profiles of jfc and jbic...profile of jbic profile of jfc jfc april 2012 (scheduled) (overseas...

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Japan Finance Corporation 2011 JBIC > Profiles of JFC and JBIC

Profiles of JFC and JBICProfiles of JFC

and JBIC

The Japan Bank for International Cooperation (JBIC) is the international wing of the Japan Finance Corporation (JFC). The predeces-sor of the present JBIC was the International Financial Operations of the former JBIC before its merger with other government’s fi-nancial institution to form JFC. However, to maintain international trust and confidence enjoyed by the former JBIC, the international wing of JFC has continued to use the name, “Japan Bank for International Cooperation (JBIC).” In April 28, 2011, the Japan Bank for International Cooperation Act (the new JBIC Act) was enacted (and promulgated and entered into force on May 2, 2011). The new JBIC Act has enhanced the powers of the present JBIC and will separate it from JFC to become an independent institution in April 1, 2012, in order to support more effectively Japanese businesses in the infrastructure sector and other strategic overseas projects.

P Name: Japan Finance Corporation (JFC)P Establishment: October 1, 2008P Statutory Law: The Japan Finance Corporation ActP Head Office: 9-3, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-0004,

JapanP Capital, Other*: Capital ��¥3,352�5 billion Reserve fund ��¥2,007�3 billion

P Branch Offices and Overseas Representative Offices: Branch offices in Japan ��152 Overseas representative offices** �� 18P Employees: 8,101 (positions sanctioned in the FY2011 budget)

P Outstanding Loans*: �� ¥29,763�0 billion Micro Business and Individual Unit ��¥7,470�2 billion Agriculture, Forestry, Fisheries, and Food Business Unit��¥2,632�0 billion Small and Medium Enterprise (SME) Unit ��¥6,436�8 billion

(Finance Operation) Japan Bank for International Cooperation (JBIC) ��¥8,467�0 billion

(Outstanding Loans and Equity Participations) Operations to Facilitate Crisis Response ��¥4,736�9 billion Operations to Facilitate Specific Businesses Promotion: ��¥20�0 billion

*As of March 31, 2011 **As of October 1, 2011

P Name: Japan Bank for International Cooperation (JBIC)P Head Office: 4-1 Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, JapanP Capital*: ��¥1,091�0 billion

P Outstanding Loans and Other Financing*: ��¥8,467�0 billionP Outstanding Guarantees*: ��¥2,443�2 billion

*As of March 31, 2011

P Operations to provide a certain credit to designated financial institutions at the time of occurrence of crises certified by the competent ministers, such as domestic or international financial disorder, large-scale natural disasters, and other similar events.

P Operations to provide loans to designated financial institutions based on the Low Carbon Investment Promotion Act.P Operations to provide loans to designated financial institutions based on the Industrial Revitalization Act.

Operations to Facilitate Crisis Responses

and Specific Businesses Promotion

Small and Medium Enterprise (SME) UnitOperations aimed at SMEs

Scope of operationsP Long-term business funds for SMEs

P Support for private financial institutions utilizing securitization methods

P Acceptance of insurance on CGC guaranteed liabilities involving loans

to SMEs

Japan Bank for International Cooperation

(JBIC)

Scope of operationsP Promoting overseas development and acquisition of strategically important natural resources to Japan

P Maintaining and improving the international competitiveness of Japanese industriesP Promoting the overseas business for

preserving the global environment, such as preventing global warming

P Responding to disruptions in finan-cial order in the international

economy

Synergy EffectSupporting revitalization of local

and regional economies

Supporting growth of customers

Supporting globalization of busi-ness

Micro Business and Individual Unit

Operations aimed at micro businesses and individuals

Scope of operationsP Small loans for micro/small businesses

P Support for business start-ups and regional revitalization

P Educational Loans, and Loans Secured by Government Pensions, etc.

Agriculture, Forestry, Fisheries,

and Food Business UnitOperations aimed at agriculture,

forestry, fisheries, and food business

Scope of operationsP Loans for agriculture, forestry, fisheries, and food

business that foster and support principal farmers

P Loans for food industry that support food safety and security, and close collaboration

between agriculture and food industryP Management support services such

as consulting and business matchmaking services

Major Business Operations of JFC

Profile of JBIC

Profile of JFC

JFCApril 2012 (scheduled)

(Overseas Economic Cooperation Operations)

Merged with the Japan International Cooperation Agency (JICA)

[Prior to September 30, 2008] [Present-day]

NLFCAFC

JASMEJBIC Japan Bank for International Cooperation (new JBIC)

(IFOs)

Note: The Financial Operations for Facili-tating Realignment of United States Forces in Japan are included as well.

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Message from the President & CEO, JBIC

Japan Finance Corporation 2011 JBIC > Message from the President & CEO, JBIC

Let me express first that on behalf of our bank,

I share profound sorrow with those who lost

loved ones in the Great East Japan Earthquake.

My heart is also with those who went through un-

precedented suffering in the disaster areas.

As we publish Annual Report 2011, I would like to

express my heartfelt appreciation for your continued

understanding and support for our activities.

The world economy followed a steady recovery

path in 2010, primarily sustained by robust growth

in Asian countries. The International Monetary Fund

(IMF) projected 4.25% worldwide growth in 2011,

foreseeing that the world economy will perk up, in-

cluding developed country economies. The financial

markets have also made significant recovery from

the major dysfunction caused by the global finan-

cial crisis. Despite these favorable developments,

re-emergence of fiscal problems in South European

countries, overheating emerging economies and

surging resource prices have raised concerns, as

downward risks. Turning to the Japanese economy,

we are grappling with efforts to meet a whole se-

ries of needs, such as working toward reconstruction

from the earthquake and tsunami disaster, ensuring

adequate supply of electricity, and restoring and re-

building supply chains.

Under these circumstances, I believe that as I look

forward, JBIC is called on to respond to a range of

strategic issues, including new energy, environment,

prevention of the hollowing out of domestic indus-

tries, and development of overseas markets.

According to the estimate issued by the Organisa-

tion for Economic Co-operation and Development

(OECD), the world needs $20 trillion over the next

decade for financing infrastructure development. To

meet such enormous financial needs, it is essential

to mobilize private sector investment and finance.

For pump-priming purpose, the Government of Japan

announced in March 2009 the Leading Investment to

Future Environment Initiative (LIFE Initiative), which

aims to meet the needs of long-term infrastructure,

including for environmental improvement. Under this

LIFE Initiative, for example, JBIC provided a loan to

support an Indian project for manufacturing highly

efficient thermal power generation equipment in

FY2010. Since the launch of the LIFE Initiative, aggre-

gate financing, including the amount mobilized from

the private sector, amounted to approximately $6.28

billion.

In addition, the New Growth Strategy set out that

JBIC should support overseas integrated infrastruc-

ture systems. Following this strategy, developed

countries were added as being eligible to JBIC’s over-

seas investment facility in the area of inter-city/urban

transit railway and water, etc., respectively, in April

and November 2010. Thus, JBIC has been supporting

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Japan Finance Corporation 2011 JBIC > Message from the President & CEO, JBIC

the overseas business development of Japanese in-

dustries by getting involved from the early stages of

project formulation—for example, through financial

policy dialogue with the Indonesian government, en-

hanced partnerships with host country governments,

and feasibility studies on high-speed railways.

In April this year, we expanded and further de-

veloped the JBIC Facility for Asia Cooperation and

Environment (FACE) and LIFE Initiative. Accordingly,

the Enhanced Facility for Global Cooperation in

Low Carbon Infrastructure and Equity Investment

(E-FACE) was launched. Under this framework, JBIC

intends to push forward more actively overseas proj-

ects for developing integrated infrastructure systems

and other strategic projects, while mobilizing private

funding to the maximum extent.

In projects to prevent global warming, JBIC is in

a position to perform a pump-priming function for

mobilizing private sector funds. In March 2010, fol-

lowing enforcement of the law to revise part of the

Japan Finance Corporation Act, the fourth compo-

nent was added to JBIC’s mission: the function of

“promoting the overseas business for preserving the

global environment, such as preventing global warm-

ing.” Under this revised provision, JBIC made loans

in the aggregate total of $820 million to a regional

multilateral financial institution in the Latin American

and Caribbean region as well as local banks in Tur-

key, Brazil, and India in FY2010.

Developing strategically important overseas re-

sources and securing their long-term supply will

become all the more important policy agenda in

preparing a new energy policy in the wake of the

unprecedented impact inflicted on us by the earth-

quake. Continued growth in emerging economies

and the creation of a variety of financial products

have caused to continue to raise the prices of crude

oil, copper and other commodities. JBIC is active in

supporting Japanese firms for acquiring interests in

resources in order to ensure their long-term, stable

supply. In FY2010, JBIC supported a project for ac-

quisition of interests in and development of shale

gas, which is non-traditional natural gas being rapidly

developed in the United States; a copper mine de-

velopment project in Canada; acquisition of interests

in a zinc and lead mine in Bolivia, among others. JBIC

also provided a loan to the Abu Dhabi National Oil

Company with a view to ensuring a stable supply of

crude oil. In these and other operations, JBIC was

striving to build and strengthen multi-faceted rela-

tions with resource-endowed countries.

In May this year, as the Japan Bank for Internation-

al Cooperation Act entered into force, our functions

were strengthened, and the newly incorporated

JBIC will take over them from April 1, 2012. In fact,

some of the new functions set forth in this Act, in-

cluding export finance for developed countries, are

performed from this fiscal year as JBIC conducts op-

erations under the Japan Finance Corporation. By

utilizing these strengthened functions, we will make

efforts to help create more export opportunities for

Japanese industries and strengthen their internation-

al competitiveness.

We will devote our efforts toward fulfilling our mis-

sion, while keeping our sights set on the establish-

ment of an independent, incorporated financial

institution on April 1, 2012. We look forward to your

enduring support and understanding of what we do

to support Japanese industries.

July 2011

Hiroshi Watanabe

President & CEO, JBIC

JBIC

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Overview of Activities in Fiscal Year 2010

1 JBIC’s Mission, Operational Principles and Operational Results in FY2010 6

2 Financial Overview 8

3 Overview of Operations 11

4 Creating Value Added and Disseminating Information 21

Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010


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1 JBIC’s Mission, Operational Principles and Operational Results in FY2010

JBIC is the international wing of the Japan Finance Corpora-

tion (JFC). JBIC conducts its operations to advance Japan’s ex-

ternal economic policy for contributing to the sound develop-

ment of the Japanese economy and performs a positive role

for the sound development of an increasingly interdependent

international economy. To this end, JBIC implements financial

operations to perform its functions, guided by the

following mission and operational principles,

while complementing and catalyzing the activi-

ties of private financial institutions.

(Note) In addition to the above functions, JBIC is responsible for making equity invest-ments, loans and other operations necessary for the projects (the public–private partnerships of family housing and infrastructure projects associated with the relocation of U.S. Marine personnel and their dependents to Guam) to facilitate the realignment of U.S. Forces Japan (USFJ), the operations authorized to JBIC under “the USFJ Realignment Special Measures Act.” There is no equity and loan provision for FY2010.

(1) Loans, Equity Participations and GuaranteesIn FY2010 (April 1, 2010–March 31, 2011), loan, equity partici-

pation and guarantee commitments decreased 47.5% from

FY2009, to ¥1,765.9 billion.

Outstanding loans and equity participations decreased 4%,

to ¥8,467.0 billion, while outstanding guarantees increased

23.6%, to ¥2,443.2 billion, at the end of March 31, 2011.

M Operational Highlights (see p. 11 and the following

pages for detailed descriptions)

R Promoting overseas development and acquisition of strategically important natural resources to Japan

R Maintaining and improving the international competitiveness of Japanese industries

R Promoting the overseas business for preserving the global environ-ment, such as preventing global warming

R Responding to disruptions in financial order in the international economy

R Supporting globalization efforts of mid-tier enterprises and SMEsR Addressing climate change and supporting environmental businessR International networking efforts to support JBIC operations

(2) Operations Other than Loans, Equity Partici-pations and Guarantees

M Activities in the Environment SectorFollowing entry into force of the act to revise part of the Ja-

pan Finance Corporation Act (the Revised JFC Act) on March

Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > JBIC’s Mission, Operational Principles and Operational Results in FY2010

Operational Results in FY2010

Promoting the overseas business for preserving the

global environment, such as preventing

global warming

1

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2

43

Well-focused, policy-based

financing

Complementing private sector

financial institutions

Ensuring financial soundness

Maintaining and improving interna-tional trust and

confidence

Conducting business operations

by drawing on its expertise and

initiatives

MissionTo fulfill its mission to contribute to the sound development of the Japanese and international econo-mies and to improvement in the living standards of the Japanese people, JBIC will perform its func-tions in the areas indicated in the right circles by conducting financ-ing operations, while also comple-menting the activities of private financial institutions.

Maintaining and improving the international com-

petitiveness of Japanese industries

Promoting overseas develop-

ment and acquisition of strategically

important natural resources to

Japan

Responding to disruptions in

financial order in the international

economy

JBIC’s Mission and Operational Principles in FY2010

Operatio

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Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > JBIC’s Mission, Operational Principles and Operational Results in FY2010

31, 2010, JBIC has begun supporting overseas projects for

preserving the global environment, including those coping

with global warming under the Global action for Reconciling

Economic growth and ENvironmental preservation (GREEN)

operations.

In 2010, JBIC signed memorandum of understandings

(MOUs) on operational cooperation for GREEN operations

respectively with the Asian Development Bank (ADB); PT

Sarana Multi Infrastruktur (Persero) in Indonesia; the Euro-

pean Bank for Reconstruction and Development (EBRD);

the Inter-American Development Bank (IDB); and Banco

Nacional de Obras y Servicios Públicos, S.N.C., the Mexican

National Infrastructure Fund and the IDB. JBIC also drew up

the Guidelines for Measurement, Reporting and Verification

of the Greenhouse Gas (GHG) Emission Reductions in JBIC’s

GREEN (J-MRV Guidelines), which set out the basic concepts

and procedures for measurement, reporting and verification

of reductions in GHG emissions in the projects financed by

GREEN operations.

A network of domestic and foreign partnerships was ex-

panded by signing MOUs with the Ministry of Industry,

Tourism and Trade of Spain for operational cooperation on

environmental infrastructure projects in third-country markets

and with Yokohama City for cooperation on environmental

and urban infrastructure projects.

M Project Formulation with Enhanced Dialogue with Recipient Countries

In August 2010, JBIC held the first annual meeting on financial

dialogue with the Indonesian government. Discussions in the

meeting covered comprehensive cooperation for environmen-

tally sustainable economic growth with a focus on power

development and macroeconomic analysis. JBIC engages in

in-depth discussions with relevant ministries and agencies,

centered on the topics discussed in the meeting, with a view

to effective implementation of concrete projects designed

for economic growth and environmental preservation in In-

donesia, while fully utilizing Japanese firms’ technologies and

know-how.

M Signing of more MOUs on Operational CooperationJBIC signed MOUs on operational cooperation with the Na-

tional Bank for Foreign Economic Activity of the Republic of

Uzbekistan, the Ministry of Mineral Resources and Energy

in Mongolia, other foreign governments, multilateral institu-

tions and governmental financial institutions to expand and

consolidate support for overseas business development of

Japanese firms. In addition, as part of its efforts to strengthen

cooperative ties with foreign governments and government

agencies, JBIC signed MOUs with the Egyptian and Moroccan

governments on strategic partnership in which both parties

cooperate to strengthen economic relations.

M Promoting Investment in AfricaFollowing the Japanese government’s pledge of $2.5 billion

in financial support for Africa over the next five years during

the Fourth Tokyo International Conference on African Devel-

opment (TICAD IV) in May 2008, JBIC established the JBIC

Facility for African Investment (FAI) in April 2009 to support

Japanese business projects undertaken in Africa by drawing

on JBIC’s equity participation, guarantee facility and advisory

service. In May 2010, JBIC signed an MOU with the African

Export-Import Bank (Afreximbank) on financial coopera-

tion for facilitating the projects in which Japanese firms get

involved in African countries and trade between Japan and

African countries.

M Partnership with Educational InstitutionIn October 2010, JBIC signed a cooperation agreement with

the Graduate School of Management (GSM), Kyoto University,

to make it serve as a center for increasing the understanding

of project finance management practices and conducting re-

search on project finance. For this purpose, the International

Project Management Course was instituted in the GSM. In

partnership with the GSM, JBIC will collect and develop a

systematic knowledge regarding the know-how and experi-

ence of the practice of project finance. Thereby, JBIC intends

to provide support for integrated infrastructure system and

resource development projects in which Japanese firms get

involved.

Amount¥1,765.9

billion

Amount¥1,765.9

billion

Asia 221.5 (13%) Oceania

8.3 (0%)

Europe 62.4 (4%)

Guarantees638.1(36%)

Export Loans 151.2 (9%)

Import Loans 169.5 (10%)

Overseas Investment Loans 710.3 (40%)

Untied Loans76.8(4%)

Equity Participations19.8(1%) Others

423.0(24%)

The Middle East 409.3 (23%)

Africa 66.3 (4%)

The Americas574.7(33%)

Commitments by Purpose of Financing(FY2010)

Commitments by Region (FY2010)

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2 Financial Overview

Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Financial Overview

In FY2010 (April 1, 2010–March 31, 2011), disbursements for lending, equity participations and securitization totaled ¥1,318.8

billion.

M Planned and Actual Lending and Investments (Unit: billions of yen)

FY2007 FY2008 FY2009 FY2010

Plan Actual Plan Actual Plan Actual Plan Actual

Export Loans 197.0 70.2 118.0 54.4 108.0 43.8 113.0 73.6

Import Loans and Overseas Investment Loans 688.0 865.3 735.0 1,649.8 1,010.0 2,382.8 1,080.0 1,113.9

Untied Loans 116.0 66.4 109.0 80.7 82.0 186.7 207.0 85.4

Equity Participations 6.0 0.2 15.0 30.2 20.0 13.6 45.5 26.8

Securitization — — 30.0 — 30.0 — 30.0 19.0

Total 1,007.0 1,002.1 1,007.0 1,815.3 1,250.0 2,627.0 1,475.5 1,318.8

M Principles of Accounting(1) Separation of AccountPursuant to Article 41 of the Japan Finance Corporation Act

(the JFC Act), the operations of JBIC and the Financial Opera-

tions for Facilitating Realignment of United States Forces in

Japan conduct their operations on separate accounts.

(2) Preparation of Financial StatementsJBIC prepares financial statements pursuant to the Compa-

nies Act and Article 40 of the JFC Act and submits them to

the Minister of Finance. The report on the final settlement of

accounts is submitted to the Government of Japan, together

with the financial statements, and, after examination by the

Board of Auditors, to the Diet.

M Account for JBIC Operations(1) Statement of OperationsIn FY2010, the overall earnings on financing activities, includ-

ing loan interest, amounted to ¥178.6 billion, with ordinary

income reaching ¥197.2 billion. These figures are largely

attributable to Emergency Operations to Support Japanese

Overseas Business Activities and financial support for over-

seas development and acquisition of strategically important

resources. Funding costs, including interest payment for debt,

amounted to ¥118.7 billion, with ordinary expenses register-

ing ¥147.5 billion. As a result, ordinary profits stood at ¥49.6

billion. After taking account of extraordinary profits and ex-

penses, net earnings for FY2010 amounted to ¥58.7 billion.

(2) Balance SheetOn the assets side, outstanding loans decreased ¥394.5

billion from FY2009. This was largely attributable to the ef-

fect of yen appreciation, which reduced the value of foreign

currency-denominated assets. Customers’ liabilities for ac-

ceptances and guarantees rose ¥466.1 billion from the end

of FY2009. On the liabilities side, there was a ¥235.2 billion

increase in debt from the end of FY2009. Total net assets

reached ¥2,048.5 billion, which included ¥58.7 billion in net

earnings.

M Financial Account Related to the Financial Opera-tions for Facilitating Realignment of United States Forces in Japan

(1) Statement of OperationsIn this account, there is no loan or funds for loan raised during

FY2010, while receiving government grants. Thus, ordinary in-

come on this account amounted to ¥400 million. Subtracting

business operation and service expenses, ordinary expenses

cost ¥100 million. As a result, net ordinary income amounted

to ¥200 million, and taking account of extraordinary profits

and losses, net income reached ¥200 million.

(2) Balance SheetAssets amounted to ¥300 million, with the receipt of govern-

ment grants. Liabilities amounted to ¥100 million, with the

provision for retirement benefits. As a result, net income in-

cluding extraordinary profits and losses totaled ¥200 million.

