JBIC partially acquired the yen-denominated foreign bonds (Samurai bonds) issued by the government of Uruguay
through public placement in the Japanese market. Previously, in 2007 and 2011, JBIC guaranteed the Samurai
bonds issued by the government of Uruguay to assist the issuance. Providing such phased support is beneficial tomaintain and increase the presence of bonds issued by the government of Uruguay in the Tokyo bond market, andfurthermore, it contributes to broadening of investment opportunities for Japanese investors, thereby stimulating
the Samurai bond market.
The funds raised by the Samurai bonds issued have been appropriated for, inter alia, importing vaccines
under the COVID-19 Solidarity Fund, thereby contributing to solving social issues of Uruguay.

48

JBIC / Annual Report 2022

2. The Environment Surrounding JBIC and Its Challenges¢ Strengthening the Resilience of Value Chains
Loan for Zirconium Oxychloride Manufacturing and Sales Business of Vietnam Rare
Elements Chemical Joint Stock Company
Supporting Overseas Business Expansion of Mid-tier Enterprises and SMEs and Securinga Stable Mineral Resource Supply
JBIC concluded a loan agreement with
Daiichi Kigenso Kagaku Kogyo Co.,
Ltd. (DKK). The loan is intended tofinance, through DKK, part of the funds
necessary for Vietnam Rare Elements
Chemical Joint Stock Company, aVietnamese company, to conduct
manufacturing and sales business ofchemical products, including zirconium
oxychloride.
Thezirconiumoxychloride
manufactured by this project will be
imported to Japan. It will be a raw
material for zirconium compounds that
After construction of VREC 2 in Vietnam
will be used for various industrial goods,
such as emissions purification catalysts
for automobile and industrial use, electronics parts such as oxygen sensors, refractory materials, and automotive
brake pads. This transaction contributes toward the DKK’s overseas business expansion and the stable supply of
zirconium, a strategic mineral resource.

1
Energy and Natural Resources Finance Group

Loan for Quellaveco Copper Mine Additional Development Project in Peru
Supporting Stable Supply of Base Metals for JapanJBIC concluded a loan agreement with Mitsubishi Corporation (Mitsubishi). This loan is intended to provide partof the funds that Mitsubishi will provide for introducing a coarse particle flotation process, which enables copper
recovery from coarse copper ores, to the Quellaveco Copper Mine Development Project, invested in by Mitsubishi.
Mitsubishi owns 40% interest in the Quellaveco Copper Mine and will offtake the equivalent proportion of themine’s products, such as copper concentrates, which Mitsubishi plans to supply to buyers including Japanesesmelters. The loan supports the development of the copper mine in which the Japanese company holds interests.
It also contributes toward securing a stable supply of copper, the demand for which is expected to continue torise in the global trend toward decarbonization,

Quellaveco Copper Mine in Peru

JBIC / Annual Report 2022

49¢ Future Business Strategy
The circumstances and market conditions concerningenergy are at a major turning point as we face challenges
such as smooth energy transitions to address climatechange, reductions of CO2 emissions, and the securityof energy. Furthermore, there is a growing need to deal
with uncertainties, including increased geopolitical risk.
JBIC will promote efforts toward these global agendas
by proactively supporting Japanese companies activities
to acquire interests in and develop resources overseas
and to develop next-generation energy, as well as
by enhancing the resilience of supply chains of suchcommodities as energy resources and mineral resources,
while addressing climate change.

(1) Addressing Global Issues
As a response to the energy transformation for therealization of a decarbonized society, JBIC will focus
on green innovation initiatives, such as the constructionof a hydrogen value chain spanning manufacturing,transportation, and supply to utilization, and green
mobility (green finance).
Moreover, JBIC will support initiatives for cocombustion of ammonia and hydrogen, CCS/CCUS,
and the natural gas business (natural gas conversion,
expansion of use, etc.) in emerging countries centeredaround Asia, and will also continuously support projects
for reducing CO2 emission in the steel and smelting
industries, in order to contribute toward the expansionof businesses that help reduce the environmental impact
while actively participating in the sustainable energy
transition by host countries (transition finance).

1
Energy and Natural Resources Finance Group50

JBIC / Annual Report 2022

Also, JBIC will actively support projects that
contribute toward solving such social issues as accessto basic infrastructure, including medical services andfood supplies, in such emerging countries as African andSouth American nations for sustainable growth of hostcountries (social impact finance).

(2) R esponses for Building an International
Supply Chain for Critical Minerals
JBIC will strengthen its initiatives for building aninternational supply chain by securing the importantminerals known as critical minerals, including rare metals,
such as nickel and lithium, as well as copper, which isessential for realizing a decarbonized society
As a significant growth of demand is anticipatedfor such metals as copper and lithium, highly innovative
initiatives, including advanced recycling, will be neededin securing important minerals in order to realize
carbon neutrality in 2050. Securing important minerals,
however, involves challenges. For example, for a lot ofminerals, the mining, refining, and smelting technologies
are yet to be established and reserves are unevenly
distributed, making certain countries and regions
the center of production and processing. In its Green
Growth Strategy, the government of Japan stated that it
would muster all possible and necessary policies. Froma medium- to long-term perspective, JBIC will actively
support efforts toward decarbonization in this field toplay a part in these efforts.

2. The Environment Surrounding JBIC and Its Challenges

JBIC’s Major Projects of Energy and Natural Resources(Cumulative commitment amount for energy and natural resources projects over the last 10 years:
Approximately JPY 6.6 trillion)▲Tungsten Mine, Portugal▲Tempa Rossa Oil Field▲BTC Pipeline●IGBC Shale Gas▲Kashagan Oil Field, Kazakhstan●Montney Shale Gas▲ACG Oil Field, Azerbaijan▲Kharassan Uranium Mine, Kazakhstan●Coal Bed Methane Project▲West Mynkuduk Uranium Mine, Kazakhstan▲Hangingstone Oil Sands●Yamal LNG●Arctic LNG 2●Block 05-1b and 05-1c Gas Field▲Pogo Gold Mine
▲Sakhalin I▲Alouette Aluminium
Smelter, Canada▲Los Gatos Zinc Mine

●Saudi Methanol

Energy and Natural Resources Finance Group■Morenci Mine

●Qatar LNG▲Amic-Toho,
Saudi Arabia

1●LNG Canadian Project●▲Sakhalin II ▲Petra Nova CO2-EOR Project▲Eagle Ford Shale Oil & Gas●Eagle Ford Shale Oil & Gas●Cameron LNG●Freeport LNG●Methanol and DME Project, Trinidad and Tobago▲Taganito Nickel Project●Tiga LNG, Malaysia●Kangean Oil & Gas Field▲Vijachip▲Woodchip, Indonesia●Browse LNG●Wheatstone LNG●Pluto LNG●Gorgon LNG▲Shark Bay Salt Field●Venezuela Methanol●Donggi-Senoro LNG●Tangguh LNG●PNG LNG●BayuUndan LNG●Barossa Gas Field●Prelude FLNG
●Ichthys LNG●Curtis LNG3▲AMAZON Alumina Refinery/ Aluminum Smelter, Brazil■Quellaveco Copper Mine, Peru
▲Bayovar Phosphate Mine, Peru
■Cerro Verde Copper Mine, Peru

▲San Cristobal Zinc Mine, Bolivia▲Abra Lead Mine
●Waitsia Gas Field▲Molybdenum Project, Chile■Quebrada Blanca Copper Mine, Chile■Antucoya Copper Mine, Chile■Sierra Gorda Copper Mine, Chile■Escondida Copper Mine, Chile■Caserones Copper Mine, Chile■Stock Acquisition of Anglo American Sur, Chile■Los Pelambres Mine, Chile▲New Zealand Forestation▲Frade Oil Field, Brazil▲Forestation, Brazil▲Abu Dhabi Oil & Gas Field▲Advance Payment Loan to ADNOC▲CBMM Niobium Mine, Brazil■Roy Hill Iron Ore Mine

▲Hail Oil Field■Jimblebar Iron Ore Mine

▲Abu Dhabi Onshore Oil Fields■West Angelas Iron Ore Mine

■Vale Iron Ore Import, Brazil▲Satah and Umm Al-Dalkh Oil Field▲Zakum Oil Fields▲Ambatovy Nickel●Mozambique LNG (Area 1)▲MOZAL Aluminum Smelter, Mozambique▲Assmang Iron, Zinc, Chrome Ore Mine, South Africa■Assmang Iron, Zinc, Chrome Ore Mine, South Africa▲Oil ■Copper ●Natural Gas ▲Other Mineral ■Iron Ore Resources, etc* Including projects that were approved for funding by JBIC more than 10 years ago.

As of July 31, 2022

JBIC / Annual Report 2022

51

2. Infrastructure and Environment Finance Group
Message from the Global Head of the GroupCOVID-19 has not only affected people’s everyday lives but
has also spurred a dramatic transformation in the businessenvironment. At the same time, amid efforts aimed at recoveringfrom the pandemic, discussions on global decarbonization
have advanced significantly, as typified by green recovery. As
these major changes unfold, in 2021, JBIC also formulated a
Medium-term Business Plan (FY2021–FY2023). In addition,
JBIC formulated and announced its ESG policy, based on the
recent trends such as the rapidly enhanced initiatives of theinternational economy and society to address climate change,in advance of the 26th Conference of the Parties to the United
Nations Framework Convention on Climate Change (COP26).
The Infrastructure and Environment Finance Group will focus
especially on supporting projects that contribute toward
solving global issues such as realizing a globally decarbonizedsociety and enhancing the resilience of Japanese companies’
supply chains. Regarding realizing a decarbonized society, we
believe an approach focused on engagement that encourages
initiatives led by individual host countries based on thecircumstances of each country is crucial. JBIC will leverage thestrong relationships and dialogue channels it has cultivated ineach country to support energy transitions and projects that
aim to realize a decarbonized society. Also, for infrastructure
projects with high project costs or risks, JBIC, as a policy-based financial institution, will support the business ofJapanese companies through multilateral collaboration and cooperation with international organizations.

2
Infrastructure and Environment Finance Group		UCHIDA Makoto				Managing Executive Officer
Global Head of Infrastructure and Environment Finance Group

Business Environment and Key Challenges
Based on the Fourth Medium-term Business Plan
(FY2021–FY2023), the Infrastructure and Environment
Finance Group considers the following fields to be its
key challenges. The Group will focus on projects that
contribute toward addressing global issues such as
realizing a decarbonized society and projects such as
those for rebuilding and strengthening the resilience of
supply chains that will support Japanese companies inConceptual diagram of the Warsan waste-to-energy project in the
Emirate of Dubai

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JBIC / Annual Report 2022

the era of rapid industrial and social transformation.

(1) Address Global Issues
Without even having to examine specific cases, the major
trend toward decarbonization is advancing, as Japan’s
policy goal of attaining carbon neutrality was announced
during a general policy speech in October 2020 by Prime
Minister (at that time) SUGA Yoshihide. At the world level
as well, there are ongoing noteworthy movements suchas the commitment to achieve net zero by 2050 madeby the G7 countries at the G7 Cornwall Summit in June
2021 and the 1.5°C target set at COP26 in October 2021,
which is more challenging than the Paris Agreement goal.
There are a diverse assortment of measures andapproaches for realizing this goal of decarbonization.
The government of Japan has adopted a policy of deep
engagement with the energy policies of developing
countries, especially in Asia, to realize energy transitions
together with these nations. This is based on the belief that
adopting realistic measures suited to actual environments
and circumstances in each individual country is insteadthe best means of efforts for realizing a decarbonizedsociety. As Japan’s policy-based financial institution,
JBIC will utilize the strong relationships it has cultivated2. The Environment Surrounding JBIC and Its Challenges

with countries worldwide and support the realizationof projects that contribute toward solving social issues
such as decarbonization and energy transitions throughengagement promoted by the government of Japan
as well as waste-to-energy projects and projects for
distributed power supply.

(2) S upport the Strengthening of theInternational Competitiveness of JapaneseCompanies in the Era of Industrial andSocial Transformation

Signing ceremony of the first loan to the State Bank of
India

The Free and Open Indo-Pacific (FOIP) advocated by thegovernment of Japan in 2016 is rooted in the conceptof ensuring peace and prosperity for the entire region,and by extension for the whole world, by realizing a free
and open rules-based international order. For example,
the development of “quality infrastructure” that cancontribute toward improving connectivity among regions
is also important from the perspective of FOIP.
These types of quality infrastructures inevitably
involve a multitude of stakeholders and there is atendency for both scale and risks to increase, which
often makes it difficult for Japan and JBIC to execute
these projects alone.
Deeply aware of this problem, JBIC has traditionallyemphasized collaboration with multilateral andinternational financial institutions. Specifically, JBIC hascontinued its efforts to fortify collaboration with policybased financial institutions in Japan, the U.S., andAustralia and with public financial institutions, such as theEuropean Investment Bank (EIB) and the European Bankfor Reconstruction and Development (EBRD).
With in-depth understanding of the efforts ofJapanese companies, JBIC will make proactive efforts
as a policy-based financial institution to support theoverseas expansion of quality infrastructure, including
infrastructure in the health and medical fields, which wereonce again recognized as being crucial sectors during
the COVID-19 pandemic, and the securing of alternative
supply chains.

2
Infrastructure and Environment Finance GroupWorldwide economic and mobility constraints caused
by COVID-19 also exerted a tremendous impact on
business, one of the most notable being disruptions
to supply chains. As pointed out in the Infrastructure
System Overseas Promotion Strategy 2025 (June 2022
Supplemented Edition), the social transformation suchas digitalization and decarbonization is expected toaccelerate globally with responses to the pandemic.
Accordingly, it will be more necessary than before to
flexibly addressing novel needs for infrastructure, while
continuing both the infection prevention measuresand the initiatives for economic development andenvironmental preservation. We believe that supporting
Japanese companies with proprietary technologies
such as cutting-edge technologies beneficial for theenvironment or digitalization in expanding overseas andsupporting the enhancement of Japanese companies’
supply chain resilience during this trend will haveimportant implications for maintaining and improving theinternational competitiveness of Japanese companies in
the new post-pandemic world.
Starting with a loan to support the enhancement of
the resilience of supply chains of Japanese companies
in India in FY2020 (a loan to the State Bank of India),
JBIC moved to further support projects that contributetoward enhancing the resilience of supply chains ofJapanese companies by establishing the Global Value
Chain Resilience Window within the Global Investment
Enhancement Facility commenced in July 2022. JBIC will
utilize this window to actively support the strengthening ofoverseas supply chains of Japanese companies.

(3) P ropel Strategic Initiatives to Promote
Quality Infrastructure Projects Overseas

Signing ceremony of an MOU with the EIB

JBIC / Annual Report 2022

53

JBIC’s Activities
Business opportunities are growing in the field of carbon
neutrality such as promoting investment in decarbonized
and low-carbon industries (green recovery) as the
economy recovers from the COVID-19 pandemic, and
it is important to contribute to global decarbonizationand sustainable economic growth by utilizing Japan’s
exceptional technologies. JBIC provides support for
projects that contribute to low-carbonization andenvironmental preservation in each country toward therealization of a global decarbonized society. JBIC is also
supporting the frontier markets of developing countries
that have been significantly affected by the pandemic andprojects that contribute to rebuilding and strengthening
the resilience of Japan’s supply chains. The mainachievements of the Group in FY2021 are as follows.

