2023

SPECIAL
ISSUE

2023 AMENDMENT TO
THE JBIC ACTJBIC is pushing forward forthe future of Japan and the world

INTERVIEWHASHIYAMA Shigeto(Executive Managing Director of JBIC)

JBIC’s Operational Reform Looking to the Future
DIALOGUE

KOYAMA Ken (The Institute of Energy Economics, Japan)
SEKINE Hiroki (Managing Executive Officer of JBIC)

2023

SPECIAL
ISSUE

2023
AMENDMENT TO
THE JBIC ACTJBIC is pushing forward forthe future of Japan and the world
Cover Illustration: Takeuma

The Japan Bank for International Cooperation has been publishing
JBIC Today since 2003 to showcase its diverse initiatives around theglobe. In addition to feature articles exploring current affairs, themagazine carries interviews with the leaders of companies that havereceived JBIC support for their overseas operations, as well as withyoung JBIC staffers working on the frontlines of the bank’s activities.
Issued Quarterly: February/May/August/November
Languages: English/JapaneseContents
4 Continuous Evolution of JBIC’s Role
6

Format: Brochure/PDF/WEB

INTERVIEW

JBIC’s Operational Reform Looking to the Future
HASHIYAMA Shigeto (Executive Managing Director of JBIC)

For more details

8
9Back Number

2023

JBIC Act Amendment: Three Key Points

1 Enhancement of supply chain resilience to contribute toward maintaining andimproving the international competitiveness of Japanese industries
13

2 Assistance to Japanese companies, including startups, in further taking risks

15

3 Participation in international support for the recovery of Ukraine

16

DIALOGUE

The JBIC Act Amendment Points the Way
to Embracing New Challenges
KOYAMA Ken (The Institute of Energy Economics, Japan)
SEKINE Hiroki (Managing Executive Officer of JBIC)

November 2023

August 2023

June 2023

February 2023

Central & Eastern Europe
Today

INDIA: The Rise of a New
Economic Superpower

Investment in Vietnam isEntering the Age of CoCreation

The World from the
Perspective of Geopolitics
and Geoeconomics

22 JBIC PROFILE - Role and Function

のIn response to the changing international situation surrounding the Japanese economy,
the Act for Partial Amendment of the Japan
Bank for International Cooperation Act was
officially announced in April 2023, and cameinto effect in October that year to further
bolster JBIC’s functions. In line with this law,
the following measures were introduced: 1
Enhancement of supply chain resilience tocontribute toward maintaining and improving
the international competitiveness of Japaneseindustries; 2 Assistance to Japanese companies, including startups, in further taking risks
amid growing expectations for such sectors
as digitalization and green initiatives; and3 Participation in international support for
the recovery of Ukraine.

Continuous Evolutionof JBIC’s Role
As a policy-based financial institution, the Japan Bank for International Cooperation (JBIC)
has contributed to the sound development of Japan and the international economy andsociety for more than 70 years since its establishment as the Japan Export Bank in 1950.
While diversifying its operations to meet the needs of the changing times, JBIC continues
to fulfill its role and the expectations of society.

1950

1999

Name changed to
the Export-Import Bank ofJapan (JEXIM) in 1952

What is JBIC?

The Japan Bankfor International
Cooperation
established

The Japan FinanceCorporation
established

Merger of the ExportImport Bank of Japan andthe Overseas Economic
Cooperation Fund

Merger of JBIC and threedomestic policy-based
financial institutions

The Japan Bank forInternational Cooperation(JBIC) established(The international division used
the name “Japan Bank forInternational Cooperation”)

Spun off fromthe Japan Finance Corporation

The Japan Bank for International Cooperation (JBIC) is a policy-based financial institution wholly ownedby the Japanese government. While its primary purpose is to supplement the services of general financial
institutions, its goal is to contribute to the sound development of Japan and the international economy
and society through operations including the provision of financial support in pursuit of its four missions.

Four missions

4

Promoting the overseas
development and securement of
resources which are importantfor Japan

Maintaining and improving theinternational competitiveness ofJapanese industries

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

Preventing disruptions tointernational financial order ortaking appropriate measures withrespect to damages caused bysuch disruptions

JBIC TODAY 2023 SPECIAL ISSUE

Enhancement of supply chain resilience
to contribute toward maintaining
and improving the international
competitiveness of Japanese industries

Page 92

Assistance to Japanese companies,
including startups, in further taking risks

Page 13

3

Participation in international support for
the recovery of Ukraine

Page 15JBIC Act
amended

2012

2008

2016

The Japan Export
Bank established1

Special Operations
launched
The Special Operations was launchedin October 2016 to enable Japanesecompanies to take more risks in theiroverseas infrastructure projects. Whilemaintaining the principle of income andexpenditure for public enterprises, which
requires interest rates to be set so thatrevenues cover expenditures in the total
account, Special Operations made it possible to lend to projects where repayment
cannot be guaranteed.This had been limited to the realm of infrastructure, but the2023 amendment broadens the scope ofSpecial Operations to include support for
new technologies and business models,
as well as startups, allowing further risks
to be taken.
Page 14

2022

2023

Loans for business in developed
countries expanded
With the aim of providing broader support for Japanese companies
in their overseas operations, support for business in developed countries, which had been limited to rail, airports, and other projects fallingunder specific industries, has been expanded as follows. This enables
JBIC to further support Japanese companies in overseas markets.

Export loans for the exports

Investment loansof Japanese products todeveloped countries

for projects
in developed countries

NEW

Support from a cross-industrial perspective

Businesses with new technology, business model, etc.
Businesses that contribute to reducing greenhouse gas emissions
Development of goods and technologies irreplaceable for a stablesupply of raw materials of products, etc.