Operational Results

Financial Results

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The Third Term (FY2010) Financial Statements

M Statement of Operations M Balance Sheet (April 1, 2010–March 31, 2011; millions of yen) (As of March 31, 2011; millions of yen)

2011 2011 2011

Ordinary Income 197,217 Assets Liabilities

Interest Income 178,661 Cash and Due from Banks 978,074 Borrowed Money 5,502,495

Fees and Commissions 13,183 Securities 76,453 Bonds Payable 2,703,551

Other Ordinary Income 74 Loans and Bills Discounted 8,376,794 Other Liabilities 71,181

Other Income 5,298 Other Assets 1,001,457 Provision for Bonuses 465

Ordinary Expenses 147,576 Property, Plant and Equipment 37,664 Provision for Directors’ Bonuses 6

Interest Expenses 118,777 Intangible Assets 2,349 Provision for Retirement Benefits 12,135

Fees and Commissions Payments 1,332 Customers’ Liabilities for Acceptances and Guarantees 2,443,266

Provision for Directors’ Retirement Benefits 28

Other Ordinary Expenses 3,370

General and Administrative Expenses 15,861 Allowance for Loan Losses (134,417) Acceptances and Guarantees 2,443,266

Other Expenses 8,233 Total Liabilities 10,733,129

Ordinary Profit 49,641 Net Assets

Extraordinary Income 9,142 Capital Stock 1,091,000

Extraordinary Losses 0 Retained Earnings 801,398

Net Income 58,783 Total Valuation and Translation Adjustments 156,115

Total Net Assets 2,048,513

Total Assets 12,781,643 Total Liabilities and Net Assets 12,781,643

The Third Term (FY2010) Financial Statements on the Financial Account Related to the Financial Operations for Facilitating Realignment of United States Forces in Japan

M Statement of Operations M Balance Sheet (April 1, 2010–March 31, 2011; millions of yen) (As of March 31, 2011; millions of yen)

2011

Ordinary Income 411

Receipts from the National Budget 411

Other Income 0

Ordinary Expenses 170

Fees and Commissions Payments 22

General and Administrative Expenses 147

Ordinary Profit 241

Net Income 241

2011 2011

Assets Liabilities

Cash and Due from Banks 359 Other Liabilities 1

Other Assets 0 Provision for Bonuses 4

Property, Plant and Equipment 0 Provision for Directors’ Bonuses 0

Provision for Retirement Benefits 113

Provision for Directors’ Retirement Benefits 0

Total Liabilities 119

Retained Earnings 241

Total Shareholders’ Equity 241

Total Net Assets 241

Total Assets 360 Total Liabilities and Net Assets 360

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M Government-guaranteed BondsJBIC raises part of its funds through government-guaranteed

bond issuance in international capital markets. Outstand-

ing bonds at the end of FY2010 amount to ¥1,635.3 billion,

which accounts for 19.9% of the total outstanding borrow-

ings and bonds. JBIC provides foreign currency loans, when

necessary for effective financing operations. Financial re-

sources funded by government-guaranteed bond issuance

in international capital markets are applied to such financial

operations.

In the FY2011 budget, JBIC plans to issue government-

guaranteed bonds in the total amount up to ¥640.0 billion,

equivalent to $7.19 billion.

JBIC’s government-guaranteed bonds receive the same

ratings as the Government of Japan from the rating agencies

(Aa3 from Moody’s and AA- from Standard & Poor’s as of the

end of August 2011). Since they are treated as assets for

which the Bank for International Settlements (BIS) assigns

zero risk weight in calculating the capital adequacy ratio

for depository institutions, these bonds provide a quality

investment opportunity for investors in international capital

markets.

M FILP Agency BondsIn compliance with the government policy to reform the FILP,

JBIC has issued bonds without government guarantee (FILP

agency bonds) in the domestic capital market since FY2001,

thereby raising funds based on its own creditworthiness. JBIC

issued a total of ¥50.0 billion FILP agency bonds in FY2010,

and plans to issue total amount up to ¥120.0 billion FILP

agency bonds in the FY2011 budget.

JBIC’s FILP agency bonds receive the same ratings as the

Government of Japan (as of the end of August 2011) as

shown below. They are treated as assets for which BIS assigns

10% risk weight in calculating the capital adequacy ratio for

depository financial institutions.

Rating & Investment Information, Inc (R&I): ........................AAA

Japan Credit Rating Agency, Ltd. (JCR): ................................AAA

Moody’s: ...........................................................................................Aa3

Standard & Poor’s: ........................................................................AA–

JBIC finances its operations through various sources, includ-

ing borrowings from the Fiscal Investment and Loan Program

(FILP) Fiscal Loan, Government-guaranteed Foreign Bond is-

suance, FILP Agency Bond issuance and capital contributions

from the government. As JBIC provides long-term financing,

its operations are financed by long-term funds to match ma-

turities between funding and lending instruments. Borrowings

from the FILP Fiscal Loan, Government-guaranteed Foreign

Bond issuance and capital contributions from the govern-

ment constitute part of the national budget (either as an

item in the General Account budget or the Special Account

budget). Therefore, they are submitted, together with the op-

erating budget of JBIC, to the Diet for approval. Recent fund-

ing results and plans for FY2011are shown in the table below.

1. JBIC did not make any loan, while receiving a government grant in March 2011 for U.S. Forces Japan Realignment Facilitation Operation.

Funding Sources

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

FY2007 Actual FY2008 Actual FY2009 Actual FY2010 Actual FY2011 Planned

Capital Contribution from the General Account — 20.0 — — —

Capital Contribution from FILP Industrial Investment — 30.0 20.0 35.5 200.0

Borrowing from FILP Fiscal Loan 345.6 858.7 906.6 690.9 700.0

Borrowing from Foreign Exchange Fund — 490.3 987.4 323.5 —

Government-guaranteed Foreign Bondsa 177.5 175.5 626.3 463.3 640.0

FILP Agency Bondsa 200.0 70.0 70.0 50.0 120.0

Other Sources of Funds, Including Repayments 279.0 170.7 16.7 (244.4) (107.5)

Total 1,002.1 1,815.3 2,627.0 1,318.8 1,552.5

a. Figures for bonds are indicated in face value.

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3 Overview of Operations

Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Overview of Operations

JBIC as the international wing of JFC conducts international

finance operations, including lending, equity participation

and guarantee, with a view to complementing private sector

financial institutions.

Since projects in developing countries have risks that

private financial institutions find it difficult to assess and

assume, they become feasible when JBIC assumes their

risks and reduces burdens on the private sector. Specifically,

JBIC provides credit in project finance1 as well as structured

finance2; actively assumes local corporate risks; and utilizes

its guarantee facility for private sector lending, thereby help-

ing Japanese firms maintain their international competitive-

ness as well as secure stable resource supplies to Japan.

Furthermore, JBIC’s long-cultivated close ties and networks

with foreign governments and multilateral institutions as a

policy-based financing institution have served as its strength

for smooth project management and resolution of various

problems on-the-ground encountered by Japanese firms.

Following entry into force of the act to revise part of the

Revised JFC Act on March 31, 2010, JBIC launched operations

to support the overseas projects for preserving the global

environment, such as those preventing global warming under

the GREEN operations3.

(Note) In addition to the above functions, JBIC is responsible for making equity investments, loans and other operations necessary for the projects (the public–private partnerships of family housing and infrastructure projects associated with the relocation of U.S. Marine personnel and their dependents to Guam) to facilitate the realignment of U.S. Forces Japan (USFJ), the operations authorized to JBIC under “the USFJ Realignment Special Measures Act.” There is no equity and loan provision for FY2010.

M Financial OperationsLoan, equity participation and guarantee commitments in

FY2010 declined 47.5% from FY2009, to ¥1,765.9 billion.

This reflected the wind-down of Emergency Operations to

Support Japanese Overseas Business Activities—introduced

as temporary measures in response to the global financial

turmoil—as the global economy is inching forward on the re-

covery path. Of this total, loans fell 58.1%, to ¥1,107.9 billion;

guarantees declined 9.9%, to ¥638.1 billion; and investment

was down 52%, to ¥19.8 billion.

In operations for supporting the overseas development and

acquisition of strategically important resources to Japan, 13

commitments totaling ¥397.6 billion were made in loans and

guarantees. To support the maintenance and improvement of

the international competitiveness of Japanese industries, 101

commitments totaling ¥898.3 billion were made. Prominent

among them were loans to support the export of Japanese

ships, machinery and equipment, equity participation in

the fund that makes investments in growth companies and

guarantees for local currency loans. In GREEN operations, 8

commitments totaling ¥66.5 billion were made in loans and

guarantees.

In response to the global financial turmoil, exceptional

measures were taken at the end of December 2008 to main-

tain the international competitiveness of Japanese industries,

pursuant to the policy decision made by the Government of

Japan. With these measures, 4 commitments totaling ¥1.7

billion and 1 commitment totaling ¥2.9 billion were made

in loans and guarantees, respectively, to support Japanese

trade and business activities in developing and developed

countries.

In addition, 5 two-step loans (TSLs) totaling ¥381.9 billion

were extended to domestic financial institutions for support-

ing those Japanese firms—especially mid-tier enterprises,

SMEs, medium-sized enterprises and second-tier large enter-

prises—facing difficulties obtaining financing for their over-

seas business operations. Overall, 10 commitments totaling

¥386.6 billion were made in Emergency Operations to Sup-

port Japanese Overseas Business Activities.

In project finance, structured finance and risk-taking for

locally operating firms and financial institutions, 49 com-

mitments totaling ¥495.4 billion were made in loans and

guarantees.

As such, outstanding loans, investments and guarantees

increased 1.1% from a year earlier, to ¥10,910.3 billion. Of

this total, outstanding loans and investments decreased 4%,

to ¥8,467.0 billion, while outstanding guarantees increased

23.6%, to ¥2,443.2 billion.

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

2. Structured finance is a financing technique used by firms with financial needs to obtain funds by relying on export earnings of the resources or products they develop for repayment.3. GREEN (Global action for Reconciling Economic growth and ENvironmental preservation) operations support overseas projects having material impact on sustaining the global environ-

ment, including those mitigating and adapting to global warming, through mobilization of private financing. The GREEN Initiative was set out in the Revised JFC Act on March 31, 2010.

M Loans, Equity Participations and Guarantees (Unit: millions of yen)

FY2009 FY2010 % Change

Commitments Loans 2,644,135 1,107,925 (58.1)

Export Loans 97,878 151,238 54.5

Import Loans 8,208 169,512 1,965.2

Overseas Investment Loans 2,193,731 710,328 (67.6)

Untied Loans 344,317 76,845 (77.7)

Equity Participations 13,039 19,819 52.0

Guarantees 707,955 638,193 (9.9)

Total 3,365,130 1,765,938 (47.5)

Disbursements Loans 2,613,426 1,292,063 (50.6)


Guarantees 703,435 777,001 10.5

Total 3,330,496 2,095,888 (37.1)

Repayments Loans 839,993 1,021,074 21.6

Equity Participations 50 844 1,580.2

Guarantees 343,943 236,714 (31.2)

Total 1,183,987 1,258,632 6.3

Outstanding (end of fiscal year)

Loans 8,773,803 8,394,412 (4.3)


Guarantees 1,977,071 2,443,266 23.6

Total 10,795,166 10,910,344 1.1

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In untied loans, 8 commitments were made, totaling ¥76.8

billion, which was a decrease of 77.7% from FY2009.

There were 3 equity participations totaling ¥19.8 billion,

which increased 52% over FY2009. They included capital

contribution to the Credit Guarantee and Investment Facility

(CGIF) that provides guarantees and other services for the

securities issued by firms in the ASEAN+3 countries1.

Guarantees decreased 9.9%, to ¥638.1 billion, and included

those provided for yen-denominated foreign bonds (Samurai

bonds)2 issued by the Government of Mexico and others in

the Japanese financial market.

R Scope of OperationsJBIC conducted operations to perform its functions in the

following areas and thereby fulfill its mission by drawing on a

variety of financial instruments and schemes.

(1) Promoting overseas development and acquisition of stra-

tegically important resources to Japan

(2) Maintaining and improving the international competitive-

ness of Japanese industries

(3) Promoting the overseas business for preserving the global

environment, such as preventing global warming

(4) Responding to disruptions in financial order in the inter-

national economy

By financing facility, 35 export loan commitments were

made, with their amount increasing 54.5%, to ¥151.2 billion.

These loan commitments included financing the export of

machinery and equipment for a refinery project in Egypt. Im-

port loan commitments amounted to ¥169.5 billion.

In overseas investment loans, 60 commitments totaling

¥710.3 billion were made. This amount was a decrease

of 67.6% from FY2009. Of this total, ¥221.9 billion funded

projects for securing a stable supply of resources to Japan.

Notable among these was a loan for acquisition of interests

in shale gas in the United States. In the areas other than

resource developments, 49 commitments totaling ¥488.3 bil-

lion were made in overseas investment loans.

Demand continues to rise for energy resources, such as

oil and natural gas, and for rare metals, such as nickel

and cobalt, that are indispensable for manufacturing

semiconductors and other high-tech products. Countries

around the world are stepping up efforts to secure long-

term, stable supplies of these resources. JBIC supported

the securing of stable supplies of resources indispens-

able for Japan in order to ensure the sound development

of its economy.

In FY2010, JBIC provided loans for the acquisition of

interests in shale gas in the United States, the Similco

Copper Mine Redevelopment Project in Canada, and the

acquisition of an additional interest in the San Cristóbal

Mine producing zinc, lead and silver in Bolivia. Including

these loans, overseas investment loans for “promoting

overseas development and acquisition of strategically

important resources to Japan” amounted to ¥391.4 bil-

lion, of which ¥270.9 billion was for energy resources,

such as oil and natural gas, and ¥111.5 billion was used

for other mineral resources, such as iron ore, copper ore

and concentrate, lead and zinc.

In the wake of the Great East Japan Earthquake in

March 2011, the Japanese public has a perception that

it is urgent to secure a stable supply of electricity for

their living and economic activity. Thus, they now have

increased expectations for securing a stable supply of

energy resources, especially natural gas. JBIC will con-

tinue to make vigorous efforts to support the securing

of stable, lasting supplies of energy resources and other

strategically important resources to Japan.

Working toward the Sound Development of the Japanese Economy

JBIC’s Efforts to Secure Long-term, Stable Supplies of Resources to Japan

M Loans, Equity Participations and Guarantees by Purpose, FY2010

(Unit: billions of yen, %)

Loan and Equity

Participations Guarantee Total Share

Promoting overseas development and acquisition of strategically important resources to Japan

391.4 6.1 397.6 22.5

Maintaining and improving the international competitiveness of Japanese industries

292.1 606.2 898.3 50.9

Promoting the overseas business for preserving the global environ-ment, such as preventing global warming

40.7 25.7 66.5 3.8

Responding to disruptions in financial order in the international economy

403.4 — 403.4 22.8

Total 1,127.7 638.1 1,765.9 100.0

1. ASEAN+3 is a forum for cooperation between the Association of South East Asian Nations (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singa-pore, Thailand and Viet Nam) and three East Asian countries of China, Republic of Korea and Japan.

2. Samurai bonds are yen-denominated bonds issued by a foreign government or company in the Tokyo bond market.

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P Maintaining and Improving the International Competitive-

ness of Japanese Industries

Loan, equity participation and guarantee commitments in this

field amounted to ¥898.3 billion, accounting for 50.9% of the

total amount of financing commitments.

(1) Creating Export Opportunities

JBIC supported the export of 14 ships built by Japanese

shipyards, including bulk carriers to Turkish shipping firms.

JBIC provided a buyer’s credit1 to a refinery project in its first

project financing in Egypt, which is expected to make head-

way for Japanese firms’ export projects to African and Middle

Eastern countries. JBIC also offered a credit line to The State

Export-Import Bank of Ukraine (Ukreximbank) to finance the

import of machinery, equipment and services by Ukrainian

firms from Japanese exporters, thereby supporting the cre-

ation of Japanese business opportunities that will contribute

to the country’s infrastructure development, environmental

improvement and industrial development.

(2) Supporting the Overseas Business Development of Japa-

nese Firms

In supporting the overseas business development of Japa-

nese firms, JBIC provided a guarantee for a local currency

P Promoting Overseas Development and Acquisition of Stra-

tegically Important Resources to Japan

When total financing commitments in FY2010 are broken

down by the functions JBIC performed in conducting its

financing operations, loan and guarantee commitments

made for “promoting overseas development and acquisition

of strategically important resources to Japan” amounted to

¥397.6 billion. This accounted for 22.5% of the total amount

of financing commitments.

(1) Securing Stable Access to Energy and Resources to Japan

JBIC signed a loan agreement with Abu Dhabi National Oil

Company (ADNOC), a state-owned company in Abu Dhabi,

the United Arab Emirates (UAE), to secure a stable supply

source of crude oil. In addition, JBIC supported Japanese

gas companies for participating in a resource development

project in Australia and to secure a stable supply of liquefied

natural gas (LNG).

(2) Supporting Resource Development by Japanese Firms

JBIC supported Japanese firms for the acquisition of interest

in a mine producing zinc, lead and silver. In the United States,

JBIC provided the first loan to support the acquisition of inter-

est in shale gas and its development by Japanese firms.

Since the financial crisis in the fall of 2008, dwindling

credit supply from European financial institutions that

had primarily provided ship financing until then has

made it difficult to structure ship financing across the

world. If financing has not been structured by time ships

are delivered to ship owners, there may be trouble for

making payments to shipbuilders. This will prevent the

smooth delivery of ships, and, at the same time, have a

significant adverse impact on shipbuilders.

Under these circumstances, by providing buyer’s cred-

its and bank loans JBIC has been actively supporting

the export of ships built in domestic shipyards since the

financial crisis. In July 2010, JBIC signed a buyer’s credit

agreement with TATA NYK SHIPPING PTE. LTD. (TATA

NYK), a joint venture incorporated in Singapore between

Nippon Yusen Kabushiki Kaisha (NYK LINE) and an In-

dian company, TATA Steel Limited. This buyer’s credit is

to finance the purchase of a Handymax bulk carrier2 built

by Oshima Shipbuilding Co., Ltd. from its exporter Sumi-

tomo Corporation. And in February 2011, JBIC signed

4 buyer’s credit agreements with a shipping company

affiliated with Petróleos de Venezuela, S.A. (PDVSA), a

state-owned petroleum company in Venezuela, to fi-

nance its purchase of 4 Aframax crude oil carriers3 built

by Sumitomo Heavy Industries Marine & Engineering Co.,

Ltd. from their exporter ITOCHU Corporation. Overall,

JBIC provided ship financing for 14 ships in FY2010, and

this is a record figure since 1985.

JBIC will continue to actively support the export of

ships built in domestic shipyards in cooperation with the

Shipbuilders’ Association of Japan (SAJ), as shipbuilding

plays a major role in the regional economy by creating

employment and bolstering the local support industries.

A Record Number of Commitments Since 1985

Supporting the Export of Ships Built in Domestic Shipyards

1. A buyer’s credit is a loan JBIC directly extends to a foreign importer (buyer) to finance its import of machinery and equipment from a Japanese firm. 2. Handymax bulk carriers are bulk carriers ranging from 40,000 DWT to 60,000 DWT in capacity.3. Aframax carriers, ranging from 80,000 DWT to 120,000 DWT in capacity, are primarily used for transporting crude oil.

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operations in November 2010, followed by loan agreements

with Corporación Andina de Fomento, Banco Nacional de

Desenvolvimento Econômico e Social and ICICI Bank Limited

in India. In total, 4 loan commitments were made in GREEN

operations in FY2010.

P Responding to Disruptions in Financial Order in the Inter-

national Economy

In FY2010, loan, equity participation and guarantee commit-

ments for “responding to disruptions in financial order in the

international economy” amounted to ¥403.4 billion, account-

ing for 22.8% of the overall amount of commitments.

In response to the global financial turmoil, JBIC launched

3 financial operations as special measures at the end of

December 2008 to maintain the international competitive-

ness of Japanese industries, pursuant to the policy decision

made by the Government of Japan. By the time Emergency

Operations to Support Japanese Overseas Business Activities

were terminated at the end of March 2011, JBIC had made

140 commitments totaling ¥2,446.1 billion. They primarily fi-

nanced such industries as automobiles and automobile parts,

electrical machinery and electronic equipment and chemi-

cals, thereby supporting Japanese firms’ overseas business

operations and contributing to maintaining their international

competitiveness (see column on p. 16).

private bank loan to a Japanese sales finance affiliate in Indo-

nesia. This is due to the fact that the sales finance business

is upholding that country’s buoyant demand for motorcycles

and serve a Japanese firm to capture the volume market seg-

ment. In the UAE, JBIC sought to promote steady growth in

its automobile market and serve to uphold and expand an

important market for Japanese automobile manufacturers.

To this end, JBIC signed agreements on acquiring securitized

notes backed by auto loans originated by local banks and on

providing a guarantee on additional securitized notes.

P Promoting the Overseas Business for Preserving the Global

Environment, such as Preventing Global Warming

In FY2010, loan and guarantee commitments for “promoting

the overseas business for preserving the global environment,

such as preventing global warming” amounted to ¥66.5 bil-

lion, accounting for 3.8% of the overall amount of commit-

ments.

Following entry into force of the act to revise part of the

Revised JFC Act in March 2010, an additional function was

added to JBIC, expanding its scope of operations to include

“promotion of the overseas business for preserving the global

environment, such as preventing global warming” (hereafter,

called GREEN operations). During FY2010, JBIC signed the

first loan agreement with Denizbank A.S in Turkey in GREEN

In May 2009, the Government of Japan made a pledge

of launching the Market Access Support Facility (MASF),

totaling up to ¥500 billion for supporting Samurai bond

issues. Under MASF, JBIC supported self-help efforts to

regain access to international capital markets by Asian

developing countries. MASF provides guarantees for the

Asian countries that were temporarily facing difficulties

issuing sovereign bonds in international financial markets

in the wake of the global financial turmoil. JBIC offered

guarantees to support Samurai bond issuance by the

Government of Indonesia and the Government of Philip-

pine. As part of “responding to disruptions in financial

order in the international economy,” JBIC supported

Samurai bond issues by the Government of Colombia

and the Government of Mexico as well.

In April 2010, JBIC launched the Guarantee and Acqui-

sition toward Tokyo Market Enhancement (GATE) facility

with a view to further developing and enhancing MASF.

The new GATE facility will enable JBIC to acquire part of

Samurai bonds, where appropriate, in addition to provid-

ing traditional partial guarantees for Samurai bond is-

sues. The facility would thus induce foreign governments

and government agencies to raise funds in the Tokyo

market. Attracting foreign bond issuers to the Tokyo

market diversifies investment opportunities available to

Japanese investors, thereby helping bolster activities in

the Tokyo market (Samurai bond market).

In FY2010, JBIC provided 5 guarantees totaling ¥451.5

billion for Samurai bond issues. Specifically, JBIC signed

guarantee agreements for Samurai bond issuances of the

Government of Mexico (amount of issue: ¥150.0 billion)

in October; the Government of Indonesia (¥60.0 billion)

in November; the Government of Panama (¥41.5 billion)

in January; the Government of Turkey (¥180.0 billion) in

March; and the Export-Import Bank of India (EIBI) (¥20.0

billion) in March 2011. The guarantees for the Govern-

ment of Turkey was the first guarantee in the Europe, the

Middle East and Africa region, while the guarantee for

EIBI was the first one for a government agency and an

Indian issuer under the GATE facility.