¢ Initiatives for Low-carbonization and Global Environmental Preservation
Loan to Sojitz Corporation for Solar PV Project
Supporting Renewable Energy Business toward Realization of a Decarbonized Society

2
Infrastructure and Environment Finance GroupJBIC concluded a loan agreement with Sojitz Corporation, which
operates a solar power generation business in the State ofQueensland, Australia. As one of the world’s largest resource-richcountries, Australia has long relied on coal-fired power generation,and in recent years, has been promoting the shift to renewableenergies in consideration of the impact on the environment.
In the project, Edenvale Solar Park Pty Ltd., which is an
Australian company jointly invested in by Sojitz and ENEOS Group,
will construct, own, and operate a 204MW solar photovoltaic plant in
the State of Queensland, Australia and sell the electricity generated
Conceptual drawing of the solar photovoltaic plantby the project to multiple buyers including a local electricity retailer
and the electricity wholesale market. The loan will support Sojitz’s overseas business expansion, thereby
contributing toward maintaining and improving the international competitiveness of Japanese industry.

Loans to Saudi Arabia and Türkiye under GREEN Operations
Contributing to Global Environmental Preservation from a Financial Perspective by Utilizing
Financial Tools Under GREEN Operations
Global action for Reconciling Economic growth and ENvironmental
preservation (GREEN) refers to loans, guarantees and investments inprojects that are expected to contribute to both the environment andeconomy on a global scale through global environmental preservation
operations. As part of GREEN operations, JBIC concluded a loan
agreement with the Saudi Electricity Company (SEC) to provide thefunds necessary for renewable energy projects in Saudi Arabia. JBIC will
promote energy transition and environmental and social sustainability in
Saudi Arabia by developing solutions to SEC’s challenges in the power
sector through investments by Japanese companies and/or introduction
Signing ceremony of the GREEN to the Industrial
Development Bank of Türkiye
of Japanese products and technologies.
JBIC also established a credit line with Türkiye Sınai Kalkınma
Bankası A.Ş. (TSKB), the Industrial Development Bank of Türkiye, to support renewable energy projects andenergy efficiency projects in Türkiye. As Japan’s policy-based financial institution, JBIC is close to the energy
and environmental policies of each country. Utilizing the financing tools of GREEN operations, JBIC is financiallycontributing toward global environmental preservation.

54

JBIC / Annual Report 2022

2. The Environment Surrounding JBIC and Its Challenges¢ Initiatives for Frontier Markets
Loan for Industrial Park Construction and Operation and Rooftop Solar Power
Generation Projects by Vietnamese Subsidiary of Sumitomo Corporation
Supporting Overseas Business Expansion of Japanese Company for Realizing DecarbonizedSociety
JBIC provided an overseas investment loan to Thang Long Industrial Park II Corporation (TLIP2), a Vietnamese
subsidiary of Sumitomo Corporation. The loan is intended to finance the funds necessary to support the expansion
project and the rooftop power generation power system with a total installed capacity of 20MW peak of ThangLong Industrial Park II in the Hung Yen province in the north of Vietnam, and to sell the generated electricity to its
tenant companies.
Given the increasing focus on ESG on the back of climate change issues, the demand for green electricity has
been growing globally in recent years in many sectors, particularly the manufacturing industry, which consumes
large quantities of electricity. JBIC intends to contribute to the efforts of Japanese companies and the governmentof Vietnam to achieve a carbon-neutral society through these projects.

2
Infrastructure and Environment Finance Group

Rooftop solar power generation project of Thang Long Industrial Park II¢ Initiatives for Building and Restructuring Japanese Companies’ Supply Chains
Loan for Dry Warehouse Business of Kawasaki Kisen Kaisha, Ltd. in Thailand
Supporting Overseas Business Expansion of Japanese Company
JBIC provided financing for the cold storage businessand dry storage business of K Line Container
Service (Thailand) Ltd. (KCST), a Thai subsidiary of
Kawasaki Kisen Kaisha, Ltd. (Kawasaki Kisen), in
the province of Samut Prakan. In its Management
Plan in Fiscal Year 2021, Kawasaki Kisen aims
to develop a global business, especially in Asia.
The company established KCST in 1988, having
positioned Thailand as one of the key logistics
locations in Southeast Asia. Since then, Kawasaki
Kisen has been conducting the storage andlogistics business based on its strong relationshipwith Japanese companies that expanded their
Dry storage business and cold storage businessbusinesses to Thailand. In addition to capturing
demand in the rapidly growing e-commerce sector in Thailand and diversifying products handled, supportingthe cold storage business, which helps to prolong the quality of perishable food and frozen food or prevent their
quality deterioration, will also contribute toward reducing Thailand’s food waste.

JBIC / Annual Report 2022

55

¢ Collaboration with Other Countries and Institutions
JBIC is working to reduce risks for seeking investments
and realizing and accelerating infrastructure projects
by building relationships with governments of othercountries and collaborating with other institutions. In
addition, with various discussions more frequently taking
place worldwide toward decarbonization and carbon
neutrality, JBIC will utilize the relationships it has built tothe present with each country and get close to the actual
circumstances and policies of each country and value
its efforts for engagement to pursue a correct path while
engaging in dialogue.
Regarding cooperation with other countries, JBIC
held a regular dialogue with Perusahaan Listrik Negara(PLN) in Indonesia. For Vietnam, JBIC had a meetingwith the Central Economic Committee (CEC) of theCommunist Party of Vietnam, together with the U.S.
International Development Finance Corporation, theDepartment of Foreign Affairs and Trade of Australia, andExport Finance Australia, to exchange views on financial
cooperation for addressing the growing demand for
power in Vietnam, with a focus on energy transition. In
addition, JBIC signed an MOU with the Commission for

2
Infrastructure and Environment Finance Group

Meeting with CEC of the Communist Party of Vietnam

56

JBIC / Annual Report 2022

the Management of State Capital at Enterprises (CMSC)
of Vietnam, which exercises the rights and responsibilitiesof the State owner’s representative for state-owned
enterprises including Vietnam Electricity and Vietnam Oiland Gas Group. This MOU is intended to further enhance
the relationship with CMSC and relevant ministries andauthorities through regular meetings in order to promote
the energy transition of Vietnam’s base load powersources.
Regarding cooperation with other institutions, weare continuing to work on cooperation among the three
countries of Japan, the U.S., and Australia, which arestrengthening relations toward the realization of a “Freeand Open Indo-Pacific” promoted by the governmentof Japan. Also, in October 2021, we signed a new MOU
with the European Investment Bank. This MOU aims tofurther enhance the cooperation the two institutions havefostered to promote projects in such areas as carbon
neutrality, infrastructure, innovation, and the sustainable
development goals where Japanese and European
companies are expected to participate together.

Signing ceremony of the MOU with the CMSC of Vietnam

2. The Environment Surrounding JBIC and Its Challenges

Recent Major Overseas Infrastructure Projects(Loans, equity participations,and guarantees in the last five years)
Qatar●Facility D Natural Gas-fired Power Generation and
Desalination Project (Expansion)●Al Kharsaa Solar PV Project

Turkey●Ikitelli Integrated Health Campus
Operation Project●Bulk Carrier Procurement Project●Car Logistics Terminal Operation
Project●GREEN Loan for TSKB (No. 2)●GREEN Loan for TKYB (No. 3)

United Arab Emirates●Layyah Gas-fired Combined Cycle Power Plant Project●Hamriyah (Natural) Gas-fired Combined Cycle Power Plant Project●Fujairah F3 Natural Gas-ﬁred Combined Cycle Power Plant●Warsan Waste to Energy Project

Sweden●Jönköping City Waste
Treatment Project

Uzbekistan●Uzbekistan’s Backbone Telecommunication Network System Project

United Kingdom●Moray East Offshore
Wind Power
Generation Project●Hornsea1 Offshore
Electricity
Transmission Project●Consulting service
regarding nuclear fusion

Bangladesh●Meghnaghat Natural Gas-fired
Combined Cycle Power Plant Project
Myanmar●Yangon City Development and Operation
Project of Real Estate Complex●Construction and Operation Project on
Logistics Facility

United States●Texas High-Speed Railway Project●Loan to Calvert for building a new electricarc furnace●Hydrogen Station Construction andOperation Project●Manufacturing and sales of passenger rail
car interiors

India●Manufacturing of Concrete Products●GREEN Loan for NTPC

Russia●Cargo Handling Equipment Procurement for
Coal Shipping Harbor

2

●

●

●

●

●

●

Vietnam●Cai Mep-Thi Vai Port Wharf Development andOperation Project●Ryobi Distribution Warehouse Business●Nghi Son 2 Coal-fired Power Generation Project●Van Phong 1 Coal-fired Power Generation Project●Vung Ang 2 Coal-fired Power Generation Project●Rooftop Solar Power Generation Project●●●

Turkmenistan●Gas-fired Power Generation
Plant Project

Morocco●Taza Onshore Wind Power
Generation Project

Infrastructure and Environment Finance GroupSpain●LNG Vessel Procurement Project

Mongolia●Construction Machinery Procurement Project●Central America●GREEN Loan for BCIE (No.2)
Latin America●GREEN Loan for CAF (No.3)

Mexico●Power Loan for CFE●GREEN Loan for BANCOMEXT (No.4)●●

Saudi Arabia●Rabigh Solar PV Project●JBIC GREEN Untied Loan to SEC
Taiwan●Bulk Carrier Procurement
Project●

Angola●Port Expansion and Rehabilitation
Project

Thailand●MSL Tank Terminal Operation Project●Gulf SRC Gas-fired Combined Cycle
Power Plant Project●Gulf PD Gas-fired Combined Cycle
Power Plant Project●Cold Storage Business●Dry Warehouse Business

Australia●Solar photovoltaic power
generation project inQueensland

Brazil
●Sepia Oil Field FPSO Operation Project●Mero Oil Field FPSO Operation Project●Freight Railway Project●Buzios Oil Field FPSO Operation Project●Marlim Oil Field FPSO Operation Project●GREEN Loan for BNDES (No.5)

Mozambique●Nacala Railway and Port Project
Egypt●Suez Canal Wind Power Generation
ProjectIndonesia●Rantau Dedap Geothermal Power Generation Project●Cirebon Ultra Super Critical Coal-fired Power Plant Expansion Project●Jawa 1 Gas-to-Power Project●Manufacturing and sales of recycled asphalt mixture

Palau●Buyer’s Credit for State-Owned
Submarine Cable Corporation of Palau
Singapore●Container Carrier Procurement Project

Argentina●Buenos Aires Automatic Train Stop System
Establishment Project●Power generation ●Renewable energy/environment ●Transportation systems ●Telecommunications ●Energy resources ●Hospitals ●Others

Note: “Renewable energy/environment” includes solar power, wind power, geothermal power, hydraulic power, power
generation from waste, energy conservation, and other projects related to global environmental conservation.

As of the end of March 2022

JBIC / Annual Report 2022

57

3. Industry Finance Group
Message from the Global Head of the GroupThe Industry Finance Group is composed of four departments
and branches, namely the Corporate Finance Department,
Finance Office for SMEs, Marine and Aviation Finance
Department, and Osaka Branch. The Industry Finance Groupmakes efforts to maintain and improve the international
competitiveness of Japanese industry by capitalizing on its
various financial instruments for responding to the strategies
and needs of Japanese companies in expanding overseas.
The global economy started to recover from the serious
stagnation caused by the spread of COVID-19, and theinternational business of Japanese companies began tobe active again. However, the uncertainty of the global
economy caused by, inter alia, semiconductor shortages,
raw material price surges, and the long-term interest rates
raised in Europe and the United States have continued toaffect Japanese companies’ overseas business, together withthe global instability that is ongoing partly attributable to theRussian invasion of Ukraine. In view of these circumstancesand discerning changes of the global environment and theneeds of Japanese industry, the Industry Finance Group will
support the strengthening of resilience and rebuilding of global
supply chains of Japanese companies and overseas M&As ofJapanese companies toward digital transformation, during thesecond fiscal year of the Fourth Medium-term Business Plan (FY2021–FY2023), while continuing to work to maintainand improve the international competitiveness of Japanese industry by multiple means including active risk taking.

3
Industry Finance Group		ASO Kenichi				Managing Executive Officer
Global Head of Industry Finance Group

Business Environment and Key Challenges
Highly Uncertain Business Environment withTight Logistics and Material Procurement
Difficulty Due to the COVID-19 Pandemic
Although the situation with the spread of COVID-19 since2020 is pulling out of the worst part, economic activities
are still affected in numerous countries and regions,
including Japan. While the large-scale restrictions on
business operations induced by the activity constraints
imposed immediately after the emergence of this infectious
disease, are gradually relaxed, Japanese companies
are in a highly uncertain business environment with astagnant supply of parts and raw materials due to regional
lockdown, continued shortages of semiconductors,
which are an important material, and the geo-economics
risk heightened by the situation in Ukraine.
The “FY2021 Survey Report on Overseas Business
Operations by Japanese Manufacturing Companies”
JBIC released in January 2022 revealed that Japanesemanufacturers found “disruption and pressure on logistics”
the most threatening external factor for their supply
chain and “diseases” less threatening. This suggeststhat logistics stability is of the greatest importance for
manufacturers that operate with large, complex networksof supplies. The survey results also show that a wide

58

JBIC / Annual Report 2022

range of industries, mostly on the demand side, arehaving a negative impact by semiconductor shortages inparticular, in addition to other hardships such as difficultyin material procurement and a cost increase.

Rebuilding and Enhancing the Resilience ofSupply Chains and Creating New Business
Opportunities Overseas
Nowadays, sustainable business management andinitiatives for decarbonization are being promoted inmany countries and regions, including Japan, and there
are such concerns as a rising manufacturing cost, but
at the same time, new business opportunities are
expected as there are consumer needs pertaining to
the new normal. It is challenging to both address social
issues such as realizing of a decarbonized society andcontributing toward achieving the SDGs and make a profit
simultaneously in the business management of Japanesecompanies, as well.
Under these conditions, Japanese companies are
striving to enhance and rebuild the resilience of supply
chains, and create overseas business opportunities.
In addition to making capital investment overseas,
centralizing or dispersing production bases, and2. The Environment Surrounding JBIC and Its Challenges

adjusting the production process between production
bases, Japanese companies resumed M&A activities.
Although the number of overseas M&A deals by Japanesecompanies dropped from 826 in 2019 to 557 in 2020
by reason of COVID-19, the number recovered to 625 in
2021 as the travel restrictions were relaxed and companies
increasingly adopted online research in their study on

potential businesses to acquire or merge with (Figure 1).
Japanese companies are expected to continue toexpand overseas through the innovation of production
processes and energy transition from fossil fuel tohydrogen, ammonia, etc. to achieve carbon neutrality by
2050, technological development for the innovation ortransition, investment in digital transformation, and M&As.

Figure 1. Changes in the Value and Number of Overseas M&A by Japanese Companies
Value (left axis)(Trillions of yen)

Source: RECOF Corporation

Number (right axis)(Number)

20

1,000
800

15

600
10
400
5

200

0

'06

'07

'08

'09

'10

'11

'12

'13

Despite being in the abovementioned businessenvironment, Japanese mid-tier enterprises and SMEs areseeking business opportunities outside Japan by moving
to directly cultivate demand in overseas markets andexpand business opportunities, in addition to responding
to the needs of major Japanese manufacturers for local
procurement of parts and equipment. Some of them arein fact already operating outside Japan with a businessmodel that addresses such social issues as healthcare
and recycling. Diversification has been seen in the fields ofbusiness invested in by Japanese mid-tier enterprises andSMEs, their investment destinations, and funding needs.

'15

'16

'17

'18

'19

'20

'21 (Year)30

Industry Finance Group

Overseas Business Deployment of Mid-tierEnterprises and SMEs

'14

JBIC annually surveys Japanese manufacturers
regarding their medium-term prospects for overseas
operations and reports its findings in the Survey
Report on Overseas Business Operations by Japanese
Manufacturing Companies. In the FY2021 survey, 99.0%
of mid-tier enterprises and SMEs that responded to thesurvey stated that they will “maintain present level” or“strengthen/expand” their overseas business operations.
This indicates that their willingness to conduct overseas
operations remains high (Figure 2). As the constraints
imposed due to the COVID-19 pandemic are graduallyrelaxed, Japanese mid-tier enterprises’ and SMEs’
activities pertaining to overseas business operations are
expected to recover and grow.