Support through designation of specific industries
Railways, airports, renewable energy, power transmission anddistribution, electricity storage, hydrogen, etc.
NEW

Medical equipment (e.g. endoscopes, MRI equipment),
Semiconductors, Biopharmaceuticals, Fuel Ammonia,
Electric vehicles

JBIC TODAY 2023 SPECIAL ISSUE

5INTERVIEW

JBIC’s Operational Reform
Looking to the Future
An amendment to the JBIC Act was enacted to allow the bank to fulfill its role
more fully while responding to the changing times. The kind of transformations
JBIC will be undergoing and what are its roles going forward are addressed
by JBIC Executive Managing Director HASHIYAMA Shigeto.

Strengthening Japan’s industrial
competitiveness and developing
the global supply chains of
its companies
Prior to the amended JBIC Act, which
was passed into law at the regular session of the Diet (parliament) in 2023,
the Japanese government enacted
the Economic Security Promotion Act(Act on the Promotion of Ensuring
National Security through Integrated
Implementation of Economic Measures).
With “security” at its foundation, thislaw aims to prevent economic activities
from harming national security via thefollowing four pillars: (1) ensuring stablesupply of critical products, (2) ensuring
stable provision of essential infrastructure services, (3) enhancing developmentof cutting-edge critical technologies, and(4) non-disclosure of selected patentapplications.
From the perspective of strengthening industrial competitiveness, “ensuring
stable supply of critical products” and“ensuring stable provision of essential
infrastructure services” require not only
building domestic systems but also
developing and bolstering the global
supply chain itself, where Japanese companies have a competitive advantage.
In fact, across global supply chains thatspan countries and continents, there are
Japanese companies competing globally. Therefore, it is in the direct interestof Japan to strengthen supply chains, a
concept at the foundation of the JBIC Act
amendment.
The environment surrounding Japan’s
industries is changing dramatically.
In terms of the external environment,
global supply chains have been builtwith a focus on efficiency, but recent
years have seen economic conflicts

6

JBIC TODAY 2023 SPECIAL ISSUE

resurface due to a lack of mutual understanding between states. Moreover, agradual return to a more fragmented
global economy is on the cards.
Meanwhile, there are limits to growthin the domestic market. As exemplified
by the “demographic burden” (a highpercentage of the dependent population
aged 14 or younger and 65 or older
compared to the working-age population) caused by the declining birthrate
and aging society, Japan currently has
a low potential growth rate. Against thisbackdrop, it is recognized that global
business development will become
ever more important in strengthening
Japan's industrial competitiveness.

Supporting the competitivenessand technological innovation ofJapanese companies
through necessary “capital”
One of the key characteristics of globally active Japanese companies is theirtechnological prowess. Therefore, ofthe “capital,” “labor,” and “technology”
necessary for the corporate economy,
JBIC's role should be to supplement the“capital” needed and thereby further
encourage the activities of Japanesecompanies in the global market andfoster more technological innovation.
For example, in the global semiconductor supply chain, Japanesecompanies have a competitive edgein the materials and manufacturing
equipment markets stemming fromtheir technological capabilities. In orderto maintain and strengthen this competitiveness, it is essential to not only
support Japanese companies, but toalso enhance the resilience of the entire
global supply chain in which they play an
integral role. It is in this context that JBIC

To serve as a “navigator”
to build a brighter future with Japanese powerin an uncharted global situation

HASHIYAMA Shigeto
Executive Managing Director of JBIC
Joined the Export-Import Bank of Japan (now
JBIC) after graduating from Hitotsubashi
University, Faculty of Economics, in 1990. Afterassignments including Director General of the
Corporate Finance Department, Industry FinanceGroup, he was appointed Managing Executive
Officer, Global Head of the Corporate PlanningGroup in 2018, and Senior Managing Director
in 2021. Assumed his current post in June 2022.

is now able to provide loans to foreigncompanies.
Point 1 of the JBIC Act amendment (p.9)
In addition, as climate change is aparticularly urgent issue among thevarious challenges confronting theworld, technological breakthroughs
are indispensable for greenhouse gas
reduction and other related areas suchas energy, water, soil, and infrastructuredevelopment. JBIC will do its part toprovide active support for risk taking bycompanies with the potential to be gamechangers through advanced technologies so that they can further grow.
Point 2 of the JBIC Act amendment (p.13)
Moreover, a system has been
established through this amendmentthat allows us to continue support for
Ukraine, including full reconstruction
efforts in the future in collaboration withinternational financial institutions.
Point 3 of the JBIC Act amendment (p.15)

Responding flexibly evenin uncertain times
JBIC has a history of adapting its roles
and functions to meet the needs of thetimes. Amid uncertainty as to what lies
ahead as geopolitical risks increase andbring about major changes in the world,
JBIC is now able to flexibly respond witha broader scope of operations in suchsituations. This is the core of the recent
legal revisions.
As stated in Article 1 of the JBIC
Act, the organization’s four roles are:“Promoting the overseas development
and securement of resources which
are important for Japan,” “Maintaining
and improving the international competitiveness of Japanese industries,”“Promoting the overseas businesshaving the purpose of preserving the
global environment, such as preventing global warming,” and “Preventing
disruptions to international financial
order or taking appropriate measureswith respect to damages caused by suchdisruptions.”
Today, amid a rapid and fundamentally changing global order, JBIC’s
activities need to be more agile andeffective than ever. While building aworldwide information network, wemust aim to realize a balance between
the overseas business strategies ofJapanese companies and the national

interests of countries around the worldfrom our two perspectives as a public
institution and a financial institution.
To that end, in addition to our function
as a financial institution, we must also
strengthen our functions as an intermediary linking Japan and the rest of theworld, and as an information provider
by leveraging our access to all kinds ofindustries worldwide.