JBIC will use the GATE facility to support foreign gov-

ernments and government agencies to raise funds in the

Tokyo market.

Resorting to the New GATE Facility

Maintaining and Improving International Competitiveness by Bolstering Activities in the Samurai Bond Market

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LIFE InitiativeUnder the Leading Investment to Future Environment

(LIFE) Initiative, for which the Government of Japan

pledged $5 billion over a two-year period in March

2009, JBIC actively supported environmental investment

projects in Asian and other countries in which Japanese

firms participated or to which Japanese firms exported

machinery, equipment and services. The financing pro-

vided in FY2009, including private sector financing,

reached $5.4 billion in total. And in FY2010, similar loans

amounted to $900 million, including for the export of

the rolling stock in the Egyptian metro project. Since the

launch of the LIFE Initiative to the end of March 2011,

the cumulative financing to projects and exports added

up to 16 and the overall total of $6.28 billion, including

funding from the private sector.

In April 2011, JBIC launched a new facility, the JBIC

Enhanced Facility for Global Cooperation in Low Car-

bon Infrastructure and Equity Investment (E-FACE). This

developed and expanded the LIFE Initiative together

with the JBIC Facility for Asia Cooperation and Environ-

ment (FACE), which aimed to support climate change

mitigation projects and projects located in the Asian

region. With this new Facility, JBIC makes active efforts

to address new needs, including financing overseas infra-

structure development projects by Japanese firms, while

mobilizing private sector funding.

GREEN

Following the Revised JFC Act on March 31, 2010, JBIC

has expanded its scope of operations by adding the

function of promoting the overseas business for preserv-

ing the global environment, such as preventing global

warming. Financing operations for executing this func-

tion are called GREEN operations. GREEN denotes an ac-

ronym: “Global action for Reconciling Economic growth

and ENvironmental preservation.” The projects eligible

under the LIFE Initiative were limited to those aiming to

maintain and improve the international competitiveness

of Japanese industries. Accordingly, projects dedicated

solely to the preservation of the global environment

were not eligible for financial support from JBIC to date.

Launching GREEN operations enabled JBIC to focus its

financing on projects seeking to preserve the global

environment, such as those that materially reduce green-

house gas (GHG) emissions, while propagating interna-

tionally acclaimed, advanced Japanese environmental

technologies across the world.

In FY2010, JBIC made 4 loan agreements totaling $492

million (and the aggregate cofinanced amount of $820

million) in GREEN operations, including the agreement

with Turkish Denizbank A.S. in November.

Supporting Infrastructure and Environment Projects across the World

LIFE Initiative, GREEN Operations

India2009/7Manufacturing and Sales of Thermal Power Generation Facilities2009/10Manufacturing and Sales of Thermal Power Generation Facilities2011/3 Indian Thermal Power Plant Project2011/3 India Renewable / Energy Ef�ciency Projects

UAE, Abu Dhabi2009/10Power and Desalination Project (IWPP)

Turkey 2010/11 Turkey Energy Ef�ciency Renewable Energy Projects

Egypt2010/9 Egypt Metro Construction Project

Developing countries2009/12Fund Investing in Infrastructure Projects

2010/1Fund Focusing on Climate Change Mitigation Measures

Kazakhstan2009/12Thermal Power Generation Project

Asia 2009/10Fund Focusing on Ef�cient Energy and the Environment Sector

Republic of Korea2009/12By-product Gas Combined-cycle Power Plan Project2010/9By-product Gas Combined-cycle Power Plan Project

Indonesia2010/3Thermal Power Plant Project (IPP)2010/3Thermal Power Plant Expansion Project (IPP)

Brazil2010/11Brazil Subway Project2011/3 Brazil Renewable Energy Project

2011/3 Latin American and Caribbean Region Renewable Energy Project

Mexico2010/3Thermal Power Plant Project

The Maldives 2010/3Water Supply and Sewerage System Operation Project

Equity investments Loans Guarantees

Latin America and the Caribbean

(As of March 31, 2011)

(Note) Green-lettered descriptions indicate GREEN operations.

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regional financial institutions, prefectural and municipal gov-

ernments and local chambers of commerce and industry;

providing information and consulting services on transactions

with overseas business partners; publishing guidebooks on

overseas investment climates that are prepared based on

field studies; and holding seminars and other events. In this

way, JBIC is providing multifaceted services to mid-tier enter-

prises and SMEs. Through these efforts, JBIC is supporting

mid-tier enterprises and SMEs for their efficient overseas local

business operations and problem solving by drawing on close

ties with foreign governments and the networking it has built

up over the years of operations.

R Partnership with Regional Financial InstitutionsIn recent years, Japanese regional firms have realized the im-

portance of engaging in the internationalization of their busi-

ness, such as expansion into and the developing of foreign

markets. Their attention has been drawn to China, India and

ASEAN member countries as promising countries for their

business development, since their economies have been

developing at a significant pace. JBIC is thus strengthening

M Supporting Globalization Efforts of Mid-tier Enter-prises and SMEs

Advanced technologies held by Japanese mid-tier enterprises

and SMEs receive high credit at home and abroad. Devel-

oping countries are also focusing their efforts on attracting

investment from such high-tech firms. In the midst of ongoing

economic globalization, it is one of JBIC’s major functions

to support mid-tier enterprises and SMEs that are making

energetic efforts to develop overseas business. Compared

with large corporations, mid-tier enterprises and SMEs are

often constrained in fund-raising, information gathering and

human resources required for overseas business develop-

ment. JBIC is supporting them by providing three services:

“providing loans and other financing,” “providing information

on the investment climate” and “providing problem solving,”

when mid-tier enterprises and SMEs encounter problems lo-

cally, while working with host country governments and other

authorities.

Specific examples are: complementing private financial in-

stitutions in areas like assumption of political risks where they

are difficult to provide service; cooperating with domestic

In response to the global financial turmoil triggered by

credit panic in the financial and capital markets of de-

veloped countries, pursuant to the policy decision made

by the Government of Japan, JBIC launched 3 financial

operations at the end of December 2008 as exceptional

measures to maintain the international competitiveness

of Japanese industries (Emergency Operations to Sup-

port Japanese Overseas Business Activities)1.

In these emergency operations, 4 commitments total-

ing ¥1.7 billion to developing countries and 1 commit-

ment of ¥2.9 billion to a developed country were made

in loans and guarantee, respectively in FY2010. In addi-

tion, 5 TSLs totaling ¥381.9 billion were extended to do-

mestic financial institutions to support those Japanese

firms—especially mid-tier enterprises, SMEs, medium-

sized enterprises and second-tier large enterprises—

facing funding difficulties for their overseas business

operations. Overall, 10 commitments totaling ¥386.6

billion were made in Emergency Operations to Support

Japanese Overseas Business Activities. In FY2010, a total

of 913 sub-loans were extended under TSLs, of which

229 financed mid-tier enterprises and SMEs and 469

financed medium-sized enterprises and second-tier large

enterprises.

In FY2009 operations, 29 commitments totaling ¥57.8

billion and 43 commitments totaling ¥758.1 billion were

made in loans and guarantees, respectively, to support

trade and business activities in developing and devel-

oped countries. In addition, 8 TSLs totaling ¥666.7 billion

were extended to domestic financial institutions. Thus,

including TSLs, the overall Emergency Operations to Sup-

port Japanese Overseas Business Activities has made 80

commitments totaling ¥1,482.6 billion to date.

Emergency Operations to Support Japanese Overseas

Business Activities were terminated at the end of March

2011. By industry, 140 cumulative commitments total-

ing ¥2,446.1 billion were made in loans and guarantees

since December 2008. They primarily financed such

industries as automobiles and automobile parts, electri-

cal machinery and electronic equipment and chemicals.

This overall total is broken down as follows: 63 commit-

ments totaling ¥180.6 billion were in developing coun-

tries; 64 commitments totaling ¥1,216.8 billion were in

developed countries; and 13 TSLs of ¥1,048.6 billion

were extended to domestic financial institutions. Thus,

JBIC operations contributed to supporting Japanese

overseas business activities and maintaining the interna-

tional competitiveness of Japanese industries.

Multiple Initiatives to Support Japanese Overseas Business Activities

JBIC’s Response to the Global Financial Turmoil

1. They are: (1) supplier’s credit to finance exports to developing countries; (2) loans to finance major Japanese companies for continuing investment projects in developing countries; and (3) loans and guarantees to finance Japanese firms’ business operations in developed countries.

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business cooperation with regional financial institutions, such

as regional banks, prefectural and municipal governments,

and chambers of commerce and industry to share informa-

tion and know-how with them.

In FY2010, JBIC sent its staff as speakers to 11 external

seminars and events organized by those organizations de-

scribed above. JBIC speakers made presentations on eco-

nomic developments in China and ASEAN member countries

in which businesses had a considerable interest. A keynote

speech was also made by JBIC staff at the “Asia Business

Seminar” organized by the Kanagawa Industrial Promotion

Center in February 2011. In the following panel discussion

that centered on examples in Viet Nam, upwards of 350

participants—an impressive number of people—exchanged

opinions, questions and answers.

JBIC is also engaging in the task of developing a framework

for mid-tier enterprises and SMEs to expand their business

into the Asian region through domestic regional financial insti-

tutions, at the same time forming partnerships with overseas

local financial institutions. In May 2011 JBIC signed an MOU

on operational cooperation with the KASIKORNBANK Public

Company Limited in Thailand, followed by a similar MOU

with PT. Bank Negara Indonesia (Persero) Tbk.

R Itinerant Advisory Service on Trade and Foreign Invest-ment

JBIC provides knowledge, advice on foreign direct investment

and introductory consulting, etc., as it responds to direct in-

quiries from clients. At the same time, JBIC offers an itinerant

advisory service on trade and foreign investment to domestic

clients in cooperation with local governments and chambers

of commerce and industry that support overseas business

expansion of regional firms.

The direct inquiries JBIC receives cover a broad range

of issues. By the type of client, mid-tier enterprises, SMEs

and regional banks account for a majority of inquirers. A

large number of their inquiries ask for either the overseas

investment climate or information on foreign investment and

exports. Their interested country is overwhelmingly in Asia,

with a prominent trend of concentrating on China, ASEAN

countries and India.

Itinerant advisory service is offered regularly in Tokyo,

Nagoya, Ota City in Gunma Prefecture and other places, re-

sponding to inquiries on trade and foreign investment proce-

dures, how to obtain long-term financing and other relevant

questions.

R Providing Study Reports on the Overseas Investment Climate

JBIC has prepared information materials on investment cli-

mates in foreign countries based on in-field study and in-

terviews and made them available to interested clients. In

FY2010, 3 reports were prepared on “Investment Climate

Series in China: An Overview,” “Investment Climate in Viet

Nam” and “Investment Climate in Thailand.” They were pub-

lished from April to May 2011.

In particular, China is drawing attention not only as produc-

tion sites but also as a huge market having a consumer popu-

lation of 1.3 billion. Its economic relations with Japan have

been gaining depth year after year. In “Investment Climate

Series in China: An Overview,” the most up-to-date points in

the investment climate were described about China where

the situation is constantly changing and regional disparities

have been growing. It also described concrete characteristics

of the regions in which businesses have high interest.

These investment climate series are available in print and

as Web publications on the JBIC Website.

R Seminars on the Survey Report on Overseas Business Operations

JBIC conducts a survey of Japanese manufacturing companies

on their overseas business operations every year and pub-

lishes its results in the “Survey Report on Overseas Business

Operations by Japanese Manufacturing Companies.” This

year’s survey was the 22nd of an annual series of the survey

that began in 1989. In FY2010, the survey examined “evalu-

ations of overseas business performance,” “medium-term

business prospects” and “promising countries or regions for

overseas business operations” as done every year. Addition-

ally in this year, it also looked into “movements of domestic

and overseas earnings after the Lehman shock” and “com-

petition with companies in emerging market countries and

countermeasures,” based on analysis of responses from 605

companies across the country, including mid-tier enterprises

and SMEs cooperating with the survey. In the wake of the

Senkaku Island incident, an emergency survey was con-

ducted in November 2011 regarding their stance to business

operations in China.


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In the FY2010 survey, Japanese manufacturing companies

are showing recovery in their earnings as a general trend,

mainly driven by robust performance in emerging Asian coun-

tries. This indicates a trend that Japanese overseas business

is expanding primarily in emerging markets. As a promising

country for investment, China still ranked first as a destination

of investment over the medium term, followed by India, Viet

Nam and Thailand. These top 4 countries attracted a larger

share of votes, compared with the survey in the previous year.

There was a finding that on the long-term horizon, India has

become the most promising country for making investments.

In December 2010, “Overseas Investment Seminars” were

Since it was established in 1937, SIGMA CORPORATION

has been engaged in the made-to-order production of

metal parts. Since President Toshitaka Shitanaka as-

sumed the office in 1989, he has been working hard to

establish an in-house unit to develop the company’s pro-

prietary unique products, taking aim at further growth,

looking into the future.

Since 1990, the company has launched a series of

5-year business plans and steadily transformed the com-

pany proposing unique products by raising its goal from

a “future-oriented company” to a “combined technol-

ogy future-oriented company” and to a “creative future-

oriented company.” In 1995, its automobile wiper shaft

acquired a utility model. Later, the company developed

a series of unique products, including an oil temperature

sensor for automatic transmissions and a headrest arm.

With these developments, the company received the

“300 healthy small and medium-sized manufacturers”

from the Ministry of Economy, Trade and Industry (METI)

in 2006.

The company has paid attention to expanding de-

mand for automobiles in emerging markets, and in 2007

established SIGMA PRECISE MACHINERY (JIANGSU) CO.,

LTD. in Jiangsu Province, China, as a production site of

parts for air bags. However, it was right after the plant

was built and production started that the global financial

crisis broke out in the fall of 2008. The company faced

adverse conditions, but as demand for automobiles

has quickly recovered in China, the plant is currently

operating at full capacity. Recently, they have been work-

ing to strengthen facilities to build a long-awaited full

production line. JBIC has extended loans for establishing

the plant and strengthening their facilities.

SIGMA CORPORATION is developing a new genera-

tion of high-performance parts and system components,

while engaging in intensive cost reduction by integrating

the technologies nurtured in the company to date. On

another front, it is devoting itself to fostering human

resources who are capable of planning and making pro-

posals when taking responsibilities for developing global

business in the future.

“As Asia will continue to be a growing market going

forward, our company is considering setting up a pro-

duction site in India, apart from China, to build a supply

chain. In addition, we have already set out to develop

robots and automated inspection and maintenance sys-

tems to realize a fully automated unmanned plant in our

head office plant in Hiroshima. Our theme is to introduce

IT and global business operations and to foster human

resources who will take up responsibilities in the future,”

President Shitanaka expressed his aspirations.

Expanding the Chinese Plant to Strengthen Competitiveness in Asia

Aiming at the Top in Precision Molding Instrument Parts in the World Market

Chinese Plant

Complex molded metal and plastic impellers for water pumps

Cold-molded metal parts

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held in Tokyo, Osaka and Kanazawa, where the findings of

the survey were introduced. In Tokyo, during the Seminar

co-organized by JBIC and the Japan Institute for Overseas

Investment (JOI), an expert delivered a presentation on “Chi-

nese Economy in 2011: New Trend in Politics and Economy

and Evaluating China Risk” in addition to reporting on the

survey results. In the Osaka Seminar, co-organized by the

Osaka Chamber of Commerce and Industry, presentations

on “Business Operations in China by Taking Account of Op-

portunities and Risks Associated with Environmental Change”

and “Attractive Points and Challenges of the Indian Market

that Is Drawing Increasing Attention Recently” were made,

in addition to reporting on the survey results, and a lively

exchange of opinions in the question-and-answer session. In

the Kanazawa Seminar, co-organized by the Around Japan Sea

Economic Exchange Conference in Hokuriku (Hokuriku AJEC)

and supported by the Hokuriku Economic Federation, the

report on the survey results was followed by a presentation

on the business strategy taken by Japanese companies in the

Chinese market based on the country’s changing business

climate, as China is one of the emerging markets drawing

ever-increasing attention from AJEC member companies. This

presentation engendered intense discussion in the question-

and-answer session. Apart from these seminars, similar semi-

nars were held in Kobe in February 2011 and in Fukuoka in

March 2011. All these seminars were attended by many par-

ticipants, including from local mid-tier enterprises and SMEs.

M Addressing Climate Change and Supporting Environ-mental Business

In April 2008, JBIC established the JBIC Facility for Asia Co-

operation and Environment (FACE) with the objective of sup-

porting climate change mitigation and projects in Asia. Fur-

ther, JBIC launched in March 2009 the Leading Investment to

Future Environment (LIFE) Initiative to support environmental

investment projects in Asian and other countries undertaken

by developing country governments and the private sector.

In both measures, JBIC has actively supported environmental

investments in which Japanese firms could participate or to

which Japanese firms could export machinery, equipment

and services, while mobilizing private sector funding. Under

the LIFE Initiative, JBIC supported 16 projects totaling $628

million, including funding from the private sector, until the

end of March 2011. Under FACE, JBIC supported 17 projects

totaling ¥776.5 billion, including funding from the private sec-

tor (though some of the projects were not in the environment

sector).

In April 2011, a new facility, the JBIC Enhanced Facility for

Global Cooperation in Low Carbon Infrastructure and Equity

Investment (E-FACE) was launched. This is intended to devel-

op and expand the LIFE Initiative and FACE. With this Facility,

JBIC makes further efforts to finance overseas integrated in-

frastructure system development projects and other strategic

projects, while mobilizing private sector funding.

In April 2010, JBIC instituted GREEN operations, which

aimed to increase financial support for the overseas projects

for preserving the global environment, such as those prevent-

ing global warming, by providing loans, investments and

guarantees from JBIC, while mobilizing private sector funding.

In FY2010, 4 commitments were made in GREEN operations,

of which loans totaled ¥40.7 billion and guarantees totaled

¥25.4 billion.

R Partnerships with Prefectural and Municipal GovernmentsJBIC has provided cooperation for prefectural governments

by drawing on its know-how acquired in supporting Japanese

firms’ overseas business development.

In FY2008, JBIC signed an MOU with the Tokyo metropoli-

tan government on mutual cooperation concerning measures

to address climate change. In FY2009, JBIC signed an MOU

with the Kitakyushu municipal government for cooperation

on climate change mitigation and water infrastructure de-

velopment. These moves were followed in FY2010 by the

signing of an MOU in October 2010 with the Yokohama

municipal government for cooperation on environmental and

urban infrastructure projects. This MOU confirmed mutual

cooperation on maintaining and strengthening international

partnerships and cooperative relations in the urban infrastruc-

ture sector, which should take account of the environment

and water in Asian cities as well as other urban areas. It is

expected that the MOU will enable Yokohama City to provide

its know-how on the environment and water infrastructure

sectors to the international community through JBIC’s opera-

tions and international network, while supporting overseas

business activities of firms residing in Yokohama City.

JBIC has various forms of partnerships with domestic pre-

fectural and municipal governments for mutual cooperation

and the provision of knowledge assistance to other countries

(see column on p. 25 for partnership with foreign govern-

ments and institutions).

M International Networking Efforts to Support JBIC Operations

R Signing MOUs on Operational CooperationJBIC has signed MOUs for operational cooperation with a

broad range of institutions, including foreign governments,

governmental official financial institutions and multilateral

financial institutions. By strengthening cooperative ties with

them and collaborating in various operations, JBIC can pro-

vide further support for Japanese firms overseas operations.

In FY2010, under GREEN operations, JBIC signed MOUs on

operational cooperation with multilateral institutions, such

as the Asian Development Bank (ADB) and the European

Bank for Reconstruction and Development (EBRD), as well as

Banco Nacional de Obras y Servicios Públicos, S.N.C., a state-

owned development bank in Mexico (see column on p. 25).

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In April, JBIC signed an MOU with the National Bank for

Foreign Economic Activity of the Republic of Uzbekistan on

operational cooperation for promoting Japanese exports

and direct investments in Uzbekistan. In June, an MOU was

signed with Vietnam Oil and Gas Group (PETROVIETNAM) on

operational cooperation for strengthening business relations.

Its objective is to promote mutual cooperative ties, through

an exchange of relevant information and opinions on JBIC’s

financial cooperation for exports of Japanese machinery,

equipment and services and for participation by Japanese

firms in investments undertaken by PETROVIETNAM in such

sectors as oil and gas production, oil refining, petrochemicals

and power development, as well as in related industries. In

the same month, JBIC also signed an MOU with China Energy

Conservation and Environmental Protection Group (CECEP)

for operational cooperation in energy conservation and en-

vironmental protection projects. Specifically, the MOU sets

forth a close exchange of information and opinions between

JBIC and CECEP on projects in which both Japanese and Chi-

nese firms participate. Other MOUs signed include with the

Ministry of Industry, Tourism and Trade of Spain in Septem-

ber for mutual cooperation on environmental infrastructure

projects in third-country markets and with the Government

of Mexico in February 2011 on holding Annual Meetings to

discuss financial cooperation for promoting Japanese busi-

ness and investment opportunities in Mexico. Through these

MOUs, JBIC has strengthened its international networking in

a broad range of areas.

R Partnerships with Asian Exim BanksThe Asian Exim Banks Forum was established in 1996 to pro-

vide a forum for export credit agencies (ECAs) from 9 Asian

countries to discuss collaboration measures and strategies

that they can adopt for addressing a variety of issues facing

individual member countries.

Its 16th Annual Meeting was held in the Republic of Korea

in September 2010, and participating parties were JBIC and 8

Asian ECAs who are members of the Forum1. In this meeting,

the participating parties reached an agreement on the use

of a common contractual form and the procedures with the

objective of providing a common contractual framework for

promoting coordinated and streamlined provision of guaran-

tees and re-guarantees among the member institutions.

JBIC will continue to cement cooperative ties with Asian

ECAs in increasingly interdependent Asian economies

through this Forum.