Figure 2. Medium-term Prospects (Next Three Years, or So) for Overseas Operations1
Strengthen/expand

Maintain present level

Scale back/withdraw
中堅・中小企業(注3) 3
Mid-tier
enterprises/SMEs

All companies
(%)
100

(592)
1.2

(582)
1.5

(562)
2.0

(509)
2.8

(504)
1.6

26.7

22.9

26.7

37.9

34.7

(%)
100

80

80

60

60

40

72.1

75.6

71.4

59.3

63.7

40

(195)
2.1

(195)
3.1

(196)
2.0

(191)2
1.0

37.2

28.7

30.8

48.0

41.9

60.6

69.2

66.2

50.0

57.1

’17

’18

’19

’20

’21

20

20
0

(188)
2.1

’17

’18

’19

’20

’21

(FY)

0

(FY)

Notes 1. “Overseas Operations” is defined as production, sales, and R&D activities at overseas bases, as well as the outsourcing of
manufacturing and procurement overseas.
2. The numbers in the parentheses above the bar graphs indicate the numbers of responses.
3. Mid-tier enterprises/SMEs are companies whose paid-in capital is less than ¥1 billion.
Source: Results of the JBIC FY2020 Survey Report on Overseas Business Operations by Japanese Manufacturing Companies

JBIC / Annual Report 2022

59

JBIC’s Activities
Supporting through the Emergency Window
for Overcoming the COVID-19 Crisis andSupporting Japanese Companies’ Overseas
Business Expansion in Various Industries
In the Fourth Medium-term Business Plan, JBIC
designated execution of policy-based finance functions
that are adapted to changes in the economic situation
as one of the priority areas to focus on. In FY2021,
JBIC made 156 financial commitments to projects thatinvolve Japanese companies affected by the COVID-19
pandemic under the Emergency Window for Overcoming
the COVID-19 Crisis, which was established in April 2020and offered to projects where the financing documents
are to be signed by the end of December 2021.
JBIC’s another priority is supporting the strengtheningof the international competitiveness of Japan’s industries
in the era of industrial and social transformation. JBIC
established the Post-COVID-19 Growth Facility in January
2021 and helped to enhance and rebuild international
supply chains of Japanese companies, and also supported
overseas M&As of Japanese companies.
For instance, JBIC financed an off-highway tire
manufacturing and sales business in India, automotive
parts manufacturing and sales businesses in the UnitedStates, the acquisition of a British analog semiconductor
company, and the acquisition of a U.S. convenience
store business, all of which are conducted by Japanesecompanies.
JBIC also provided support for projects that assist
resolving social issues to realize sustainable growth forthe purpose of addressing global issues toward realizing
sustainable development for the global economy andsociety as one of the priority areas of the Fourth Mediumterm Business Plan. Examples include financing for3
Industry Finance Groupthe synthetic structural protein material manufacturingbusiness of a Japanese startup in the U.S., businessof manufacturing and selling medical devices such as
dialyzers in Vietnam, business of manufacturing and selling
medical devices such as infusion kits in the Philippines,
and business of manufacturing and selling medical
devices such as surgical devices in the U.S., all of which
are performed by Japanese companies. Furthermore,
JBIC provided support for financing the businesses
conducted by Japanese companies that would leadto the enhancement of the food value chain resilience,such as a refrigerated trailer leasing business in the U.S.,
business of manufacturing and selling processed foodsin Thailand and business of manufacturing and sellingfrozen foods in Vietnam.
JBIC’s efforts to contribute toward maintaining
and improving the international competitiveness ofJapanese companies continued in the maritime andaviation industries as well. These industries are greatly
affected by the COVID-19 pandemic. While the demandfor containerships is on the increase for the stay-athome demand under the pandemic, some companies
are impacted by a slump in the tourist demand andlockdowns. JBIC guaranteed repayments of loans owed
by a Japanese airline to private financial institutions
for purchase of aircraft and swiftly financed overseas
business operations of Japanese companies in theaircraft-related leasing industry and marine resource
development industry. Also, JBIC financed a Japanesecompany’s acquisition of a leading marine container
leasing company of the U.S. to support the company
in expanding its business and increasing profit-earning
opportunities.

Off-highway tire plant in India

7-Eleven convenience stores in the U.S.

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JBIC / Annual Report 2022

Refrigerated trailers of PLM Fleet, LLC

2. The Environment Surrounding JBIC and Its Challenges

Responding to the Diverse Needs of andCrises Faced by Japanese Companies

JBIC has enhanced its capability to assist Japanese midtier enterprises and SMEs in expanding abroad through its
business units dedicated to this purpose at its Head Officeand Osaka Branch. In FY2021, in close collaboration withsuch organizations as regional financial institutions, JBIC
made a total of 116 financial commitments to mid-tierenterprises and SMEs in loans and guarantees, including
102 commitments for businesses that involve Japanesecompanies affected by the COVID-19 pandemic.
The diversified recipients of this support include
startups as well as enterprises that resolve social issues
and cultivate local markets, regardless of whether these
are not necessarily in traditional-type industries. JBIC
supported mid-tier enterprises and SMEs in expanding
business overseas by providing loans in local currencies,
such as Thai baht, and supporting the procurement oflong-term local currency funds of the regional financial
institutions themselves by setting credit lines (two-steploans) for regional financial institutions.
Compared with larger companies, mid-tierenterprises and SMEs might face greater constraints
on various fronts, such as the collection of information
about overseas investment. Due to this, JBIC provides
further detailed support to mid-tier enterprises and
SMEs by offering various information such as on theoverseas investment environment and holding seminars
utilizing its overseas representative offices and individual
consultation meetings, while strengthening partnerships
with public institutions, economic organizations, agencies
that support SMEs and overseas business deployment
as well as regional financial institutions that serve as amajor financing source for those companies.

The international economic conditions surrounding Japan,such as political conditions in each country and economic
trends in emerging countries, are constantly changing. In
2021, many companies continued to address the impactof the COVID-19 pandemic and strived to enhance thesupply chain resilience or rebuild supply chains. Although
the global economy started to recover in 2022 from thepandemic-induced, serious stagnation, it is still full of
uncertainties attributable to the ongoing semiconductor
shortages, surging raw material prices, and the rise oflong-term interest rates. The Russian invasion of Ukraine
is also prolonging these unstable global situations. JBIC,
while accurately responding to these changes, to trends
in the global economy, and to the funding needs ofJapanese companies, continues to provide support tomaintain and improve the international competitivenessof Japanese industry, utilizing its Global Investment
Enhancement Facility, which, established in July 2022, isoffered to projects where the financing agreement are to
be signed by the end of June 2025.
The Industry Finance Group will continue toprovide support in accordance with the issues facedby numerous Japanese companies large and small,
including mid-tier enterprises and SMEs. We will
accurately grasp the post-pandemic issues and needsof Japanese companies and will strive by multiplemeans including capitalizing on various financial
instruments and enhancing our risk-taking capability tocontribute toward exploring and creating new business
opportunities for Japanese companies that can lead toJapan’s sustainable growth. This includes addressing
global issues and providing support for enhancing
supply chain resilience and acquiring technology
through M&As for the digital transformation of Japanesecompanies, as prescribed in the Fourth Medium-term
Business Plan. By doing so, we will continue to play arole in connecting Japan to the world.

3
Industry Finance Group

Supporting Overseas Business Deploymentof Mid-tier Enterprises and SMEs

¢ Notable Examples of JBIC’s Financial Support
Loan for Acquisition of British Company Dialog Semiconductor Plc by Renesas
Electronics Corporation
Supporting Overseas M&A of Japanese Company
JBIC concluded a loan agreement with Renesas Electronics Corporation (Renesas) to finance part of thefunds necessary for Renesas to acquire British company Dialog Semiconductor Plc (Dialog). Dialog is ananalog semiconductor company with expertise in connectivity technologies including Wi-Fi and Bluetooth. By
acquiring Dialog, Renesas aims to broaden its product portfolio and provide stronger and more comprehensive
solutions for the fast-growing IoT, industrial, and automotive markets. This loan supports the overseas
business deployment of Renesas, thereby contributing toward maintaining and improving the international
competitiveness of Japanese industry.

JBIC / Annual Report 2022

61

Loan for the Factory Construction and Leasing Business of Sumitomo ElectricIndustries’ Philippine Subsidiary for Automotive Parts Manufacturing and Sales
Supporting Overseas Business Expansion of Japanese Company’s
JBIC concluded a loan agreement with IWS Realty Corporation(IWSR), a Philippine subsidiary of Sumitomo Electric Industries,
Ltd. (Sumitomo Electric) to finance, through IWSR, the funds
necessary to construct and lease factories for Sumitomo
Electric’s subsidiaries in the Philippines to manufacture and sell
automotive parts such as wire harnesses.
Sumitomo Electric globally manufactures and sells a wide
range of products including wire harnesses, and IWSR supports
the supply chain of Sumitomo Electric’s products including wire
harnesses in the Philippines through its factory construction
Wire harnesses (Photo courtesy: Sumitomo ElectricIndustries, Ltd.)and leasing business.
Wire harnesses are laid throughout an automobile to transmit
power and information. They require advanced technologies to reliably send numerous pieces of information
despite intense vibration and heat. With its advanced technologies for wire harnesses, Sumitomo Electric has the
top share and established such a prominent presence in the market that one out of four automobiles in the world
uses Sumitomo Electric’s wire harnesses1. The advanced technologies for wire harnesses are essential for realizing
electric vehicles and autonomous driving, which are expected to be in widespread use. Through this financing, thesupply chains in the Philippines are expected to be more resilient, including the supply chain of Sumitomo Electric’s
wire harnesses.
The loan provides financial support for the overseas business expansion of Sumitomo Electric, thereby
serving to maintain and improve the international competitiveness of Japanese industry.

3
Industry Finance Group

1. Based on market share estimates from Sumitomo Electric’s survey.

Loan for the Acquisition of U.S. Company by Glory Ltd.
Supporting Overseas M&A of Japanese Company
JBIC concluded a loan agreement with Glory Ltd. (Glory) to finance part of
the funds necessary for Glory Global Solutions Inc., Glory’s U.S. subsidiary,
to acquire U.S. company Revolution Retail Systems, LLC (RRS).
Founded in 1918, Glory is the developer of Japan’s first coin counting
machine. It develops, manufactures, sells, and provides maintenanceservices for cash handling machines and automatic service equipment. Its
business fields include electronic payment services, biometric solutions, androbot SI. Glory holds the lion’s share in the Japanese market and operates
in more than 100 countries with its sales and maintenance bases in 36
countries, mostly in Europe. By acquiring RRS, which manufactures, sells,
and provides maintenance services for cash handling machines in North
America, Glory intends to exert the synergistic effects of, inter alia, crossselling to both companies’ customer bases, the enhanced sales activities
with a wider range of solutions and products, the improvement of businessefficiency, primarily in the maintenance services. By doing so, Glory plans to
expand its business in the logistics and retail markets in North America.

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JBIC / Annual Report 2022

Banknote- and coin-depositing/dispensing unit of RRS (photo provided
by GLORY LTD.)2. The Environment Surrounding JBIC and Its Challenges

Loan for Medical Device Manufacturing and Sales Business of JMS Healthcare Phl,
Inc., a Philippine Subsidiary of JMS Co., Ltd.
Supporting Overseas Business Expansion of Japanese Company
JBIC concluded a loan agreement to finance the funds necessary for JMS Healthcare Phl, Inc. (JMSHP),a Philippine subsidiary of JMS Co., Ltd. (JMS), to conduct the business of manufacturing and selling medical
devices. JMS was established as Japan Medical Supply Co., Ltd. in Hatsukaichi City, Hiroshima, in 1965, to
manufacture and sell disposable (i.e., pre-sterilized, immediately usable and not to be reused) medical devices
made of plastic, which reduces the risk of hospital-acquired infections attributable to blood transfusions. The
corporate name was changed in April 1994. With the capability of performing the process almost entirely in-housefrom material procurement to production, JMS is able to flexibly address the needs of users and has developed
products that contribute toward safer and more efficient medical care and better quality of life of patients. JMS’svariety of medical devices include infusion kits, syringes, needles for syringes and AVF, hemodialysis machines,
cardiopulmonary blood tubing sets, blood bags, and systems for blood component donation.
Expanded across the seas in the 1970, JMS currently has
three sales bases and five production bases abroad, including
JMSHP, and sells medical devices in nearly 90 countries
through these eight JMS group companies. The financing
to JMSHP, which manufactures medical devices such as
infusion kits that help to prevent infections, is intended tosupport the supply of these products to Japan, Europe, theU.S., and Southeast Asia through the JMS group companies.
The loan is therefore expected to contribute toward raising
the level of health and hygiene in the countries.

3
Industry Finance Group

Loan for Acquisition of Leading Marine Container Leasing Company of the U.S. by
Mitsubishi HC Capital Inc.
Supporting Overseas M&A of Japanese Company
JBIC concluded a loan agreement with Mitsubishi HC Capital Inc. tofinance part of the funds necessary to acquire CAI International, Inc. (CAI)of the U.S.
Seeing high-value-added “Global Assets” that can find high liquidity
as one of its focus areas, Mitsubishi HC Capital intends to enhance andglobalize, inter alia, its marine container leasing business. CAI, establishedin the U.S. in 1989, is one of the world’s largest marine container leasing
companies in the number of containers held. It operates at 13 locations in
12 countries and has contracts with 180 container depots in 39 countries
Containers of CAI
to flexibly meet the global demand. With CAI being wholly owned by
Mitsubishi HC Capital through this acquisition, the Mitsubishi HC Capitalgroup becomes the world’s second rank group in the size of fleet on an TEU1 basis. Mitsubishi HC Capital aims
to make more profit-earning opportunities by fulfilling the marine container leasing demand, which is expected to
grow largely.
This loan provides the necessary long-term foreign currency funds for the M&A by Mitsubishi HC Capital,
thereby supporting the overseas business expansion of the Japanese company.
1. TEU: twenty-foot equivalent unit

JBIC / Annual Report 2022

63

4 Equity Finance Group
Message from the Global Head of the Group
Since the establishment of the Equity Finance Group in October
2016, JBIC has been working to strengthen its equity financing
operations. It is becoming increasingly significant to supply
funding through strengthening risk-taking capability in order tobenefit from overseas growth markets. In light of this, JBIC hasenhanced its capability in the area of equity financing, such as
by establishing JBIC IG Partners (JBIC IG) to provide advisory
services regarding overseas investment funds. JBIC has alsofinanced overseas M&A transactions by Japanese companies
in the form of equity participation.
Under its Fourth Medium-term Business Plan (FY2021–
FY2023), JBIC sets the goals toward innovation for realizing
the SDGs and a decarbonized society as well as irreversible
advancements in energy transformation and digital transformation,
through supporting green/social finance, M&A and theacquisition of technologies. In making these efforts, the supplyof funding through our equity financing capacity is essential.
FY2022 is the second year of the Medium-term Business
Plan and we will continue to actively support the overseas
expansion of Japanese companies through our equity financing
operations, in view of changes of the circumstances concerning
Japan.

4
Equity Finance Group		

MORITA Kentaro				Managing Executive Officer
Global Head of Equity Finance Group

Business Environment and Key Challenges
Maintaining and Improving the International
Competitiveness of Japanese Industry
The Basic Policy on Economic and Fiscal Management
and Reform 2022 formulated by the Government ofJapan in June 2022 calls for multiple actions including
strengthening economic security and energy security,
strengthening the growth potential in a post-pandemic
world by promoting the overseas business expansionof Japanese companies, and promoting initiatives
such as digitalization, supply chain resilience, quality
infrastructure, environment preservation etc.
M&A activities by Japanese companies aimed atacquiring overseas markets and meeting their demand
become more important because of Japan’s structural64

JBIC / Annual Report 2022

issues such as a decreasing birthrate and an aging
population as well as a shrinking labor force. Amid
intense competition for acquiring overseas markets,
overseas M&A activity is one of the important strategies
adopted by Japanese companies for accelerating
growth. Under such conditions, it is important tocontinue to supply funds in response to the needs ofJapanese companies for M&A activities.
JBIC will support Japanese companies in rebuilding
supply chains affected by the spread of COVID-19,
in developing business for realizing a decarbonizedsociety, and in conducting M&A activities in the form ofequity participation as well as fund investment through
JBIC IG.

