JBIC`s Recent ActivitiesJBIC`s Recent Activities
ADFIAP 35th Annual MeetingApril 26th, 2012
Istanbul
Nobuyuki Higashi
Executive Officer for Asia and Pacific
Japan bank for International Cooperation
1Japan Bank for International Cooperation
Japan Bank for International Cooperation 2
JBIC’s Missions
1. Securing the supply of energy and natural resources to Japan
2. Maintaining and improving the international competitiveness of Japanese industries
3. Responding to the international financial crisis
4. Preserving the global environment
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業務概況
( billions JPY )
JBIC’s Total Commitments (1997-2010)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Overseas Investment Loan Import LoanExport Loan Untied LoanGuarantee Equity Participation
Asian Currency Crisis
Global Financial Crisis
Japan Bank for International Cooperation 4
Overview of JBIC portfolio
Outstanding Amount by Country as of the end of FY 2010
(JPY Bil)
Others11%
Africa2%
Europe10%
North America12%
Middle East17%
Asia
27%
Latin America
0
200
400
600
800
1,000
1,200
IndonesiaBrazil
Russia
Mexic
oUAE
Philippines
Saudi A
rabia
Australia Ira
n
21%
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JBIC’s FacilitiesTy
pe o
f Fin
anci
al T
ools
Type of Credits
Dire
ct L
oans
Gua
rant
ee
Equity InvestmentCorporate Finance Project Finance Sovereign Finance
Recently JBIC is empowered to provide a variety of financial services for its customers and partners…
Direct Loans on Corporate
Finance Basis
Direct Loans to Government
(Tied / Untied)
Guarantee for Commercial
Bank Loans etc
Equity Investment in Project
Companies/Funds
Guarantee for Samurai Bonds
+ Guarantee
covering Political Risks
etc
Direct Loans on Project Finance
Basis
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JBIC`s Strategy and Target Sectors
InfrastructureProject
Infrastructure PPPProject
Private Firms (local)Private Firms (foreign)
Governments/State-Owned Firms
JBIC
Commercial Lenders
Sovereign Finance
Public Sector
Private Sector
Natural ResourcesDevelopment Project
Manufacturing Project
Natural ResourcesDevelopment Project
Manufacturing Project
Developing Countries
Equity Investment
Project Finance
Corporate Finance
Political risk
guarantee
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JBIC`s Activities in Private Initiative Infrastructure Projects and
Response to Financial Crisis
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JBIC’s Activities in Asia 1990- :Dawn of Private Initiative Infrastructure Projects
Philippines・ Pagbilao Power Plant (1993)
Indonesia・ Paiton Power Plant (1995)
China・ Guangdong Zhuhai Power Station (1996)
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Asian Crisis and JBIC’s Response (1998- )
Thailand 14.7 bil.USD
Untied LoansOverseas Investment
Loans
Malaysia4.2 bil.USD
Indonesia 8.4 bil.USD
Korea8.6 bil.USD
Philippines 3.9 bil.USD
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Resumption of Private Initiative Projects and Preservation against Future Crisis (2000- )
Thailand・ BLCP Power Plant (2004)・ Kaeng Khoi 2 Power Plant (2005)・ Ratchaburi Power Plant (2005)
Vietnam ・ Phu My 2-2 Power Plant (2002)・ Phu My 3 Power Plant (2003)
Philippines・ Ilijan Power Plant (2000)・ Mindanao Power Plant (2003)・ Power Asset Acquisition (2005)・ Power Asset Acquisition (2007)
Support to SovereignSupport to Private
SectorABMI
Thailand 0.24 bil.USD
Malaysia 0.12 bil.USD
Indonesia 0.11 bil.USD
Korea 0.10 bil.USD
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Global Financial Crisis and JBIC’s Response (2008- )
Credit Guarantee to Samurai Bond
Trade Financing Facility to local banks
India 0.1bil.USD
Thailand 0.33 bil.USD
Malaysia 0.7 bil.USD
Indonesia1.4bil.USD
Vietnam 0.1bil.USD
Korea 0.3bil.USD
Philippines 1.4bil.USD
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New Framework for Regional Infrastructure Development and PPP (2010- )
Thailand・ Nong Saeng Natural Gas-Fired Power Plant (2011)
Indonesia・ Paiton 3 Coal-Fired Power Plant(2010)・ Cirebon Coal-Fired Power Plant(2010)
GMS
Support to SovereignSupport to Private SectorRegional Development
Framework
Indonesia Economic Development CorridorsPolicy Dialogue betweenthe Government of Indonesia
and JBIC
DMIC
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New Challenges in Financial Market
~Euro Crisis, Basel III~
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Financial Flow to Emerging Counties
source ) IMF World Economic Outlook (11 Sep 2011)
-300.0
-200.0
-100.0
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.020
03
2004
2005
2006
2007
2008
2009
2010
(201
1)
Private Financial Flows(Net)Official Financial Flows(Net)
Lehman Shock
(USD/billions)
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Euro Crisis : Market Presence of European Banks
6.4 6.2
4.1
2.2
8.8
13.3
10.7
8.6 9.1
6.2
21.6
23.8
13.5
16.0
10.6
0.0
5.0
10.0
15.0
20.0
25.0
2007 2008 2009 2010 2011Q3
J apanese Banks
French Banks
European Banks(including French)
(%)
source ) dealogic – Project Ware* Cumulative % of banks listed in top 10
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0
50
100
150
200
250
300
350
400
450
500
2011
/6/1
2011
/6/1
520
11/6
/29
2011
/7/1
320
11/7
/27
2011
/8/1
020
11/8
/24
2011
/9/7
2011
/9/2
120
11/1
0/5
2011
/10/
1920
11/1
1/2
2011
/11/
1620
11/1
1/30
2011
/12/
1420
11/1
2/28
bps.