R Contributing to Build the Framework for Utilizing Offi-cially Supported Export Credits

JBIC determines terms and conditions of its export credits in

accordance with the Organisation for Economic Co-operation

and Development (OECD)’s Arrangement on Officially Sup-

ported Export Credits. The purpose of this Arrangement is to

provide a framework for the orderly use of officially support-

ed export credits and to foster a level playing field for official

support. Japan, European Union (EU) member countries and

7 other countries have agreed to adopt the Arrangement as a

common rule for officially supported export credits extended

to finance exports of machinery and equipment as well as

other services.

JBIC has actively participated in discussions such as the

OECD’s Working Party on Export Credits and Credit Guaran-

tees to ensure the fairness of the Arrangement with respect

to Japanese exports and to make it serve as a common frame-

work for promoting fair international competition among

exporters. JBIC will continue to participate in various meet-

ings of OECD to set common international rules that can ap-

propriately address diverse issues involved in export credits,

including export credit terms, environmental considerations

and debt sustainability.


1. Members of the Asian EXIM Banks Forum are: Export Finance and Insurance Corporation of Australia, Export-Import Bank of China, Export-Import Bank of India, Indonesia Eximbank, the Export-Import Bank of Malaysia Berhad, Philippine Export-Import Credit Agency, the Export-Import Bank of Korea, Export-Import Bank of Thailand and JBIC.

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Creating Value Added and Disseminating Information4

Japan Finance Corporation 2011 JBIC > Overview of Activities in Fiscal Year 2010 > Creating Value Added and Disseminating Information

In the current global economy, realizing economic develop-

ment compatible with environmental conservation is a signifi-

cant, common challenge facing both developed and devel-

oping countries. Under these circumstances, Japanese firms

are striving to disseminate their top-notch environmental

technologies overseas. Such efforts will not only help mitigate

adverse impacts on the global environment brought about

by the economic growth in emerging economies in Asia and

elsewhere, thereby leading to the sustainable development

of these regions. They will also serve as a growth engine for

the Japanese economy. Not only Japan is positively working

toward the environmental business development overseas,

however. Many countries, including the United States, which

has announced the Green New Deal, EU member countries

and the Republic of Korea, are adopting, and mainstreaming

in their national strategy, the policy of acquiring new markets

and creating employment through the development and dis-

semination of environmental technologies.

Amid this development, and setting its sight on sustainable

development of the global economy, JBIC focuses on confirm-

ing the environmental and social considerations in its opera-

tions, and devotes itself to supporting environmental conser-

vation and improvement projects. JBIC makes strategic efforts

in financing operations for attaining sustainable growth by

mobilizing Japanese advanced technologies.

M Efforts to Curb Global WarmingR Toward a Low Carbon SocietyThe first commitment period started in 2008 under the Kyoto

Protocol, wherein the decision was made to reduce green-

house gas (GHG) emissions. During this commitment period

of 2008–2012, Japan has an obligation to achieve a quantita-

tive target of reducing GHG emissions by an average of 6%

from the level of baseline year 1990. This target is difficult to

achieve solely with domestic efforts, even if Japanese firms

mobilize all their advanced energy-saving technologies. The

Government of Japan thus decided to achieve the target by

participating in projects generating GHG emission reductions

in developing countries, and by purchasing carbon credits

(emission allowances) generated by these projects in the Kyo-

to Mechanisms1 or by trading carbon credits in the markets.

By drawing on its past experience of supporting overseas

projects that mobilized Japanese advanced technologies, JBIC

is working to assist the projects contributing to environmen-

tal improvement and fighting global warming, to build up a

new finance system, and to propose a business model for

acquiring carbon credits, etc.

R Facilitating Carbon Credit Trading In November 2007, JBIC and JOI launched a Web-based

Carbon Credit Trading Platform (http://www.joi.or.jp/carbon)

that provides information on projects generating carbon

credits, market information on carbon credit trading, trends

in carbon credit prices and international developments in the

Kyoto Mechanisms. The Nikkei–JBIC Carbon Quotation Index

has been published in cooperation with Nikkei Digital Media

Inc., providing indicators of carbon credit prices in the do-

mestic market. Furthermore, the platform also helps Japanese

firms to have better access to good primary information by

providing not only secondary trading information of carbon

credits already registered and certified by the CDM Execu-

tive Board of the United Nations Framework Convention on

Climate Change (UNFCCC) but also primary information on

Kyoto credits.

R Efforts to Conserve Global Environment It is increasingly important to support developing countries’

measures to combat global warming, which requires a global

response, by utilizing Japanese technologies and financing. In

this context, JBIC is in a position to perform a unique catalytic

function when taking measures for climate change mitigation

by mobilizing private sector funds and encouraging private

investment.

Under the LIFE Initiative (pledging the total amount of

$5 billion over two years), which the Government of Japan

announced in March 2009, JBIC actively supported environ-

mental investment projects where Japanese companies are

involved through project participation and exports, while

mobilizing private funds. In FY2010, JBIC supported the metro

construction project in Egypt, the export of boilers and tur-

bines for supercritical thermal power generation in India and

similar projects, with the total loan commitments reaching

approximately $900 million, including loans cofinanced by pri-

vate funds. At the end of March 2011, the aggregate amount

of approximately $6.28 billion was provided under the LIFE

Initiative by JBIC and the private sector from its launch (see

column on p. 15).

Following the enforcement of the Revised JFC Act in March

2010, JBIC launched GREEN operations. Previously, JBIC was

allowed to support projects that directly aimed at maintain-

ing and strengthening Japanese industries’ international

competitiveness, such as projects where Japanese firms make

investments and export machinery and equipment. Projects

dedicated solely to preservation of the global environment,

such as global warming mitigation, were not eligible for JBIC

Efforts for Environmental Conservation

1. The Kyoto Mechanisms allow a country to incorporate GHG emission reductions generated in another country in achieving its numerical GHG emission target and allow countries to trade emission reduction credits among themselves. The Mechanisms consist of Clean Development Mechanism (CDM), Joint Implementation (JI) and Emissions Trading (ET).

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ever-increasing attention given by the global community to

the water issue. On top of that, the total value of announce-

ments for projects awarded, R&D MOUs and others reached

S$2.8 billion (approximately ¥180 billion), a 27% year-on-year

increase, attesting to the significant progress that SIWW has

made in size and quality.

R Supporting Overseas Water Infrastructure Business International “water majors” that have accumulated know-

how through years of involvement in the water business in

Europe and the United States, particularly in France, are now

developing water infrastructure projects in countries around

the world. Although Japanese companies have the world’s

most advanced technologies and hold a large market share

in the area of pumps, generators, wastewater treatment and

semi permeable membranes to filter water, such equipment

and materials account for a meager several percent of the

total water infrastructure market. In fact, more than 90% of

the water business comes from operation and management.

The comprehensive management of water infrastructure proj-

ects is, thus, one of the most important issues for Japanese

industries.

Another serious hurdle to entering the water infrastructure

business is the financing plan. It is characterized by a very

long period of payback, in local currency, for recouping a

large-scale initial investment. JBIC supports Japanese indus-

tries’ participation in this sector by drawing on its know-how

on project finance, since JBIC has developed the structuring

of project finance over the years through assistance to IPP1,

IWPP2 and other large-scale projects serving to public pur-

pose in the world. JBIC also serves as an official financial in-

stitution to help reduce exposure to political risk in the water

infrastructure business.

support. But with the inception of GREEN operations, JBIC can

now offer support to efforts aimed specifically at protecting

the global environment, such as projects that are expected

to significantly reduce GHG emissions, while promoting the

worldwide use of Japan’s internationally acclaimed advanced

technologies. It is hoped that Japan’s advanced environmen-

tal technologies are extensively utilized through GREEN,

thereby stimulating the Japanese economy (see columns

on p. 15 and p. 25).

R J-MRV Guidelines Upon the launch of GREEN operations, JBIC also established

Guidelines for Measurement, Reporting and Verification of

GHG Emission Reductions in JBIC’s GREEN operations (the

“J-MRV Guidelines”). For a project to be eligible for financial

support by JBIC’s GREEN operations, it needs to have a sig-

nificant effect in preserving the global environment, such as

greatly reducing GHG emissions, and the project proponent

must accept J-MRV as measurement, reporting and verifica-

tion of GHG emission reductions generated by the project.

JBIC takes a “learning by doing” approach to the J-MRV Guide-

lines, seeking to improve them by taking into consideration

experiences through actual GREEN operations and develop-

ments in international discussions.

M Water Infrastructure Development One may well say that “the 21st century is the century of

water.” Water has attracted attention as a valuable natural

resource, with such coinage given as “blue oil” or “blue gold.”

Of the total amount of water on the Earth, only 2.5% is fresh

water. And in practice, the water in rivers and lakes that can

be easily exploitable represents a mere 0.01%. Given this real-

ity, economic and population growth have aggravated water

shortages and pollution primarily in emerging economies. It

is likely that demand for water will come to exceed supply,

causing a water crunch. According to one forecast, a $420

billion investment might be required every year to eliminate

this “water shortage,” with the water market reaching ¥100

trillion by 2025.

R Singapore International Water WeekSingapore International Water Week (SIWW 2010) was

held from June through July 2010, where a variety of forums

and networking events were organized, and attracted some

14,000 participants from 85 countries / regions. Over 500

companies from 40 countries / regions took part in the

exhibition “Water Expo” (of which, 16 organizations par-

ticipated in the Japan Pavilion). The number of visitors grew

by some 40% from the previous SIWW 2009, indicating the

A speech delivered by JBIC at SIWW 2010

1. An Independent Power Producer (IPP) builds and operates a power plant on its own and sells the electricity produced to power utilities. 2. An Independent Water and Power Producer (IWPP) builds and operates power generation and water desalinization plants on its own and sells the electricity and water produced from

them.

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provide and share knowledge and information with partici-

pants from other countries.

In May 2010, JBIC sent officials to take part in lectures and

panel discussions in the Carbon Expo 2010 Global Carbon

Market Fair & Conference held in Koln, Germany, and set

up the JBIC Pavilion booth jointly with Japanese firms and

JOI. Taking this opportunity, JBIC held a “Finance for Climate

Change Mitigation and MRV” seminar in an effort to promote

international awareness of J-MRV Guidelines, a quantitative

methodology for measurement, reporting and verification of

GHG reduction in JBIC-financed projects.

In November, JBIC sponsored, jointly with the International

Energy Agency (IEA) and JOI, a seminar titled “Roadmap to

Low Carbon Society Envisioned by WEO2010.” The IEA pub-

lished The World Energy Outlook 2010 (WEO2010), a report

forecasting energy supply and demand up to 2030 contain-

ing projected energy consumption of major GHG-emitting

countries as well as an analysis of investment cost required

for realizing a low-carbon society. Based on such forecast and

analysis, lively discussions took place at the seminar, among

about 110 participants from interested firms and institutions,

on such issues as what type of analysis is most useful for

drafting a corporate strategy toward developing a low carbon

society.

In February 2011, JBIC staff served as a lecturer at the

7th Eco Products International Fair 2010 held in New Delhi,

India—the largest of its kind in the Asian region—and made

a presentation at the innovative Green Energy Technology (i-

GET 2011) seminar that was held concurrently with the Fair.

On the domestic front, JBIC participated in Eco-Products

2010 held at Tokyo Big Site in December 2010 and set up an

exhibition booth. Its staff members also attended as panelists

in the symposium “Promotion of Eco-Productive Future” and

delivered a lecture.

M Realizing Economic Growth that is Compatible with Environmental Conservation

In 2009, the Government of Japan made a commitment to the

international community that Japan would reduce its GHG

emissions by 25% below the 1990 level by 2020. Achiev-

ing this target, which is called “Challenge 25,” has to go far

beyond the current green business framework, calling for

dynamic low carbon innovations that would transform the

social system. The New Growth Strategy announced by the

Government of Japan also advocates “Strategy for becoming

an environment and energy power through green innovation.”

The objective of this Strategy is to promote efforts of tack-

ling Challenge 25 by implementing a comprehensive policy

consisting of: spreading the use of photovoltaic power, wind

power, small-scale hydraulic power, geothermal power, solar

heat, biomass and other renewable energy sources; turning

homes, offices, etc., into zero-emission structures through the

spread of eco-housing, heat pumps, etc.; and speed develop-

ment of innovative technologies, including storage batteries,

next-generation automobiles and improved thermal power

plant efficiency. It is also aimed at creating over ¥50 trillion

in new environment-related markets and reducing worldwide

GHG emissions by 1.3 billion tons of CO2 equivalent using

Japanese technology by 2020.

Expanded use of Japan’s environmental technologies in oth-

er countries will reduce the impact on the global environment

driven by economic growth in emerging market countries

in Asia and elsewhere, promote sustainable growth in their

regions and serve as an engine for Japan’s own economic

growth. To support Japanese private firms’ business develop-

ment overseas, it is vital to make a partnership from the proj-

ect formation stage. As a governmental financial institution,

JBIC is committed to supporting the dissemination of Japa-

nese advanced environmental technologies overseas, thereby

promoting Japanese and international economic growth that

is compatible with a sustainable global environment.

R Disseminating Information on Environmental Efforts to the International Community and Domestic Civil Society

JBIC participated in various events at home and abroad to

The 7th Eco Products International Fair 2010 in India

Panel discussion at Carbon Expo 2010

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M Environmental Guidelines and Confirmation of Envi-ronmental and Social Considerations

R JBIC’s Confirmation of Environmental and Social Consid-erations

Growing interest in environmental conservation has led to a

worldwide trend for more rigorous environmental regulations.

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

which insufficient risk management of possible environmen-

tal and social impacts has seriously affected project imple-

mentation or undermined social reputation. JBIC supports

Japanese companies’ overseas business activities, while mak-

ing loans and investments in a variety of overseas projects,

including projects for developing and acquiring resources

that are strategically important for Japan and infrastructure

development projects in developing countries. In conducting

these operations, JBIC confirms whether the borrower made

appropriate considerations for local communities and the

natural environment in all the JBIC-financed projects based

on the “Japan Bank for International Cooperation Guidelines

for Confirmation of Environmental and Social Considerations.”

The Environmental Guidelines set out the procedures, cri-

teria and requirements that JBIC-financed projects must meet

in confirmation of environmental and social considerations.

When JBIC judges the project proponents have not made

appropriate environmental and social considerations, it will

encourage them to take remedial measures. If appropriate en-

vironmental and social considerations have not been taken,

JBIC may decide not to extend funding.

R Objection ProceduresFurther, to ensure compliance with the Environmental Guide-

lines, JBIC has appointed examiners for the Environmental

Guidelines, who are composed of third parties totally inde-

pendent from JBIC’s operational departments, and has es-

tablished procedures under which the examiners receive any

submission of objections concerning compliance with the

Environmental Guidelines from local stakeholders since Oc-

tober 2003. When an objection is filed, the examiners for the

Environmental Guidelines investigate it from an independent,

neutral standpoint, report the result to the President & CEO

of JBIC, and encourage communication among stakeholders

in an effort to solve the problem.

M Communication and Cooperation on Environmental Issues

JBIC has accumulated knowledge and expertise in interna-

tional financing and on-the-ground information through its

experience in financing overseas infrastructure and natural

resource development projects. To improve the quality of

addressing environmental and social issues in JBIC-financed

projects and contribute to sound development of the global

economy, JBIC has also entered into partnerships with mul-

tilateral institutions, foreign governments and government

agencies, industrial circles, private financial institutions,

nongovernmental organizations and other entities. JBIC can

thus draw on the knowledge shared with them for confirm-

ing environmental and social considerations in its operations.

The Government of Japan emphasized in its New Growth

Strategy the significance of supporting the overseas develop-

ment of integrated infrastructure systems. In fact, large-scale

infrastructure projects are expected to increase over the com-

ing years. Amid these developments, stakeholders are paying

growing attention to environmental and social considerations

that should be made for individual projects. To ensure effi-

cient project formation, it is getting increasingly important to

confirm that appropriate environmental and social consider-

ations are made in advance.

JBIC held in September 2010 a seminar on “JBIC’s Confirma-

tion of Environmental and Social Considerations: Practical

Procedures for Applying IFC EHS Guidelines” in Tokyo.

The objective of the seminar was to offer tips on how to

practically apply the International Finance Corporation (IFC)’s

Environmental, Health and Safety (EHS) Guidelines, which

serves as the World Bank Group’s environmental, health and

safety guidelines.

IFC Guidelines are major international standards, to which

the private sector financial institutions adopting Equator Prin-

ciples (EPs)1 refer to when confirming if the appropriate envi-

ronmental and social considerations have been made for the

project. By inviting IFC experts, this seminar and workshops

attracted many participants who listened with keen interest

and engaged in a lively exchange of views.

In recent years, there have been an increasing number of

projects in which JBIC collaborates with private financial in-

stitutions in making environmental assessment of individual

projects. Through such activities, JBIC has further developed

partnerships with private financial institutions by providing

knowledge and know-how in environmental assessment ac-

cumulated over the years. JBIC also signed a Cooperation

Agreement on Environmental Review for Export Credits with

Nippon Export and Investment Insurance (NEXI). The agree-

ment allows JBIC to provide NEXI with information and other

cooperation for environmental assessment, thereby leading

to simpler and efficient procedures for use by export financ-

ing users.


1. The Equator Principles (EPs) are a credit risk management framework for determining, assessing and managing environmental and social risk in project finance transactions. The EPs are adopted voluntarily by financial institutions and are applied where total project capital costs exceed $10 million.

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In a bid to preserve the global environment and realize

a low-carbon society, employing innovative products

and services is being mulled in many parts of the world,

including “Smart Grid,” an effective electrical grid utiliz-

ing IT, and “Eco City,” a city designed with consideration

placed on energy savings, an advanced water treat-

ment system, and a low-carbon, highly efficient thermal

coal-fired power plant. JBIC is making partnerships with

foreign governments and multilateral institutions to

provide more speedy and effective support for these

environmental projects.

Promoting the GREEN OperationsRegarding the new JBIC financial instrument called

GREEN operations, which was newly added to JBIC

operations in this fiscal year, JBIC signed an MOU with

the Asian Development Bank (ADB) on May 2010 to

closely share information about environmental projects

implemented under GREEN operations or by the ADB.

In August, an MOU was concluded between JBIC and

PT Sarana Multi Infrastruktur (Persero) to confirm their

further cooperation in promoting environment-friendly

projects categorized as GREEN. In September, an MOU

was signed with the European Bank for Reconstruction

and Development to promote operational cooperation

by sharing information about environmental technolo-

gies. JBIC also concluded an MOU in November with

the Inter-American Development Bank (IDB) to share

environment-related information in Latin America and

the Caribbean, and yet another MOU in December

with Banco Nacional de Obras y Servicios Públicos,

S.N.C., the Mexican National Infrastructure Fund, and

the IDB for operational cooperation concerning GREEN

operations in Mexico. Collaborating through these part-

nerships is expected to lead to more speedy and effec-

tive implementation of GREEN operations.

Supporting Japanese Industries for Overseas Business DevelopmentJBIC signed an MOU each with the People’s Govern-

ment of Tianjin Municipality in China and China Energy

Conservation and Environmental Protection Group in

June 2010, aimed at operational cooperation to facilitate

both parties’ participation in energy conservation and

environmental protection projects. Other MOUs that

JBIC concluded include: an MOU with the Ministry of In-

dustry, Tourism and Trade (MITYC) of Spain in September

for operational cooperation to promote joint projects by

Japanese and Spanish companies in water, the environ-

ment and other areas; an MOU with the Government of

Mexico in February 2011 on holding annual meetings to

discuss financial cooperation and promotion of Japanese

business and investment opportunities in such sectors

as power, energy and the environment in Mexico; and

an MOU with the Government of Morocco in March on

comprehensive strategic partnership for enhancing the

economic relationship between Morocco and Japan in

infrastructure, the environment and other sectors.

By deepening partnerships with relevant domestic and

foreign institutions engaged in environmental and water

infrastructure projects, JBIC is committed to supporting

overseas business developments as well as activities in

the environmental and water infrastructure businesses

by Japanese firms.

Supporting Overseas Environment Projects

Partnerships with Foreign Governments and Relevant Institutions in Support of Environmental Efforts

JBIC and Tianjin Municipality at signingJBIC and MITYC at signing

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JBIC has been conducting research related to its operations

primarily at the Research Division, Policy and Strategy Office

for Financial Operations (former International Research Of-

fice) of the Corporate Planning Department. The results of

research are made available to the public through seminars,

reports, periodicals and occasional papers. In addition, JBIC

is building a research network with relevant domestic and

overseas agencies and research institutions.

M Research / Study R Effective Use of Research OutputJBIC conducts research / study on international finance, and

foreign direct investment. In FY2010, JBIC issued the “Survey

Report on Overseas Business Operations by Japanese Manu-

facturing Companies,” 22nd annual survey report on Japa-

nese manufacturers’ policies and issues. Featuring a unique

perspective and consistency, the Report is drawing attention

from a broad spectrum of readers. There has been increas-

ing collaboration with overseas and domestic institutions in

research activities to obtain high-quality output as well as

analyses from a broader perspective. JBIC effectively utilizes

research output in offering policy recommendations for devel-

oping countries, and in exchanging ideas with Japanese and

overseas researchers and professionals. Research results have

often been introduced by newspapers, business journals and

other types of media, and JBIC makes contributions to the

media as well.

R Publishing Research ResultsThe results of research are extensively offered to the general

public through contributions, and are made available on the

JBIC Website (http://www.jbic.go.jp/english/research). To

disseminate the results of research, JBIC held seminars on the

“Survey Report on Overseas Business Operations by Japanese

Manufacturing Companies” both in Japan and abroad, and

sponsored presentation meetings for foreign offices of the

Japan Chamber of Commerce and Industry as well as foreign

government agencies (7 cities in 6 countries in FY2010).