2. The Environment Surrounding JBIC and Its Challenges

Overview of JBIC IG Partners (JBIC IG)
JBIC IG is an investment advisory firm established inJune 2017, by JBIC and Industrial Growth Platform, Inc.
(IGPI). JBIC IG applies the respective strengths of JBIC
and IGPI as follows: JBIC has knowledge and experienceof financing international projects as Japan’s policybased financial institution; IGPI has the knowledge ofinvestment business and broad experience in providing
companies with hands-on support for long-term,
sustainable growth in corporate and business value.
JBIC IG aims to create long-term, sustainable value
for Japanese investors and industries through thedevelopment of global business opportunities and adisciplined investment approach.

About JBIC IG Partners
JBIC IG Partners is an investment advisory firm established by JBIC and IGPI.

■

Policy-based financial institution wholly owned by theJapanese government and specializes in international
finance.

■

Management consulting firm with a proven truck
record of hands-on support for enhancing long-termand sustainable corporate & business value.

51%

4

49%

Equity Finance Group

MissionTo create a sustainable and long-term value for investors andindustries through developing global business opportunities anda disciplined investment approach.

Business Model of JBIC IG
JBIC IG composes overseas funds by partneringwith foreign sovereign wealth funds and international
investors, through investment advisory services tooverseas funds.
One of the noteworthy achievements is that in
January 2019, JBIC IG established a venture capitalfund with AS BaltCap, the largest fund manager inthe Baltic region. By the end of March 2022, JBIC IG
executed a total of 18 investments. Additionally, JBIC IG
is undertaking activities to bring together and promotebusiness collaboration between investee companies infunds and Japanese companies. JBIC IG will continue
to provide added value to Japanese industry throughthe creation of new investment funds.

Overview of JBIC IG Partners’ Investment Structure
JBIC makes equity investments in overseas companies through investment in funds that JBIC IG Partners launched in collaboration
with overseas partners.

Strategic partner(s)Limited Partner

Other
Limited Partners

EquityInvestment
as a Limited
PartnerFund management(General Partner)
Overseas investment funds
EquityInvestment

Japanese company(ies)
Equity Investment

Companies/projects
Business allianceand/or acquisition

JBIC / Annual Report 2022

65

JBIC’s Activities
JBIC aims to contribute to resolving global-scale social
issues by making equity investments in projects and funds
aimed at realizing a decarbonized society. In addition,
JBIC supports the improvement of the international

competitiveness of Japanese companies by acquiring
advanced and unique overseas technologies such as byutilizing venture capital. The results of main initiatives inthe Equity Finance Group in FY 2021 are as follows.

¢ Strengthening JBIC’s Capability of Equity Financing
Equity Participation in a Fund that Invests in Clean Hydrogen-related Projects
throughout the World
Contributing toward Realization of Decarbonized Society through investments in Hydrogen
Value Chain
JBIC invested in the Clean H2 Infra Fund S.L.P. , which invests in clean hydrogen-related projects around the world,from upstream projects such as green hydrogen production to downstream projects such as captive fleet andrefueling stations. The policy of the fund is to invest in hydrogen-related projects that conform to “Climate change
mitigation”, one of the six environmental objectives of the EU taxonomy. The fund has sustainable investments as
its objective in accordance with Article 9 of the Sustainable Finance Disclosure Regulation (SFDR).
Recently, many countries and regions focus on hydrogen as an essential energy source for global
decarbonization, and the financing demand for hydrogen-related projects is growing. The Clean H2 Infra Fundis the world’s largest clean hydrogen infrastructure investment fund and is committed to by a leading groupof industrial and financial investors active in the clean hydrogen sector. The fund intends to unlock strategic
and large-scale projects under development to accelerate the scaling up of hydrogen markets. JBIC’s equity
participation under its unique operations named GREEN (Global action for Reconciling Economic growth andENvironmental preservation) is expected to contribute toward reducing carbon emission through the efforts ofthe fund.
Hydrogen, which does not emit CO2 when used as a fuel, is drawing attention as the energy solution of the
future. With “Basic Hydrogen Strategy” formulated in December 2017 and “Green Growth Strategy ThroughAchieving Carbon Neutrality in 2050” formulated in December 2020 (updated in June 2021), the Governmentof Japan calls for international cooperation in social implementation of hydrogen. The fund is in line with thehydrogen-related policies of the Government of Japan.

4
Equity Finance GroupA project image the fund invests in

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JBIC / Annual Report 2022

2. The Environment Surrounding JBIC and Its Challenges

Joint Equity Participation with Japanese Company in Alloyed Limited in UK
Supporting Overseas Expansion of Japanese Companies by Acquiring Proprietary Overseas
Technologies
In November 2021, JBIC made an investment with JX Nippon Mining& Metals Corporation (JXNMM) in Alloyed Limited (Alloyed), an Oxford
University spin-off venture established in 2017. Based on morethan 20 years of alloys research at Oxford University, Alloyed has
proprietary simulation technology for designing alloys and proprietary
development technology of software for metal additive manufacturing,
and with these technologies, it designs alloys and manufactures alloy
products.
JXNMM acquired TANIOBIS GmbH in Germany in 2018, and it
develops and manufactures tantalum and niobium products (highquality metal powders). The company aims to promote global businessexpansion of the JXNMM group by supplying these products asmaterials for the alloys that Alloyed will design and manufacture, and byleveraging the synergy of the business alliance with Alloyed in, among
others, collaborative development of new alloys. JBIC’s investment
in Alloyed is intended to support the overseas expansion of JXNMM,
thereby contributing toward maintaining and improving the international
competitiveness of Japanese industry.
Product sample
With regard to rare metals, including tantalum and niobium, as
the competition to acquire resources is expected to intensify among
Europe, China, and emerging countries, the Government of Japan supports the promotion of international
cooperation for strengthening the supply chain in its New International Resource Strategy formulated in March
2020. The investment is in line with the policy of the Government of Japan.

4
Equity Finance Group

Initiatives for Acquiring Advanced Technologies Overseas through Equity
Participation
Supporting Japanese Companies in Strengthening International Competitiveness throughInvestments in Venture Capital Fund
In June 2021, JBIC invested in Geodesic Capital Fund II, L.P. ,which is a venture capital fund to invest in advanced technology
companies mainly in the U.S. This is the successor fund of
Geodesic Capital Fund I-S, L.P. in which JBIC made equity
participation in March 2018.
The fund is also invested in by Sompo Holdings, Inc.,
Sumitomo
Mitsui
Banking
Corporation,
Mitsubishi
Corporation, and others. These companies are promoting
open innovation to increase the efficiency of existing
businesses and to create new added value by combining
external resources and the company’s internal strength intechnology and experience. As part of the effort, they focus
A forum hosted by Geodesic
on promoting digital transformation (DX).
The fund is not only to invest in advanced technology
companies mainly in the U.S., but also to provide Japanese investors with strategic services, such as offering
opportunities to form businesses and capital alliances with those companies. The participation of JBIC in the fundcontributes toward maintaining and strengthening the international competitiveness of Japanese companies.

JBIC / Annual Report 2022

67Equity Participation in Fund Investing in Climate Infrastructure in Developing
Countries
Promoting the Mobilization of Private Capital in Cooperation with Foreign Government
Organizations
JBIC invested in Climate Finance Partnership Fund SCSp , which is formed and managed by U.S.-based asset
management firm BlackRock’s subsidiaries. The fund is to invest in climate infrastructure in developing countries.
BlackRock has been focusing on investing in climate infrastructure assets in OECD countries, and the fund is
the first of its kind that focuses on developing countries. The other equity participants in the fund include foreign
government organizations such as the French Development Agency and the KfW Development Bank.
Currently, investments made in developing countries’ infrastructures by private institutional investors including
those from Japan are limited, due to relatively higher risk features relating to politics, regulations, macroeconomic
stability, etc. Under these circumstances, the fund aims to mobilize private capital by appropriately allocating
risks and returns between government organizations including JBIC, and private institutional investors, and by
utilizing government organizations’ knowledge of infrastructures in developing countries. The equity participantsfrom private institutional investors includes the Dai-ichi Life Insurance Company and Mitsubishi UFJ Financial
Group.
JBIC participates in the fund under its GREEN operations, and the fund is intended to contribute towardachieving the Sustainable Development Goals (SDGs) set out by the United Nations by creating a measurable
and positive impact on the environment and society through investments in climate infrastructure assets. The
Government of Japan established the SDGs Promotion Headquarters based on a cabinet decision made in May
2016 and has been making efforts domestically and internationally since then. The fund is in line with the relevant
policies of the Government of Japan.

4
Equity Finance GroupA project image the fund invests in

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JBIC / Annual Report 2022

3.
Financial Instruments
1. Financial Instruments······························································70
2. Prominent Initiatives in Recent Years······································79
3.	Framework for Supporting Globalization
Efforts of Mid-tier Enterprises and SMEs ·······························81

JBIC / Annual Report 2022

69

1. Financial Instruments¢ Export Loans
Export loans are provided to overseas importers andfinancial institutions to support finance exports ofJapanese machinery, equipment, and technology mainly
to developing countries. In particular, products suchas marine vessels, power generation facilities, etc.,
incorporate a significant amount of advanced technology,
and their export is instrumental in enhancing thetechnological base of Japanese industries. Furthermore,
Japanese shipbuilding and plant facilities industries havea broad range of supporting industries, including mid-tierenterprises and SMEs producing parts and components,
and thus the loans are expected to positively contributeto the business of these Japanese companies. Exportloans in specific sectors are also available to developed
countries (see note).
Terms and conditions of export loans are determinedbased on the Arrangement on Officially Supported
Export Credits (OECD Arrangement). In principle, theloan amount should not exceed the value of an export
contract or technical service contract, and excludes thedown payment. Local costs may be covered provided that1
Financial Instruments

Privatefinancial
institutions

the amount is within the scope prescribed by the OECD
Arrangement.
Note:	Eligible Sectors for Export Loans in Developed Countries (as ofAugust 31, 2022)
	
Ships, satellites, aircraft, medical equipment, equipments that
contribute to reducing greenhouse gas (GHG) emissions, railways(high-speed, inter-city projects and projects in major cities), roadbusiness, airports, ports, water business, biomass fuel production,
renewable energy power generation, nuclear power generation,hydrogen, fuel ammonia, power transformation, transmission anddistribution, highly efficient coal-fired power generation, coalgasification, carbon capture and storage (CCS), highly efficient gasfired power generation, smart grid, electricity storage, developmentof telecommunications network, biopharmaceuticals, manufacture ofchemicals that use organic substances derived from animals andplants, electric vehicles, semiconductors, waste incineration andwaste to energy, development of goods and technologies
irreplaceable for a stable supply of raw materials of products, etc.,
business using new technology, business models, etc.

Loan (B/L)1

Financial institution, etc.,
in foreign country
Loans

Loan (B/C)2

Japanese exporter(s)Exports of plants, etc.

1. Loan to foreign financial institutions (bank-to-bank loan or “B/L”)
2. Loan to foreign importers (buyer’s credit or “B/C”)

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JBIC / Annual Report 2022

Importer(s) in foreigncountry(ies)3. Financial Instruments¢ Import Loans
Import loans support imports of strategically important
goods including natural resources. They are extended toJapanese importers or foreign exporters. Since Japan ispoorly endowed with natural resources, stable importsof these over the long term are one of the key factors
underpinning domestic economic activity. Import loans
finance the development and import of energy resources,
including oil and LNG, and mineral resources, including
iron ore, copper, and other rare materials.
In addition to natural resources, JBIC provides aguarantee facility for goods and services essential to thePrivatefinancial
institutions

sound development of the Japanese economy, such asimport of aircraft. (See page 75 for the guarantee schemes
for importing manufactured products.)

Products Eligible for Import Loans (Natural
Resources)
Oil, petroleum gas, LNG, coal, uranium, metallic ore,
metals, mineral phosphate, fluorite, biomass fuel,hydrogen, ammonia used as fuel, salt, lumber, woodchips, pulp, and other materials

Loan

1
Financial Instruments

Loan

Japanese importer(s)Imports of natural resources

Foreign exporter(s)Securing Long-term Supply of Crude Oil and Strengthening Strategic Partnership with a
Focus on Energy Transition
JBIC concluded a facility agreement andmemorandum of understanding (MOU)
with Abu Dhabi National Oil Company(ADNOC) in the Emirate of Abu Dhabi in
the UAE to provide necessary support
to ADNOC in ensuring long-term,
stable imports of crude oil by Japanesecompanies.
Abu Dhabi has been a stable andimportant supply source of crude oil toJapan for more than 40 years, and at
the same time, has high potential in the
decarbonization sector as it has terrain
suitable for capturing and storing GHGs

with its weather being a good source of
renewable energy. This MOU focuseson sectors including decarbonization,energy transition, and energy efficiency
to address global challenges. It aims topromote collaboration between ADNOC
and Japanese companies in these
sectors.
JBIC will continue to further
strengthen its close relationship with
ADNOC and contribute to stableenergy supply for Japan by supporting
Japanese companies in developing andacquiring energy resources.

JBIC / Annual Report 2022

71

¢ Overseas Investment Loans
Overseas investment loans support Japanese foreign
direct investments. The loans can be provided to Japanesecompanies (investors), overseas Japanese affiliates(including joint ventures), and foreign governments orfinancial institutions that have equity participations in orprovide loans to such overseas affiliates.
Direct loans to Japanese companies are intended
for mid-tier enterprises and SMEs, as well as for projects
aimed at developing or securing interests in overseas
resources that are strategically important to Japan, andprojects that support merger and acquisition (M&A)
activities (these projects include those of large companies).
Moreover, JBIC provides two-step loans (TSL) to support
the overseas business of Japanese companies, including
mid-tier enterprises and SMEs, as well as TSL intended
to support M&A activities by Japanese companies. JBIC
is also able to provide short-term loans for overseas
business operations when bridge loans are required to1
Financial Instruments

Privatefinancial
institutions

fill the financing gaps before it offers long-term loans.
Moreover, JBIC is empowered to provide investment loans
for projects in developed countries for specific sectors1.
1: Eligible Sectors for Overseas Investment Loans in Developed Countries(as of August 31, 2022).
	Railways (high-speed, inter-city projects and projects in major cities),
road business, airports, ports, water business, biomass fuel production,
renewable energy power generation, nuclear power generation,hydrogen, fuel ammonia, power transformation, transmission anddistribution, highly efficient coal-fired power generation, coal gasification,
CCS, highly efficient gas-fired power generation, smart grid, electricity
storage, development of telecommunications network, shipbuilding andmarine transportation, satellite launching and operation, aircraft
maintenance and sales, medical business, biopharmaceuticals,
manufacture of chemicals that use organic substances derived fromanimals and plants, electric vehicles, semiconductors, waste incineration
and waste to energy, development of goods and technologies
irreplaceable for a stable supply of raw materials of products, etc.,
businesses using new technology, business models, etc., businesses
that contribute to reducing GHG emissions, M&A activities, etc.