Change the rules if need be:
Don’t be bound by rules, bind them.
JBIC’s vision is, “To serve as a ‘navigator’
to build a brighter future with Japanese
power in an uncharted global situation.”
However, along with being a “navigator,”
it is now more necessary than ever tolook beyond that. The challenges we faceare increasingly complex. These include
searching for and implementing realistic,
shared solutions to climate change basedon mutual respect among states, consideration of human rights in renewableenergy projects, and the establishmentof a level playing field to maintain andstrengthen the international competitiveness of Japanese industries in theprocess of decoupling economic growthand energy use. Confirming the facts
quickly and accurately, and promoting
projects while formulating hypothesesis crucial. The role that JBIC should takefrom now is to flexibly develop solutions after first immersing itself in thecompetitive conditions of each industry,including its technology.
To do this, it is important to think
freely with an open mind in order toascertain the facts, and then take an
inductive reasoning approach to future
projections. Of course, it is necessary tolearn from precedents, but you shouldn’t
be fixated on them. I always tell my staff,“Change the rules if need be. Don't bebound by rules, bind them.”
We need to know where we stand,but to constantly change that position.
Taking a flexible, diverse, and proactive
approach in confirming, focusing on, andconsidering solutions to issues occurringon the frontlines of the world—that isprecisely what is demanded now of eachand every one of our employees and for
JBIC as an organization.

JBIC TODAY 2023 SPECIAL ISSUE

7

2023

POINT

1

JBIC Act
Amendment :Enhancement of supply chain resilience to contributetoward maintaining and improving the international
competitiveness of Japanese industries
Given the recent international political and economic landscape,more and more companies are investing to strengthen their supply chains.
With the aim of ensuring stable procurement within the international division of labor framework,
JBIC supports the entire supply chain, including foreign companies and overseas subsidiaries.

Three Key Points

New loans for eligible foreign companies
Can now support foreign companies that are vitalto Japanese company supply chains and industry bases

A partial amendment was made to the Japan Bank for International Cooperation Act (JBIC Act) in April 2023. There arethree key points to the amendment. Frameworks for various
forms of support were newly established in order to bolster
the competitiveness of Japan’s companies and industries
amid the rapidly changing global landscape.

Japan

Foreign country
Supply chains for important materials and technologies

The three key points of the 2023 JBIC Act amendment

Eligibleforeigncompany

POINT

POINT

POINT

Enhancement of supply chain
resilience to contributetoward maintaining andimproving the international
competitiveness of Japaneseindustries

Assistance to Japanesecompanies,
including startups,
in further taking risks

Participation
in international support
for the recovery
of Ukraine

1

2

Importantgoods andtechnologies

3

Eligibleforeigncompany

Japaneseaffiliate
Importantgoods andtechnologies

Loan(untied loans)

JBIC

Japanesecompany
Importantgoods andtechnologies

Loan(untied loans)

Private financial institutions (co-financing): Newly available supports

The amendment consists of three pillars: 1 enhancing theresilience of Japan’s supply chains, 2 assisting Japanesecompanies, including startups, in further taking risks, and3 participating in international support for the recovery of
Ukraine.
Amid the growing importance of supply chains in the global
economy, JBIC can now provide loans to foreign companies
that serve important roles for Japanese industry. Moreover, it is

now possible for JBIC to acquire bonds and invest in domestic
startups and other companies engaging in business overseas.
And the scope of Special Operations, without certainty of
repayment for each project, has been expanded. The aim is toencourage risk-taking by private sector companies. In addition,“loans by international institutions” have been added to thescope of loan guarantees, whereby JBIC can support the recovery of Ukraine, in line with Japanese government policy.

What is the JBIC Act?
CHECK

8

The Japan Bank for International Cooperation(JBIC) is a policy-based financial institution established under the Japan Bank for International

JBIC TODAY 2023 SPECIAL ISSUE

Cooperation Act (JBIC Act), issued and enacted in
May 2011. The forms of support provided by JBIC
(e.g., loans, guarantees, investments) are all regulated by law and Cabinet and Ministerial Orders. In
keeping with the changing times, JBIC’s operations
are revised by amending this act.

The international division of labor for industry bases
and supply chains of semiconductors, storage batteries and other goods and technologies indispensable
to daily life has now become highly developed. In lightof the increasingly complex international landscape,foreign companies included in the supply chains andindustry infrastructure (i.e., eligible foreign companies) are now eligible for loans (specific eligibility isdesignated by a Ministry of Finance ordinance).
For a loan to an eligible foreign company to be: Currently available supports

considered, a request for such support must be madeby a Japanese company (including overseas Japaneseaffiliates). The Japanese company must have supply
chain ties with the eligible foreign company, or ashared use of business bases.
Moreover, as in normal loans, it will be confirmedthat environmental and social considerations arebeing taken into account, as outlined in the JBIC
Guidelines for Confirmation of Environmental andSocial Considerations.

JBIC TODAY 2023 SPECIAL ISSUE

9

2023 JBIC Act Amendment : Three Key Points

POINT

1

Enhancement of supply chain resilience to contribute toward maintaining
and improving the international competitiveness of Japanese industries[CASE 1] Enhancing the resilience of the semiconductor supply chain

Loans to eligible foreign company
Eligibility for the new eligible foreign company loans isdependent on them providing “important goods,”“important technologies,” or “bases necessary for
global business operations” to Japanese companies.
Specifically, the following operations are designated as eligibleby the Ministry of Finance ordinance.

Important goods

Of the following operations, those necessary for enhancing the resilience of the supply
chain for goods procured by Japanese or Japanese-affiliated companies:

Development of important resources for Japan
Manufacturing of equipment and other items necessary to generate electricity from renewable energy
Manufacturing of rechargeable batteries
Manufacturing of components and accessories of ships and aircraft
Development and manufacturing of medical devices
Development and manufacturing of pharmaceuticals
Manufacturing of motors
Manufacturing of semiconductors, including the raw materials andequipment necessary for the manufacturing
Development and manufacturing of fertilizers, agricultural instruments, andother goods necessary for food production, including agriculture
Manufacturing of low-carbon materials

Important technologies

Of the following operations, those necessary for facilitating the provision oftechnologies utilized by Japanese and Japanese-affiliated companies:

Development of artificial intelligence-related technologies
Development of technologies related to quantum computers andother equipment that harness the quantum property
Development of biotechnology
Development of blockchain technology

Bases necessary for global business operations
Of the following operations, those necessary for global business activities
by Japanese and Japanese-affiliated companies:

Development of bases for power generation, transmission, etc.,
necessary to provide electricity from renewable energy
Development of bases for utilizing information and communication technology(including launching, tracking, and controlling of communication satellites)
Medical care

10

JBIC TODAY 2023 SPECIAL ISSUE

Segmentation of semiconductor manufacturing has led to global supply
chains. In the supply chains, there
are many companies with advanced
technologies that have a monopoly
position in one part of the process.
Should the production of a company
in another country stop for somereason, manufacturing by Japanesecompanies will also come to a halt.
Having stable production by overseas
companies in their supply chains isthus crucial for Japanese companies.
That is why JBIC will directly support
foreign companies when requestedby their Japanese counterparts. Thisnot only protects the production of
relevant Japanese companies, butalso helps meet demand in Japan andthe world by maintaining the global
supply of semiconductors.