<Major Seminars and Workshops during FY2010>

P Overseas Investment Seminar “Survey Report on Overseas

Business Operations by Japanese Manufacturing Compa-

nies” (Tokyo, Osaka and Kanazawa in December 2010,

Kobe in February and Fukuoka in March 2011; Solely or

jointly held by JBIC)

P Japan Chamber of Commerce and Industry in India (San-

moku-kai) Seminar (New Delhi, January 2011; Speaker sent

by JBIC)

P Consulate General of Japan in Mumbai Seminar (Mumbai,

January 2011; Speaker sent by JBIC)

P Japan Chamber of Commerce and Industry in Malaysia

Seminar (Kuala Lumpur, March 2011; Speaker sent by JBIC)

P Overseas Investment Seminar (Jakarta, March 2011; held

by JBIC)

M Networking ActivitiesR Building Networks through SeminarsJBIC staff made a presentation on “Fiscal Consolidation Policy

under the Arroyo Administration: Its Effect and Challenges

Ahead” in the East Japan Meeting of the Japan Association of

Asian Studies held in May 2010, at Hokkaido University.

JBIC also supported a series of Global Eco-Business Forums

held in Tokyo in June, Beijing in September, India in November

2010 and Viet Nam in February 2011; set up an exhibition

booth to introduce its efforts; and participated in the panel

discussion.

In October 2010, JBIC and the Graduate School of Manage-

ment (GSM), Kyoto University, signed a cooperation agree-

ment to promote an understanding of operational practice

and analytic research in project financing and established, as

a base of such activities, a new project finance visiting chair at

Overseas Investment Seminar: “Report on Japanese Manufacturers’ Overseas Business Operations”

Research and Networking Activities

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the GSM. Through this partnership, JBIC aims to organize and

develop expertise and know-how in project financing that it

has accumulated since the 1980s, the days of its predecessor,

the Export-Import Bank of Japan, thereby enhancing its sup-

port for the projects that Japanese firms should address for

the years to come, including integrated infrastructure system

development projects and resource development projects.

In November 2010, as a sideline event of APEC 2010 Japan

in Yokohama City, Kanagawa Prefecture, JBIC sponsored, joint-

ly with the APEC Business Advisory Council (ABAC) and the

ADB, APEC2010 ABAC-ADB-JBIC Private Infrastructure Forum.

Focusing on public–private partnership (PPP) infrastructure

development in the APEC region, the Forum invited officials

from foreign governments and agencies as speakers to facili-

tate the sharing of experience and know-how among stake-

holders engaged in infrastructure development business in

the APEC region, thereby exploring the areas of cooperation

and business opportunities.

In the same month, JBIC held a workshop titled “Public–

Private Finance Partnerships for Green Growth” jointly with

the Institute for Economic and Social Research at the Faculty

of Economics, University of Indonesia in Jakarta, Indonesia.

The workshop was part of the JBIC Partnership Forum in the

Asia knowledge-sharing program, and was organized in co-

operation with the Japan Center for International Finance. It

was aimed at encouraging discussions among key players in

Japan and Indonesia about PPP with an eye to realizing “green

growth,” an economic growth that is compatible with the low-

carbon society. Discussions this year mostly focused on the

catalytic role that financing institutions can play in investment

and technological innovation.

JBIC’s activities utilizing its network with foreign govern-

ments, multilateral institutions, corporations and research-

ers also include: holding investment seminars in Japan and

abroad; providing data on research activities; and offering

information on project finance.

R JBIC SeminarA JBIC Seminar was held in October 2010, by inviting middle-

ranking officials of its counterpart institutions including foreign

government agencies, central banks and financial institutions.

The objective of this seminar is to promote mutual under-

standing, and encourage participants to have deeper insight

into JBIC’s roles and functions, as well as economic, industrial

and financial situations in Japan. The seminar is thus expected

to contribute to the formulation of frameworks and policies

of individual governments. JBIC has been sponsoring these

seminars since FY1976, with the total number of seminar

participants exceeding 560.

Making a presentation at the Global Eco-Business Forum (Tokyo)

A scene of panel discussion at the Global Eco-Business Forum (India)

Delivering a speech at APEC2010 ABAC-ADB-JBIC Private Infrastructure Forum

JBIC Seminar

JBIC

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JBIC is actively disseminating information on its operations

and activities to a broad spectrum of audiences at home and

overseas.

M Public Information ActivitiesVarious pamphlets, disclosure documents and other papers

are available to the general public at the JBIC Information

Center in the JBIC Head Office and at the JBIC Office in West

Japan.

A public information magazine, JBIC TODAY, is published

quarterly, reporting JBIC’s operations and latest activities.

Various pamphlets on JBIC operations and activities are up-

dated from time to time.

The Center also serves as the window for submitting a re-

quest for disclosure of information under the Act on Access

to Information Held by Independent Administrative Institu-

tions and a request for disclosure of personal information

held by JBIC under the Act on Protection of Personal Informa-

tion Retained by Independent Administrative Institutions.

Information on JBIC’s operations and activities, operational

results and financial information is also available on the JBIC

Website, where the latest information is posted on JBIC’s

financial products, various publications and environmental

efforts, as well as information for investors. A JBIC video titled

“Bridging the World, Building

the Future” is also available

on the JBIC Website.

JBIC Website: http://www.jbic.go.jp/en/

M Disseminating Information at Home and OverseasIn addition to the JBIC Head Office, the JBIC Office in West

Japan and overseas representative offices are also active in

public information activities.

The JBIC Office in West Japan provides a wide range of

information for businesses in western Japan to support their

overseas business operations. Its activities include provid-

ing advisory services on JBIC lending and holding overseas

investment seminars and lecture meetings to provide informa-

tion on economic conditions and the investment climate in

various countries. These seminars and meetings are held in

Nagoya and Fukuoka, as well as other locations in western

Japan. The JBIC Office in West Japan also provides informa-

tion to the general public at various events promoting inter-

national cooperation.

The overseas offices provide information on JBIC’s role,

functions and current operations by holding seminars and

publishing pamphlets in local languages, and through their

own Websites.

M Participating in Various EventsJBIC participated in the Global Eco-Business Forum held

in Tokyo in June 2010—the first of a series of Global Eco-

Business Forums held in four countries, namely, China in Sep-

tember, India in November and Viet Nam in February 2011—

and explained to the audience the effective use of Japanese

environmental technologies and the vital role played by fi-

nancial institutions. JBIC also participated in domestic events,

including Eco-Products 2010 in December held in Tokyo.

These activities may be seen on the JBIC Website.

A scene of panel dis-cussion at the Global Eco-Business Forum (China)

Public Information and Disclosure

JBIC booth at Eco-Products 2010

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Japan Finance Corporation 2011 JBIC > Operations by Region

Operations by Region

1 Asia and Oceania 30

2 Europe 33

3 The Middle East 34

4 Africa 36

5 The Americas 37

6 Equity Participations 40

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Asia and Oceania1

Japan Finance Corporation 2011 JBIC > Operations by Region > Asia and Oceania

JBIC signed two buyer’s credit1 agreements worth approxi-

mately $116 million each with Mark V Shipping Pte. Ltd.

(Mark V), a company incorporated in Singapore and affiliated

with Wallenius Lines AB, one of the largest shipping compa-

nies for vehicle transportation. The loans were cofinanced

with private sector financial institutions.

The loans finance Mark V to purchase two Roll-on / Roll-

off vessels2 (deadweight tonnage: 41,820 tons), for which

Mitsubishi Heavy Industries, Ltd. had won the order prior to

the global financial turmoil that took place in the fall of 2008.

The ships are currently under construction at the company’s

Nagasaki Shipyard (Nagasaki City, Nagasaki Prefecture).

The credit crunch following the financial crisis has made

it difficult to structure ship financing across the world. The

loans provided by JBIC will lead to funding for the export of

Japanese ships, thereby helping maintain and improve the in-

In 2004, YANMAR Co., Ltd., a diesel engine manufacturer,

established YANMAR AgRICuLTuRAL MACHINeRY (THAI-

LANd) Co., LTd., an agricultural machinery sales company

in Thailand. Since the company started selling tractors, it

has been vigorously developing business by increasing sales

outlets and introducing new products. Furthermore, YANMAR

CAPITAL (THAILANd) Co., LTd. (YCT) was established in

2009 to strengthen the groundwork of business operations.

The company has thereby buttressed its manufacturing and

sales in the ever-expanding tractor market in Thailand. In the

context of these developments, JBIC signed a long-term loan

agreement with YCT for funding the financing business for

selling agricultural machinery. This loan was cofinanced with

private sector financial institutions.

Since Thailand has about six times the amount of rice pad-

dy fields that Japan does, there has been increasing needs for

agricultural machinery. This is also attributable to economic

growth, income growth among agricultural households and a

ternational competitiveness of Japanese shipbuilders who are

playing an important role in the regional economy through

the employment and related businesses.

decreasing agricultural population. As a result, the agricultural

machinery market has been rapidly growing.

This loan is expected to help expand Japanese business in

Thailand, a country whose economy is on a sustained growth

path over the medium and long term.

Supporting Export of Cargo Ships Built at Japanese Shipyard:Helping Japanese Shipbuilders to Maintain and Improve their International Competitiveness

Long-term Loan to Agricultural Machinery Sales Financing Business:Supporting Japanese Business Development

YAnMAR AgRICulTuRAl MAChInERY (ThAIlAnD) CO., lTD.

Roll-on / Roll-off vessel (a sister ship built by Mitsubishi heavy Industries)

Singapore

Thailand

1. A buyer’s credit is a loan JBIC directly extends to a foreign importer (buyer) to finance its import of machinery and equipment, etc. from a Japanese firm.2. Roll-on / Roll-off cargo ships have vehicle deck(s) as well as stern / bow ramps or side ramps allowing cars to roll-on / roll-off directly from / to the dock.

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Kureha Vietnam Co., ltd.

JBIC and VDB at signing

As Viet Nam is drawing attention as a logistic base of the

Asian region where economic growth is significant, Kureha

Corporation, which regards Viet Nam as the strategic coun-

try for food package Films manufacturing has set up Kureha

Vietnam Co., Ltd. (KVC). In response to this, JBIC signed a

long-term loan agreement for KVC’s manufacturing and sales

business operations of food package Films. This loan was

cofinanced with private sector financial institutions.

KVC manufactures and supplies high-quality oxygen barrier

films used for hams, sausages, fish meat, dairy products as

well as for wrapping meat, to Asian countries.

In the Asian region, ever-increasing demand for processed

food is expected because of the improvement in living stan-

dards which has accompanied its rapid economic growth. In

response to such demands, we believe our loan will contrib-

ute to the Japanese industry to expand its sales volume in

overseas markets.

JBIC signed an untied loan agreement totaling up to $100

million with the Vietnam development Bank (VdB), with the

government of Viet Nam providing a guarantee for the loan.

The loan was cofinanced with a private financial institution,

with JBIC providing guarantee cover for the cofinanced por-

tion.

VdB is a public financial institution wholly owned by the

government of Viet Nam and provides finance for trade and

domestic business investment at its head office and branch

offices in the country. The loan aims to finance the local

supporting industries that are doing business with Japanese

firms, in partnership with VdB having a broad network across

the country. The loan is thus expected to help Japanese firms

operating in Viet Nam to secure a stable supply of raw and

other materials, with better quality and lower cost, thereby

supporting their efforts to strengthen international competi-

tiveness.

According to the results of the FY2010 Survey Report on

overseas Business operations by Japanese Manufacturing

Companies that JBIC conducted, Japanese manufacturers

consider Viet Nam as the 3rd most promising country for

overseas business development over the medium term

(around 3 years), following China and India. Since the loan

is also expected to be utilized for trade finance in Viet Nam,

a country of increasing importance for Japanese firms, it will

prove effective in stabilizing the funding environment, thereby

contributing to the business development of locally operating

Japanese firms.

First Loan to Local Financial Institution in Viet Nam:Helping Japanese Firms’ Business Development by Promoting Supporting Industries

Long-term Loan for Manufacture and Sales of Food Package Films:Supporting Expanding Demand for Processed Food in Asian Region

Viet Nam

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The global demand and supply balance of liquefied natural

gas (LNg) is projected to become tighter over the me-

dium and long term due to increasing demand in emerging

countries. Australia, a country endowed with abundant gas

reserves and political and economic stability, has come to

play an increasingly significant role as an LNg supply source

for Japan. under this situation JBIC signed a loan agreement

totaling up to $102 million with Tokyo gas gorgon Pty Ltd.

(Tgg), a wholly owned subsidiary of Tokyo gas Co., Ltd.

(Tokyo gas) incorporated in the Commonwealth of Australia.

This is one of the world’s largest-scale LNg projects, with

six participating parties: Tokyo gas (through Tgg), Chevron

Corporation (Chevron), exxon Mobil Corporation, Royal

dutch Shell Plc, osaka gas Co., Ltd. and Chubu electric

Power Co., Inc. The parties plan to develop large-scale gas

fields including gorgon and Jansz on the northwest coast of

the state of Western Australia, and transport gas through an

undersea pipeline to a liquefaction plant to be constructed

on Barrow Island located in the same state. The plant is ex-

pected to produce and sell 15 million tons of LNg annually

from the year 2014.

The loan finances Tgg for acquiring 1.0% interest of the

project from Chevron and for participating in its development.

Tokyo gas offtakes 1.1 million tons of LNg a year from the

project, which amounts to about 10% of the company’s yearly

LNg purchase. In addition, Tokyo gas also has rights to take

delivery of about 150 thousand tons of LNg volume commen-

surate with its participating interest. JBIC supports Japanese

firms in acquiring interests in crude oil and natural gas by

participating in

/ committing

to these proj-

ects, thereby

contributing to

Japan’s energy

security.

Energy and Natural Resources Finance for the World’s Largest-scale LNG Project:Supporting Japanese Gas Utility’s Participation in Energy Resource Development Project

Australia

An artist rendering of the liquefaction plant

JBIC signed two loan agreements with ICICI Bank Limited

(ICICI), one of the largest private sector banks in India. one is

a bank-to-bank loan to finance the export of thermal power

generation boiler / steam turbine sets to India, and the other

is an untied loan to finance renewable energy, energy effi-

ciency and other environment-related projects in India.

In the thermal power generation equipment export project,

two joint venture companies, established primarily by Larsen

& Toubro Limited—one of the largest construction and heavy

machinery manufacturing companies in India—and Mitsubishi

Heavy Industries, Ltd. (MHI), fabricate supercritical pressure

boiler / turbine sets manufactured by MHI and sell them to an

Indian corporation, Jaiprakash Power Ventures Limited, which

constructs and operates a thermal power plant. JBIC’s export

financing, which reached the aggregate amount of ¥15.3 bil-

lion, was cofinanced with a private financial institution. The

fast-paced growth in the Indian economy in recent years has

caused chronic power shortages, and eliminating this bottle-

neck in power generation infrastructure is an urgent issue. In

this context, there are growing expectations for supercritical

pressure coal-fired thermal power generation, which can sup-

ply stable power by making use of the country’s abundant

coal resources.

In the meantime, the untied loan is the first loan provided

in gReeN operations for the Asian region1. The loan, totaling

$200 million and cofinanced with a private financial institu-

tion, will help reduce greenhouse gas (gHg) emissions and

advance the Indian government’s environmental policy. It

is also expected to

provide opportuni-

ties for advanced

Japanese environ-

mental technolo-

gies to make their

way in to Ind ia ,

thereby helping vi-

talize the Japanese

economy.

Signing Loan Agreements with ICICI:Supporting Japanese Export of Thermal Power Generation Equipment, as well as Renewable / Energy Efficiency Proj-ects in India

India

Supercritical pressure coal-fired thermal power plant being built in nigrie

1. gReeN (global action for Reconciling economic growth and eNvironmental preservation) operations were instituted, pursuant to the revision of the Japan Finance Corporation Act on March 31, 2010. gReeN operations aim to offer increased and enhanced support to the overseas business for preserving the global environment, such as preventing global warming, while mobilizing funding from the private sector.

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Europe2

Japan Finance Corporation 2011 JBIC > Operations by Region > Europe

JBIC signed two loan agreements with K LINe oFFSHoRe AS,

a Norwegian corporation in which Kawasaki Kisen Kaisha,

Ltd. holds a 95% equity share, for financing the offshore

support vessel business. The two loans, worth €96 million

and ¥4.3 billion, respectively, were cofinanced with private

financial institutions. These loans finance K LINe oFFSHoRe

AS for owning and operating the most-advanced, largest-class

anchor-handling tug supply vessels (AHTS)2 and large plat-

form supply vessels (PSV).3

offshore support vessels are indispensable for supporting

offshore oil / gas field development and production, and their

demand is expected to grow as the depletion of inland oil

and natural gas fields leads to deepwater and offshore devel-

opment of oil and natural gas resources.

This loan is expected to maintain and strengthen the

international competitiveness of Japanese marine resource

JBIC signed an agreement with The State export-Import Bank

of ukraine (ukreximbank), a government financial institution

in ukraine, for extending an export credit line1 totaling up to

¥8 billion. The credit line was cofinanced with private finan-

cial institutions.

This credit line will provide medium- and long-term funds

in yen or u.S. dollars to finance the import of machinery,

equipment and services by ukrainian firms from Japanese

exporters.

The ukraine suffered a significant decline in gdP in 2009,

impacted by the global financial crisis in the second half

of 2008. However, since 2010, its economy has been back

on the recovery path, driven largely by steel exports—the

country’s major industry—with an upturn in external demand.

under these circumstances, this credit line supports the

country’s sustainable growth by developing infrastructure,

improving the environment and creating business opportuni-

ties contributing to the promotion of industrial development.

In collaboration with ukreximbank, JBIC intends to sup-

port greater business opportunities for Japanese firms in this

industries through acquiring and improving technologies,

management practices and know-how on the operation and

management of offshore support vessels.

country. In particular, by supporting exports related to renew-

able energy and the natural resource sector, JBIC is pursuing

the expansion of overseas markets in the infrastructure sec-

tor and strengthening the international competitiveness of

Japanese firms.

Loans for Offshore Support Vessel Business:To Help Strengthen Japanese Marine Resource Industry’s International Competitiveness

Export Credit Line for Ukreximbank:Expanding Overseas Markets for Japanese Firms

An offshore support vessel

Norway

Ukraine

JBIC and ukreximbank at signing

1. An export credit line is a form of export credit in which JBIC makes a commitment of the maximum amount of credit to be extended to its client (foreign banks or other entities) to finance exports of machinery, equipment and services from Japan.

2. AHTS: An offshore support vessel primarily used for towing and anchoring oil production rigs as well as transporting their personnel and supplies to them.3. PSV: An offshore support vessel primarily for transporting supplies and fuel to oil drilling rigs as well as water and food to their personnel.

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3 The Middle East

Japan Finance Corporation 2011 JBIC > Operations by Region > The Middle East

Jubail refinery under construction

JBIC signed a general agreement for arranging the second

export credit line for ships in the amount of up to ¥22 billion

with Turkiye Is Bankasi A.S. (Isbank), a commercial bank in

Turkey. Concurrently, JBIC signed contract loan agreements

with Isbank for the export of two 55,800-dwt bulk carriers1

(exporter: Marubeni Corporation) to Mardas, a Turkish ship-

ping company, under the framework of this export credit line

(cofinanced with a private financial institution).

The credit crunch following the financial crisis since the

fall of 2008 has made it difficult to structure ship financing

across the world. This loan provided through Isbank helps

finance the export of ships built in Japanese shipyards, there-

by helping Japanese shipbuilders to maintain and improve

their international competitiveness.

JBIC offered its first credit line totaling ¥10 billion to Is-

bank in december 2009 to be used for financing the export

of ships to Turkey. This credit line supported the export of

three bulk carriers. JBIC also extended a bank-to-bank loan

cofinanced with a private financial institution to Yapi ve Kredi

Bankasi A.S., a Turkish commercial bank, in September 2010,

to help export a bulk carrier.

Second Export Credit Line for Ships to Isbank:Supporting Export of Ships Built in Japanese Shipyards

Turkey

JBIC signed a buyer’s credit agreement totaling up to approxi-

mately $400 million with SAudI ARAMCo ToTAL Refining and

Petrochemical Company (SAToRP), a company incorporated

in Saudi Arabia. The loan, provided on a limited-resource ba-

sis, was cofinanced with commercial banks.

In this project, SAToRP, in which Saudi Arabian oil Compa-

ny (Saudi Aramco) and Total S.A. (a French corporation) have

equity stakes, builds and operates a world-class grassroots

refinery with a throughput capacity of 400 thousand barrels

of crude oil per day in the Jubail Industrial City on the eastern

coast of Saudi Arabia. The refinery processes Arabian heavy

crude oil primarily into high-value-added refined products

such as diesel and petrochemical products. These products

are sold mainly in europe, the united States and Asia. JBIC

finances SAToRP for the ePC contract of a delayed coker,

which was awarded to a consortium participated by Chiyoda

Corporation, and for various types of machinery and equip-

ment, which IHI Corporation, elliott ebara Turbomachinery

Corporation, Kobe Steel, Ltd. and Hitachi Zosen Corporation

were awarded.

This is a very significant project for Saudi Arabia’s industrial

policy, which aims to produce and export large volumes of

value-added oil products, since the country is moving to

transform its industrial structure heavily dependent on crude

oil exports. JBIC supports the export of Japanese plant facili-

ties and machinery to this project, thereby contributing to the

creation of export opportunities for Japanese firms.

Buyer’s Credit for Mega Oil Refinery Project in Oil-producing Country:Supporting Export of Japanese Plant Facilities and Machinery

Saudi Arabia

1. A bulk carrier is a cargo ship designed to transport dry bulk cargo such as grains, coals, ores, etc.

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Japan Finance Corporation 2011 JBIC > Operations by Region > The Middle East

The automobile market in the united Arab emirates (uAe) is

expected to continue to grow and, with Japanese automo-

biles accounting for a 60% share of the market, it is consid-

ered a promising market for Japanese automakers.