Loan

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

Loan

Loan
Loan

Japanese company

Loans and/or equity participations

Japanese affiliate(s)Equityparticipations

Loan

Project(s) in foreigncountry(ies)

Loan

Joint venture partner(s)Supporting Overseas Business Expansion of Japanese Company to Realize
Decarbonized Society
JBIC set up an investment credit line andconcluded a loan agreement based on
the credit line with Thang Long Industrial
Park II Corporation (TLIP2), a Vietnamese
subsidiary of Sumitomo Corporation.
The loan is intended to finance the funds
necessary for TLIP2 to install and operate
rooftop solar power generation systemsin Thang Long Industrial Park II, which isin the Hung Yen province in the north ofVietnam, and sell the generated electricity
to the park’s tenant companies.
Given the increasing focus on ESG
on the back of climate change issues,
the demand for green electricity has been
growing globally in recent years in many
sectors, particularly the manufacturingindustry, which consumes large quantities

72

JBIC / Annual Report 2022

of electricity. Sumitomo Corporation has
been supporting Japanese manufacturers
to start operating in the industrial park
it has opened in Vietnam for 25 years.
This project aims to contribute to theVietnamese government’s efforts toward
decarbonization by introducing solar
power generation systems and selling theresulting electricity.
The loan will support the overseas
business, in which the Japanesecompany has made investment andis participating, thereby contributing
toward maintaining and improving theinternational competitiveness of Japaneseindustry and realizing a decarbonizedsociety globally.

3. Financial Instruments¢ Untied Loans
Untied loans are intended to finance projects and theimport of goods by foreign countries, or for such countries
to achieve equilibrium in their international balance of
payments, or to stabilize their currencies. Loans are notconditional on investments or procurement of equipment
and materials from Japan.
Capital procured from untied loans is used to: securestable supplies of energy and mineral resources for Japan;
promote business activities of Japanese companies;
maintain and expand trade with and direct investment
from Japan; finance projects having significant effects on
global environmental preservation; and finance projects
maintaining order in international financing.

Privatefinancial
institutions
Loan

Government,
financial institution, etc.,
in foreign country

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

JBIC conducts environmental operations under
Global action for Reconciling Economic growth andENvironmental preservation (“GREEN”). Under GREEN
operations, JBIC provides support for projects that havea high global environmental conservation effect in theform of loans, guarantees and equity participations, whilemobilizing private sector funds. Such projects include a
project to construct a solar power generation plant or
a power plant with high energy efficiency and a project
to introduce energy-saving equipment, each utilizing
advanced environmental technologies. GREEN’s main
focus has been providing support for preserving the global
environment, mainly for projects that are expected tosignificantly reduce greenhouse gases emissions, while
paying attention to potential use of Japanese advanced
technologies that are highly regarded around the world.

Financial Instruments

GREEN Operations

1

Exporter(s)JBIC will promote overseas infrastructure developmentthat contributes to preserving the global environment
while widely utilizing the know-how and technologies ofJapanese companies.
¢ Promoting the overseas business having the purposeof preserving the global environment, such as
preventing global warming
Guarantees
Loans/Equity participations

Privateflows

Eligible Projects:

Projects having favorable impact on preservation of the
global environment, such as significantly reducing
greenhouse gases emissions

Supporting Renewable Energy and Energy Efficiency Projects in Türkiye
JBIC set up a credit line with Türkiye
Sınai Kalkınma Bankası A.Ş. (TSKB), theIndustrial Development Bank of Türkiye.
This credit line is extended as part of
JBIC’s GREEN operations and is intended
to provide funding through TSKB for
renewable energy projects and energy
efficiency projects in Türkiye .
The Government of Türkiye has set
forth improvement of the energy selfsufficiency rate as an important policy
issue and ratified the Paris Agreement,
which is an international framework ofmeasures against global warming, in
October 2021. TSKB is performing therole of policy-based financing that aims forthe sustainable development of Türkiye,
and it has been actively supporting theenergy efficiency improvement in theindustrial sector and the promotion of
adopting renewable energy.
This credit line is in line with the energy
policy of the Government of Türkiye andis expected to help disseminate Japan’s
advanced environmental technologies.

JBIC / Annual Report 202273

¢ Equity Participations
Equity participations are capital contributions tocompanies where Japanese companies have equity
stakes to undertake overseas projects, as well as funds¢Japanese companies make equity
participations in an overseas project

where Japanese companies perform significant roles. In
principle, equity participations take the following forms.

¢Japanese companies participate in a fund (and perform
such a major roles as that of a general partner in their
management and investment decisions)
Major role

Japanesecompany(ies)

Equityparticipations

Overseas
project

Japanesecompany(ies)

Financial Instruments¢ Japanese companies acquire equity
interests in a foreign company toform a business alliance

FundJapanesecompany(ies)

Foreigncompany

Other
investor(s)¢ Japanese companies form a consortium and participate in
an international fundBusiness alliance
Equityparticipations

Equityparticipations

Equityparticipations

Equityparticipations

1

Equityparticipations

Japanesecompany(ies)

Equityparticipations

Consortium

Fund

Equityparticipations

Other
investor(s)Equityparticipations

Equity Participation in Venture Capital Fund that Helps to Promote Open Innovation
JBIC made equity participation jointlywith Sompo Holdings, Inc. and otherJapanese companies in the Geodesic
Capital Fund II, L.P. (the Fund), a venture
capital fund managed by Geodesic
Capital Partners II, L.P., established in
the Cayman Islands. The Fund invests inadvanced technology companies mainlyin Silicon Valley, in the U.S., and is also
intended to provide Japanese investors
with strategic services, such as offering
opportunities to form businesses andcapital alliances with those companies.

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JBIC / Annual Report 2022

Due to the COVID-19 pandemic,
Japanese companies are promoting
open innovation to increase the efficiencyof existing businesses and to create new
added value by combining their internaland external resources, and as partof the effort, are also promoting digitaltransformation (DX). The participation of
JBIC in the Fund is expected to contributetoward maintaining and strengthening
the international competitiveness ofJapanese companies.

3. Financial Instruments¢ Guarantees
In addition to loans and equity participations, JBIC
provides support through its guarantee facility. Guarantees
are provided for loans extended by private financial
institutions, bonds issued by governments of developing
countries or overseas Japanese companies, as well as for

currency swap transactions. JBIC also issues reassurance
for guarantees from export credit agencies in othercountries.

¢ Guarantees for Imports of Manufactured
Products
JBIC has a guarantee facility for borrowings by
Japanese companies to finance the import ofaircraft and other manufactured products thatare vital to Japan.

Private financial
institution, etc.
Guarantee

Foreignexporter(s)Import of products

LoanJapaneseimporter(s)1Financial Instruments¢ Guarantees for Corporate Bonds Issued
by Japanese Affiliates
JBIC supports Japanese affiliates operating
overseas by providing guarantees for the bonds
they issue in local capital markets.

Investor(s)Guarantee
Counterguarantee

Sub-guarantee

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

Issue
of bonds
Guarantee

Japaneseaffiliate (issuer)

Contributing to Stable Aircraft Import		
JBIC concluded a guarantee agreementwith private financial institutions forthe principal and interest of their loans
to Japan Airlines Co., Ltd. (JAL). Thisguarantee is intended to support JAL in
obtaining financing from private financial
institutions to import aircraft from The
Boeing Company in the U.S. and Airbus
S.A.S. in France.

JBIC will continue to contributeto maintaining and improving theinternational competitiveness of theJapanese aviation industry and provide
financial support for the import of aircraftthat are indispensable for the lives ofpeople in Japan.

JBIC / Annual Report 2022

75

¢
Guarantees for Cofinancing, Overseas
Syndicated Loans, and Public Sector
Bonds
Loans to developing countries involve, among
others, currency conversion and transfer risks,
as well as country risks. Guarantees that JBIC
issues to cover such risks enable Japanese
private financial institutions to provide mediumand long-term financing for developing countries,
and contribute to developing countries tobringing in private capital and facilitating privatecompanies to expand international businessactivities.

1

Investor(s)Guarantee
Loan

Guarantee

Private financial
institution, etc.

Financial Instruments¢ Guarantees for Currency Swaps
JBIC provides guarantees for swap
transactions to support the local currency
financing of overseas infrastructure
projects and other projects undertaken
by Japanese companies.

Japanesecompany(ies)Guarantee

Operation

Private financial
institution
Currency
swap
contract

76

JBIC / Annual Report 2022

Government,
etc., in foreigncountry

Loan

Swap counterparty
overseas¢Counter Guarantees for Export
Credits
In cases where Japanese companies
export machinery and equipment jointlywith companies of another country, JBIC
provides a counter guarantee for theguarantee provided by that country’s
export credit agency (ECA). This function
enables JBIC to flexibly support export
projects by Japanese companies
collaborating with foreign companies
through multilateral mutual guarantee
schemes.

Issue ofpublicbonds, etc.

Localcurrency
loan

Counterguarantee

Overseas
infrastructure
projects, etc.

Japanese Foreigncompany company
(ies)
(ies)

Foreign ECAGuarantee

Private financial
institution(s)Investment

Loan

ExportForeign importer(s)3. Financial Instruments¢ Bridge Loans
JBIC provides short-term financing for governments ofdeveloping countries to meet their foreign currency needs
for external transactions when they face balance-ofpayment difficulties.
JBIC provided bridge loans (short-term bridging loans)

Loanfor Myanmar in January 2013 to support the clearance ofarrears of past loans from the Asian Development Bank
(ADB) and the International Development Association(IDA), a member of the World Bank Group.

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

Loans from theIMF, World Bank, etc.

Import orother externaltransaction(s)1When JBIC provides export loans, import loans, overseas
investment loans, and untied loans, JBIC can also provide
credits, in addition to providing loans and guarantees, bypurchasing loan assets and acquiring public and corporate
bonds1 issued by borrowers for funding. The objective ofsuch operations is to promote private financial institutions’Financial Instruments¢ Acquisition of Loan Assets and Public and Corporate Bonds
loans in international finance and Japanese companies’
funding in international capital markets.
1. The scope of assets and securities acquired includes public bonds,
corporate bonds, debt securities, and trust beneficiary rights.

¢ Research and Studies
JBIC conducts research and studies on individual
projects during their initial stage, as well as those
focused on specific regions or industry sectors that may
be conductive to specific projects. This is an effectivemeans of identifying potentially quality projects, and is
expected to lead to increasing exports of materials andservices from Japan, as well as expand opportunities toparticipate in projects by Japanese companies. Researchand studies are conducted at each stage necessary forrealization of the project, including preparation of a masterplan for an individual project, conducting of prefeasibility
and feasibility studies (Pre-F/S, F/S), front-end engineering
design (FEED), and studies of regions and industry sectors

conductive to specific projects. After the research andstudies are completed, follow-up reviews are conducted atleast once each year to confirm the progress of the project.
Research and studies are conducted in the following
sequence.
1. Selection of a research and study subject
2. Selection of a contractor to conduct research andstudies
3. Conduct of a research and studies
4. Completion of a research and study report
5. Follow-up

JBIC / Annual Report 2022

77¢ Securitization and Other Financial Instruments
JBIC provides support for securitization and an increase in liquidity in order to complement and encourage the activities ofprivate financial institutions.

1. Securitization (Guarantees)

2. Securitization (Acquisition of Securities)

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

JBIC supports bond issues by acquiring a portion of the
ABS issued by SPC or trust companies with loans orother assets as collateral. JBIC’s acquisition supports the
securitization needs of the originators1 and is expected tohelp invigorate the bond market by circulating the acquiredbonds back into the market when market conditions allow.
1. A
 n originator is the original owner of assets to be securitized and obtainfunding through securitization.

Originator
Private financial
institutions, etc.

1

Transfer of loans

SPC
Guarantee

Loans

Financial Instruments

ObligorOverseas Japaneseaffiliates

Issue of ABSs

Purchase of ABSs

Investors(in Japan andoverseas)* The above diagram depicts a scheme where SPCs are used, but the clients can also use schemes where trusts
are used or JBIC acquires or provides guarantees for assets backed by securitization.

3. Securitization and Liquidation of
Receivables
JBIC provides guarantees for the receivables and othermonetary claims held by overseas subsidiaries ofJapanese companies in order to facilitate the purchase ofOverseas Japaneseaffiliates

Accounts receivable, etc.
Guarantee

Proceeds

JBIC / Annual Report 2022

Overseas local
companies
Guarantee

Assignment of accounts
receivable

Private financial
institutions

78

such receivables by banks (an increase in their liquidity).
JBIC is also able to provide guarantees for securities
issued by SPC or trust companies in cases where thesesecurities have monetary claims acquired from overseas
Japanese subsidiaries on collateral.

ABS

SPC or trusts

Investors
Proceeds

2. Prominent Initiatives in Recent Years¢ Global Investment Enhancement Facility
In July 2022, JBIC established the Global Investment
Enhancement Facility in order to support and accelerate
overseas expansion of Japanese companies with
their cutting-edge technologies for the environment ordigitalization or with their unique competitiveness.
The Global Investment Enhancement Facility consistsof the Sustainability Window and the Global Value Chain

JBIC
Global Investment
Enhancement Facility

Resilience Window, is intended to support Japanesecompanies in: (1) the contribution toward preserving the
global environment, including decarbonization and (2) the
enhancement of supply chain resilience, the expansionof high-quality infrastructure, and the creation of new
overseas markets.

Japanese Companies, etc.
Contribution toward preserving the global
environment

Sustainability Window
Loanl Renewable energy, energy savingsl Low-carbon technologies and materialsl	Technologies that are expected to contributetoward preserving the global environment** e.g. Prevention of air pollution, water pollution, and marine plastic
pollution, etc.

Global Value Chain Resilience Window2
Prominent Initiatives in Recent Years

Enhancement of the resilience of the whole value
chains from upstream to downstream businesses
l Enhancement of supply chain resiliencel Expansion of high-quality infrastructurel	Creation of markets by utilizing technologies orstrengths

Japanese Companies, etc.
Loan

¢ Expansion of the Eligible Sectors of JBIC's Support for Developed Countries
The Cabinet Order for Partial Revision to the Enforcement
Order of the Japan Bank for International Cooperation Act
came into effect in June 2022. This revision has expanded
the eligible sectors for JBIC to provide: (1) export loans forthe export of Japanese products to developed countries;and (2) overseas investment loans for projects in developed
countries. Sectors newly added to the scope of the Act
due to this expansion are shown below.

l	Businesses with new technology, business model, etc.

l	Biopharmaceuticalsl	Businesses that contribute to reducing greenhouse gas emissionsl	Fuel ammonial	Development of goods and technologies irreplaceable for a stable supply of
raw materials of products, etc.

l	Electric vehiclesl	Semiconductorsl	Medical equipment (e.g., endoscopes, MRI equipment)

JBIC / Annual Report 2022

79¢ Organizational Changes toward the Realization of a Decarbonized Society
The new establishment of the Energy Transformation
Strategy Office aims at centralizing JBIC’s response
to matters concerning hydrogen, ammonia, and otherforms of innovative energy, which are important for thegreen transformation process, and the realization of adecarbonized society.

In July 2022, JBIC changed the name of the Oil and Gas
Finance Department to the Energy Solutions Finance
Department and established the Energy Transformation
Strategy Office, with a view to strengthening its support forthe development of innovative energy and smooth energy
transition toward a decarbonized society.

¢ Establishment of Representative Office in Sydney
its activities in Australia and Pacific island countries, andthus make further contributions to the sound developmentof Japan and the international economy and society.