[CASE 2] Seizing business opportunities in the EV supply chain
Demand for lithium-ion batteries is
growing rapidly with the spread ofelectric vehicles (EVs). Japan’s major
electronics manufacturers are exclusive suppliers to the world’s top EV
manufacturers, but competition is
fierce. In order to improve the quality and environmental friendlinessof their products, collaboration withcompanies from other countries isessential, starting with the miningof minerals for these batteries. JBIC
will provide integrated support forJapanese companies and their foreign
partners to secure their supply chainsfor vital materials.

JBIC TODAY 2023 SPECIAL ISSUE

11

2023 JBIC Act Amendment : Three Key Points

Procurement and use of resources abroad now eligible for loans

22

In addition to the imports of resources and other strategically important goods,
loans are now possible for their procurement and use abroad
Up to now, JBIC’s import loans have been
provided for resources and other strategicallyimportant goods imported to Japan. However,in the global operations of Japanese companies
there has been an increasing number of cases inrecent years in which resources procured overseas are received by Japanese affiliates locatedoverseas, where they are then manufactured
into products and marketed. In response, importloans have now become available for cases inwhich Japanese companies overseas obtain
resources from foreign companies (the same
applies when products are manufactured andmarketed using resources procured overseas).

Foreigncompany

Receiptofresources

Japaneseaffiliate

Used inprojects inthe country

Foreigncompany

Support provided through the Special Operations for high-risk loans has been expanded toinclude energy and natural resource development, commercialization of new technologies,
and equity investments in startups. This will support economic security and expansion into
growth areas such as digital transformation and decarbonization.

New support for domestic startups
Japanesecompany

Equity investments or acquisition of corporate bonds of Japanese startups,
MTEs and SMEs engaged in overseas business operations is newly available

Importof resources

Loan(import loans)

CHECK

Eligible resources include: oil, petroleum gas, LNG,
coal, uranium, metallic ore, metals, mineral phosphate,
fluorite, salt, wood, wood chips, pulp, fuels derived
from biomass, hydrogen, and fuel ammonia.

Japan

Foreign country

Assistance to Japanese companies,
including startups, in further taking risks

POINT

JBIC

Loan
(import loans)

Foreigncompany/
Japaneseaffiliate

Private financial institutions (co-financing): Newly available supports

New businessundertakenoverseas: Currently available supports

Funds

Expanding support to strengthen supply chains for Japanese companies

CHECK

Small and medium-sized enterprise (SME): In principle,
a company or individual with capital of 300 million yen
or less or with up to 300 regular employees (for the
manufacturing industry) (Definition varies by industry,and some industries are excluded.)
Mid-tier enterprise (MTE): A company with capital ofunder 1 billion yen(Both include listed companies, but exclude
consolidated subsidiaries of large companies.)

12

JBIC TODAY 2023 SPECIAL ISSUE

Overseassubsidiary

Overseassubsidiary

Funds

Overseassubsidiary

Funds

Equityinvestments

Foreigncountry

Overseas
investment
loan forstrengthening
supply chain
resilience

JBIC

Foreigncountry

Funds

Equityinvestments

Japan

Acquisitionof corporatebonds

Acquisitionof corporate
bonds

Funds

JBIC
Company other than MTE
and SME

Foreignstartup, etc.

Domestic startups,
MTE and SME

More flexible support for Japanese companies
in funding their overseas operations to strengthen their supply chains
The supply chains of Japanese companies haveextended across national borders. Considering
this, JBIC will provide loans to fund the operationsof Japanese companies’ overseas subsidiaries.
For companies other than mid-tier enterprises(MTEs) and small and medium-sized enterprises(SMEs), JBIC has been providing loans forresources, M&A, and infrastructure (two-steploans). But now overseas investment loans toJapanese companies for overseas business
operations to strengthen supply chain resilience
are also possible. JBIC is now able to support theoverseas supply chains of Japanese companies
from upstream to downstream. Existing domestic loans to MTEs and SMEs remain unchanged.

Overseasbusiness

MTE/SMEJapan

Loan forresources/M&A,
two-step loanfor M&A/
infrastructure

Private financial institutions (co-financing): Newly available supports

Until now, JBIC was unable to directly equity in theoverseas operations of domestic startups, MTEs,
and SMEs, making it necessary for these companies
to establish new overseas subsidiaries. However, in
response to the need for domestic funding throughequity investments participation, it has now become: Currently available supports

possible for JBIC to provide such financial support
to Japanese startups, MTEs, and SMEs. Startups willplay an especially large role in the digital and green
sectors, and agile support for their overseas businessdevelopment will promote social innovation.

Private financial institutions (co-financing)
CHECK: Newly available supports

Startup: A company that was established or started operation within less than 10 years(excluding a subsidiary and other entity of a large company.): Currently available supports

JBIC TODAY 2023 SPECIAL ISSUE

13

2023 JBIC Act Amendment : Three Key Points

POINT

Expanded coverage of “Special Operations”
Now possible to support energy and natural resource development, new technology
and business models, and equity investments in startups through Special Operations

3

Participation in international support
for the recovery of Ukraine

In the context of supporting recovery of Ukraine, JBIC can now guarantee private sector loans
by international financial institutions for reconstruction projects.