JBIC acquired ¥19 billion of securitized notes backed by

auto loan assets originated by emirates NBd PJSC (eNBd, the

originator1), which is the largest bank in the uAe in terms

of assets (the APC Notes), and guaranteed the principal of

repackaged notes using ¥15.2 billion of the APC Notes as

collateral (the Repack Notes), which were sold to investors in

the Japanese capital market.

Since october 2008, JBIC has added securitization op-

eration to its conventional financial operations, such as loans

and guarantees, in an effort to employ new financial instru-

ments that complement private sector financing activities.

Participation by JBIC as a guarantor of the Repack Notes (i)

reduces the country and structure risks associated with the

APC Notes, thereby providing a new investment opportunity

to the financial market, and (ii) satisfies the need of the origi-

nator to diversify funding sources. This deal supports smooth

provision of auto loans by local banks, thereby helping pro-

mote steady growth in the uAe automobile market and serv-

ing to uphold and expand an important market for Japanese

automobile manufacturers.

The uAe is an important country for Japan’s resource strategy

since it has been a stable source of crude oil to Japan for

more than 30 years. In addition, Abu dhabi allows entry of for-

eign oil companies based on concession agreements. In Abu

dhabi, a hub of oil / gas production in the uAe, oil and gas

business is conducted by Abu dhabi National oil Company

(AdNoC), a company wholly owned by the government of

Abu dhabi.

JBIC and AdNoC signed an Mou and a loan agreement

valued up to $3 billion. The objective of the Mou is to mutu-

ally recognize that the grant of new concessions to Japanese

entities and the renewal of existing concessions involving

Japanese entities are significant objectives of the JBIC man-

date and thereby further strengthen a comprehensive and

strategic partnership between JBIC and AdNoC. The loan

was cofinanced with private financial institutions, and aims to

secure a stable crude oil supply from AdNoC.

Funding Auto Loan Business in the UAE:Supporting Japanese Auto Sales in the Middle East Market

Downtown Dubai

JBIC and ADnOC at signing

United Arab Emirates

1. The originator is the initial owner of the securitized assets.

ADNOC and JBIC Sign MOU and Loan Agreement:To Help Secure Stable Supply of Energy to Japan

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4Africa

Japan Finance Corporation 2011 JBIC > Operations by Region > Africa

In Cairo, the country’s political and economic center, chronic

traffic congestion caused by excessive concentration of the

population is posing major problems. It was against this

backdrop that the project was formed to construct Line 3

(34-kilometer long; to be constructed in five phases) of the

greater Cairo Metro Network linking Cairo city center and

Cairo International Airport. JBIC signed a buyer’s credit agree-

ment totaling up to approximately ¥7.9 billion with the Na-

tional Authority for Tunnels (NAT), a company incorporated

in egypt. The loan finances the procurement by NAT of a fleet

of rolling stocks from Japan. This is the first financing for an

urban transport project under JBIC’s LIFe Initiative.

due to expansion of the global rolling stock market, many

manufacturers in europe, Asia, North America and elsewhere

are vigorously engaged in business activities to win orders for

transport infrastructure. The rolling stocks to be delivered are

produced mainly by The Kinki Sharyo Co., Ltd. and Toshiba

Corporation, and JBIC provides support for the exports

by Japanese firms. during the Fourth Tokyo International

Conference on African development (TICAd IV) in May 2008,

the government of Japan pledged $2.5 billion in financial

support for Africa, to be provided by JBIC for five subsequent

years. In May 2010, JBIC signed an Mou on a comprehensive

strategic partnership with the government of egypt. JBIC will

continue to support the expansion of Japanese businesses in

Africa through similar financing.

Export Loan for Metro Construction Project in Cairo:Supporting Japanese Exports of Transport Infrastructure

Egypt

JBIC signed a buyer’s credit agreement totaling up to approxi-

mately ¥19.3 billion with the government of Angola. This

transaction, cofinanced with a private financial institution, is

the first direct loan extended by JBIC to the country.

As the Angolan Ministry of geology, Mines and the Indus-

try implements the state-owned textile plant rehabilitation

project in Luanda, Angola, this loan finances the procurement

of a textile production facility for the project. The textile ma-

chinery and equipment to be installed in this transaction are

manufactured by Toyota Industries Corporation and Murata

Machinery, Ltd., whose exports benefit from JBIC’s financial

support.

Steadily advancing the reconstruction of the country dev-

astated by the 27-year civil war that came to an end in 2002,

the government of Angola gives policy priority to the reha-

bilitation of the textile industry, which now relies mostly on

imported textile goods. This project marks the first step for

the recovery of the Angolan textile industry.

This loan is well-aligned with the financial assistance for Af-

rica that the government of Japan pledged during TICAd IV.

Direct Loan to Help Rehabilitate Textile Industry:Supporting Export of Japanese Textile Machinery

An image of a Metro line 3 passenger car (courtesy of The Kinki Sharyo Co., ltd.)

JBIC and the government of Angola at signing

Angola

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The Americas5

Japan Finance Corporation 2011 JBIC > Operations by Region > The Americas

JBIC signed a loan agreement totaling up to $160 million with

Similco Finance Ltd., a Canadian corporation, to cofinance

with private financial institutions the Similco Copper Moun-

tain Project in Canada.

under the project, Mitsubishi Materials Corporation (MMC),

which has an equity stake in Similco Finance Ltd., and Cop-

per Mountain Mining Corporation, a company incorporated

in Canada, jointly restart the Similco Mine (British Columbia,

Canada). Production will commence in 2011, and the cop-

per concentrate, generated from the project totaling ap-

proximately 150 thousand tons annually, will be purchased by

MMC and supplied to copper smelters in Japan.

In the face of an increase in the world copper demand

especially in China and India, Japan is being urged to secure

more copper concentrate supply source. Copper is a raw

material used extensively for various products, including elec-

tric cables, electrical equipment, transport vehicles such as

Shale gas is a natural gas contained in shale1, and is one of

the main types of unconventional natural gas. Previously, its

production was marginal and commercialization was consid-

ered difficult. However, technological advances, such as hori-

zontal drilling and hydraulic fracturing, have made low-cost

production possible and its development has been rapid,

especially in the united States.

JBIC signed a loan agreement totaling up to $700 million

with Mitsui e&P uSA LLC (MePuSA), a subsidiary established

by Mitsui & Co., Ltd. and Mitsui oil exploration Co., Ltd. The

loan, cofinanced with private financial institutions, finances

MePuSA acquiring a 15.5% interest in the Marcellus Shale

area in Pennsylvania from Anadarko Petroleum Corporation, a

u.S. corporation, and participating in its development.

For Japanese industries, the acquisition of interests in the

u.S. natural gas market will diversify their supply portfolio

and strengthen their corporate ability to balance demand

and supply. In addition, developing unconventional gas in the

united States will help relieve the tight Asian LNg market

and contribute to developing a more stable market. As there

are vast proven reserves of shale gas around the world, by

automobiles, and construction materials. Japan relies solely

on imports for all of its copper concentrate (approximately

5.36 million tons in 2010), from which copper cathodes are

produced. upon completion, this project is expected to meet

about 3% of Japan’s annual demand for copper concentrate.

acquiring knowledge and experience in shale gas develop-

ment, Japanese firms are expected to have future opportuni-

ties to participate in shale gas development projects in Asia

and other regions

Financing for Similco Copper Mine Redevelopment Project:Supporting Japanese Firms’ Efforts to Diversify Procurement Sources of Copper Concentrate

Financing Acquisition of Interests in and Development of Shale Gas:JBIC’s First Loan to Shale Gas Project

Similco Mine

Shale gas drilling rig (courtesy of Mitsui & Co., ltd.)

Canada

The United States

1. Shale is a sedimentary rock composed of mud, and contains organic matters, from which air and gas can be extracted.

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Minera San Cristóbal S.A., a Bolivian company in which Sumi-

tomo Corporation has an equity interest. The loan was cofi-

nanced with a private financial institution, with JBIC providing

a political risk guarantee for the cofinanced portion.

Bolivia has abundant resources of valuable minerals, and

is thus an important country with which Japan hopes to

strengthen relations. The loan, which finances the acquisition

by Sumitomo Corporation of an additional 65% interest in the

San Cristóbal Mine in Potosi department, Bolivia, producing

zinc, lead and silver, is the first direct loan provided by JBIC to

an entity in Bolivia. While there are many relatively small zinc,

lead and silver mines, this mine is the largest one in Bolivia

and one of the few large-scale mines. Thus, it is particularly

valuable. It supplies 13 to 14% of Japan’s total imports of

these resources (when converted into metal).

Zinc is used for corrosion-resistant galvanization of motor

vehicles, housing materials and household electric appli-

ances, as well as for corrosion-resistant parts of ships, bridges

and docks. Lead is mainly used for automotive batteries.

JBIC signed a long-term loan agreement with Brazilian com-

pany Pilkington Brasil Ltda. (PBL), a wholly owned subsidiary

of Nippon Sheet glass Co., Ltd. (NSg), to finance manufactur-

ing and sales of automotive glass. The loan was cofinanced

with private financial institutions.

PBL manufactures automotive glass among others, and sup-

plies products to Japanese as well as u.S. / european auto-

motive vehicle manufacturers operating businesses in Brazil.

As vehicle demand has expanded in Brazil and other

Latin American countries in recent years, competition with

other manufacturers has become increasingly severe in the

automotive glass sector. JBIC’s financial support for PBL’s

Japan is totally dependent on imports for all the zinc and lead

concentrates used as raw materials for zinc and lead metals.

given the global increase in demand for those concentrates,

it is becoming increasingly important to secure supplies.

Through this loan, JBIC provides financial support for securing

a long-term stable supply of strategically important resources

for Japan.

manufacturing and sales of automotive glass is expected to

help the Japanese firm to secure the market share in Brazil.

Financing for Acquisition of Additional Interest in San Cristóbal Mine:To Help Secure Resources and Strengthen Bolivia–Japan Relationship

Long-term Loan for Manufacture and Sales of Automotive Glass:Supporting Japanese Firm for Acquiring Overseas Market

Bolivia

Brazil

San Cristóbal Mine

Pilkington Brasil ltda.

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JBIC signed an untied loan agreement totaling ¥14.6 billion

with the government of the State of São Paulo, Brasil. The

loan was cofinanced with a private financial institution, with

JBIC providing a guarantee for the cofinanced portion, and

finances the São Paulo Metro Line 4 extension Project (Phase

2) undertaken by the government of the State.

São Paulo, which is the center of the Brazilian economy, is

plagued by such urban problems as chronic traffic congestion

and air pollution. The project is designated by the federal

government as one of the priority projects for developing

transport infrastructure in Brazil’s largest metropolitan area.

Since Japanese firms are participating in Metro operations in

the project, JBIC’s financial support will help Japanese compa-

nies to maintain and strengthen their international competi-

tiveness in the railway sector.

Looking forward to the FIFA World Cup in 2014 and the

olympic games in 2016 in Rio de Janeiro, Brazil is planning

to make various infrastructure investments. With its wealth of


usinas Siderúrgicas de Minas gerais S.A. (uSIMINAS), Nippon

Steel Corporation (NSC)’s equity-method affiliate incorporat-

ed in Brazil. The loan was cofinanced with a private financial

institution, with JBIC providing guarantee for the cofinanced

portion.

This loan finances uSIMINAS to add a new rolling mill for

the existing heavy plate production facility in Ipatinga, locat-

ed in the State of Minas gerais. As growing demand for steel

products is expected in Brazil due to its economic growth, the

heavy plates produced by this project are planned to be sold

as high-value-added steel to satisfy the demand of energy

and shipbuilding industries in the country.

natural resources, large markets and geographical proximity

to the united States and european markets, the country is

attracting global attention. For Japanese businesses, too, its

strategic importance has been increasing.

Amid increasingly intense competition in the global steel

industry, NSC sees the expansion of overseas operations as

one of the key components in its business strategy. desig-

nating uSIMINAS as one of the “global Tri-polar Production

and Processing Bases,” which covers the American and Pan-

Atlantic emerging market, NSC has provided the most ad-

vanced technology to uSIMINAS for the heavy plate produc-

tion facility. This loan will support NSC’s overseas business

strategy, which will ultimately serve to maintain and enhance

the international competitiveness of the Japanese steel

industry.

São Paulo Metro line 4

Financing Transport Infrastructure Development Project in São Paulo:Supporting Subway Project where Japanese Firms Participate

Loan and Guarantee for Steel Project:Supporting Overseas Business Operations by Japanese Steel Industry

JBIC

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Equity Participations6

Japan Finance Corporation 2011 JBIC > Operations by Region > Equity Participations

JBIC signed an agreement for equity participation in the fund

investing in Vietnamese growth companies. This fund, jointly

managed by dream Incubator Inc. and oRIX Corporation, is

launched with an initial capital commitment of about ¥5 bil-

lion, of which JBIC contributes up to ¥1 billion.

This is a private equity fund making investments in com-

panies that need funding and technologies to grow and

also provides support for them in such areas as matchmak-

ing business alliances with Japanese companies, thereby

JBIC signed an agreement for equity participation in Tata Cap-

ital growth Fund L.P., which invests primarily in Indian growth

companies. JBIC contributes up to $25 million to the Fund.

The Fund is a private equity fund jointly managed by a

Singaporean subsidiary of Tata Capital Limited and Mizuho

Securities Co., Ltd. through a fund management company. It

makes investments principally in Indian growth companies

that need funding and expertise for growth.

aiming to increase their corporate value. Its investments are

expected to stimulate the growth of Vietnamese firms, while

helping facilitate business development for Japanese firms in

Viet Nam, a country which is promising as a manufacturing

base as well as a market for consumer products.

JBIC actively supports funds where Japanese firms perform

a major role in management and making investment deci-

sions, while contributing to overseas business development

of Japanese firms.

Japanese business will have opportunities to access Indian

growth companies through the networks of the Tata Capital

Limited, the Tata network and the Mizuho group. JBIC is

working to support Japanese business development in India,

a promising country as a market and a production base,

thereby helping Japanese firms maintain / improve their inter-

national competitiveness.

Equity Participation in Fund Investing in Viet Nam’s Growth Companies:Supporting Business Development that Bridges Viet Nam and Japan

Equity Participation in Fund Investing in India’s Growth Companies:Supporting Japanese Business Development in India

1

2

The Credit guarantee and Investment Facility (CgIF) is a

trust fund established in November 2010 within the Asian

development Bank (AdB). All the member countries of the

ASeAN+31 and the AdB made capital contribution to the

CgIF, with JBIC making the largest contribution of $200 mil-

lion, out of its total fund volume of $700 million.

The primary function of the CgIF is to provide guarantees

for local currency-denominated bonds issued by the compa-

nies in the region with the aim of helping develop regional

bond markets. The operational principles of the CgIF have

been worked out in working-level meetings in which the

finance ministry officials of the region participated. In these

meetings, JBIC has contributed to designing framework of

CgIF by drawing on the expertise on bond guarantees and

corporate credit analysis gained through its operations.

The CgIF is one of the outcomes of the Asian Bond Mar-

kets Initiative agreed on at the ASeAN+3 Meeting in 2003.

The CgIF is expected to contribute to developing bond mar-

kets in the ASeAN+3 region as well as preventing financial

disorder in the region.

Equity Participation in CGIF Providing Guarantees to Corporate Securities in the ASEAN+3 Region:Support for the Prevention of International Financial Disorder

3

1. ASeAN+3 is a forum for cooperation between the Association of South east Asian Nations (Brunei darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singa-pore, Thailand and Viet Nam) and three east Asian countries of China, Republic of Korea and Japan.

3JBIC

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Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies

1 Operational Policy in FY2011 42

2 Compliance 42

3 Disclosure 43

4 Risk Management 44

5 Business Management Plan and the Evaluation System 48

Operational and Administrative Policies

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Operational Policy in FY20111

Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies > Operational Policy in FY2011; Compliance

In FY2011, JBIC will execute its functions to live up to ex-

pectations of the public, guided by the following four policy

themes, while taking account of Japanese government poli-

cies, domestic and international economic and financial con-

ditions, developments in Japanese business activities, and

economic and social conditions in developing countries.

(1) Promoting overseas development and acquisition of stra-

tegically important natural resources to Japan

(2) Maintaining and improving the international competitive-

ness of Japanese industries

(3) Promoting the overseas business for preserving the global

environment, such as preventing global warming

(4) Responding to disruptions in financial order in the inter-

national economy

In conducting operations, JBIC will continue to play its role

as a policy-based financial institution by complementing and

encouraging the activities of private sector financial institu-

tions to ensure their effective financing in light of domestic

economic and financial conditions. Its operations will be

conducted in response to various policy initiatives and strate-

gies launched by the Japanese government. In addition, JBIC

will respond expeditiously and flexibly to the changing busi-

ness environment and client needs. In particular, following

the launching of the New Growth Strategy by the Japanese

government and entry into force of the new Japan Bank for

International Corporation Act (the new JBIC Act) on April 28,

2011, JBIC is empowered to support Japanese firms more ef-

fectively in their infrastructure business and in other strategic

overseas lending and investments. In other words, JBIC is now

able to provide: export loans for developed countries; over-

seas investment loans as short-term bridge loans; overseas in-

vestment loans to finance Japanese firms for acquiring foreign

businesses; two-step loans to facilitate mid-tier enterprises,

SMEs and other Japanese firms to develop their overseas

business; and guarantees for currency swaps.

JBIC will also make every effort to increase the transpar-

ency, effectiveness and efficiency of its operations by appro-

priately managing various risks associated with its changing

scope of operations, as it seeks to further expand strategic

business operations; by mainstreaming environmental and so-

cial considerations; and by constantly making improvements

from its clients’ viewpoint.

The planned financing volume in FY2011 amounts to

¥1,552.5 billion.

(Note) In addition to the above functions, JBIC started the Financial Operations for Facilitating Realignment of United States Forces in Japan (USFJ) from April 1, 2010. It is expected to provide loans in this operation in FY2011.

JFC’s Board of Auditors consists of four members, of which

three are outside auditors. In addition to auditors reviewing

the execution of duties of the executive officers of JFC, the

Audit Department, which reports directly to the Governor &

CEO of JFC as an independent unit from other departments

with responsibility for internal audit, conducts a periodic

internal audit of JBIC and other business units to ensure fair

and appropriate operations in compliance with the relevant

acts and regulations.

As a policy-based financing institution that operates in-

ternationally to advance Japan’s external economic policy,

JBIC places compliance high on its agenda. JBIC recognizes

an obligation to deliver concrete results to meet social and

international expectations. Moreover, JBIC seeks to enhance

the quality of operations by maintaining a clear vision and

integrity. From this perspective, JBIC will not limit itself to

achieving compliance with the relevant acts and regulations,

but will actively strive toward compliance in a broader sense

that includes socially accepted moral values as well as expec-

tations of the international community.

JBIC will continue to raise the awareness of management

and staff on compliance by various efforts including training

sessions on compliance issues, among others, based on the

compliance program prepared by the Corporate Governance

Committee of JFC, where major issues regarding its corporate

governance are discussed.

For appropriate management of information, including per-

sonal information, JBIC drew up and made public its privacy

policy (see p.124). Additionally, various efforts have been

made to increase the awareness of information management

for each employee, including training sessions for manage-

ment and staff.

2Compliance

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Disclosure3

Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies > Disclosure

JBIC discloses to the public operational and financial information to increase the understanding of its current activities

as follows.

Source of Information Access

JFC Annual Report (Japanese and English) P Available in all offices

JBIC Annual Report (Japanese and English) P Available in all offices

JBIC’s Activities for Environmental Sustainability (Japanese and English) P Available in all offices

The Role and Function of JBIC (Japanese, English, Chinese, Russian, French and Spanish) P Available in all offices

JBIC Website P On the Internet (http://www.jbic.go.jp/en/)

(Note) “Offices” denote JBIC Head Office; JBIC Office in West Japan; and overseas representative offices.

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4 Risk Management

Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies > Risk Management

More specifically, risk management is taken to be a task

for business management that needs to be addressed sys-

tematically by the entire organization. JBIC has thus adopted

an integrated risk management policy in which various risks

facing its operations are identified, measured and monitored.

The objective of this policy is to ensure sound and effective

operations and to earn returns commensurate with risks. JBIC

manages various risks facing a policy-based financing institu-

tion. The following sections describe how JBIC is managing

major risks.

process, leading to the final decision by management.

In providing credit for foreign governments and companies,

JBIC makes the most of its unique position as an official

financier, as it exchanges views and information with the gov-

ernments and relevant authorities in the recipient countries,

multilateral institutions such as the International Monetary

Fund (IMF) and the World Bank, other official export credit

agencies and, furthermore, with private financial institutions

in developed countries. Using all these channels, JBIC evalu-

ates sovereign and country risks based on a broad range of

information collected on borrowing governments, govern-

ment agencies and political and economic conditions in their

countries.

In providing credit for domestic and foreign companies,

there is a need to evaluate their creditworthiness and the

appropriateness 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 the borrower operates.

M Internal Credit RatingJBIC has established an internal credit rating system as part of

the bank-wide operating procedures. It covers, in principle, all

the borrowers. Internal credit ratings are the cornerstone of

credit risk management, being used for conducting individual

credit appraisals and quantifying credit risks. Internal credit

rating is revised when appropriate based on the bank’s risk

profile.

M Internal Assessment of Asset PortfolioJapanese private financial institutions undertake the internal

assessment of asset portfolios in accordance with Inspec-tion Manual for Deposit-Taking Institutions (the “Financial

Inspection Manual”) of Japan’s Financial Services Agency. JBIC

is similarly undertaking the internal assessment of its loan

In general, the operations of financial institutions involve vari-

ous risks, including credit risk, market risk (such as interest

rate and exchange rate risk, etc.), liquidity risk and operation-

al risk. As the international wing of JFC, a policy-based finan-

cial 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, it

is essential to have appropriate risk management as a finan-

cial institution. In line with the international trend of placing

increasing weight on risk management as underpinnings of

the operations of financial institutions, JBIC is improving its

internal risk management system.