In March 2022, JBIC opened a Representative Office inSydney, Australia.
Australia is an important partner for Japan to realizea “Free and Open Indo-Pacific.” Under the trilateral
partnership among Japan, the U.S., and Australia
established in November 2018, JBIC is promoting
formation of cooperative projects in the Indo-Pacific region
including South Pacific countries jointly with Australia’s
Department of Foreign Affairs and Trade (DFAT), Export
Finance Australia (EFA), and the United States International
Development Finance Corporation (USDFC).
Australia has great business potential for Japanesecompanies in multiple sectors such as hydrogen,renewable energy, critical minerals, and social infrastructurein addition to its well-known important sectors including
iron ore and natural gas.
Through the opening of this office, JBIC will strengthen

2
Prominent Initiatives in Recent Years

Countries and Regions Covered by Representative Office in Sydney
沖縄

中国

台湾
Philippines

南鳥島（日本）硫黄島（日本）Northern Mariana Islands
Marshall Islands

Malaysia

Palau

Micronesia
Papua New Guinea

Nauru

Solomon Islands
TuvaluIndonesia

Kiribati

Samoa
VanuatuFijiAustralia

Tonga

Cook Islands

Niue

New Caledonia

Address:
Suite 4102, Level 41, Gateway
Tower, 1 Macquarie Place, Sydney,
NSW 2000, Australia
New Zealand

80

JBIC / Annual Report 2022

3.

Framework for Supporting Globalization
Efforts of Mid-tier Enterprises and SMEs

As economies in emerging market countries, especially in
Asia, continue to develop, an increasing number of midtier enterprises and SMEs seek to expand their businessin emerging markets in addition to responding to theoverseas advancement of their business partners. As
mid-tier enterprises and SMEs have a variety of overseas
business, their funding needs have grown more diverse.
Utilizing the know-how and experience of overseas
financing that it has accumulated over the years, JBIC

provides the long-term financing to Japanese companies,
including mid-tier enterprises and SMEs, that is necessary
for overseas investment, the export of products, andM&As of foreign companies that have unique technology
or a distinctive customer base.
To respond to financial needs of mid-tier enterprises
and SMEs for their overseas expansion, JBIC has further
enhanced cooperation not just with major financial
institutions but also with private financial institutions,Characteristics of Support to Overseas Business of Mid-tier Enterprises and SMEs
(1) Prompt and flexible support to respond to funding needs of
mid-tier enterprises and SMEs (including loans of a relatively
small amount)(2) Reducing currency exchange risk through local currencydenominated loans in addition to loans in Japanese Yen,
U.S. dollars, and Euro(3) Responding to diverse funding needs by utilizing variety offinancing tools, including loans for M&As, export loans, andequity participations(4) Collaborating with private financial institutions (mega banks,regional banks, Shinkin banks, and local financial institutions)
to respond to and support overseas business of mid-tierenterprises and SMEs in Japan(5) 
Utilizing networks of JBIC overseas offices in 18 cities
to provide information services on overseas investment
environment and assist solving issues with foreign
governments

3
Framework for Supporting Globalization Efforts of Mid-tier Enterprises and SMEs

Process leading to loan disbursement
First, JBIC interviews the borrower to gain an overall picture of its overseas project and to understand its preferred loan conditions. JBIC
then consults with the private-sector financial institutions with which JBIC will conduct co-financing (generally the financial institutions
with which the borrower company regularly does business). The specific steps leading to disbursement of the loan are as follows:
It usually takes around two months until the decision on the loan is made and two to three weeks until the loan is disbursed
after that decision.
(*It may take longer depending on the loan processes of the partnering financial institutions and local registration procedures.)Loan
consultation
Preliminary
consultation

Loan
application

Loan
screening

Contract
preparation

Loan
decision
Signing andexecution

Consultation
About overseas investment
project and preferred loan
terms and conditions

Agreement on loan conditions
Amount, currency, repayment schedule, etc., Co-financing
financial institutions, Financing scheme

Submission of required documentation
Financial statements (for three fiscal years in principle), Environmental screening form (usingprescribed form), Identity verification documents, Registration confirmation documents,
Investment plan summary (reference format available), Minutes, Articles of Incorporation,etc.
Company screening
Financial data registration,
Quantitative and qualitative
analysis

Investment projectscreening
Analysis of financial planand investment project,Cash flow analysis

Environment screening
Environmental and social
impact check

Drafting of loan agreement
Loan agreement (cross-border loan)/ Deed of debt guarantee
Loan agreement (domestic financing)/Collateral related agreement (if necessary)

Loan decision
JBIC’s internal decision

Contract signing
Signing of loan agreement,
Press release

Loan disbursement
Loan disbursement uponsigning of agreement andsubmission of required
documents

JBIC / Annual Report 202281

including regional banks and Shinkin (credit) banks, andlocal financial institutions in countries where they are
expanding their business. In addition to individual loan
schemes based on co-financing with private financial
institutions, JBIC also provides two-step loans (including
finance leases) through organizations such as private
financial institutions enabling more prompt and flexible
response to the diversifying funding needs. Additionally,
JBIC is actively providing local currency-denominatedloans along with conventional loans in Japanese Yen, U.S.
dollars, and Euro.
As the COVID-19 pandemic started to wind down insome parts of the world, there has been a rise in fundingneeds among overseas affiliates of Japanese mid-tierenterprises and SMEs to meet the recovering demand andrespond to the transformation of the economic structure.
Strengthened efforts to tackle climate change and forsustainability are expected to boost investment for the

purpose of these affiliates’ decarbonization efforts andsupply chain resilience. JBIC also supports such fundingneeds while complementing the roles of private financial
institutions.

Cooperation with Japanese Private Financial
Institutions
Private financial institutions with mid-tier enterprises and
SMEs as their client base, play an important role when
they seek to develop their business expand overseas.
Among private financial institutions, regional banks andShinkin (credit) banks have especially close ties to mid-tierenterprises and SMEs. In cooperation with such private
financial institutions, JBIC broadly supports the overseas
expansion of local Japanese companies by not justproviding financial services but also co-hosting seminars
focused on overseas business development etc.
In addition, JBIC has general agreements with a

Example of Mid-tier Enterprises and SMEs Support Schemes

31) Individual loan scheme

Framework for Supporting Globalization Efforts of Mid-tier Enterprises and SMEs

Overseas project1

2) Two-step loan scheme (via Japanese financial institution)
Equity participations,increase of capital,
parent company/
subsidiary loan

Overseas subsidiary

Parent company(Japan)Parent company(Japan)

海外子会社
Overseassubsidiary

Domestic loans(back finance)

Direct loans(Dollar/Yen/Euro/other local currencies)
Overseas

Overseas projectJapan

Overseas

Japanese financial
institutions
JBIC

Japan

Japanese financial
institutions

Domestic loans (Dollar/Yen/Euro/other local currencies)

1. In principle, intended to developing countries* Definition of mid-tier enterprises and SMEs: Companies capitalized at less than ¥1 billion or with not more than 300 employees. Consolidated subsidiaries of large companies
are excluded.

Financial Institutions with an Established Credit Line for Supporting Mid-tier Enterprises and SMEs
Signing date ofAgreement

Financial Institutions

Signing date ofAgreement

October 2015

SUMITOMO MITSUI TRUST LEASING(SINGAPORE) PTE. LTD.

February 2019

The Hokkoku Bank, Ltd.

March 2016

PT. BUMIPUTERA-BOT FINANCE

February 2019

The Chiba Bank, Ltd.

November 2017

PT. SMFL Leasing Indonesia

February 2019

The Nanto Bank, Ltd.

February 2018

P.T. Bank Resona Perdania

March 2019

The Hiroshima Bank, Ltd.

September 2018 PT. RESONA INDONESIA FINANCE

March 2019

The Aichi Bank, Ltd.

December 2018

The Shizuoka Bank, Ltd.

May 2019

The Chugoku Bank, LTD.

December 2018

The Bank of Yokohama, Ltd.

July 2019

The Hokuriku Bank, Ltd.

December 2018

Bangkok Mitsubishi UFJ Lease Co., Ltd.

November 2019

The Bank of Yokohama, Ltd.

December 2018

Saitama Resona Bank, Limited

January 2020

PT. Mitsubishi UFJ Lease & Finance Indonesia

December 2018

The Joyo Bank, Ltd.

January 2020

THE BANK OF NAGOYA, Ltd.

December 2018

The Hachijuni Bank, Ltd.

March 2020

SMFL Leasing (Thailand) Co., Ltd.

January 2019

THE NISHI-NIPPON CITY BANK, LTD.

March 2020

THE SHIGA BANK, LTD.

February 2019

The Toho Bank, Ltd.

March 2022

The 77 Bank, Ltd.

Note: T his list is of financial institutions for which the credit line is valid as at the end of March 2022.

82

Financial Institutions

JBIC / Annual Report 2022

3. Financial Instruments

number of private financial institutions to establish credit
lines as a means to promptly finance the funds necessary
for the overseas business development by mid-tierenterprises and SMEs in emerging market countries (seethe list on the previous page).
The number of regional financial institutions, withwhich JBIC partnered to engage in co-financing and othercollaborative activities1 was 27 in FY2021.
1. 
Besides co-financing, collaboration includes two-step loans andguarantees.

Cooperation with Local Financial Institutionsin Emerging Countries

Providing Local Currency-Denominated Loans
JBIC provides loans in various local currencies, including theThai baht, Indonesian rupiah, and Chinese yuan. Especiallyfor mid-tier enterprises and SMEs running domestic
demand-based businesses in respective countries, stablefinancing of local currency funds is an important issue in theirbusiness strategy from the viewpoint of avoiding currency
exchange risk. JBIC prepares long-term fixed-rate local
currency loans alongside with finance from private financial
institutions to their Japanese clients’ affiliates overseas.
In China, there exists a continued need for long-term
Chinese yuan-denominated loans from Japanese mid-tierenterprises and SMEs operating in the country to increase
production capacities or for other purposes. The country,
however, restricts funds raised from outside China. In orderto ensure prompt and flexible response to clients’ financial
needs under these restrictions, JBIC has signed a generalagreement with Japanese regional banks having a branchin China to establish credit lines for yuan-denominated twostep loans.

3
Framework for Supporting Globalization Efforts of Mid-tier Enterprises and SMEs

It is essential for mid-tier enterprises and SMEs to obtainsupport from local financial institutions in countries
where they are expanding their business, which are wellacquainted with the local area.
Besides supporting Japanese affiliates overseas, JBIC
has also strengthened its relationships with local financial
institutions in emerging countries, for example, providing
two-step loans to them with the objective of fostering andsupporting local companies that supply raw materials andparts to Japanese affiliates overseas.
In addition, JBIC has concluded MOUs with local
financial institutions in Thailand, Indonesia, India, thePhilippines, Vietnam, and Mexico to set up a system
to support overseas business expansion of mid-tierenterprises and SMEs. Under these MOUs, JBIC has
opened or expanded single contact point for overseas
affiliates of Japanese companies (“Japan desk”) in these
local financial institutions and has established a framework
to discuss cooperation and collaboration that involve
Japanese private financial institutions. A total of 535
Japanese regional financial institutions have joined theframework and dispatched personnel to the local financial
institutions.

partners and cooperating regional financial institutions
through experts concerning the legal, accounting, andcurrency regulations related to tax affairs, employment
and labor issues, contracts, company establishment, andother issues for China, India, ASEAN, North America, Latin
America, Europe, and the Middle East.
JBIC also organizes seminars and consultations
on overseas business deployment in cooperation withorganizations such as private financial institutions,prefectural and municipal governments, and local
chambers of commerce and industry. In addition, it
conducts field studies to assess investment climatesin countries where Japanese companies are actively
expanding their business. The findings of these studies
are compiled into guidebooks, which are available in bookform and on JBIC’s website.
In FY2021, JBIC is holding a number of overseas
investment and other seminars, including those held
online, for mid-tier enterprises and SMEs.
Additionally, JBIC has set up a loan consulting desk
in Sendai, Ota (Gunma Prefecture), Tokyo, and Nagoya
in collaboration with local governments, chambers ofcommerce, and other organizations supporting overseas
business expansion of local companies and has been
providing consultation services on such topics as overseas
investment climates and various forms of financing.

Loan Commitments to Mid-tier Enterprises and SMEs
Number of loans committed
Of which, co-financed with regional banks and Shinkin (credit) banks
Amount of commitments(Number)(Unit: billions of yen)

150

30

26.7

25

16.2
100

20
166

15

50

10
5

0

'19

'20

'21

(FY)

0

Information Services and Seminars
In addition to individual consulting services for midtier enterprises and SMEs’ overseas expansion of theirbusiness, JBIC provides advisory services to business

Investment environment guidebook published in FY2021

JBIC / Annual Report 2022

83

Examples of Business Outcomes Relating to Support for Mid-tier Enterprises and SMEs
JBIC supports mid-tier enterprises and SMEs in a wide range of industries with their overseas business deployment.

China

Mitani Shoji Co., Ltd. (Kyoto Prefecture)
Wholesale, Sale and Processing of Nonferrous Metal Materials
Mitani Shoji engages in the wholesaling of nonferrous metalmaterials such as copper and aluminum. To respond torequests from business partners that advanced into China,
Mitani Shoji established Mitani Shoji Electronic Materials(Shanghai) Co., Ltd. (MSEM) in 2006 and is promoting businessexpansion in China. JBIC provided a loan to MSEM for its
nonferrous metal materials sales business in Shanghai. The
loan is co-financed with The Bank of Kyoto, Ltd.

3
Framework for Supporting Globalization Efforts of Mid-tier Enterprises and SMEs

Indonesia

Yagiharu Sangyo Co., Ltd. (Osaka Prefecture)
Real Estate Rental Business and Electrolyzed Water Generator Sales BusinessYagiharu Sangyo engages in the real estate rental business andsells electrolyzed water generators. With Indonesian company
PT. Harmoni Asri (HAR) serving as its base, Yagiharu Sangyo
aims to further expand its facility support integrated service
activities that include its laundry business and hygiene
management operations within facilities that use electrolyzed
water. JBIC provided a loan to HAR for its laundry business.
The loan is co-financed with Resona Bank, Limited

Malaysia

ThailandFuture Spirits Co., Ltd. (Kyoto Prefecture)
Building, Maintenance and Operation of Servers and Websites as Well as Systems
Development Business
Future Spirits engages in building, maintenance, and operationof servers and websites and is also involved in systemdevelopment. To support the building and operation of IT
infrastructure for local Japanese-affiliated companies, Future
Spirits established Future Spirits Malaysia Sdn. Bhd. (FSMY) in
Malaysia in 2011 and Future Spirits Thailand Co., Ltd. in
Thailand in 2013 and is working to expand its business in bothcountries. JBIC provided loans for the server hosting and soforth business undertaken by FSMY and FSTH. These loans
are co-financed with THE SHIGA BANK, LTD.

84

JBIC / Annual Report 2022

3. Financial Instruments

ThailandWhitemax Co., Ltd. (Osaka Prefecture)
Manufacture and Sale of Hygiene Products
Whitemax engages in the manufacture and sale of hygiene
products such as gloves and masks. Whitemax establishedWhitemax (Thailand) Co., Ltd. (WTH) as a sales base in
Thailand and is working to expand sales channels to principal
customers in Thailand. JBIC provided a Thai bahtdenominated loan to WTH for its sanitary product sales
business to support Whitemax’s overseas businessdevelopment in Thailand, which is a growing market.

3

ThailandFramework for Supporting Globalization Efforts of Mid-tier Enterprises and SMEs

Nissen Chemitec Corporation (Ehime Prefecture)
Manufacture and Sale of Plastic Component
Nissen Chemical engages in the manufacture and sale ofplastic components such as automotive interior materials. In
1994, Nissen Chemical established Nissen Chemitec(Thailand) Limited (NCT) as a Thai subsidiary in response to
the advancement into and expansion of production in Thailand
by main customers. Subsequently, NCT has been sellinghigh-quality plastic products for use in interior and exteriormaterials to Japanese companies operating in Thailand. JBIC
provided a Thai baht-denominated loan to NCT for its
manufacturing and sales business of plastic components
such as automotive interior materials in Thailand. The loan is
co-financed with The Iyo Bank, Ltd.