Ordinary Operations

Those not included in Special Operations

Ability to guarantee international institution loans
It is now possible to provide financial support for projects under international collaboration,such as assistance for Ukraine’s recovery

Special Operations

Export loan

Overseas
investment
loan

Untied loan

Equityparticipation

Acquisitionof public andcorporatebonds, etc.

Overseas infrastructure projects

NEW

Development of energy and natural resources
Commercialization of new technologies and business models

NEW

Startups

The Special Operations program
was launched in 2016 to support
overseas
infrastructure
projects
for which did not need certainty of
repayment principle. Added to thiswere “development of energy andnatural resources,” “commercialization of new technology and businessmodels,” and “equity investments
in startups.” Amid the need for digital transformation (DX) and green
transformation (GX), there is anurgent need to promote outside thebox innovation, and it is increasingly
important to encourage companies
to take on new challenges. Making
it possible for JBIC to support such
efforts spurs Japanese companies totake more risks.
CHECK

Development of energy and natural resources: development of resources, including energy sources and rare metals such as rare earths.
Commercialization of new technologies and business models: businesses that utilize cutting-edge digital technology, green innovation-related
businesses that utilize technologies to contribute toward decarbonization, businesses that utilize FinTech to improve convenience for service users.

14

JBIC TODAY 2023 SPECIAL ISSUEJBIC has been providing guarantees for loans extended by private
financial institutions, but for overseas recovery and development
projects, only borrowings frombanks, foreign financial institutions, and foreign governments
could be guaranteed. To support
the recovery of Ukraine after theRussian invasion, loans by international financial institutions are
now eligible for guarantee. This is
in line with one of JBIC’s missions:“maintaining international financial order” (Ordinary Operations
Account).

Projects necessary for overseas reconstruction or development
under international cooperation

Financing

Financing

JBIC

Guarantee

Privatefinancial
institutions(co-financing)

Banks, financial institutions,
governments, etc.
of foreign countries: Newly available supports

Guarantee

International
institutions: Currently available supports

Establishment of the Ukraine Investment Platform under the leadership of JBIC
JBIC, development finance institutions
from the G7 countries, and the European
Bank for Reconstruction and Development,
agreed in May 2023 to establish the
Ukraine Investment Platform. By poolingknowledge and experience, and coordinating effectively, the participating institutions
will financially support Ukraine’s recovery.
Participating Institutions:
JBIC, Japan International Cooperation Agency(JICA), Cassa Depositi e Prestiti (CDP, Italy), FinDev
Canada (Canada), PROPARCO (France), U.S.
International Development Finance Corporation(DFC, the U.S.), British International Investment(BII, the U.K.), and Deutsche Investitions- und
Entwicklungsgesellschaft mbH (DEG, Germany)

Institution presidents agreed to establish an investment platform and signed an MOU.

JBIC TODAY 2023 SPECIAL ISSUE

15

DIALOGUE

The JBIC Act Amendment Points the Way to Embracing New Challenges
To adapt to the major changes surrounding

K O YA M A K e n
The Institute of Energy Economics, Japan
Senior Managing Director, Chief Economist
Joined the Institute in 1986 after receiving his master’s degree fromthe Graduate School of Economics, Waseda University. His fields ofresearch include the world’s oil and energy situation and energy security issues. Was awarded his PhD from the University of Dundee in 2001.
Among other various positions, he served as a member of the Japanese
government’s advisory council on energy-related matters. Has been avisiting professor at the University of Tokyo’s Graduate School of Public
Policy since 2010. Books authored include Interpreting from Geopolitics!
The Future Map of Strategic Commodities (ASA Publishing Co., Ltd.). In
2023, he became the first Asian to receiveThe OPEC Award for Research.

U.S.-China tensions, the COVID-19—the world is now in the midst of huge upheavals.
the 2023 amendment of the JBIC Act. KOYAMA Ken, Senior Managing
and SEKINE Hiroki, JBIC’s Managing Executive Officer anddiscuss the global landscape leading up to the

JBIC TODAY 2023 SPECIAL ISSUE

pandemic, and Russia’s invasion of Ukraine
Supporting Japan in properly adapting to such changes is
Director and Chief Economist, The Institute of Energy Economics, Japan,
Global Head of Infrastructure and Environment Finance Group,
amendment of the law and the role required of JBIC.

KOYAMA Ken

SEKINE Hiroki

The Institute of Energy Economics, Japan
Senior Managing Director, Chief Economist

Managing Executive Officer of JBIC
Global Head of Infrastructure and Environment Finance GroupThe world is undergoing a major transformation.
The power of finance will be an important key,and JBIC is central to this in Japan.

16Japan and the world by becoming “a navigator”

SEKINE Hiroki
Managing Executive Officer of JBIC
Global Head of Infrastructure andEnvironment Finance Group
Joined the Export-Import Bank of Japan (now JBIC) in 1995
after graduating from the Faculty of Economics, The Universityof Tokyo. Received his master’s in finance from the London
Business School in 2005. Following appointments including theInfrastructure Finance Group, he was a visiting researcher at the
Chatham House in the UK from 2020 to 2021. After his return, he
was engaged in operations for the amendment of the JBIC Act in
his position as Special Advisor for Operation Policy and Strategy,
Corporate Planning Group. He assumed his current post in 2023.

We need to make proposals for solutions from the stanceof being partners working together toward a goal.
From now on, JBIC will need to be “a navigator.”