Credit risk refers to the potential loss from a decline or loss of

the value of credit assets due to deterioration in the financial

conditions of a debtor. This risk is inherent in JBIC’s opera-

tions as it primarily engages in lending activities. Credit risk

exposure to JBIC may be classified into: sovereign risk, which

involves financing foreign governments; corporate risk, which

involves financing business firms; project risk, which occurs

when a project financed in project financing—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 located in foreign countries (a risk

added to corporate risk and project risk arising from the

country where the debtor resides and the project is located).

Given the very nature of financial support JBIC provides for

promoting overseas development and acquisition of interests

in strategically important resources to Japan, for maintaining

and improving the international competitiveness of Japanese

industries, and for promoting the overseas business for pre-

serving the global environment, such as preventing global

warming, JBIC frequently extends loans to foreign govern-

ments, government agencies and companies. Therefore, sov-

ereign and country risks account for a considerable share of

the credit risks accompanying JBIC’s operations.

M Managing Credit RiskThe cornerstone of credit risk management at JBIC is the

evaluation of an individual borrower’s creditworthiness in the

process leading to credit approval. When a new loan applica-

tion is being processed, the relevant finance department and

the Credit Department collect and analyze information on

the borrower. The overseas representative offices also play

a part in collecting information on foreign governments and

companies. It is based on this information and its analysis

that credit appraisal takes place, with checks and balances

at work between these different departments throughout this

Credit Risk

Operations of JBIC

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M Quantifying Credit RiskIn addition to individual credit risk management, JBIC is work-

ing on quantifying credit risks with a view to evaluating the

risk of the overall loan portfolio. To quantify credit risks, it is

important to take into account the characteristics of JBIC’s

loan portfolio, which holds a significant proportion of long-

term loans and loans involving sovereign and country risks.

Also to be taken into account are mechanisms for securing

assets, such as the Paris Club1, a unique framework for debt

management by official creditor countries. The credit risk

quantification model incorporating these factors is measuring

credit risks and is utilized for internal control.

M Credit Risk of Derivatives, etc. Account for JBIC Operations (As of March 31, 2011; billions of yen)

Contract Amounts / Notional Amounts Credit Risk

Interest Rate Swaps 2,952.8 85.5

Currency Swaps 3,600.5 1,156.9

Forward Exchange Contracts 0.5 0

Other Derivatives — —

Credit Risk Reductions through Netting (57.0)

Total 6,553.9 1,185.5

(Note) Credit risk is computed based on international standards.

(3) Risks Involved in Derivatives Transactions Derivatives transactions involve the following risks.R Counterparty Credit Risk

The potential loss from the failure of a counterparty to

perform its obligations in accordance with the terms and

conditions of the contract governing transactions due to

bankruptcy or its deteriorating business performance.R Market Risk

The potential loss from changes in the market value of finan-

cial products due to fluctuations in interest rates or exchange

rates in the market.

(4) Measures to Address These RisksR Counterparty Credit Risk

JBIC constantly monitors the market value of a derivative in

making transaction with each counterparty, credit risk expo-

sure to it and its creditworthiness. Such information is then

used to assess the appropriateness of making transaction

with it.R Market Risk

JBIC utilizes derivatives transactions exclusively for the pur-

pose of hedging. Therefore, the market risk on derivatives

transactions and the risk on hedged (lending or funding)

transactions, in principle, offset each other.

portfolio, based on the Financial Inspection Manual and in

consultation with an auditing firm so that the characteristics

of its loan assets will be accurately reflected on its assess-

ment. In this process, the first-stage assessment is conducted

by the relevant financing departments, while the second-

stage assessment is conducted by the Credit Department

and 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 for

the continuous reviews of the loan portfolio but are also

reflected in the disclosure of asset quality to enhance the

transparency of JBIC’s financial position.

Market risk refers to the potential loss from changes in the

value of assets and liabilities as a result of fluctuations in in-

terest rates and foreign exchange rates. JBIC manages specific

market risks as follows.

M Exchange Rate RiskForeign currency-denominated loans involve the risk associ-

ated with exchange rate fluctuations. JBIC has a consistent

policy of hedging the full amount of such exposure through

currency swaps and forward exchange transactions.

M Interest Rate RiskInterest rate risk for foreign currency-denominated loans is

hedged through interest rate swaps. Thereby, both foreign

currency-denominated loans and their funding are made in

floating rates. On the other hand, yen-denominated loans are

mostly made in fixed interest rates. Their interest rate risk is

limited, however, since the maturities of loans and their corre-

sponding funding are more or less matched. In addition, JBIC

calculates and analyzes careful projections of its future asset /

liability structure and profits and losses.

M Derivatives Transactions(1) Basic Policy for Derivatives TransactionsJBIC engages in derivatives transactions exclusively for the

purpose of hedging exchange rate and interest rate risks.

(2) TransactionsDerivatives transactions of JBIC include interest rate and cur-

rency swaps and forward exchange contracts. The following

table gives a summary of these transactions.

1. An informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor nations. Since the first meeting took place in 1956 to resolve the debt problem of Argentina, the meeting has been held in Paris, with the French Treasury acting as its secretariat. Hence, it has come to be called the Paris Club.

Market Risk

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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 bond issues in inter-

national capital markets and FILP agency bond issues in the

domestic capital market.

M Computer System RiskComputer system risk refers to the potential loss from a

breakdown or malfunction in computer systems as well as

from their misuse. JBIC has minimized computer system risk

by increasing readiness to respond effectively to emergency

situations. Specifically, (a) measures have been taken to pre-

vent system malfunctions and leakage of client information;

and (b) contingency plans have been prepared to respond to

system malfunctions caused by natural disasters, accidents

and other causes, and disaster-response drills have been

conducted.

Liquidity risk refers to the potential loss resulting from difficul-

ties 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 the potential loss result-

ing from a failure to make transactions in the market due to

market turmoil or from being forced to make transactions at

a significantly disadvantageous price compared to normal

circumstances.

Operational risk refers to the potential loss resulting from

inadequate or failed internal processes, people and systems

or from external events. Apart from administrative and com-

puter system risks, JBIC recognizes that its operations involve

various direct and indirect risks. JBIC will proactively identify,

assess and manage such risks.

M Administrative RiskAdministrative risk is the risk of a financial institution incur-

ring losses from the neglect by officers and employees to

conduct administrative work properly, accidents caused by

them and violation of laws and regulations, etc., conducted

by them in the course of the administrative work process. JBIC

has been minimizing this risk by ensuring sound operations

through scrupulous checks on work processes, creating op-

erational manuals, improving training programs, and stream-

lining and adopting systematic procedures. In addition, the

Audit Department, independent from other departments and

reporting directly to the Governor & CEO, conducts internal

auditing of JBIC.

Liquidity Risk

Operational Risks

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related accounts are cash deposits and therefore market risk

is considered to be limited.

loan as of the end of the current fiscal year and as it spent

the expenses required for this operation, the liquidity risk is

considered to be limited.

M Computer System RiskFollowing the practice common with JBIC operation, JBIC has

minimized computer system risk by increasing readiness to

respond effectively to emergency situations. Specifically, (a)

measures have been taken to prevent system malfunctions

and leakage of client information; and (b) contingency plans

have been prepared to respond to system malfunctions

caused by natural disasters, accidents and other causes, and

disaster-response drills have been conducted.

No loan was extended in these operations.

Since no loan was extended in these operations in FY2010,

the only financial assets or liabilities held in these operations

These operations do not accept deposits, other than govern-

ment grants. In FY2010, they conducted stable funding only

from government grants, while they have yet to provide a

M Administrative RiskFollowing the practice common with JBIC operation, JBIC

has been minimizing this risk by ensuring sound operations

through scrupulous checks on work processes, creating op-

erational manuals, improving training programs and stream-

lining and adopting systematic procedures. In addition, the

Audit Department, independent from other departments and

reporting directly to the Governor & CEO of JFC, conducts

internal auditing of JBIC.

Credit Risk

Market Risk

Liquidity Risk

Operational Risks

Financial Operations for Facilitating Realignment of United States Forces in Japan

JBIC

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Japan Finance Corporation 2011 JBIC > Operational and Administrative Policies > Business Management Plan and the Evaluation System

5 Business Management Plan and the Evaluation System

advisors and external executives, and “expert members” who

are external experts having specialized knowledge of JFC

operations. The “evaluation & review members” and “expert

members” are shown below.

R Evaluation & Review Members(As of July 11, 2011; in alphabetical order)

Kozo Fujita Attorney at Law Former President, Hiroshima High Court

Sachiko Hayakawa

Former Director, Shiseido Communication CenterExternal Executive Director, Japan Finance Corporation

Kiyoe Kado Dean, College of Law and Politics, Rikkyo University

Hirofumi Miki

Chairman and Representative Director, Toyo Seikan Kaisha, Ltd. External Executive Director, Japan Finance Corporation

*Akio Mimura Chairman Representative and Director, Nippon Steel Corporation

Kazuo Mori Senior Staff Writer/Nikkei Inc.

** Naoyuki Yoshino Professor, Faculty of Economics, Keio University

* Chairman ** Deputy Chairman

R Expert Members(As of July 11, 2011; in alphabetical order)

Yoshio Higuchi Dean, Faculty of Business and Commerce, Keio University

Masao Nakata Associate Professor, Graduate School of Economics, Kyushu University

Tadanobu Nemoto Professor, Faculty of Commerce, Chuo University

Shuji Okada Professor, Faculty of Agriculture, Iwate University

Shinichi Shogenji Professor, Graduate School of Bioagricultural Sciences, Nagoya University

Yuzo Takagi Chairman & Representative of Godai Auditors

Shujiro Urata Professor, Graduate School of Asia-Pacific Studies, Waseda University

M Pursuing More Transparent and Efficient Operations

Business Management Plan

JFC formulated its business management policy and business

management plan guided by its corporate philosophy for the

period of FY2011–2013 at its Board meeting in March 2011.

Based on this policy and plan, JBIC will perform its function

effectively as a policy-based financing institution, provide sta-

ble financing and improve the quality of service to its clients.

Specifically, JBIC will provide focused and timely financing

for developing and acquiring strategically important natural

resources to Japan; maintaining and improving the interna-

tional competitiveness of Japanese industries; and promoting

the overseas business for preserving the global environment,

such as preventing global warming. JBIC will also respond to

disruptions in financial order in the international economy.

In conducting these financing operations, JBIC will cofinance

with private financial institutions, thereby complementing

private sector financing activities.

JBIC will also make efforts to identify client needs and

improve the quality of its service. In collaboration with other

business units of JFC, JBIC will provide beneficial information

to firms operating overseas by providing business consulting

services and holding seminars and other events.

M The Evaluation SystemJFC has set up the Evaluation & Review Committee, which

consists of external advisors, to monitor and evaluate wheth-

er operations are performed efficiently in line with the policy

objectives that follow decisions made by the Japanese gov-

ernment. The Committee monitors and evaluates overall JFC

operations, including those conducted by JBIC, while evaluat-

ing the performance of executives responsible for business

operations.

In principle, the findings of operational evaluation will be

made public. Under this evaluation system, JBIC will make

further improvements in its operations through the Plan–Do–

Check–Action (PDCA) cycle, whereby operational direction

and objectives are set (Plan); operations are conducted to

achieve the objectives (Do); their performance is measured

(Check); and the results are fed back into future operations

(Action).

The membership of the Evaluation & Review Committee

consists of “evaluation & review members” who are external

JBIC

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1 Purpose and Overview of Financing Operations and Other Activities 50

2 Funding Sources 51

3 Principles of JBIC Operations 52

4 A Comprehensive Approach 53

5 Financial Instruments 54

6 History 59

7 Board of Directors and Auditors of JFC 60

8 Organizational Chart 61

9 Overseas Network 62

(Note) In addition to the above functions, JBIC is responsible for making equity investments, loans and other operations necessary for the projects (the public–private partnerships of family housing and infrastructure projects associated with the relocation of U.S. Marine personnel and their dependents to Guam) to facilitate the realignment of U.S. Forces Japan (USFJ), the operations authorized to JBIC under “the USFJ Realignment Special Measures Act.” There is no equity and loan provision for FY2010.

About JBIC

Japan Finance Corporation 2011 JBIC > About JBIC

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Purpose and Overview of Financing Operations and Other Activities1

Japan Finance Corporation 2011 JBIC > About JBIC > Purpose and Overview of Financing Operations and Other Activities

M Purpose As the international wing of the Japan Finance Corporation (JFC), JBIC has a mission to contribute to the sound development of

the Japanese and international economies and to improvement in the standards of living of the Japanese people. To fulfill this

mission, JBIC performs its functions in the following areas by conducting financial operations and other activities.

P Promoting overseas development and acquisition of strategically important natural resources to Japan

P Maintaining and improving the international competitiveness of Japanese industries

P Promoting the overseas business for preserving the global environment, such as preventing global warming

P Responding to disruptions in financial order in the international economy

JBIC is taking a multifaceted approach to supporting the development of the international economies, as well as the Japanese

economy, by effectively combining its financial instruments to meet increasingly diverse needs in the world of international fi-

nancing.

Fiscal Investment and Loan Program (FILP), Bond Issues, Internal Funds, etc.

Funding

JBIC OperationsMain objectives: to promote secure access to strategic resources to Japan; promote Japanese exports and imports; facilitate Japanese overseas business activities; con-tribute to a stable financial order in the international economy; and contribute to preserving the global environment. Untied Loans

Loans for supporting improvement in the busi-

ness environment to facilitate Japanese overseas business

activities, including trade and investment, and for supporting structural adjustment in devel-oping countries. Untied loans do not require procurement

of goods and services from Japan.

Research and Studies

Research and study activities relevant to JBIC’s financial

operations.

Overseas Investment Loans

Loans for financing Japanese firms in their international

business development, including overseas projects for engaging in local production and sales and developing natural resources.

Equity Participations

Equity investments in Japanese joint ventures undertaking over-

seas projects or in the funds participated by Japanese

firms.

Import LoansLoans for Japanese imports of strategically important

natural resources, including oil, natural gas (such as LNG) and iron ore. The guarantee facil-ity is available for the import

of goods (such as aircraft) other than resources.

Bridge LoansShort-term loans for develop-

ing country governments facing balance-of-payment difficulties in financing their external trans-

actions.

Export LoansLoans for Japanese exports

of machinery and equipment, including power and telecom-

munications facilities and ships, and technologies

GuaranteesGuarantees for loans

extended by private financial institutions; for bonds issued by governments or official institu-tions; and for corporate bonds issued by overseas Japanese

affiliates, etc.

A Schematic View of Operations

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Funding Sources2

Japan Finance Corporation 2011 JBIC > About JBIC > Funding Sources

JBIC finances its activities by drawing on various funding sources, including borrowings from the Fiscal Investment and Loan Pro-

gram (FILP) Fiscal Loan, Government-guaranteed Foreign Bonds issuance, FILP Agency Bonds issuance and capital contributions

form the government.

JBIC’s budget of revenues and expenditures is submitted to the Diet for its approval as part of the national budget.

Internal Funds*

Government-guaranteed

Bonds

FILP Agency Bonds

Fiscal Loan Fund

Account

Investment Fund

Account

FILP Bonds Loans

Capital Contribution

*Repayments, etc.

Loans / Invest-mentsFinancial

Market

Japanese and foreign firms,

foreign financial institutions, foreign governments and

government agencies, multilat-

eral financial institutions

JBIC

Special Account for Fiscal Investment and Loan Program Fund

Funding Sources

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Principles of JBIC Operations3

Japan Finance Corporation 2011 JBIC > About JBIC > Principles of JBIC Operations

0 20 40 60 80 100

60.3(98%)

1.0(2%)

402.8(74%)

33.3(6%)

68.5(13%)

31.1(6%)

7.4(1%)

356.4(40%)

233.5(26%)

182.4(21%)

101.4(11%)

14.2(2%)

174.0(14%)

321.4(27%)

523.7(43%)

67.4(6%)

118.3(10%)

Guarantees 0.5(0%)

710.3(40%)

169.5(10%)

151.2(9%)

638.1(36%)

76.8(4%)

19.8(1%)

(%)

61.3

543.0

888.4

1,204.7

1,765.9

Export loans Import loans Overseas investment loans Guarantees Equity participationsUntied loans Governmental loans

FY2010

FY2000

FY1985

FY1970

FY1955

M Policy-based Financing As a policy-based financing institution, JBIC has a mandate to

advance Japan’s external economic policy for the sound de-

velopment of the Japanese and international economies and

to the improvement of the quality of national life. Under the

supervision of the Minister of Finance, JBIC conducts sound

and efficient operations in accordance with the Japan Fi-

nance Corporation Act (the JFC Act), as well as other related

acts and regulations, and based on its fiscal budget passed

by the Diet. Of the supervisory powers of the Minister of

Finance, those associated with risk management involved in

operations may be delegated to the Commissioner of the Fi-

nancial Services Agency, as in the case of other policy-based

financing institutions.

M Complementing Activities of Private Financial Insti-tutions

Under the JFC Act, JBIC is to complement activities of private

financial institutions.

M Ensuring Financial Soundness JBIC pursues sound and efficient financial operations. In con-

ducting its financial operations, JBIC adheres to the principles

of “certainty of repayment” and “sufficient revenues to cover

expenditures.”

M Risk Management JBIC makes internal assessment of its asset portfolio in ac-

cordance with the Financial Inspection Manual prepared by

the Financial Services Agency and in consultation with an

auditing firm. In addition, JBIC is making efforts to perform

risk management appropriate to a policy-based financing

institution, including measures to strengthen compliance (see

p. 44).

M Evaluating Operational Performance JFC has set up the Evaluation & Review Committee, which

consists of external experts and will review and evaluate

whether operations are performed efficiently in line with

policy objectives that are based on decisions made by the

Government of Japan. The Committee evaluates and reviews

the overall JFC operations, including those conducted by JBIC.

In principle, the findings of operational evaluation will be

made public (see p. 48).

Changing Composition of Loans, Equity Participations and Guarantees(Commitments; billions of yen)

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A Comprehensive Approach4

Japan Finance Corporation 2011 JBIC > About JBIC > A Comprehensive Approach

Contributing to the sound development of the Japanese and international economies and society, and to the improvement

in the standards of living of the Japanese people.

Offering financing solutions by utilizing a range of financial tools

Japanese government

Host country

governments

Japanese firms

JBIC

Private financial

institutions

Multilateral financial

institutions

JBIC Performs Four Statutory FunctionsP Promoting overseas development and acquisition of strategically important natural resources to Japan

P Maintaining and improving the international competitiveness of Japanese industries

P Promoting the overseas business for preserving the global environment, such as preventing global warming

P Responding to disruptions in financial order in the international economy

Identifying needs, matching policies, proposing solutions by making full use of networking

with various players

P Export Loans

P Import Loans

P Overseas Investment Loans

P Untied Loans

P Guarantees

P Bridge Loans

P Equity Participations

JBIC is making comprehensive use of its various financial instruments and schemes in conducting operations to perform its func-

tions in the following areas: “promoting overseas development and acquisition of strategically important natural resources to

Japan,” “maintaining and improving the international competitiveness of Japanese industries,” “promoting the overseas business

for preserving the global environment, such as preventing global warming” and “responding to disruptions in financial order in the

international economy.” In the process of executing these operations, JBIC has conducted policy dialogue with host country gov-

ernments and formed partnerships with multilateral and private financial institutions. Thereby, JBIC is contributing to the sound

development of the Japanese and international economies and to improvement in the standards of living of the Japanese people.

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Financial Instruments5

Japan Finance Corporation 2011 JBIC > About JBIC > Financial Instruments

JBIC contributes to the sound development of the Japanese

and international economies and to improvement in the

standards of living of the Japanese people by utilizing a wide

range of financial instruments in conducting operations to

perform its functions in the following four areas: “promoting

overseas development and acquisition of strategically impor-

tant natural resources to Japan;” “maintaining and improving

the international competitiveness of Japanese industries;”

“promoting the overseas business for preserving the global

(1) Export LoansExport loans support Japanese export of machinery, equip-

ment and technology. They take the form of buyer’s credits

(B/Cs)1 to foreign importers (buyers) and bank-to-bank loans

(B/Ls) to financial institutions overseas.

Since machinery and equipment—particularly plants, in-

cluding power generation facilities—embody various ad-

vanced technologies and technical features, their exports

are expected to enhance the technological base of Japanese

industries. Furthermore, in view of the fact that the domes-

tic industries associated with plants encompasses a large

number of firms, including mid-tier enterprises and small and

medium-sized enterprises (SMEs) producing parts and com-

ponents, plant export financing supports a broad spectrum

of these firms.

For developing countries, imported plants will bring such

economic benefits as industrial infrastructure development,

increased employment opportunities and the acquisition of

skills through technical transfer in plant operations, thereby

promoting sustainable economic development.

However, the provision of long-term financing for devel-

oping countries involves country risk, which arises from

changes in domestic political and economic situations, and

high risks of interest and currency rate fluctuations. These

risks are often too large to be dealt with by private financial

institutions. It is for this reason that JBIC steps in as an official

financial institution to ensure well-functioning international

financing. Other developed countries also have similar official

financial institutions to support exports. Examples include

the Export-Import Bank of the United States (US EXIM), the

Export Credits Guarantee Department (ECGD) of the United

Kingdom, Kreditanstalt für Wiederaufbau (KfW) of Germany,

Compagnie Française d’Assurance pour le Commerce Extéri-

eur (COFACE) of France and Export Development Corpora-

tion (EDC) of Canada.

Due to the enforcement of the Japan Bank for International

Cooperation Act (the new JBIC Act) in May 2011, JBIC can

environment, such as preventing global warming;” and “re-

sponding to disruptions in financial order in the international

economy.”

JBIC finances its operations through various sources, includ-

ing borrowings from the FILP, bond issues in international and

domestic capital markets and internal funds including loan

repayments. JBIC places emphasis on financial soundness.

The JFC Act sets out the principles of “certainty of repayment”

and “sufficient revenues to cover expenditures.”

now support the export of machinery and equipment for

developed countries in eligible sectors as follows.