Vietnam

HOLUS Co., Ltd. (Tokyo)
Frozen Vegetable Wholesale Business
HOLUS mainly engages in the wholesaling of frozen
vegetables. HOLUS established AGRIEX CO., LTD (AGRIEX)
in 2020 as its first overseas manufacturing base amid theongoing shift away from dining out to ready-made meals andeating at home due to the spread of COVID-19. The company
is working to strengthen its system for producing andsupplying high-quality processed foods in Vietnam. JBIC
provided a loan to AGRIEX for its frozen food manufacturing
and sales business. The loan is co-financing with the Bank ofFukuoka, and the Shoko Chukin Bank.

JBIC / Annual Report 2022

85

VietnamYuwa Co., Ltd. (Nagano Prefecture)
Manufacture and Sale of Precision Plastic Molded Products
Yuwa engages in the manufacture and sale of precision
plastic molded products such as smartphone connectors
and medical devices. Yuwa established YUWA VIETNAM
CO., LTD (YVL) as a manufacturing base in Vietnam with theaim of maintaining and expanding its overseas production.
Based on a credit line with THE HACHIJUNI BANK, LTD.,
JBIC provided a loan to YVL for its business of manufacturing
and selling micro precision plastic molded products andmolds.

3

Australia

Framework for Supporting Globalization Efforts of Mid-tier Enterprises and SMEs

I’rom Group Co., Ltd. (Tokyo)
Pharmaceuticals and Medical Device Development Support Business
The I’rom Group engages mainly in the pharmaceuticals and medical device development support business. It
made CMAX CLINICAL RESEARCH PTY LTD (CMAX), an Australian company, part of the Group and aims to
expand its clinical trial business through CMAX. JBIC provided an Australian dollar-denominated loan to CMAX for
its pharmaceuticals and medical device development support business in Adelaide, South Australia. The loan is
co-financed by Kansai Mirai Bank, Limited.

United Kingdom

Asahi Glassplant Inc. (Kumamoto Prefecture)
Manufacture and Sale of Scientific Glassware and Glass-engineered Systems
Asahi Glassplant engages in manufacturing and selling scientific glassware and glass-engineered systems such asreactors and various types of distillation equipment mainly for pharmaceutical and chemical industries. In 2019,
Asahi Glassplant established Asahi Glassplant UK Ltd. (AGI UK), a UK subsidiary, to maintain and increase
production in Europe to expand its business in the European market. JBIC provided a British pound denominatedloan to AGI UK for manufacturing and selling scientific glassware and glass-engineered systems. The loan is cofinanced with The Shikoku Bank, Ltd.

86

JBIC / Annual Report 2022

3. Financial Instruments

Germany

Nasa Corporation (Tokyo)
Sale of Packaging Materials and Packaging Machines for Overseas Markets
Nasa engages in the sale of packaging materials andpackaging machines such as tea bags and coffee filters foroverseas markets. Nasa established Nasa DeutschlandGmbH (NDGH) in Germany as its first European base and is
promoting sales of packaging materials and packaging
machines to European drinking water manufacturers andcontainer manufacturers. JBIC provided euro-denominatedloan to NDGH for its business of selling packaging materials
and machines in Europe. The loan is co-financed with Resona
Bank, Ltd.

3

MexicoFramework for Supporting Globalization Efforts of Mid-tier Enterprises and SMEs

Nissin Kakou Co., Ltd. (Saitama Prefecture)
Manufacture and Sale of Plastic Molds and Injection Molding Products
Nissin Kakou engages in the manufacture and sale of plastic
molds and injection molding products used for automobile
components. Nisshin Kakou established NISSINKAKOUMEXICANA, S.A. DE C.V. (NKM) in 2014 with the aim of
expanding sales channels for automotive components, mainly
for Japanese companies in Mexico. NKM aims to expand its
business in the automobile-related market in Mexico. JBIC
provided a loan to NKM for its automobile components
manufacturing and sales business in Mexico. The loan is cofinanced with Saitama Resona Bank, Limited.

BrazilSUN ACE Corporation (Kanagawa Prefecture)
Manufacture and Sale of Industrial Chemical Products Such as Polyvinyl Chloride (PVC)
Stabilizers
SUN ACE engages in the manufacture and sale of industrial
chemical products, including polyvinyl chloride stabilizer. In
2013, SUN ACE established SUN ACE BRASIL INDUSTRIAQUIMICA E COMERCIO LTDA. (SABI) as a manufacturing andsales base for Brazil and neighboring countries and is working
to maintain and expand overseas production. Based on acredit line with The Bank of Yokohama, Ltd., JBIC provided aloan to SABI for its industrial chemical products manufacturing
and sales business in Brazil.

JBIC / Annual Report 2022

87

4.
Operational and Administrative Policies
1. Corporate Governance····························································90
2. Risk Management···································································94
3. Public Information and Disclosure··········································98

JBIC / Annual Report 2022

89

1. Corporate GovernanceFundamental Approach to Corporate
Governance
JBIC is making efforts to build corporate governancestructure in conducting operations with particular attention

to integrity and efficiency, as it seeks to fulfill the mission
set out under the JBIC Act (Law No. 39, 2011) and realize
its corporate philosophy.

Shareholder Meeting
Supervisory and Evaluative Function

Accounting Auditor

Board of Corporate Auditors

Board of Directors

Management Advisory and
Evaluation Committee
Risk Advisory Committee

1

Sustainability Advisory
Committee

Office of Corporate Auditor

Corporate Governance

Executive Function
Executive Committee
Credit Committee

ALM Committee

Corporate Risk Management
Committee

Global Head Committee

Compliance andCustomer Protection
Management Committee

Information Security
and ICT Promotion
Committee

Personnel Committee

Sustainability Committee[Decision Committees][Deliberative Committees]

Internal Audit
Committee
Internal Audit
Department(As of June 22, 2022)

Involvement of Japanese Government
As JBIC has its shares wholly owned by the Governmentof Japan, it is subject to the control of the Japanese
government, its sole shareholder. Additionally, it is subject
to the budget passed in the Diet, inspections by the Board
of Audit of Japan, by the Competent Minister, and by the
Financial Services Agency whose inspection is delegatedby the Competent Minister.

Supervisory and Evaluation Function and theConduct of JBIC Operations
To strengthen the supervisory and evaluative function of theBoard of Directors as well as conduct speedy and flexible
operations, JBIC has established, in addition to the Boardof Directors, the Board of Corporate Auditors and otherorgans required by the Companies Act, the Management
Advisory and Evaluation Committee, the Risk Advisory
Committee, the Sustainability Advisory Committee, the90

JBIC / Annual Report 2022

Internal Audit Committee, and the Executive Committee.
Furthermore, a variety of committees were set up by the
Executive Committee that delegates specific tasks tothem.
(1) Board of Directors
The Board of Directors consists of nine members, of which
three members are non-executive directors, including
two outside directors as set forth in the Companies Act.
The non-executive directors supervise the conduct ofrepresentative directors and executive directors in JBIC’soperations, thereby making a contribution to improving its
governance.
(2) Board of Corporate Auditors
The Board of Corporate Auditors consists of three auditors,of which two are outside corporate auditors, as set forth in
the Companies Act. Outside corporate auditors contribute4. Operational and Administrative Policies

to improving the governance structure of JBIC, as they
cooperate with the full-time auditor in auditing the conductof its operations. As a section helping them execute their
responsibilities, there is the Office of Corporate Auditor.
(3) Management Advisory and Evaluation Committee
The Management Advisory and Evaluation Committee
consists of external experts, including the outside director.
They make assessment and offer advice on the mattersreferred to them by the Board of Directors pertaining to thebusiness operations and management of JBIC.
(4) Risk Advisory Committee
The Risk Advisory Committee consists of external
experts, including the outside director. They offer advice
on the matters referred to them by the Board of Directors
pertaining to risk management and assessment frameworkassociated with large-lot obligors and risk exposure tolarge-scale projects.

(6) Internal Audit Committee
The Internal Audit Committee consists of representative
directors and the outside director. They make decisions
and deliberations concerning important matters pertaining
to internal audit, as delegated by the Board of Directors.
(7) Executive Committee
The Executive Committee consists of representative
directors, executive directors, and all the managing
executive officers. They make decisions and deliberations
concerning important managerial matters, thereby taking
responsibility for conducting flexible JBIC operations, asdelegated by the Board of Directors. The committees
below have been established as advisory bodies to the ist of Members of the Management Advisory andL
Evaluation Committee
(As of August 1, 2022)
Name

Occupation(i) Credit Committee
The Credit Committee makes decisions and deliberations
concerning important matters on loans, equity
participations, and guarantees by JBIC, as delegated by
the Executive Committee.
(ii) Corporate Risk Management Committee
The Corporate Risk Management Committee makes
decisions and deliberations concerning important matterspertaining to the corporate risk management of JBIC, asdelegated by the Executive Committee.
(iii) Compliance and Customer Protection
Management Committee
The Compliance and Customer Protection Management
Committee makes decisions and deliberations concerning
important matters pertaining to the compliance andcustomer protection management of JBIC, as delegatedby the Executive Committee.

(v) ALM Committee
The ALM Committee makes deliberations concerning
important matters pertaining to the asset-liability
management (ALM) of JBIC, as delegated by the Executive
Committee and the Corporate Risk Management
Committee.
(vi) Global Head Committee
The Global Head Committee makes deliberations
concerning cross-cutting matters among internal groups,
including operational policy for each country or region, asdelegated by the Executive Committee.

List of Members of the Risk Advisory Committee(As of August 1, 2022)

Name

Occupation

URATA Shujiro

Professor Emeritus, Waseda University

ABE Shuhei

ENDO Noriko

Project Professor, Research Centers and Institutes,
Keio University Global Research Institute

EHARA Nobuyoshi Co-founder, Unison Capital, Inc.

KAWAMURA
Yoshinori

JBIC Managing Director (Outside Director)

KOIZUMI Shinichi

President, CEO of SPARX Group Co., Ltd.

OGAWA Eiji

Professor, Faculty of Economics, Tokyo Keizai
University

JBIC Managing Director (Outside Director)

KAWAMURA
Yoshinori

JBIC Managing Director (Outside Director)

SATO Yasuhiro

Senior Advisor, Mizuho Financial Group, Inc.

KOIZUMI Shinichi

JBIC Managing Director (Outside Director)

TAKAGI Yuzo

Certified Public Accountant

NIINAMI Takeshi

President & Chief Executive Officer, Member of theBoard, Representative Director, Suntory Holdings
LimitedSOGO Hiromi

Editorial Director of Luxury Media Group, Headof Editorial Content of Richesse & Esquire The
BBB, and Editor in Chief of Richesse Content
Division, Hearst Digital Japan Co., Ltd.

MATSUDA Chieko

Professor of Management, Graduate School ofManagement, Tokyo Metropolitan University

YOKOO Keisuke

President, Member of the Board, Chief
Executive Officer, Japan Investment Corporation(Listed in the order of 50 character kana syllabary, name listed withouthonorifics)

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

Corporate Governance(5) Sustainability Advisory Committee
Decision was made to newly establish the Sustainability
Advisory Committee, offering advice on the mattersconsulted by the Board of Directors regarding JBIC’s policy
to enhance its contributions in achieving sustainability.

Executive Committee or as decision-making bodies oncertain matters as delegated by the Executive Committee.

(Listed in the order of 50 character kana syllabary, name listed withouthonorifics)

JBIC / Annual Report 2022

91

(vii) Information Security and ICT Promotion
Committee
The Information Security and ICT Promotion Committee
makes deliberations concerning the use and managementof JBIC’s information assets, as well as important matterson information security, and cross-divisional matters on
ICT such as measures required for the ICT plans andpolicies which had been determined by the Board of
Directors and Executive Committee, as delegated by the
Executive Committee.
(viii) Sustainability Committee
The sustainability Committee makes deliberations
concerning sustainability promotion, by discussing JBIC’s
policies, and other important measures in the field ofsustainability.

1
Corporate GovernanceMembers of Board of Directors

JBIC reconstituted its organization and adopted a
mission/sector-specific group structure. Its objective is tostrengthen the capacity to formulate projects by bringing
together knowhow and expertise in each sector and area,
thereby facilitating JBIC to perform the functions in its
mission more flexibly and strategically.
Specifically, the Corporate Planning Group; Credit,
Assessment and Risk Management Group; Treasury and
Systems Group; Energy and Natural Resources FinanceGroup; Infrastructure and Environment Finance Group;
Industry Finance Group; and Equity Finance Group were
set up, with each Group having departments with special
expertise.
For each Group, the responsible board member isappointed, and a managing executive officer serves as the
Global Head of each Group. Each Group is managed in an
integral manner under the Global Head of the Group in aneffort to conduct rapid, flexible and efficient operations.

(As of June 22, 2022)

Managing Director, Chairman of the Board of Directors

MAEDA Tadashi

Governor

HAYASHI Nobumitsu

Deputy Governor

AMAKAWA Kazuhiko

Executive Managing Director

HASHIYAMA Shigeto

Senior Managing Director

OISHI Ichiro

Senior Managing Director

TANAKA KazuhikoSenior Managing Director

TANIMOTO Masayuki

Managing Director (Outside Director)

KOIZUMI ShinichiManaging Director (Outside Director)

KAWAMURA Yoshinori

Global Heads of the Groups

(As of June 22, 2022)

Global Head of Corporate PlanningGroup

KIKUCHI Yo(Managing Executive Officer)

Corporate Planning Group

Global Head of Credit, Assessment andRisk Management Group

SASAKI Satoshi(Managing Executive Officer)

Credit, Assessment and Risk
Management Group

Global Head of Treasury and
Systems Group

OGAWA Kazunori(Managing Executive Officer)

Treasury and Systems Group

Global Head of Energy andNatural Resources Finance GroupINABA Yutaka(Managing Executive Officer)

Energy and Natural
Resources Finance Group

Global Head of Infrastructure andEnvironment Finance Group

UCHIDA Makoto(Managing Executive Officer)

Infrastructure andEnvironment Finance Group

Global Head of Industry Finance GroupASO Kenichi(Managing Executive Officer)

Industry Finance Group

Global Head of Equity Finance GroupMORITA Kentaro(Managing Executive Officer)

Equity Finance Group

Member of Board of Directors

92

Mission/Sector-Specific Group Structure

JBIC / Annual Report 2022

Member of Internal Audit Committee

Member of Executive Committee

4. Operational and Administrative Policies

Fundamental Policy on Internal Control
Pursuant to the Companies Act, JBIC has put in place
an institutional structure, including internal regulations, toensure the proper conduct of its operations and activities,
based on the Basic Policy for the Internal Control System
decided by the Board of Directors.

Compliance
JBIC has set forth in its Code of Conduct to “Maintain highethical standards and a law-abiding spirit. Observe ourmoral code as a JBIC member at all times.” In accordancewith this Code of Conduct JBIC has formulated internal
regulations concerning compliance and its implementation
status under the Basic Policy for the Internal Control
System. In addition, the Basic Principles of Compliance isformulated as follows.

Internal Audit
As an internal control system for overall operations, JBIC
has appropriate internal audit procedures to review aswell as evaluate their appropriateness and effectivenessand make recommendations to improve them. For these
purposes, JBIC has the Internal Audit Committee, which
includes the outside director, as a decision-making body
independent of the Executive Committee that is responsible
for conducting operations. There is also the Internal Audit
Department, independent of the line departments anddirectly reporting to the Governor.
The Internal Audit Department exchanges relevant
information and cooperates with the Corporate Auditors
and an Accounting Auditor for executing efficient internal
audit.