JBIC TODAY 2023 SPECIAL ISSUE

17

DIALOGUE

The JBIC Act Amendment Points the Way to Embracing New Challenges

SEKINE | The current global trends inenergy resources had a large impact
on the amendment of the JBIC Act. Mr.
Koyama, you analyze such energy fromthe perspective of “strategic commodities.”
KOYAMA | We use various kinds ofenergy in our daily lives when we turnon lights, cook with gas, drive our cars,
and so on. They are such an integral partof life that you might not give them asecond thought. Energy is indispensable
to the economy and our lives, and you
could even say that it determines thefate of a country.
Accordingly, if a country uses energy
supplies to exert various forms ofpressure or as bargaining chips, this creates enormous leverage, making energy
a “strategic commodity.” The sea change
in the energy situation brought about
by the Ukraine crisis can be understoodwhen viewed in terms of Russia’s “weaponization of strategic commodities.”
The world has been reliant on cheap
Russian energy, and Europe in particular has had deep links with Russia interms of procurement of natural gas andother energy resources. However, with
the imposition of economic sanctions
by the West following the invasion of
Ukraine, Russian energy exports themselves became a risk factor. Europe is
now in a game of survival as it seeks toescape from its dependence on Russian
resources. It is now shifting direction tosecure stable resource supplies even if
the costs are higher.
SEKINE | The invasion of Ukraine has
again brought us face to face with theK e nEnergy “weaponized”
by Russia’s invasion of
Ukraine has shaken the world

K O Y A M A

If a country uses energy resources toexert various forms of pressure or as
bargaining chips, enormous leverage is created,making energy a “strategic commodity.”risk of resources becoming strategiccommodities. That is why we need totake a hard look at what form risk control
should take to meet the needs of today
and think more about diversifying procurement to ensure that we can continue
to obtain resources that are indispensable for our daily lives.
One of JBIC’s main functions is topromote the overseas development andacquisition of important resources forJapan. Given the recent situation, there
is a greater need than ever to provide
financial support to reduce dependence
on specific countries and diversify acquisition channels for resources.

The vulnerability of supply chainsbrought to light by the pandemic
KOYAMA | The importance of diversification was brought home when supply
chains were disrupted by the COVID-19
pandemic, impacting our daily lives.
Everyday life may seem to consist ofthings that are close at hand, but it isactually supported by large-scale supply
chains that span the globe, and thosemany of those things actually come fromfar away. Everyone had mostly forgottenthat supply chains are vulnerable.

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JBIC TODAY 2023 SPECIAL ISSUE

either, the “Global South,” also emerged.
These shifts by countries over energy
resources, which have become “strategic commodities,” will likely become
even more pronounced.
Under such circumstances, whatshould Japan do to protect its supply
chains for important commodities suchas energy resources? I think JBIC’s roleis expanding.

SEKINE | I agree. The pandemic and theinvasion of Ukraine brought home thefact that the globalization benefits reaped
from dependence on efficient division oflabor and low-cost, high-volume production are clearly not sustainable. We must
now build stable supply chains, even if
this entails higher costs.
However, diversifying the risk thatcomes from dependence on the divisionof labor with certain countries, and building new, reliable supply chains is not
economically efficient, and it is impossible for a single company to handle anentire supply chain.
Against this background, it has
become important for public institutions
such as JBIC to support companies instrengthening their supply chains in aneffort to address the challenges they
face. This is also an important reason for
the amendment to the JBIC Act.

A divided world also obstructs
the stability of supply chains
KOYAMA | Not only the invasion of
Ukraine and the COVID-19 pandemic,
but global fragmentation centering on
U.S.-China antagonism is also having amajor impact on the stability of energy

supplies and supply chains.
Although U.S.-China tensions havebeen intensifying particularly since thelatter half of the Trump administration,
the power balance between the twonations had, in fact, been changing even
before then, with U.S. power waveringand China rapidly gaining ground. Overthe past half century, efficiency and cost
minimization have been pursued via thedivision of labor as part of free tradebased globalization. Before anyone
realized, the world was heavily dependent on China’s manufacturing industry.
Then came the Russian invasion of
Ukraine, triggering the birth of two axes,
the “West” versus “China and Russia.”
And a third axis, that doesn’t belong to

SEKINE | In order to ensure the ongoingacquisition of energy resources, whichhave become a strategic commodity
as the risk of global fragmentation
increases, we must diversify their procurement routes and supply chains. Thisis, of course, costly. As I just mentioned,
it is not something that can be handled
by a single company. Which is precisely
why national governments have to show
leadership. It is important to preparerisk control measures through subsidies
and policy-based loans, and to send themessage, “Let’s together strengthen ourcountry.”
And as a policy-based financial institution, JBIC, must fulfill this responsibility,
together with the national government.

As decarbonization accelerates,
will critical minerals become
the next strategic commodity?
KOYAMA | As a matter of fact, the first oilcrisis, that hit Japan 50 years ago, wascaused by our dependence on certain
countries and regions for energy. And
the same kind of thing is happening
again. I am concerned that somethingsimilar could happen down the line
due to the rapid increase in demand forimportant materials known as “criticalminerals.”

JBIC TODAY 2023 SPECIAL ISSUE

19

DIALOGUE

The JBIC Act Amendment Points the Way to Embracing New Challenges

With the world accelerating its decarbonization efforts, the supply of rareearth and lithium-ion batteries essential
for electric vehicles, and critical minerals, such as lithium, silicon, and nickel
for applications such as semiconductors,
is expected to tighten. And dependence
is inevitable as certain countries havean overwhelming share of some criticalminerals. Nevertheless, the questionis how to manage this dependence tosome extent or properly diversify.
SEKINE | Japan possesses superb technologies in the supply chain process interms of turning resources such as critical minerals into products. Therefore,
Japan can play a central role in thedevelopment, production, and procurement of new supply chains by partneringwith related foreign companies. While
Japan will be a central player in creatinga new, strong supply chain, this requires
greater global collaboration, not only an
all-Japan effort. JBIC is aware of its rolein supporting such actions through thepower of finance.

Promoting innovations by startups isessential for structural change

critical minerals, and the increasing costsof system integration to meet the growing use of variable renewable energies(e.g., wind and solar). In light of this, wemust also strive to promote innovation
to further develop Japan’s strong areas
such as hydrogen and ammonia.

similar challenges. The legal amendment
has bolstered JBIC’s functions in financing startups that generate innovation in
growth areas such as digital and green
technologies. JBIC is now prepared tosupport global GX, including the promotion of innovation.