M Eligible Sectors of Export Loans in Developed Coun-tries (as of the end of July 2011)

R Integrated Infrastructure System ProjectsRailways (high-speed, inter-city projects and projects in major

cities), water business, biomass fuel production, renewable

energy power generation, nuclear power generation, power

transformation, transmission and distribution, highly efficient

coal-fired power generation, coal gasification, carbon capture

and storage (CCS), highly efficient gas-fired power generation

and smart grid

R Other Export TransactionsShips, satellites, aircrafts, medical positron beam therapy

equipment

(2) Import LoansImport loans support imports of strategically important

goods including natural resources. They are extended to

Contributing to the Sound Development of the Japanese and International Economies

Principal Financial Instruments

1. Buyer’s credit is a loan JBIC directly extends to a foreign importer (buyer) to finance its import of machinery and equipment from a Japanese firm.

Loans (B/Ls)

Loans (B/Cs) Loans

Exports of plants, etc.

JBICFinancial

institutions, etc., in foreign

countries

Importers in foreign countries

Japanese exporters

Export Loans

Loans Loans

Imports of natural

resources

JBIC

Foreign exporters

Japanese importers

Import Loans

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(3) Overseas Investment LoansOverseas investment loans support Japanese direct invest-

ments. They are extended to Japanese business investors,

foreign affiliates including joint ventures where Japanese

firms have equity interests and governments or financial

institutions that make equity investments in or extend loans

to such joint ventures. Previously, overseas investment loans

extended directly to Japanese business investors were limited

to projects aimed at developing or acquiring interests in over-

seas resources that are strategically important to Japan or

projects undertaken by mid-tier enterprises and SMEs. How-

ever, following the promulgation and entry into force of the

new JBIC Act, JBIC is empowered to extend loans to domestic

firms, including large firms, for supporting their merger and

acquisition (M&A) activities. In addition, JBIC can now provide

two-step loans (TSLs) for Japanese firms, including mid-tier

enterprises and SMEs to support their overseas business

development, as well as TSLs for domestic firms to support

their M&A activities. Apart from these new operations, JBIC is

further empowered to provide short-term loans for overseas

business operations in cases when bridge loans are required

to fill the financing gap before it offers long-term loans and

expands eligible areas for overseas investment loans in devel-

oped countries.

Increasing globalization has given rise to a business envi-

ronment where a wide range of Japanese businesses have

found it imperative to conduct operations overseas. Overseas

investments by Japanese firms will lead to capturing overseas

markets growing with brisk demand and an advanced do-

mestic industrial structure. This will result in a more efficient

international division of labor. For investors, however, foreign

direct investment involves risks that they do not ordinarily

Japanese importers or foreign exporters. As Japan is poorly

endowed with natural resources, stable imports of natural

resources over the long term are one of the key factors un-

derpinning domestic economic activity. Import loans finance

the development and import of energy resources, including

oil and natural gas, and mineral resources, including iron ore.

take into consideration in domestic investments, including an

abrupt shift in economic policy, fiscal collapse and economic

turmoil. In addition to financing, JBIC provides information

and advice on investment climates in foreign countries pri-

marily for mid-tier enterprises and SMEs. As an official finan-

cial institution, JBIC also seeks to mitigate such risks through

dialogues with host country governments and government

agencies.

M Eligible Sectors of Overseas Investment Loans in Developed Countries (as of the end of July 2011)

Railways (high-speed, inter-city projects and projects in major

cities), water business, renewable energy power generation,

nuclear power generation, power transformation, transmis-

sion and distribution, highly efficient coal-fired power gen-

eration, coal gasification, carbon capture and storage (CCS),

smart grid, development of telecommunications network,

biomass fuel production, highly efficient gas-fired power gen-

eration, aircraft maintenance and sales, M&A activities, etc.

(4) Untied LoansUntied loans are loans not conditional on procurement of

equipment and materials from Japan. They have served to:

(1) maintain and expand trade and direct investment from

Japan;

(2) secure stable supplies of energy and mineral resources

to Japan;

(3) promote business activities of Japanese firms;

(4) finance projects having significant effect on global environ-

mental preservation; and

(5) maintain international financial order.

Loans

Loans

Loans

Loans

Loans

Japanese affiliates

Joint venture partners

Governments, financial

institutions, etc., in foreign countries,

Japanese banks

Projects in foreign countries

JBIC

Japanese firms

Overseas Investment Loans

Loans

Equity investment

Loans and / or equity investment

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Untied loans may be categorized into two types: project

loans and policy adjustment loans. Project loans are used

to finance projects for developing economic infrastructure,

including power, telecommunications and transportation

facilities, and for developing natural resources. Policy ad-

justment loans support economic management, including

structural adjustment in the overall economy and in individual

sectors. A project loan may take the form of a TSL, which

supports the promotion of exports and the development

of supporting industries in a developing country through its

official financial institution. As untied loans are often provided

in cofinancing with such multilateral financial institutions as

the World Bank, the International Monetary Fund (IMF), the

Asian Development Bank (ADB), the Inter-American Develop-

ment Bank (IDB) and the European Bank for Reconstruction

and Development (EBRD), JBIC has developed close coop-

erative relations with these institutions. Furthermore, drawing

on its strong ties with developing countries fostered by the

provision of untied loans, JBIC provides indirect support for

Japanese firms’ business activities in developing countries by

helping solve disputes that arise between developing country

authorities and Japanese firms.

In providing untied loans, the focus is placed on:

(1) resource development projects (including related infra-

structure projects) and the projects that will serve to

strengthen relations with resource-producing countries in

order to secure stable supplies of natural resources;

(2) infrastructure projects and projects for developing sup-

porting industries in order to improve the business envi-

ronment for Japanese firms conducting business opera-

tions in developing countries; and

(3) projects that have a substantial impact on global

2 Guarantees for Corporate Bonds Issued by Japanese Affiliates

JBIC supports Japanese affiliates operating overseas by pro-

viding guarantees for the bonds they issue in local capital

markets.

environmental preservation, including those substantially

reducing greenhouse gas (GHG) emissions.

(5) GuaranteesJBIC provides guarantees for loans extended to developing

countries by private financial institutions and bonds issued

by governments and other entities in developing countries.1 Guarantees for Imports of Manufactured ProductsJBIC has a guarantee facility for the borrowings made by

Japanese firms to finance the import of aircraft and other

manufactured products that are important for Japan.

Loans

Projects in the recipient

countries

ExportersForeign importers

JBIC


institutions, etc., in foreign

countries

Untied Loans

Imports of equipment technology

Loans

Foreign exporters

Japanese importers

Private financial

institutions, etc.

JBIC

Guarantees for Imports of Manufactured Products

Guarantees

Import of products

Guarantees

Issue of bonds

Guarantees

JBIC

Japanese affiliates (Issuer)

Investors

Japanese firms (Parent

companies, private finan-cial institu-

tions)

Guarantees for Corporate Bonds Issued by Japanese Affiliates

Sub guaranteesCounter

guarantees

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3 Guarantees for Overseas Syndicated Loans and Public-sector Bonds

Loans to developing countries involve, among others, curren-

cy conversion risk, transfer risk and country risk. Guarantees

that JBIC issues to cover such risks will enable Japanese pri-

vate financial institutions to provide medium- and long-term

financing for developing countries, supporting developing

countries to bring in private capital and facilitating private

firms expanding international finance activities.

(7) Equity ParticipationsEquity participations are capital contributions to joint ven-

tures set up by Japanese firms to undertake overseas projects

and funds where Japanese firms perform a significant role.

JBIC also makes equity participations to joint ventures set

up by international financial institutions or other multilat-

eral institutions which have a concrete positive effect on the

overseas business development of Japanese firms or which

respond to the disruption of international finance.

(6) Bridge LoansBridge loans provide short-term financing for governments of

developing countries to meet their foreign currency needs

for external transactions when they face balance-of-payment

difficulties.

When JBIC provides export loans, import loans,

overseas investment loans and untied loans, JBIC

can also provide credits, in addition to providing

loans and guarantees, by purchasing loan assets

and acquiring public and corporate bonds1 issued

by borrowers for funding. The objective of such

operations is to promote private financial institu-

tions’ loans in international finance and Japanese

firms’ funding in international capital markets.

Acquisition of Loan Assets and Public and Corporate Bonds

Loans

Investors

Governments, etc., in foreign

countries

Private financial

institutions, etc.

JBICGuarantees

Guarantees for Overseas Syndicated Loans and Public-sector Bonds

Loans

Import or other external transactions

Loans from the IMF, World Bank,

etc.

JBIC


institutions, etc.,

in foreign countries

Bridge Loans

Guarantees Issues of

public bonds, etc.

(Conditionality)

Funds

Japanese firmsJBIC

Joint ventures of Japanese firms, etc.

Equity Participations

Perform a significant

role

Equity participationsEquity

participations

Equity participations

Equity participations

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

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(3) Counter Guarantees for Export CreditsWhen Japanese exporters export machinery and equipment

with other country’s firm(s), JBIC provides a counter guaran-

tee for the guarantee provided by that country’s Export Credit

Agecy (ECA), thereby participating in a multilateral mutual

guarantee scheme.

Following the new JBIC Act promulgated and entered into

force in May 2011, JBIC is empowered to provide export

loans for developed countries, overseas investment loans for

equity investment in foreign companies for supporting M&A

activities, etc., overseas investment loans to provide short-

term bridge loans and TSLs for domestic private financial

institutions, as mentioned previously. These operations have

begun from July 2011. In addition, JBIC will be able to offer the

following financing products from April 2012.

(1) Guarantee for Currency SwapsJBIC provides guarantees for swap transactions to support the

local currency financing of overseas infrastructure projects

undertaken by Japanese firms.

Other New Operations

Guarantee

Guarantee

Counter guarantee

Loan

Local currency

loan

Payment

Assignment of account receivable

Payment

Accounts receivable,

etc.

Export

Private financial

institutions

Private financial

institutions Investors

Private bank syndicate

Foreign ECA

Swap counterparty

in a developing country

Japanese firms

Local Japanese affiliates

Foreign companies

Japanese companies

Overseas infrastructure

projects

Local companies

Foreign importers

JBIC

JBIC

JBIC

Guarantee for Currency Swaps Transaction

Guarantee for Liquidation and Securitization of Accounts Receivable

Counter Guarantees for Export Credits

Currency swap

contract

SPC or

Trust

Investment

Operation

Guarantee

Asset-backed

securities

Guarantee

(2) Guarantee for Liquidation and Securitization of Accounts Receivable

JBIC helps increase the liquidity of the accounts receivable

held by overseas Japanese affiliates by providing guarantees

for them, which facilitate their inter-bank transactions.

When a special purpose company (SPC) or a trust com-

pany issues securities secured on monetary claims held by

overseas Japanese affiliates, JBIC may also provide guarantees

such as security issues.

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History6

Japan Finance Corporation 2011 JBIC > About JBIC > History

Date The Export-Import Bank of Japan-related events Date The Overseas Economic Cooperation Fund (OECF)-related events

Dec. 1950 “Japan Export Bank Act” enacted

Apr. 1952 The bank changed name to “The Export-Import Bank of Japan”

Dec. 1960 “The Overseas Economic Cooperation Fund, Japan Act” enacted

Mar. 1961 “The Overseas Economic Cooperation Fund, Japan (OECF) was established, and took over Southeast Asia Development Cooperation Fund

Apr. 1999 The Japan Bank for International Cooperation Act promulgated

Apr. 1999 The Japan Bank for International Cooperation Act pro-mulgated

Sep. 1999 Cabinet Order related to the execution of the Japan Bank for International Cooperation Act promulgated Ministerial Ordinance related to the execution of the Japan Bank for International Cooperation Act pub-lished on official register

Sep. 1999 Cabinet Order related to the execution of the Japan Bank for International Cooperation Act promulgated Ministerial Ordinance related to the execution of the Japan Bank for International Cooperation Act published on official register

Date JBIC-related events

Oct. 1999 JBIC established (takes over operations of the Export-Import Bank of Japan and those of OECF)

Oct. 2003 “JBIC Guidelines for Confirmation of Environmental and Social Considerations” and “Procedures to Submit Objections Concern-ing JBIC Guidelines for Confirmation of Environmental and Social Considerations” enforced

Dec. 2005 Cabinet Decision on Important Policy for Administrative Reform

May 2006 Act on Promotion of Administrative Reform for Realization of Small and Efficient Government

Jun. 2006 System Design regarding the Reform of Policy-based Finance adopted by the council for the Reform of Policy-based Finance

Nov. 2006 Partial Amendment to the Act on the Japan International Cooperation Agency, Independent Administrative Agency promul-gated

May 2007 Japan Finance Corporation Act promulgated

Sep. 2007 The Act on Special Measures Concerning Effective Realignment of the U.S. Forces in Japan enacted

Date Japan Finance Corporation (JFC)-related events

Oct. 2008 JFC established under the Japan Finance Corporation Act

Mar. 2010 The revised Japan Finance Corporation Act enforced (The promotion of overseas business for preserving the global environ-ment was added to the scope of JBIC operations)

Apr. 2010 Financial account established to facilitate the realignment of U.S. Forces Japan

Apr. 2011 The Japan Bank for International Cooperation Act (the new JBIC Act) was legislated / enacted. Following promulgation and entry into force in May 2011, its financing facilities were expanded, which includes export loans to developed countries. The new JBIC Act also set forth that JBIC be separated from JFC and become an independent official financial institution.

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Board of Directors and Auditors of JFC7

Japan Finance Corporation 2011 JBIC > About JBIC > Board of Directors and Auditors of JFC

(As of June 22, 2011)

Governor & CEO Shosaku Yasui

Deputy Governor Koichi Hosokawa

President & CEO, JBIC Hiroshi Watanabe

Senior Managing Director Ryuhei Katsuno

Senior Managing Director Masatoshi Sakano

Senior Managing Director Yoshihiko Murase

Senior Managing Director Kazuhiko Bando

Managing Director Fumio Hoshi

Managing Director Yasutaka Tobita

Managing Director Yoshio Nakamura

Managing Director Masahiko Hara

Managing Director Hiromi Minagawa

Managing Director Kozo Yamamoto

Executive Director Masaharu Miyahara

Executive Director Hiroo Motegi

Executive Director Masami Yoshida

Executive Director Kohei Nakanishi

Executive Director Yasuhiro Mitsumasu

Executive Director Yasushi Yamazaki

Executive Director Masafumi Yamamoto

External Executive Director Sachiko Hayakawa

External Executive Director Hirofumi Miki

Corporate Auditor Katsufumi Nomura

Corporate Auditor Jun Kanamori

External Auditor Toshio Ikeda

External Auditor Nobuko Takahashi

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Organizational Chart8

Japan Finance Corporation 2011 JBIC > About JBIC > Organizational Chart

(As of October 1, 2011)

Corporate Group (Head Manager: Kohei Nakanishi, Executive Director)

Corporate Planning Department Policy and Strategy Office for Financial Operations

Legal and Environment Finance Engineering Department

Human Resources Management Office

Risk Management Department

Treasury Department Administration and General Services Office

Operations and Transaction Department

Energy, Natural Resources and Environment Finance Group

(Head Manager: Koichi Yajima, Managing Executive Officer)

Oil and Gas Finance Department

Mining and Metals Finance Department

Nuclear and Renewable Energy Finance Department

Infrastructure Finance Group (Head Manager: Takaya Naito, Managing Executive Officer)

Power and Water Finance Department

Transportation and Telecommunication Finance Department

Industry Finance Group (Head Manager: Kazuo Yuhara, Managing Executive Officer)

Global Manufacturing Finance Department

New Technology and Industry Finance DepartmentExecutive Officer for West Japan

(Hiroshi Imoto)

Credit and Assessment Group (Head Manager: Masahiko Hara, Managing Director)

Credit Department Environmental Assessment Office

Country Credit DepartmentBeijing Bangkok Hanoi Jakarta Manila Singapore (Regional Headquarters for Asia and

Oceania) New Delhi Sydney Moscow London (Regional Headquarters for Europe,

the Middle East and Africa) Paris Dubai New York (Regional Headquarters for the

Americas) Washington, D.C. Buenos Aires Mexico City Rio de Janeiro

Finance Department for Facilitating Realign-ment of U.S. Forces Japan1

1. The Department is responsible for operations neces-sary for facilitating realignment of U.S. Forces Japan, the operations authorized to JBIC under the Act on Special Measures Concerning Smooth Implementation of Re-alignment of United States Forces in Japan.

Representative Offices

(Resident Executive Officer for Asia and Oceania: Ryuichi Kaga)(Resident Executive Officer for Europe, the Middle East and Africa: Toshiyuki Kosugi)(Resident Executive Officer for the Americas: Toyoaki Fujita)

Prior to the shift to a new independent organization from April 2012, JBIC realigned its organizational structure from region-based

loan departments to three mission / sector-specific business groups: Energy, Natural Resources and Environment Finance Group;

Infrastructure Finance Group; and Industry Finance Group. With the Corporate Group and the Credit and Assessment Group sup-

porting these finance groups, JBIC is now constituted by five business groups. The objective of realignment is to strengthen the

capacity to formulate projects by bringing together know-how and expertise in each sector and area, thereby creating an institu-

tion that can execute the functions in its mission more flexibly and strategically—the mission directly linked to Japan’s economic

policy. In the network of overseas representative offices, Singapore, London and New York are assigned as core regional offices

to supervise business and administrative activities and support project formulation in Asia and Oceania; Europe, the Middle East

and Africa; and the Americas, respectively.

JBIC

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Overseas Network9

Japan Finance Corporation 2011 JBIC > About JBIC > Overseas Network

(As of October 1, 2011)

P REPRESENTATIVE OFFICE IN BEIJING2102, Tower C Office Building, YINTAI Center, No. 2 Jianguomenwai Avenue, Chaoyang District, Beijing 100022, P.R.C. TEL : 86-10-6505-8989FAX: 86-10-6505-3829

P REPRESENTATIVE OFFICE IN BANGKOK14th Floor, Nantawan Bldg., 161 Rajdamri Road, Bangkok 10330, ThailandTEL : 66-2-252-5050FAX: 66-2-252-5514

P REPRESENTATIVE OFFICE IN HANOI3rd Floor, Sun City, 13 Hai Ba Trung Street, Hoan Kiem District, Hanoi, Viet Nam TEL : 84-4-3824-8934~6FAX: 84-4-3824-8937

P REPRESENTATIVE OFFICE IN JAKARTASummitmas II 5th Floor, Jl. Jenderal Sudirman, Kav. 61-62, Jakarta Selatan, Indonesia TEL : 62-21-5220693FAX: 62-21-5200975

P REPRESENTATIVE OFFICE IN MANILA11/F, Tower 1, The Enterprise Center, 6766 Ayala Avenue corner Paseo de Roxas, Makati City, Philippines TEL : 63-2-856-7711~4FAX: 63-2-856-7715~6

◉REPRESENTATIVE OFFICE IN SINGAPORE(Regional Headquarters for Asia and Oceania)9 Raffles Place, #51-02 Republic Plaza, Singapore 048619 TEL : 65-6557-2806FAX: 65-6557-2807

P REPRESENTATIVE OFFICE IN NEW DELHI1st Floor, The Metropolitan Hotel New Delhi, Bangla Sahib Road, New Delhi 110001, India TEL : 91-11-4352-2900FAX: 91-11-4352-2950

P SYDNEY OFFICESuite 2501, Level 25, Gateway, 1 Macquarie Place, Sydney, N.S.W. 2000, Australia TEL : 61-2-9241-1388FAX: 61-2-9231-1053

P REPRESENTATIVE OFFICE IN MOSCOW123610 Moscow, Krasnopresnenskaya Nab. 12, World Trade Center, Office No. 905, Russian FederationTEL : 7-495-258-1832, 1835,1836FAX: 7-495-258-1858

◉REPRESENTATIVE OFFICE IN LONDON(Regional Headquarters for Europe, the Middle East and Africa)4th Floor, River Plate House, 7-11 Finsbury Circus, London EC2M 7EX, U.K. TEL : 44-20-7638-0175FAX: 44-20-7638-2401

P REPRESENTATIVE OFFICE IN PARIS21, Boulevard de la Madeleine, 75038 Paris Cedex 01, France TEL : 33-1-4703-6190FAX: 33-1-4703-3236

P REPRESENTATIVE OFFICE IN DUBAI9th Floor, West, The Gate Dubai International Financial Center, P.O. Box 121300, Dubai, U.A.E. TEL : 971-4-363-7091FAX: 971-4-363-7090

◉REPRESENTATIVE OFFICE IN NEW YORK(Regional Headquarters for the Americas)712 Fifth Avenue, 26th Floor, New York, NY 10019, U.S.A. TEL : 1-212-888-9500FAX: 1-212-888-9503

P REPRESENTATIVE OFFICE IN WASHINGTON, D.C.1627 Eye Street N.W., Suite 500, Washington, D.C., 20006, U.S.A. TEL : 1-202-785-1785FAX: 1-202-785-1787

P REPRESENTATIVE OFFICE IN BUENOS AIRESAv. Del Libertador No. 498, Piso19, 1001 Capital Federal, Buenos Aires, ArgentinaTEL : 54-11-4394-1379, 1803FAX: 54-11-4394-1763

P REPRESENTATIVE OFFICE IN MEXICO CITYPaseo de la Reforma 222-900B, Col. Juárez, Del. Cuauhtémoc, México D.F., C.P. 06600, México TEL : 52-55-5525-6790FAX: 52-55-5525-3473

P REPRESENTATIVE OFFICE IN RIO DE JANEIROPraia de Botafogo, 228- 801B (Setor A), Botafogo, CEP 22359-900, Rio de Janeiro, RJ, Brazil TEL : 55-21-2554-2305FAX: 55-21-2554-8798

Regional Headquarters

Moscow

Manila

Buenos Aires

Rio de Janeiro

Washington, D.C.

New YorkParis

London

Jakarta

Sydney

Mexico City

Singapore

New Delhi

Dubai HanoiBangkok

Beijing

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