US Banks
French/ Italian/Spanish BanksJ apaneseBanksUK Banks
Euro Crisis: Affecting European Banks Activities
source ) Markit
French/Italian/Spanish banks’ CDS spared are widening
Facing difficulties in funding long-term USD at proper cost
No show of French banks (market leaders to date) even in well-market recognized projects (e.g. Barzan Gas Project)
5 year CDS
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Deal Amount in Project Finance Market
source ) dealogic – Project Ware
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
2007 2008 2009 2010 2011 Q3)(
Indian Sub-continentCaribbeanEastern EuropeSub-Saharan AfricaLatin AmericaAsiaMiddle East & N.AfricaAustralasiaNorth AmericaWestern Europe
(USD/billions)
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Deal Amount in Project Finance Market (Emerging Countries)
source ) dealogic – Project Ware
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
2007 2008 2009 2010 2011 Q3)(
Indian Sub-continentAsiaLatin AmericaCaribbeanEastern EuropeMENA Sub-Sahara+
(USD/billions)
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Basel III: Changing Global Project Finance Market?
1 . Risk Weight for Project Finance Asset Same as Basel II? Treatment of ECA-backed assets?
2 . Introduction of Liquidity Requirement Liquidity Coverage Ratio
Net Stable Funding Ratio
Shortening loan-tenor? Additional funding premium on long-term loans?Shortening loan-tenor? Additional funding premium on long-term loans? Can off-balance long-term loan assets? How to recycle the capital?Can off-balance long-term loan assets? How to recycle the capital?
Stock of high-quality liquid assetsTotal net cash outflows over the next 30 calendar days ≧ 100%
Available amount of stable fundingRequired amount of stable funding > 100%
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JBIC`s New Initiatives
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A Model for JBIC`s New Initiatives in PPP Finance
Financial cooperation and various channels with the host government
Assistance for ・ macro economy ・ sovereign debt crisis
Policy Dialogue regarding PPP scheme• legal structure• institutional design • government supports
Execution of infrastructure projects in PPP scheme
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Policy Dialogue between the Government of Indonesia and JBIC
Working Team 1 Finance for Infrastructure Projects;•GOI/IIGF-JBIC Credit Enhancement Scheme•Power Sector•Water Sector•Transportation Sector, etc.
Working Team 2 Macro prudence and risk management:•Periodical discussion on economic policy•Risk management of public sector investment
Ad hoc meetings, ad hoc seminars (Natural Gas, Renewable, Clean Coal, etc.)
High-Level Annual Meeting
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Indonesia-Japan G to G Initiative/Metropolitan Priority Area (MPA)
New Port - Berth construction (Public) - Terminal operation (Private) - Container yard (Private)
Access Roads - Construction (Public) - Operation (Private)
Upgrading of Industrial Area (East Jakarta) - Logistics (roads, dry ports, etc.) (Private + Public) - Communication (optical fiber cable, etc.) (Private) - Custom services (Public)
Energy supply - Power (IPP, PPP, etc.) (Private + Public)- Gas (LNG terminal, pipeline, etc.) (Private + Public)
Project 1
- Construction (Public) - Operation (Public + Private)
Project 2Mass Transportation
Project 4
- Initial waterworks (Public) - Operation (Private)
Water Supply
- Operation (Private) - Regulation (Public)
Project 5Waste Management
- Runway construction (Public) - Operation (Private)
Project 3Airport
Source: J-MOFA
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DMIC project : a mega infra-structure project of total USD 90 billion with the financial & technical support from Japan, focusing on a 150km band on both sides of the 1,483km freight rail line planned between Delhi and Mumbai.
In Dec. 2009 JBIC agreed to provide USD 75 million loan to establish Project Development Fund (PDF) for mainly feasibility study (F/S) of the DMIC project.
In Dec. 2011 the governments of India and Japan announced to launch USD 9 billion facility (USD 4.5 billion from each country) for implementation of the DMIC project.
The Japanese government also announced the intention of equity participation of Japan into Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) which acts as an intermediary for the purpose of development and establishment of infrastructure projects in DMIC region.
Delhi
Mumbai
J.N Port
Cargo Train
Industrial area (more than 100 km2 )
Industrial regions (more than 200 km2 )
Delhi-Mumbai Industrial Corridor (DMIC) Project in India
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PFI Awards 2011 : Global Multilateral of the Year
In January 2012, JBIC was awarded Global Multilateral of the Year(2011) by Project Finance International magazine.
“JBIC is now supporting Japanese industries getting involved from the early stages of project formulation – for example, through financial policy dialogue with the Indonesian government, enhanced partnerships with host country governments, and feasibility studies on high-speed railways.
It is being pushed to actively support overseas projects, not just natural resources and power, but also in integrated infrastructure systems and other strategic projects. Also it is expected to support overseas businesses that preserve the global environment, such as preventing global warming.
Thus, there is no reason for JBIC to stop lending. In PFI’s midyear league tables, JBIC topped the table on multilateral developing country exposures, with a total of US$2,962m.
It will see further lendings not only to developing countries but also to developed ones. It will help make things happen.”
( PFI YEARBOOK 2012 )
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Thank you.Thank you.
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