SEKINE | Indeed, I believe that the global
green transformation (GX) trend will
not be reversed. Every country in theworld has made the energy revolutiona priority. But the pathways to achieving
this are diverse, depending on countries’
respective circumstances. The only way
to proceed toward this goal is to aim
high and take on all kinds of challenges,
constantly innovating, and making
course corrections along the way.
Of course, Japan also needs to tackle

KOYAMA | At the G7 Summit inHiroshima this year (2023), the message went out to the world that the G7
stance is to aim for carbon neutrality via“various pathways” in which all kinds oftechnologies and energy sources should
be used properly. I believe that Japan’s
big contribution here was to have the G7
clarify its position of being supportiveof the countries of the Global South byshowing that what Europe, the U.S., andother developed countries are trying to
do is not the “only pathway,” but that
there are “various pathways” to achievecarbon neutrality.
And, in order for Japan to further
maintain its presence in the world, weneed to build a supply chain that makes
the best of hydrogen-related and othertechnologies, in which Japan has superiority.
SEKINE | I believe that this cannot be

achieved without more technologicalinnovation. That is why it is so significant
that the amendment has made it possible
to provide support through the Special
Operations Account to businesses using
new technologies and business models,resource development projects, andstartups.
The “new form of capitalism” set out
by the Kishida government also calls fornurturing startups, so this amendment
to the JBIC Act is in line with national
policy. However, focusing on startups isa new initiative for JBIC. This means wemust move with the times so that morecompanies can connect with us, so that
we can support them through all stages
from their birth to growth and on tomaturity. I have become very consciousof this again.
strategies. The power of finance will be
an important key to support such efforts,
and JBIC is central to this in Japan.

To fully leverage the amendment,
JBIC needs to be able tobe “a navigator”
KOYAMA | The world is undergoing amajor transformation. Countries, including Japan, must each prepare to respondto these changes. The state needs todrive this forward with policies and

KOYAMA | In working toward decarbonization, many countries around the world
are aiming for carbon neutrality by 2050.
This will require a fundamental changeof the energy supply-demand structure
within the next 30 years. That is a hugechallenge.
While renewable energy use willundoubtedly expand greatly, at thesame time there are many issues to beaddressed, such as a tight supply of

SEKINE | As the various challenges
become more complex and changes
occur at rapid speed, everyone issearching for the form the new world
should take. So that citizens can live withpeace of mind, the country itself muststrengthen its structures. Finance is ameans to this end, and it is JBIC’s role
to identify and address challenges for its
realization, but I also feel that the limits
have been reached for one country alone
to provide solutions. Another of JBIC’s
roles is to facilitate collaboration andconnections with other countries andcompanies that have particular areas ofexpertise.
In addition, JBIC’s future efforts will
include providing support for thecreation of supply chains for energy
resources, and for startups. It will also
be necessary for us to not just respondto requests by our clients, but to proactively propose solutions as partners
working together toward a goal. In otherwords, I believe that from now on, JBIC
will need to be “a navigator.”
KOYAMA | Through the amendment tothe act, I think that JBIC will be able tooperate in new ways. I have high hopesthat JBIC, which has played an importantrole in supporting Japan’s energy challenges over the years, will successfully
promote the energy transformation
going forward.

S E K I N E
H i r o k i

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JBIC TODAY 2023 SPECIAL ISSUE

Enhancing the resilience of the supply chain is not
something that can be handled by a single company.
It is important to send the message,“Let’s strengthen our country together.”

JBIC TODAY 2023 SPECIAL ISSUE

21

PROFILE

Role and Function

Japan Bank for International Cooperation (JBIC) is a policy-based financial institution wholly
owned by the Japanese government, which has the mission of contributing to the sound development of Japan and the international economy and society, by conducting financial operationsin the following four fields, while having the objective of supplementing the financial transactions
implemented by private sector financial institutions:

Name: Japan Bank for International Cooperation (JBIC)
Office: 4-1, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, Japan

ProfileCapital: ¥2,108.8 billion (wholly owned by the Japanese government) (as of June 21, 2023)
Outstanding Loans and Equity Participations*: ¥15,998.6 billion
Outstanding Guarantees*: ¥1,537.6 billion

The Missionof JBIC

Promoting the overseas development
and securement of resources which
are important for Japan

Maintaining and improving theinternational competitiveness ofJapanese industries

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

Preventing disruptions to international
financial order or taking appropriate
measures with respect to damages
caused by such disruptions

Overseas Network (as of December 1, 2023)

LondonMoscow
Paris

Representative Office
Registered in Singapore(Regional Headquarters for Asia and Pacific)

Positioned at the crossroads ofglobal business opportunities,
JBIC is opening new venues tothe future for the Japanese andglobal economy.
Offering customers oneof-a-kind solutions byadopting their perspectives and integrating
their views into policy
development

2102, Tower C Office Building,YINTAI Center,No.2 Jianguomenwai Avenue,
Chaoyang District,
Beijing 100022, P.R.C
Tel. 86-10-6505-8989
Fax.86-10-6505-3829

Hands-on
PolicyCustomer1st
Approach

Forwardlooking
ActionPioneering new value by
participating at the forefrontof overseas project development, and by engaging
proactively in projects fromthe early stages

Contributing to the sustainable development ofJapan and the world as awhole by deploying highly
professional skills, with aview to realizing a secureand affluent future society

1

Operational
Principles

2
3
4

JBIC TODAY 2023 SPECIAL ISSUE

Maintaining and improving international creditworthiness and confidence
In order to conduct adequate operations and effective overseas funding operations, JBIC shall maintain and improve
the international 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.