1
Corporate Governancen
Recognizing JBIC’s role as a policy-based financial
institution that undertakes international operations,directors and employees are keenly aware of the public
missions and social responsibilities called for in theinternational community and in civil society. It is also wellrecognized that any act in violation of laws, regulations,or rules by its directors and employees will lead todenigrating conﬁdence in JBIC as a whole and havea materially adverse effect on its operations. Attentive
to these needs, JBIC is constantly pursuing toward
compliance and operational integrity.
n
Directors and employees recognize that JBIC has
accountability to the general public regarding its
operations and that it must make efforts to ensure
the trust of the general public through appropriate
information disclosure.
n JBIC shall not have any connections whatsoever with
antisocial forces. It shall adopt an uncompromising
attitude throughout its organization toward antisocial
forces, and decisively reject all improper demands fromsuch forces. This is essential for maintaining public trust
in JBIC as well as for assuring the appropriatenessand soundness of JBIC’s operations and it makes
appropriate responses in collaboration with police andother relevant authorities.

up on the progress and completion.
In addition to the reporting procedures in its ordinaryline of business, JBIC has put in place and is properly
operating an internal reporting system such that it iscapable of ﬁnding signiﬁcant compliance issues at an earlystage and taking appropriate remedial action.

Compliance System
In accordance with the above Basic Principles, JBIC
thoroughly engages in compliance as detailed below.
JBIC makes efforts to improve compliance, primarily
through the Compliance and Customer Protection
Management Committee and has established the Legal
Affairs and Compliance Ofﬁce as an integrated compliancemanagement unit.
Each Group and Overseas Representative Ofﬁce
serving as a regional headquarter has an Integrated
Compliance Ofﬁcer, while each department and overseas
representative ofﬁce has a Compliance Ofﬁcer for making
efforts in compliance, such as fostering such awarenessamong JBIC employees.
To foster an in-depth understanding of compliance,
JBIC makes good use of its Compliance Manual andprovides training sessions for its management and staff
members. It also develops a compliance program every
ﬁscal year as a basis for making necessary compliancearrangements and providing relevant training, and follows

JBIC / Annual Report 2022

93

2. Risk Management
In general, the operations of financial institutions involve
various risks, including credit risk, market risk (such as
interest rate and exchange rate risks), liquidity risk, andoperational risk. As a policy-based financial institution, JBIC
conducts financial operations to achieve policy objectives.
Thus, JBIC differs from private financial institutions in its
nature as well as the extent of risks involved in its operations
and ways to deal with them. Nonetheless, recognizing theimportance of appropriate risk management as a financial
institution, JBIC has put in place an institutional system
for risk management commensurate with different typesof risks and for addressing integrated risk management.
More specifically, JBIC defines the objective of risk
management as identifying, measuring, and monitoring
various risks JBIC is exposed to in the process of conducting
operations to ensure the soundness and integrity ofoperations and increase transparency. For this purpose,
JBIC has designated the staff responsible for managing
various risks and has a department working on the overall

2¢ Enterprise Risk Management

Risk Management

To ensure the soundness and appropriateness of
its operations as a policy-based financial institution,
JBIC undertakes enterprise risk management thatcomprehensively ascertains the risks to which JBIC is
exposed and utilizes Top Risk management and stresstests as its main methods.

Top Risk Management
JBIC defines Top Risks as risk events that will significantly
impact JBIC when they become apparent and requireparticular attention. Top Risks are designated based onrisk factors that are assumed in view of current international
circumstances and the characteristics of JBIC’s portfolio,
and JBIC regularly and continuously monitors these risks.
Through Top Risk management, JBIC has establisheda risk management framework that enables timely andrisk management. In addition, there are the Corporate
Risk Management Committee and the ALM Committee
which hold discussions and make considerations for theeffective functioning of risk management. JBIC has also
set up the Risk Advisory Committee, which consists ofexternal experts, to provide the JBIC Board of Directors
with advice on the risk management and assessment
system with respect to large-lot debtors and on issues
referred to by the JBIC Board of Directors with respect torisks associated with large-scale projects.
JBIC has conducted risk management separated into
the Ordinary Operations Account and Special Operations
Account. The following sections describe how JBIC
manages the various risks it faces in conducting operations
as a policy-based financial institution.
(Note) Please refer to JBIC’s Initiatives Related to Climate Change (Information
Disclosure Based on TCFD Recommendations) on page 32.

appropriate ascertaining of risks that are emerging alongwith changes in the environment as well as the impact ofthese risks on JBIC’s credit portfolio and fund procurement
and allows for flexible responses.

Stress Tests
JBIC regularly implements stress tests as a forwardlooking risk management tool to identify JBIC’s financial
conditions including capital adequacy and to formulate its
business operation plans. Stress scenarios are developedthat are suited to the characteristics of JBIC’s portfolio. In
developing the scenarios, JBIC analyzes historical eventsand hypothetical future events that take into accountmacroeconomic changes and emerging risks in thepresent and the foreseeable future.

¢ Credit Risk
Credit risk refers to the potential loss from a decline orloss of the value of credit assets due to deterioration in thefinancial conditions of a debtor. This risk is inherent in JBIC’soperations as it primarily engages in lending activities. Credit
risk exposure to JBIC may be classified into: sovereign risk,
which involves financing foreign governments; corporate
risk, which involves financing business firms; projectrisk, which occurs when a project financed in project
financing—a financing structure in which a loan is primarily
secured on the cash flow generated from the project—fails
to generate the planned cash flow; and country risk, which
involves financing foreign firms as well as projects locatedin foreign countries (collateral risk arising from political andeconomic situations of countries where debtor companies
are located or projects are under way). Given the very
nature of financial support JBIC provides for promotionof overseas development and securement of strategicallyimportant resources to Japan, for maintaining and

94

JBIC / Annual Report 2022

improving the international competitiveness of Japaneseindustries, and for promoting the overseas business forpreserving the global environment, such as preventing
global warming, JBIC frequently extends loans to foreign
governments, government agencies, and companies.
Therefore, sovereign and country risks account for aconsiderable share of the credit risks accompanying
JBIC’s operations. For credit risk, JBIC performs credit
risk management for individual borrowers during eachcredit provision process and undertakes portfolio credit
risk management by quantifying credit risks.

Managing Credit Risk
The cornerstone of credit risk management at JBIC is theevaluation of an individual borrower’s creditworthinessin the process leading to credit approval. When a newloan application is being processed, the relevant financedepartment and the Credit Department collect and analyze4. Operational and Administrative Policies

the Country Credit Department, which is then inspected by
the Audit Department. The results of internal assessment
conducted on the portfolio are not only used internally forthe continuous reviews of the loan portfolio but are also
reflected in the disclosure of asset quality to enhance thetransparency of JBIC’s financial position.

Quantifying Credit Risk
In addition to individual credit risk management, JBIC is
working on quantifying credit risks with a view to evaluating
the risk of the overall loan portfolio.
JBIC quantifies credit risk utilizing its own proprietarycredit risk quantification model that takes into accountthe characteristics of JBIC’s loan portfolio, which holds
a significant proportion of long-term loans and loans
involving sovereign and country risks and mechanisms
for securing assets, such as the Paris Club1, a uniqueinternational support framework for debt management by
official creditor countries. JBIC uses this quantified credit
risk for credit portfolio analysis encompassing the degreeof credit concentration and also for internal control.

2

1. The Paris Club is an informal group of official creditors whose role is tofind coordinated and sustainable solutions to the payment difficulties
experienced by debtor nations. Since the first meeting took place in1956 to resolve the debt problem of Argentina, the meeting has been
held in Paris, with the French Treasury acting as its secretariat. Hence, it
has come to be called the Paris Club.

Risk Management

information on the borrower. The overseas representative
offices also play a part in collecting information on
foreign governments and companies. It is based on thisinformation and its analysis that credit appraisal takes
place, with checks and balances at work between thesedifferent departments throughout this process, leading to
the final decision by management.
In providing credit for foreign governments andcompanies, JBIC makes the most of its unique position as
an official financier, as it exchanges views and information
with the governments and relevant authorities in therecipient countries, multilateral institutions such as theInternational Monetary Fund (IMF) and the World Bank,other official export credit agencies and, furthermore, withprivate financial institutions in developed countries. Using
all these channels, JBIC evaluates sovereign and country
risks based on a broad range of information collectedon borrowing governments, government agencies, andpolitical and economic conditions in their countries.
In providing credit for domestic and foreign companies,
there is a need to evaluate their creditworthiness and theappropriateness of the collateral they offer. In particular,
for credit provision related to overseas projects, credit
evaluation involves checking and examining the certainty
of conducting transactions to be financed, feasibility
studies of the projects, and the industry in which theborrower operates.

Internal Credit Rating
JBIC has established an internal credit rating system
which covers, in principle, all the borrowers. Internal credit
ratings are the cornerstone of credit risk management,
being used for conducting individual credit appraisals andquantifying credit risks.

Internal Assessment of Asset Portfolio
JBIC is undertaking the internal assessment of its loan
portfolio so that the characteristics of its loan assets
will be accurately reflected on its assessment. In thisprocess, the first-stage assessment is conducted by therelevant financing departments, while the second-stage
assessment is conducted by the Credit Department and¢ Market Risk
Market risk refers to the potential loss from changes in thevalue of assets and liabilities as a result of fluctuations ininterest rates and foreign exchange rates. JBIC manages
specific market risks as follows.

Exchange Rate Risk
Foreign currency-denominated loans involve the risk
associated with exchange rate fluctuations. JBIC has
a consistent policy of hedging the full amount of such
exposure through currency swaps and forward exchangetransactions.

Interest Rate Risk
Funding for yen-denominated loans is mainly managed atfixed-rate interest. Interest rate risk for yen-denominatedloans, however, is limited since derivative transactions

such as interest rate swaps are used to hedge interest
rate risk for portions of loans that are thought to have highexposures to interest rate fluctuation risk. Interest raterisks associated with foreign currency-denominated loan
operations and relevant fundings are generally hedged bymanaging the funds with floating interest rates with theuse of interest rate swap transactions. In addition, JBIC
carefully calculates and analyzes projections of its future
asset/liability structure and profits and losses.

Derivatives Transactions(1) Basic Policy for Derivatives Transactions
JBIC engages in derivatives transactions exclusively forthe purpose of hedging exchange rate and interest raterisks.

JBIC / Annual Report 202295

(2) Transactions
Derivatives transactions of JBIC include interest rate andcurrency swaps and forward exchange contracts. The
following table gives a summary of these transactions asof March 31, 2021.
Credit Risk of Derivatives, etc.


(As of March 31, 2022; unit: 100 million yen)Contract
Amounts /Notional
Amounts

Credit Risk
Amounts(4) Measures to Address These Risks

Interest Rate Swaps

62,315837(893)

41,943

2,646(3,735)

Forward Exchange
Contracts

367

8

5

Total

(2,195)
104,626

1,297(4,622)“The credit risk amounts” are calculated under Uniform International
Standards in accordance with the Banking Act of Japan and the related
regulations.

2u Market Risk
The potential loss from changes in the market value offinancial products due to fluctuations in interest rates or
exchange rates in the market.

Market Value

Currency Swaps

Credit Risk Reductions
through Netting

conditions of the contract governing transactions due tobankruptcy or its deteriorating business performance.

Risk Management(3) Risks Involved in Derivatives Transactions
Derivatives transactions involve the following risks.
u Counterparty Credit Risk
The potential loss from the failure of a counterparty toperform its obligations in accordance with the terms andu Counterparty Credit Risk
JBIC constantly monitors the fair value of a derivative in
conducting a transaction with each counterparty, credit risk
exposure to it, and its creditworthiness. Such informationis then used to assess the eligibility of the counterparty.
Regarding the fair value of a derivative in conducting
a transaction and credit risk exposure, JBIC performs
detailed management by taking into account collateraltransfer based on a collateral contract with thecounterparty.
u Market Risk
JBIC utilizes derivatives transactions exclusively forthe purpose of hedging. Therefore, the market risk onderivatives transactions and the risk on hedged (lending or
funding) transactions, in principle, offset each other.

¢ Liquidity Risk
Liquidity risk refers to the potential loss resulting fromdifficulties in funding due to a maturity mismatch between
financing and funding caused by unexpected cash-outs
or from being forced to fund at an interest rate significantly
higher than in normal circumstances, as well as thepotential loss resulting from a failure to make transactionsin the market due to market turmoil or from being forced tomake transactions at a significantly disadvantageous pricecompared to normal circumstances.
JBIC is minimizing liquidity risk through effective cash
flow management and the diversification of its funding
sources, including borrowings under the Fiscal Investment
and Loan Program (FILP), government-guaranteed bondissues in international capital markets, and FILP agency
bond issues in the domestic capital market.

¢ Operational Risk
Operational risk refers to the potential loss resulting frominadequate or failed internal processes, people, andsystems or from external events. Apart from administrative,
computer system, and information security risks, JBIC
recognizes that its operations involve various direct andindirect risks. JBIC will proactively identify, assess, andmanage such risks.

Administrative Risk
Administrative risk refers to the potential loss resulting
from the neglect by officers and employees to conduct
administrative work properly, accidents caused by them,and violation of laws and regulations caused by them,etc., conducted in the course of the administrative work
process.
JBIC has been minimizing this risk by ensuring sound96

JBIC / Annual Report 2022

operations through scrupulous checks on work processes,
creating operational manuals, improving training programs,
and streamlining and adopting systematic procedures.

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

4. Operational and Administrative Policies

Information Security Risk
Information security risk refers to the potential loss dueto threats to the confidentiality, integrity, and availability of
information assets. JBIC has taken all possible measures
to maintain information security by establishing information
security regulations and a structure encompassing
information management as well as by providing
comprehensive education to management and staff
members.

2
Risk Management

JBIC / Annual Report 2022

97

3. Public Information and Disclosure
JBIC is providing and disseminating information to a broad
range of the domestic and overseas public in an effort
to promote further understanding of its operations andactivities.
The JBIC Information Center at the Head Office andthe Osaka Branch produce various brochures, annual
reports, public relations magazines, and other materials
available to the general public. In addition, a variety of
information about JBIC is provided publicly in Japan andoverseas through the JBIC website (https://www.jbic.
go.jp/en/).

Publications
JBIC publishes its annual operations and activities as wellas its financial conditions in various disclosure materials,
including annual reports, business reports, financial
statements, and Form 18-K, which is submitted to the
U.S. Securities and Exchange Commission.
Other publications available to the public include
JBIC Today, a public information magazine that reports
on JBIC’s latest activities and topics on its operations andother relevant issues; JBIC Profile: Role and Function, abrochure describing JBIC operations.

3

Social Media Networks (SNS)JBIC has established Facebook as its official SNS. We ask
for your “likes” and “follow.”@JBIC.Japan
URL：https://www.facebook.com/JBIC.Japan/

Information Dissemination for the Media
Aside from information disseminated through various
publications, the website, and other means, JBIC informs
the news media about its operations and activities throughpress conferences, meetings, etc.

Disseminating Information
Representative Offices

fromOverseas

JBIC’s overseas representative offices are actively
contributing reports and articles to the news media toprovide information, such as political, economic, andbusiness trends in overseas development, etc.

Disclosure

Public Information and Disclosure

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

JBIC Today

WebsiteThe website provides access to JBIC information,
including its financial instruments, press releases,
invitations to seminars, reports on various studies, annual
reports, various brochures, IR information for investors,
and various other types of information.

98

JBIC / Annual Report 2022

Source of Information

AccessReport on Settlement of
Accounts

Available at the Head Office andthe Osaka BranchDistributed to the National Diet
Library and economic
organizations, etc.

Annual Report, Public
Relations Magazine, etc.

Available at the Head Office, theOsaka Branch, andRepresentative Offices
Distributed to interested persons/institutions

Website:Type of Business
Operations, Operational
Results, Overview ofOrganization, Financial
Composition, etc.

On the internet
Address: https://www.jbic.go.jp/en/

Access to JBIC Head Office and Osaka Branch
JBIC Head Office
4-1, Ohtemachi 1-chome, Chiyoda-ku,
Tokyo 100-8144, Japan(Legal Affairs and Compliance Office and IT Planning andOperations Administration Department: 14th floor,
Keidanren Kaikan 3-2 Ohtemachi 1-chome, Chiyoda-ku,
Tokyo 100-0004, Japan)

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JBIC Head Office
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