ManilaSingapore

Representative Office in Moscow
SydneyRepresentative Office in Manila

11/F, Tower 1, The Enterprise Center,
6766 Ayala Avenue corner Paseo deRoxas, Makati City, Philippines
Tel. 63-2-856-7711 ～ 14
Fax.63-2-856-7715, 7716

123610 Moscow,
Krasnopresnenskaya Nab.12,
World Trade Center,
Office No.905,
Russian Federation
Tel. 7-495-258-1832,1835,1836
Fax.7-495-258-1858

Representative Office in Paris

Rio de Janeiro
Buenos Aires

Representative Office in Washington, D.C.
1627 Eye Street, N.W., Suite 500,
Washington, D.C., 20006, U.S.A.
Tel. 1-202-785-1785
Fax.1-202-785-1787

Representative Office in New Delhi

Representative Office in Dubai

Representative Office in Buenos Aires

Unit 6.02, 6th Floor, CornerStone
Building, 16 Phan Chu Trinh Street,
Hoan Kiem District, Hanoi, Vietnam
Tel. 84-24-3824-8934 ～ 6
Fax.84-24-3824-8937

Representative Office in Sydney

Representative Office in Istanbul

Representative Office in Jakarta

Representative Office in London(Regional Headquarters for Europe,
the Middle East and Africa)

Representative Office in New York(Regional Headquarters for the Americas)

21st Floor, Park Ventures Ecoplex,
57 Wireless Road, Lumpini,
Pathumwan, Bangkok 10330,
Thailand
Tel. 66-2-252-5050
Fax.66-2-252-5514

Representative Office in Hanoi

Summitmas II 5th Floor,
Jl. Jenderal Sudirman, Kav. 61-62,
Jakarta Selatan, Indonesia
Tel. 62-21-5220693
Fax.62-21-5200975

306, 3rd Floor, World Mark2,
Asset No.8, Hospitality District,
Aerocity, New Delhi-110037, India
Tel. 91-11-4352-2900
Fax. 91-11-4352-2950

Suite 4102, Level 41, Gateway Tower,
1 Macquarie Place, Sydney NSW
2000, Australia
Tel. 61-2-9293-7980

7th Floor, 80 Cheapside, London,
EC2V 6EE, U.K.
Tel. 44-20-7489-4350

9th floor, West, The Gate Dubai
International Financial Centre,
P.O. Box 121300, Dubai, U.A.E.
Tel. 971-4-363-7091
Fax.971-4-363-7090
Esentepe Mahallesi, Büyükdere Cad.
No:199/95, Levent 199, Kat (Floor) 2034394 Şişli/İstanbul, Turkey
Tel. 90-212-337-4060

712 Fifth Avenue 26th Floor,
New York, NY 10019 U.S.A.
Tel. 1-212-888-9500
Fax.1-212-888-9503

Key
Operations

Av. del Libertador No.498, Piso19,
1001 Capital Federal, Buenos Aires,
Argentina
Tel. 54-11-4394-1379,1803

Representative Office in Mexico City
Paseo de la Reforma 222-900B,
Col. Juárez, Del. Cuauhtémoc,México D.F., C.P. 06600, México
Tel. 52-55-5525-6790
Fax.52-55-5525-3473

Representative Office in Rio de Janeiro
Praia de Botafogo, 228, Sala 801B,
Setor A, Botafogo, Rio de Janeiro,
RJ, CEP 22250-906, Brazil
Tel. 55-21-2554-2305
Fax.55-21-2554-8798

Export Loans

Untied Loans

Loans for the export and sales of machinery, equipment,
and technology by Japanese companies and their overseas affiliates. Export loans are available for overseas
importers (purchasers) and foreign financial institutions.

Loans to provide the capital required for projects undertaken by
developing countries and for their imports of goods; for those countries to achieve a balance of payments equilibrium and stabilize theircurrency; and for the overseas operations of foreign companies (specified foreign corporations) that are part of the industry infrastructureor supply chains for important goods and technologies essential for
Japan’s economic activities and the daily lives of its citizens.

Import Loans

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.

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.

Mexico City

Hanoi

6-8, Boulevard Haussmann,
75009 Paris, France
Tel. 33-1-4703-6190

Supplementing the financial transactions implemented by private-sector financial institutions

Ensuring financial soundness and certainty of repayment

New York

Jakarta

Representative Office in Beijing

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

22

Bangkok

9 Raffles Place,#51-02 Republic Plaza,
Singapore 048619
Tel. 65-6557-2806
Fax.65-6557-2807

Representative Office in Bangkok

Corporate
Philosophy

New Delhi

Dubai

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

Washington, D.C.

Beijing

Istanbul

Corporate
Slogan* as of March 31, 2023

Loans for the import of important goods such as natural
resources by Japanese companies, and for resources
procured and used by Japanese companies and theiraffiliates at locations overseas where they are conducting operations. Import loans are available for Japanese
importers, Japanese companies and affiliates receiving
resources overseas, and for overseas importers.

Equity Participations
Capital contributions are made to companies operating overseas inwhich Japanese companies have equity stakes, to domestic startups
and other companies newly developing operations overseas, and to
funds where Japanese companies play central roles.

Overseas Investment Loans

Guarantees

Loans for Japanese foreign direct investments. Loans
are available for Japanese companies (investors), andfor overseas Japanese affiliates (including joint ventures) or foreign banks and governments providing
loans to or investing in those companies.

Support is also provided through JBIC’s guarantee facility, including
for loans extended by private financial institutions, bonds issued
by governments of developing countries and overseas Japaneseaffiliates, and currency swap transactions, as well as re-guarantee
for guarantees provided by export credit agencies of other countries.

JBIC TODAY 2023 SPECIAL ISSUE

23

ACCESSJBIC 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)

2023 SPECIAL ISSUE
Published by Press and External Affairs Division,
Corporate Planning Department,
Corporate Planning Group, Japan Bank forInternational Cooperation
4-1, Ohtemachi 1- chome, Chiyoda-ku, Tokyo
100-8144, Japan Tel : +81-3-5218-3100
JBIC Website

Facebook

Instagram

JBIC Osaka Branch
23rd floor, HERBIS ENT Office Tower,
2-22, Umeda 2-chome, Kita-ku, Osaka-city,
Osaka 530-0001, Japan

This printed material uses
vegetable oil ink, which
includes soybean oil ink.

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